Mushroom Buisness

Discussion in 'MUSHROOM CULTIVATION' started by FewTrueSeed, Feb 11, 2017.

  1. FewTrueSeed

    FewTrueSeed Many meiosis Supporter

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    I am moving in a direction to finally utilize my skills as a self proclaimed microbiologist to make the world a better place. BY STARTING A MUSHROOM BUSINESS! With the recent decline in work i find the opportunity and the motivation to do what i'm passionate about. I'm looking into grants and hopefully small time investors for this endeavor. I'm confident in my ability to manage and operate such a business, but would love to hear any advice or info that could help. Unfortunately i'm not as familiar with the legal side of running a business (taxes and such). Experiences, suggestions?

    @FallenOak
    @Ratatoskr
     
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  2. FallenOak

    FallenOak Mushroom Cultivator Mushroom Doctor

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    Glad to hear it @FewTrueSeed! Mushrooms for the masses!

    As far as taxes go, the main thing you need to worry about is property taxes. You do not want to be growing in the middle of the city or anywhere that property taxes are rising steeply.

    Also, make sure your company grows at a natural pace, if you end up building everything out and purchasing tons of expensive equipment, thus adding a ton of value to your property, your property taxes will reflect that, so you want to be in production as soon as possible to avoid paying high taxes without having the necessary income from production to justify them. This also applies to selling durable and non-durable goods, say if you are selling mushroom equipment, supplies etc, you do not want a high volume of taxable inventory if you are not yet able to sell it.

    Mushrooms, being unadulterated produce, are not subject to sales tax, which is awesome. No need to price things in weird increments to make up for the mans slice of the pie.

    I recommend incorporating as an LLC, you can be a parntership or sole proprietor under the LLC banner. You really want the "limited liablity" part of the corporation to protect your own ass in any number of events. Get a good lawyer to help you through the incorporation process.
     
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  3. FewTrueSeed

    FewTrueSeed Many meiosis Supporter

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    The LLC is in the works. What i like about this sort of business is that there isn't allot of need for huge investment. Im hoping to split the focus (eventually) between spawn sales, home mushroom kits, microremediation (grant $$) and supplying local food industry. I have to crunch some numbers to see what the projected output would be for the space im thinking of, 1800sq ft. Large scale pasteurization is an easy (and fun) system to build, flow hood, plates, autoclave ect. Im looking to utilize some of the areas waste products as well sawdust ect. I bet with the home equipment i have i could do pretty well. Not enough.
     
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  4. cubistic

    cubistic Active Member

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    Sounds like a fun new chapter beginning!

    Having access to cheap substrate materials and low rent always get mentioned, usually means moving to the country side if not there already
     
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  5. Nichrome

    Nichrome Well-Known Member

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    Hello @FewTrueSeed

    First and foremost, a big GOOD LUCK!!! I am not familiar with US law so I cannot be very helpful in that area however, if you have management problems I may be able to drop some advice :)

    From your first post, what I suggest is to do some math and see which of the projects you mention would leave the best profit (spawn sales, home mushroom kits, microremediation (grant $$) and supplying local food industry) with the lowest investment...and start with that!
     
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  6. nomendubium

    nomendubium scraping by, since '97 Expert Identifier

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    if you are on facebook request to join Commercial Mushroom Growers Network My suggestion is; Expect to work for less than minimum wage. Don't take out a loan, because you will likely go into default. If T.r. or Joey want a reference (they do) I'll vouch for you (Leighton)
     
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  7. FewTrueSeed

    FewTrueSeed Many meiosis Supporter

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    Thank you ill check it out!
     
  8. milleryz

    milleryz New Member

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    An interesting idea for a business. I wish you good luck with its implementation! I am now at the stage of planning my business. Finding investors is difficult. I have little savings, but I think they will be enough. I used to work as a waiter in a cafe and used game apps that pay instantly to Paypal. And my parents also gave me a small amount. I hope that I will be able to find investors and get the missing amount. In the meantime, it's worth thinking through all the stages of my business development to the end. Therefore, it will also be interesting for me to hear your advice.
     
    Last edited: Jul 21, 2021
  9. FunG

    FunG Member

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    What species of mushroom were you planning on growing?

    If it's a psilocybe species then good luck getting any sort of grant or permission unless you have a education/diploma/degree/certificate from a recognizable institute.

    Even if you're from a state that decriminalized small scale possession of psilocybin they're still illegal to cultivate.

    Or am I jumping the gun and you're planning on medicinal/edible cultivation of mushrooms in which case you would want to employee a professional microbiologist and lab technicians to do the work.

    This is not a hobby you can pick up on in one day of reading (I'm not trying to be a penis head and burst your bubble but I have to tell you that)

    Without experience that comes with growing you probably wont have success at a commercial grow op of edibles/medicinals.

    Some species of mushrooms take half a year to a year before they're ready for harvest and the prep/materials required for them differ greatly.

    Also, contamination on a industrial level takes on a whole new meaning.
    The biggest problem I can foresee you having are mushroom gnats.

    I apologize if I discouraged you(or anyone else) but the amount of experience even a home grower achieves over the years is enough to want to stay away from the industry on a mainstream commercial level.

    But seriously, a professional mushroom farm that would pass health and safety checks and all that jazz would probably cost you (at the cheapest) 1.5million to construct, equip and operate in its 1st year. (Out of pocket)

    And then you need to live up to your customers expectations and keep them in steady supply all while not getting fined for anything....


    Anyways man, I'll just stop myself now and tell you. You dont want the damn stress of operating a commercial buisness no matter what it is. Basically your whole life becomes dedicated to running it and without knowing what youer doing, you cannot possibly expect to succeed young grass hopper.

    I must have missed where you said you are a self proclaimed microbiologist. Excuse my ignorance. Have you cultivated the species of mushrooms you want to go commercial with?
     
    Last edited: Jul 21, 2021