CNBC Make It - How My Cannabis Business Brings In $800K/Month In NYC
Coss Marte, the CEO and founder of Conbud, discusses his journey from being a three-time felon to running a successful cannabis dispensary in the Lower East Side. He attributes his success to showing up every day and working hard, regardless of the task. Conbud, the first legal dispensary in the area, generates over $800,000 monthly, with a profit margin of 13%. Marte highlights the importance of hiring justice-impacted individuals, providing jobs to those who have been incarcerated or have family members who were. The business employs 72 people across four locations.
Marte explains the financial structure of his business, detailing how the $800,000 revenue breaks down into profits and expenses. He notes that the profit margin is relatively low due to high startup costs and the inability to deduct certain expenses federally. Marte is advocating for the Safer Banking Act, which would allow cannabis businesses to bank more freely and increase profit margins. He also discusses his strategy for expansion through licensing deals, aiming to capture a significant portion of the New York State market. Marte's story is one of resilience and transformation, using his past experiences to build a legitimate and thriving business.
Key Points:
- Coss Marte emphasizes the importance of consistent hard work and community support in building a successful business.
- Conbud generates $800,000 monthly with a 13% profit margin, employing 72 people, many of whom are justice-impacted.
- High startup costs and federal restrictions on tax deductions limit profit margins, highlighting the need for legislative changes like the Safer Banking Act.
- Marte plans to expand Conbud through licensing deals, aiming to capture 25% of the New York State cannabis market.
- Marte's journey from incarceration to entrepreneurship showcases resilience and the potential for positive societal impact.
Details:
1. 🌟 The Power of Consistency and Hustle
- Success is achieved by showing up every day and putting in the work, whether it's cleaning or other tasks, without taking days off.
- A commitment to a 365-day work year is crucial for achieving business goals, as demonstrated by Coss Marte, CEO and founder of Conbud.
- The hustle and grind are essential for building a successful business, as emphasized by Marte.
- Engaging with people through business conversations is a key growth strategy.
- Conbud generates over $800,000 in monthly revenue, showcasing the financial benefits of consistent effort and dedication.
- Marte's approach includes leveraging personal stories and anecdotes to connect with others and promote the business.
- The importance of resilience and adaptability in overcoming obstacles is highlighted as part of the hustle mentality.
2. 🏢 Conbud: Pioneering Legal Cannabis in the Lower East Side
- Conbud, the first legal dispensary in the Lower East Side, sets a precedent in the region's cannabis market.
- The dispensary offers over 600 SKUs, demonstrating an extensive range of cannabis products, including edibles, flowers, and concentrates.
- Customers benefit from a user-friendly kiosk system for ordering, enhancing the overall purchasing experience and efficiency.
- Conbud actively supports community reintegration by employing justice-impacted individuals, including those previously incarcerated or with incarcerated family members.
- With 72 employees across four locations, Conbud highlights its growth and commitment to fostering local employment opportunities.
- Customer testimonials frequently highlight the diverse product selection and the streamlined shopping experience as standout features of Conbud.
3. 📊 Navigating Financial Realities and Profit Margins
3.1. Financial Breakdown
3.2. Ownership Structure and Profit Allocation
4. 🚀 From Prison to Entrepreneur: A Journey of Transformation
4.1. Personal Transformation
4.2. Entrepreneurial Journey
5. 📞 The Birth of Conbud: Vision and Challenges
- Conbud was conceptualized in 2021 during a phone call, with a vision inspired by the gym industry, aiming to carve out a unique brand identity in the market.
- A crucial barrier to entering the cannabis market included the requirement of two years of a net profitable business and a conviction record, which posed significant challenges for license qualification.
- The founders drew parallels to the gym industry to create a distinctive business model tailored to their vision.
6. 💰 Financial Foundations and Market Entry
- The business team includes the speaker, two cousins as partners, and a minority stakeholder, Carlos.
- They initially raised $1.2 million, including personal contributions and funds from Carlos.
- A major challenge was the high rental cost, with a monthly payment of $40,000 compared to the previous tenant's $25,000, due to a landlord's hefty security requirement.
- A $400,000 security deposit was needed, highlighting financial barriers in the cannabis industry, where banking is restricted.