The CBD (cannabidiol) industry is huge right now, and it’s only going to grow as time goes on. In fact, it’s expected to grow by 700 percent and reach a valuation of $2.1 billion by the year 2020.
With numbers like that in mind, it’s no wonder so many people are itching to get into the CBD business.
If you’re part of this group, it’s important to make sure you fully understand what you’re signing up for when you join the cannabis business.
Read on to learn everything you need to know about how to start a CBD business and ensure it’s successful.
Why Start a CBD Business?
Before we get into the “how” behind starting a CBD business, let’s touch on the “why” for a moment.
Besides the fact that the CBD industry is booming and it’s a very popular business niche, there are lots of other reasons why you might want to start your own CBD business.
CBD is a powerful substance with a lot of great health benefits. Many people have seen significant relief from symptoms related to conditions like migraines, epilepsy, chronic pain, and even cancer.
When you work in the CBD business, you have an opportunity to help these people and make their lives a little bit better by providing them with a high-quality, beneficial product.
The CBD industry also allows you to focus on natural health and wellness products. It could be a great gateway to other products that can help people look and feel their best without relying on prescription drugs and harmful substances.
How to Start a CBD Business
There are plenty of reasons why you might want to start a CBD business. How do you actually do it, though?
Follow these tips to make sure your business gets off on the right foot:
Consider Your Skillset
Before you get too far with the plans for your CBD business, you first need to consider whether you have the right skills for the job.
In order to succeed in this industry, it helps to have experience working in the cannabis business in some capacity.
You should also have great communication skills and an ability to explain the benefits of CBD in a way that assuages public fears and stigma surround cannabis and cannabis products. The greater your knowledge of CBD and cannabis in general, the better off you’ll be.
Great sales and marketing skills are a plus, too. You’ll need to be able to market your products effectively so they stand out in a saturated market.
Understand the Costs
Be aware of the costs associated with opening a CBD business, too.
You’ll need to partner with an established grower and manufacturer who can supply you with the CBD products for your business. You’ll also want to pay for third-party testing to make sure you’re selling a high-quality product.
Many customers are more likely to buy CBD products from a business that invests in third-party testing, so the extra costs associated with this are often well worth it.
Know the Laws
The laws regarding the sale of CBD products in the U.S. are a bit murky right now.
As long as you’re selling products made with hemp-derived CBD, you should be able to sell online to anyone in the U.S. without any issues.
Things get a bit more complicated when you start selling in stores, though. Learn the laws and regulations in your area before you try to sell your products this way.
Create a Business Plan
Whether you plan to sell online or in-person, it’s important to have a solid business plan in place.
Think about your short- and long-term goals for your business and create a plan for how you’re going to accomplish them.
Having a business plan gives you a template to follow, and it also increases the likelihood that you’ll be able to secure funding for your business.
Form a Legal Entity
When you’re first getting your business started, you’ll need to be sure to form a legal entity — either a Limited Liability Company or a corporation.
This protects your personal assets in the event that your business is sued. It also allows you to register to pay federal taxes and open a business bank account.
Obtain Permits and Licenses
Make sure you secure the proper permits and licenses to run a business in your state. At a minimum, you’ll probably need a business license to avoid fines or having your business shut down.
Invest in Business Insurance
It’s a good idea to purchase business insurance, too. This is an extra precautionary measure that’s well worth the extra expense.
Think About Your Brand
Now, it’s time to start thinking about your brand.
What kind of message do you want to deliver? How are you going to separate your CBD business from other CBD and legal cannabis businesses?
Consider Your Security Needs
Consider how you’re going to keep your business information and your customer’s information safe, too. This is especially important when you’re selling products online.
According to the folks who run this service, a data breach could have serious implications for your business, so you need to make sure you have protocols in place to keep everything safe.
Establish an Online Presence
Make sure you have an online presence for your business, too.
Whether you’re selling solely online or have a physical store, an online presence is a must.
It helps people find your business more easily and also teaches them what you have to offer and what you’re all about.
Make sure you’re using social media to communicate with current and potential customers and find out how they’re liking your products, too.
Start a CBD Business Today
Now that you know more about how to start a CBD business, are you ready to dive in?
Starting a CBD business isn’t easy, and the market’s very competitive right now.
If you keep these tips in mind, though, you’ll be able to separate yourself from the pack and make sure your business is profitable.
Are you looking for more information on running a CBD business? If so, we’ve got lots of articles available to you.
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