Starting a new business can be a motivating idea for many. But as all first time entrepreneurs can testify, it is definitely not an easy endeavor. And when it comes to starting a CBD business, things are even more complicated.
Yes, you will be dealing with a booming industry and products that worldwide consumers have a lot of interest for. But other than that, there are also many aspects that differentiate this type of business from all the others.
First of all there are laws and regulations you should comply with. And then, there’s also a fierce competition. On top of that, you need to constantly increase the value of your sales, to ensure you can fund your company’s growth and expansion.
So if everything seems just too overwhelming at times, here are 7 tips to help you build a successful CBD start up:
1. Make a Legitimate Business Plan
Looking to start a new CBD business?
You need a solid business plan!
Business plans are the foundation of any start up and many times, they are the difference between why some enterprises succeed, while others fail.
2. Gather Information From All Sources
To get your business off the ground, you will need to be well informed. With no magic receipt applying to all businesses, you need to know exactly what CBD is, how it’s sourced, and how each product is made.
You will need to know what is the difference between full spectrum vs broad spectrum cbd or what is the CBD entourage effect. And yes, you might need some time till you wrap your head around what this business is all about. But only by learning everything there is to know about the cannabidiol industry you can make sure you are well equipped to market and explain your products to customers.
3. Find The Right Wholesaler
Choosing a supplier can be the beginning or the end of your business. That’s because without the right quality CBD wholesaler, you won’t be able to sell your products.
What you need to look for is pure, uncontaminated, hemp-derived CBD, sourced from a licensed farmer.
4. Know The Laws
Yes, selling CBD is legal in the US. But only if it’s derived from industrial hemp and if it has a concentration of less than .03% THC.
Some states in the US require CBD distributors to have a handler’s license in order to distribute hemp and hemp derived products. Other states may require a special hemp processor license.
Make sure that before you open your business, you are up to date with all your state’s laws and regulations.
5. Decide On The Type Of Shop You Will Have
Before puting the foundation to your start up, you need to decide what business you will have. Will it be an online shop, a brick and mortar retail space or a manufacturing location?
Unless you want to run your business from home, you will likely have to buy or lease business premises, and decide on a location.
6. Build A Website
Other than the physical location of your shop, your new CBD startup also needs a well developed website. With a website you can promote your products to your target market and you can also be discovered online by customers who might not know you yet.
7. Know Your Competitors
Knowing who your competitors are and understanding how they manage their business can help you adjust your marketing efforts, selling prices, and improve your business’s performance.