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No longer a fad, CBD use continues to grow in the U.S. As of 2020, 33% of Americans say they’ve used CBD products at least one time.
If you’re a loyal CBD customer and wish you had more control over things like quality and availability, why start a CBD business?
Right now, the CBD industry is wide-open for entrepreneurs, but there are critical steps to take before you can officially flip the switch on your Open sign. We’re breaking it down for you in this guide to launching your own CBD product line.
Formulate a CBD Business Plan
There aren’t many businesses you can start that don’t benefit from a solid business plan. Entrepreneurs in the CBD niche need a sound business plan that covers all the benefits and risks of venturing into the CBD industry.
When formulating your business plan, you’ll want to examine current federal and state laws. It would be best if you looked at your business from a legal perspective so that you can mitigate your risks before opening your doors.
Reach Out to a Mentor
While this has nothing to do with legally setting up your business, partnering with a mentor can save you precious time, money, and, potentially, legal issues. Seek out other successful CBD business owners and be a sponge, absorbing every bit of wisdom they offer you.
What you want in a mentor is someone who brings start-up experience and extensive knowledge of the current cannabis industry.
Tip: A good mentor also knows the ins and outs of processing payments. Ask your mentor for help finding a high-risk processor who can set your business up with a payment gateway.
Sourcing High-Quality CBD Products
Since you will be creating your own CBD product line, you don’t want to put your label on anything less than the highest quality ingredients. For example, look for a wholesale full spectrum CBD oil rather than an isolate.
Isolates don’t include some of the critical plant compounds that work with CBD to maximize the full benefit menu of hemp.
Ensure every supplier you use is certified at both the state and federal levels to sell CBD products. Also, ask whether they use third-party testing. Along with sourcing your products, you’ll also need to make decisions about storage, packaging, and distribution.
Tip: Sourcing products is another area where a good mentor can help you!
Establish Your Brand
Like any other type of business, successful CBD marketing hinges on solid branding. Strong branding allows you to:
- Target your ideal audience
- Minimize your marketing costs
- Maximize sales
- Increase the value of your business
There’s no limit to what you can do with your CBD business with a robust branding strategy in place.
Ready to Start Your Business?
While this post can’t answer every question you have about selling CBD products, we’ve covered many of the basics. Once you have written a solid business plan, partnered with a mentor, found a reliable CBD supplier, and created a strong branding strategy, you can feel confident about your success.
If you’ve enjoyed reading this post, check out the other articles on our blog. We’ve put together a collection of posts designed to help you succeed in making your business dreams become a reality.