While CBD Oil is a relatively new product in the mainstream it is rapidly growing on a yearly basis and now becoming a part of the everyday lifestyle. With the cannabis and hemp industry growing, this gives entrepreneurs a great opportunity to set up a solid business investing money into the CBD industry for growth and success. The sales of CBD in the US are estimated to hit 20 billion by 2024. The CBD industry is not without challenges, there is competition out there. To be successful online you must create a memorable brand and navigate through different legal obstacles. Before venturing into the CBD Cannabidiol business, it is important to be prepared and learn how the industry works. Here are our tips on how to start a CBD oil business successfully.
Understand the Laws and Regulations of the CBD and Cannabis Industry
It is important to understand the cannabis industry is tenuously regulated and is subject to changes in the future. The legalisation of cannabis means that the government will allow the sale and use of CBD oil and all related CBD products. However, there are some restrictions to that were provided by the FDA, these include:
- The hemp you use to manufacture CBD cannot be more than 0.3% of THC. Any cannabis plant higher in THC is considered automatically as a marijuana plant and more restrictions are set in place.
If you are considering setting up a CBD business, you should consider the following:
- Learn how CBD is extracted from the hemp plant and how different products are processed.
- Ensure that everything about the products you include on your site is transparent.
- Understand the laws behind marijuana. If medicinal marijuana is illegal where you live, always make sure you invest in products derived from the hemp plant to avoid any legal issues.
- Get a license for your business to avoid any legal issues.
Create a Business Plan
A clear and precise business plan is the key to a successful business. There are many factors to consider and incorporate into your business plan, these include:
- Who is your target market?
- What are your startup costs and source of money to finance the business?
- What will you name your business?
- What is your niche/products you plan to sell?
- How much will your products cost?
Who are your Target Market?
You need to figure out who you would like to sell your products to. This will help you in the design of your brand for your target audience. Your target market dictates everything from marketing campaigns, packaging, to blog content. Nearly everyone can use CBD supplement products. Some people may be seeking CBD for general healthy lifestyle purposes or regarding a health concern.
What are your startup costs and source of money to finance the business?
If you decide to produce and manufacture your own CBD hemp products your costs will be slightly lower than deciding on selling a product with a partner from another company. To sell online you will need a website and you will also require insurance in case of unexpected issues like a customer suing you after using your products. You need to get your finances in order this is probably the most challenging part. If you do not have revenue you may need to borrow money from the bank or another money lender. Seeking financial advice from a professional would be the best option.
What will you name your business?
Choosing the right name is challenging but important. If you have chosen a name, see if the domain name is available. Even if you start your business offline, you will still create an online presence.
When choosing your domain name, it should be:
- Easy to spell
- Appealing to your target audience
- End with a .com extension
- Easy to remember
A .com extension for your domain is far more credible. Choose a brand name that people will remember and can associate with when they see your products.
What is your niche/products you plan to sell?
There are so many different CBD hemp products on the market today and you need to decide what your niche is and what products you want to sell. These products can include oils, edibles, vaping, skin creams, products for your pets, beverages, and much more.
How much will your products cost?
CBD products can make a good profit once sold at the right price. You need to decide what your products will cost for you to make a decent profit. Create a profit margin based on the quality of your products and the demand for the products with target audiences.
Design a Logo
Your company logo is one of the most important parts of setting up your business. It is your brand, and it is what people will see online so you need it to be catchy and one that people will remember. A strong brand will help you stand out from the rest of your competition. Some main tips for your logo would be:
- Make it big enough to stand out on your website
- Keep it simple so people will remember it
- Avoid shadows
Find a professional designer online to put together your logo so it is eye-catching and unique.
Build your Website
After creating your logo and defining what type of brand you are, you need to get your website built. You could try to build a website on your own however it is best to seek a web design professional for this to ensure your website is built to perfection. There are very few businesses that succeed without an online website, so it is essential. Your presence online depends on a multi-functioning website. To generate sales and revenue online you should also consider getting your website optimised by a professional SEO company. If your site is optimised it will rank better on Google search engine. Your site must be responsive for viewing on all devices such as desktop computers, mobile phones, and tablets. Your site should be user-friendly and easy to navigate. Keep up with content, it should be engaging and informative to your customers. Google considers the amount of time people spend on your website. If you catch people’s attention with your content Google will be more prone to recommend your site to others.
Find a CBD supplier
If you choose to buy hemp products from wholesale suppliers, you must seek a reliable supplier with great premium quality products. Reputable wholesalers will test their products in a lab to ensure high purity. If you are going to sell nationwide your products must only contain CBD derived from the hemp plant. The wholesalers should also be able to provide you with a certificate of analysis that gives details of the product content.
Choose your payment option
The CBD industry is deemed a high-risk business due to the ongoing regulations. For payments to be accepted on your site from customers, you must work with a specialised payment processor who deals with high-risk businesses. This can take 4 to 6 weeks to organise so start in advance of launching your business.
The growth in the CBD industry is unparalleled. It is an interesting product to trade in. You can supply products to make a genuine difference to everyday lifestyles for many people. If you want to be successful in this industry, you must find the best quality products or produce your own, create a marketing strategy, and do your market research.