In 2020, the American CBD market was worth around $2.8 billion.
With the industry set for further growth in 2021-22, many new businesses are emerging. With the potential for high turnover and a diverse client base, there are many reasons why you should consider starting a CBD company of your own.
Before you start a CBD business, there are a few things to consider. You don’t want to be part of the high percentage of the companies that fold in the first year. Our helpful guide explains the top five tips for starting a business to sell CBD.
Read on to find out more.
1. Make a Business Plan
When starting a company, it is vital to make a thorough business plan. Some things to consider while making your business plan include:
- Is your business name unique and catchy?
- Do you have adequate finances to support your business?
- Do you have staff that will bring expertise to the company?
- Do you understand the market?
The more preparation you do before launching your CBD business, the greater your chances of success. If you aren’t business-savvy, it can be helpful to bring someone on for consulting work to help out.
2. Do Your Market Research
The CBD market is one of the fastest-growing industries in 2021, so you need to know your stuff. Make sure you understand precisely your target audience, who your competitors are, and the niche your product will fit into.
CBD start-ups are popping up all over the place, so you need to understand where you’ll make your mark if you want to stand out from the crowds.
3. Know the Regulations
Although CBD is legal, there are stringent regulations for CBD sellers. Make sure you use government resources to know what you can and can’t do.
Ensure you have all the correct licenses before you start trading; you’ll need a regular business license and a reseller license (if you’re planning to buy CBD for re-sale).
Next, get yourself up to speed with the claims that are banned in CBD marketing. Making an unsubstantiated claim could put you in hot water and out of pocket.
4. Get Production Going
Once all the logistics are out of the way, you can start production. You need to find a reputable CBD supplier; purchase wholesale skincare products for re-sale with your company’s branding.
Get some labels together, get your shipments in, and get ready to start shipping orders out to happy customers.
5. Market Your Product
Finally, don’t neglect your marketing; this is what will get you sales! Hire a website developer to build you a failsafe platform and get onto social media sites.
People are shopping through socials more and more, so don’t lose out on this business opportunity. With each marketing campaign, make sure you target your ideal customer and show them what you have to offer.
Start a CBD Business Today!
These five tips will help you launch a successful CBD business. Don’t get ahead of yourself and launch a new company before considering each of these steps; it may be the difference between business failure and wild success.
Remember, it’s an ever-changing industry, so make sure you keep up with the trends!
Did you find this article helpful? If so, make sure to check out our other posts for more insightful business and finance topics.