How To Start A CBD Business In 2020 - 12 Steps
Looking to cash in on the wave of demand for CBD by starting your own CBD business? We’re here to help you with our 12 tips on how to become a successful CBD entrepreneur.
The CBD Market Is Growing. Fast!
The time to start a CBD business is right now because the CBD business is booming! CBD products in 2018 had an annual gross of 1.9 billion dollars, and a Boulder, CO-based research firm, BDS Analytics, has predicted that sales of CBD products in America will continue to increase at an annual growth rate of 49%, surpassing 20 billion dollars by the year 2024. With this rapid increase on the way, there is no better time than now to get into the CBD industry.
While in the past CBD products have seen a large part of their sales occurring in legal marijuana dispensaries, more and more products are being legally sold in plain, everyday retail stores. You can find CBD products in grocery stores, New Age stores, health food stores, novelty stores, cafes, smoke shops, pet stores, even bookstores!
As more and more people are waking up to the potential health benefits of CBD and becoming less and less put off by its association with the marijuana plant, everybody and their mother are becoming interested in CBD products. The market is proving this. If we include sales for products with THC, the total market for cannabinoids in 2024 will be 45 billion dollars. Marijuana is becoming the industry to be reckoned with, and CBD sales are the easiest and most legal way to hop on this train.
If you want to start a CBD business, this article will be your comprehensive guide on how to do so. First, we’ll take a look at the two most common ways CBD products are sold, either in brick-and-mortar stores or online. Then, we’ll give an overview of the steps you need to take to start your own CBD business.
After that, we’ll discuss how WE can be your all-in-one CBD business solution, providing high-quality private-label CBD products, bulk CBD isolate, CBD payment processing, and even feminized hemp seeds. If you want to become a part of the rapidly-growing CBD market, read on to find out how you can do so today!
Selling Your Own CBD Products
Brick & Mortar CBD Sales
Of course, the most traditional way to sell any kind of product is in a brick-and-mortar store. A very large number of potential CBD buyers are elderly people with chronic pain who may or may not be all that comfortable with buying products online. As the study mentioned above shows, retail store sales still make up a large number of both current CBD product sales and projected CBD product sales in the future.
If you want to get the most out of your CBD business, you may want to make sure your products are available on the physical market. You can either get your own storefront with the proper business license or strike a deal with local businesses to supply your product.
Online CBD Sales
With the creation of your own business, brand, and website, you can sell CBD products online either with the help of a legitimate fulfillment company or simply from your own home. A fulfillment company is a packing warehouse that will package and ship your products to buyers.
When your business gets big enough, you will have a hard time keeping up with demand if you don’t have a fulfillment company to do the work for you. Now, let’s take a look at two other very important factors when it comes to making online CBD sales:
Utilizing SEO, Or "Search Engine Optimization"
SEO, or search engine optimization, is what companies use to make sure their businesses show up near the top in search results. This is how businesses get traffic to their website, and that traffic is what leads to sales.
The easiest way to do this is to create content on your website that features SEO keywords that people might typically search for when they search for CBD products. Creating a blog on your CBD business website will allow for SEO content that will increase your visibility in search results.
You can create the content yourself or use the help of SEO professionals to develop content for you. The content needs to be related to CBD and can be such things as “how-tos” and “top 10 lists”.
Start a CBD Business Utilizing Social Media
Of course, one of the biggest parts of online marketing is social media presence. Social media is a great way for you to spread awareness of your brand.
It allows you to share your brand with other people and for other people to share your brand with each other. You can hire a professional social media manager or firm, or you can simply do some research on how to create an attractive social media presence yourself.
Advertising on social networks can be done if done creatively. Google is also starting to allow direct-to-consumer CBD ads in their search and display networks. There is a lot of competition, but it will only get more competitive in the future. We recommend finding a talented search marketer if you want to compete profitably in the online advertising space.
12 Steps To Start A CBD Business
Here are 12 simple steps that will show you how easy it is to start your own CBD business today!
1. Become Well-Versed In Rules and Regulations
Make Sure Your Products Contain Less Than 0.3% THC.
The first thing you need to know when starting your own CBD business is what you can do and what you can’t do. Although you may feel there’s a lot of stigmas associated with CBD given its derivation from cannabis, its really not that big of a deal.
CBD products made from industrial hemp are entirely legal to sell. Still, there are some precautions you need to take. The products you sell cannot contain more than 0.3% THC content unless they’re being sold in a legal marijuana dispensary. This will greatly limit your business.
You Need To Be Transparent When Advertising
You can’t have a product that claims “this product will cure cancer!” on the front of the bottle. You’re best to leave most of the health-claims to the professionals and to simply focus on objective claims, such as how much CBD is in your product and when to take it. You need to keep health claims as vague as possible and it’s in your best interest not to make any absolute claims unless they can be firmly backed up.
Once you understand the above, it’s time to jump right in!
2. Come Up With A Unique Name For Your Business
Coming up with a clever and catchy name for your business is always going to be one of the most important parts of starting one. A name, like a logo, is a symbol, and it’s going to be one of the first things people think of when they think of your business. For inspiration, you can do some research into the most popular CBD brands currently on the market.
Don’t simply copy and paste, though, because you want your business to stand out from the crowd and have a name that people remember, not a name that people get mixed up with something else.
Another pro tip for coming up with a name for your business is to use uncommon words. If you plan on doing any advertising, people will likely end up searching for your brand name.
If your brand name is something like “Healthy CBD”, the chances your new website will show up in the search results is very unlikely. So any advertising or promotional value you pay for won’t have the impact you were hoping for.
Think Google, Facebook, Coca Cola, Walmart, Pepsi, Myspace, etc.
3. Set Up An LLC For Your Business, Get a License, and Get an EIN
File for an LLC
As soon as you’ve decided on a name for your business, you need to file an LLC for your business and get the proper business license or licenses. There are many avenues online that will allow you to set up an LLC in mere minutes, including legalzoom.com and incfile.com. Once you’ve done this, you need to get a business license and an EIN (employee identification number).
Get the Proper Business License
Sites like legalzoom.com can also help you to get the type of business license you need to operate either online or within your own jurisdiction. You may need different business licenses depending on if you’re going to sell your product in retail stores or online. Check with your local government’s regulation to see what type of business license you may need to operate in your area.
Get an EIN
Lastly, you will also need to get an EIN so you can file taxes with IRS. You can apply for an EIN number online at sites like squareup.com/payroll. Once you’ve done all of this, you’re all legal! You can begin selling your CBD products.
4. Create a Logo For Your Business
Your business logo, besides your business name, is the other main thing people think about when they think about your business. You can hire a professional designer or, if you have the confidence, you can design it yourself. Choose wisely!
Logos shouldn’t be too busy, they should be something simple, bold, and memorable. Think of the most popular logos and the colorful designs and shapes that they utilize.
Some famous logos that might be ingrained in your brain are the McDonald’s golden arches, the bold red Target logo, and the Apple logo with a single bite. None of these incredibly memorable logos feature much more than a single color and a simple shape, yet they have been burned in our retinas since most of us were children.
When starting a CBD business, it’s important to have a logo that looks professional and safe. Having a cheap or ugly CBD logo will likely turn customers off of your new brand, lowering your conversion rate.
5. Set Up a Business Bank Account
Now, with your LLC and your EIN, you can go set up a business account at your bank. Oftentimes stating outright that you’re in the CBD business can be a turn-off for banks, so you may simply wish to tell them that you’re in the health market.
6. Find a Safe & Reliable CBD Payment Processor
Receiving payment for your CBD products can be a bit tricky, so utilizing a payment processor may be a necessary middle man between you, the customer, and the banks. This ensures that all transfers of money stay safe and legal and out of your hands, essentially. Luckily, WE offer services as a CBD payment processor, as well as all of the other CBD services we provide for businesses.
7. Find a CBD Supplier or a Supplier of CBD Products
Once again, luckily, we’re both. We can supply bulk CBD isolate that you can use to make your own products and we also sell white label CBD products with customized private labels for your business. You are going to want to make sure that the products you are providing are high quality and something that people want to come back to, leading to repeat business. We can provide you with high-quality products in bulk with reasonable minimum order quantities.
8. Set Up a Website For Your Business
Great website design is a must if you want your business to take off right, especially if you’re getting into the business of selling products online. There are many great avenues online that will aid you in creating a website and finding a domain name, such as godaddy.com, squarespace.com, and wix.com.
Shopify.com is a platform specifically designed to help you create an online store. If you have the funds, you may also wish to hire professionals to make your website for you. It will be important to start a blog immediately so you can start getting traffic to your store, but this will take time. Be patient and keep writing valuable content about related topics.
9. Get Your Business On Social Media
You’ll want to make sure you procure your desired social media handles on the major platforms as soon as possible before someone else takes them. You want your name to be uniform with the rest of your brand and LLC. Start with Twitter, Instagram, and Facebook, the main trifecta of social media.
When you start a CBD business, social media is the cheapest and fastest way to start promoting it.
Be sure to keep all of these active. You can hire a social media manager who will specialize in optimizing your social media presence for online marketing, or you can handle it yourself until you get enough money to hire someone.
Don’t let your presence stagnate, as that doesn’t look good for your brand. And don’t overdo it, either! Keep a calm and cool social media presence so people know you’re a business that deserves respect.
10. Decide How Orders Will Be Fulfilled
While you can simply ship products out of your living room, for the time being, striking a deal with a good fulfillment company is a step you are going to need to take when your business starts booming.
11. Develop Your Marketing Strategy
Utilize website content, SEO, social media presence, and even physical avenues like bulletin boards, flyers, business cards, and word of mouth. Go around to local shops and ask if they would like to stock your product, tell your friends, tell your neighbors, and tell your family! Do everything you can to get the word there that your business is the place to go to if anyone wants great CBD products!
12. Start Selling!
Get your orders and ship them out! Stay on top of it. Offer great customer service and don’t be afraid to offer refunds if a customer is unsatisfied. Sometimes you’ve got to take a hit. The important thing is that people know you’re a reliable business.
Have courage and conviction and don’t get down if there’s a rough day or a fork in the road that causes you to make a spurious decision. Starting your own business can be a scary prospect, and you need to keep your eyes on the prize and keep moving, otherwise, you may get bogged down by negativity.
We Are Your All-In-One CBD Business Solution
Part of our services as an all-in-one solution for your CBD business is providing bulk CBD products with custom labels. We can create for you a unique and personalized label design utilizing our in house graphic design team, or you can send us your own label design that you’ve created either on the own or with the help of your own professional team.
CBD Products We Provide
Private Label CBD Gummies
CBD gummies are the tastiest way to take CBD and one of the most popular CBD products on the market. These are a huge seller and make taking CBD fun. You won’t want to start a CBD business without some kind of CBD gummies available to your customers.
Private Label CBD Tinctures
CBD tinctures are a liquid form of CBD that can be taken under the tongue or added to foods. This is one of the simplest ways to take CBD and is very popular with the older crowd who may be above fun and colorful gummies.
Private Label CBD Post-Workout Recovery Supplements
These are perfect for those living an active lifestyle. CBD can help with post-workout inflammation and relaxation.
Private Label CBD Tablets
A tablet form of CBD. This is another simple way to take CBD that can be fairly popular for the older crowd.
Private Label CBD Pain-Relief Gel
This product provides topical pain relief. This is a great option for those who may be anxious about ingesting CBD orally yet are curious about seeing how CBD may help with either chronic or temporary pain.
Bulk CBD Isolate
The bulk CBD isolate we sell can be used to make your own products that are guaranteed to contain less than 0.3% THC. You can use this to make your own unique CBD edibles and other CBD products that will make your CBD business stand out! The CBD isolate we have is just about the closest you can get to pure THC, and it’s made using high-end CO2 extraction methods that help to eliminate adulterants and contamination.
CBD Payment Processing
If you’re looking for a great and reliable CBD payment processor that can work with you and your bank, we’ve got you covered for that, too! It’s part of our commitment to being an all-in-one solution for burgeoning CBD businesses.
Bulk, Feminized Hemp Seeds
There are many reasons you may wish to start growing your own hemp. You can sell hemp industrially or you can use the hemp you cultivate to create your own CBD that you can use in your own products. Whatever the case, we’ve got your seeds right here! Now get out there and start a CBD business that you can be proud of!