The CBD business continues to grow and an estimation from 2021 suggested that it will reach $16 billion by 2026!
As a result, if you’re an ambitious entrepreneur then you’ve got to consider jumping into this growing industry. But how does one get started in the CBD business? How do you make sure you earn a lucrative income by selling CBD products?
While the market is saturated that doesn’t mean that opportunities aren’t abundant!
Here’s how to get started with your CBD business:
Understand the CBD Business Laws
The first rule is to hire a lawyer who can help you understand the laws of entering the CBD business in your jurisdiction.
While CBD has been legalized in many parts of the US and the world, there are still strict regulations in most cases. You might have to obtain particular licenses before you can get started with working in the CBD business.
Once you’ve received the necessary licenses and you understand how to operate a CBD business within the framework of the law then you can get started.
Understand CBD Itself
Before you register your CBD business and start seeking external funding, you have to understand how CBD works itself.
For example, do you understand the differences between CBN Distillate versus Isolate? In the beginning, you’ll have to be more hands-on with the CBD business.
Make sure you understand how CBD works so you know how to market your business. You don’t want to be in a position where you discuss your business and someone asks for a recommendation and you can’t answer their question!
Register Your CBD Business
Once again, you should consult a lawyer to help you register your business. They’ll help you determine the appropriate business structure for your CBD business.
They’ll also help you draft your CBD business plan which you might have to publish for company registration. They can even help you come up with a great name for your CBD business.
Once you’ve registered your business, you can open your company’s bank amount and place a small amount of cash in it to keep it running.
But now you’re faced with a new challenge: how do you get external funding for your CBD business?
Generate External Funding for Your CBD Business
It’s up to you to decide who your external funding sources for your CBD business should be.
The simplest way is to ask your friends and family to make small cash donations to your business. They’ll often be happy to support you without expecting much in return. This is how many startups get their start and how they keep afloat for the first few years.
As your CBD business grows, you might have to look for alternative routes for external funding. At this point, you might want to ask your bank to pay you a loan. You can also apply for government grants or even seek venture capital funding.
Keep in mind, however, if you seek external funding from professional investors then they’ll be buying stock in your company. You won’t own 100% of your company and you’ll have to share bigger shares of your profits with these investors.
Get Your CBD Products
Once you’ve established your business and you have enough capital to get started, you can start buying your CBD products.
You should research CBD wholesale companies to buy your products. Take your time with this process as you don’t want to fall prey to any scams. The wholesaler should be licensed to supply their products in your jurisdiction.
They should have the necessary licenses to manufacture and sell CBD products. Make sure they provide you with photocopies of these documents before you sell the products.
You might want to consult your lawyer again to help you decide which CBD wholesalers are legitimate. You’ll also want to consult a doctor or scientist who can help you decide if the CBD products are legitimate.
It’s wise that before you start selling your CBD products you use them for a trial. Make sure the trial group is pleased with your CBD products before you sell them to a wider customer base.
While you might want to stand out from your competition, in the beginning, it’s always wise to sell CBD products that are already sold by your competitors. Learn the ropes of the CBD business before you start selling unique products.
Let’s end this guide with a few best practices to follow for your CBD business.
As mentioned in the previous section, you want to focus on selling well-known CBD products first. You should also start by only selling one CBD product. Consider CBD oil or perhaps CBD soap at first.
Only once you’ve sold several hundred of one particular product should you consider product portfolio expansion. Focus on selling first and then on expanding your business.
You should also market your CBD business on social media. However, as social media platforms have strict rules regarding medical products, make sure you study these guidelines first. If you don’t, you risk your business profiles being completely banned from social media.
As social media is arguably the best place for promoting your business, you want to avoid this at all costs. At this stage, it doesn’t hurt to watch what your competition does to promote their CBD business.
Finally, make sure you network in real life! You want to attend events related to CBD and the medical industry. This lets you promote yourself and your CBD business to your target market.
Start Your CBD Business
Now you can start your CBD business and scale it to become a key player in this exciting industry.
You must first understand the CBD laws in your area and how CBD works. Afterward, hire a lawyer to help you register your business to get started.
Your external funding should first come from friends and family. Consider loans, grants, or outside investments as your company scales. Make sure you follow our best practices on how to market and sell your CBD products.
You can find more business tips on our website.