Are you thinking about starting your own CBD business?
The CBD market is exploding, and it’s easy to see why. Cannabidiol (CBD) has been shown in countless studies to provide a variety of health benefits. They range from anxiety and pain relief to reducing seizures and potentially even combating cancer — all without any psychoactive effects.
With these CBD products poised for mainstream adoption, now is the perfect time for you to join this exciting new industry and launch your own CBD business.
But how do you get started?
Below we’ve put together a comprehensive guide on everything you need to know before starting a company.
Do Your CBD Homework
There is a ton of valuable information out there on the benefits of CBD and its potential impact on consumer health.
But before you get started, it’s important to do some research into the industry itself. It’s easy for newcomers to become confused by some common terminologies or get overwhelmed with all the different processes available when extracting CBD from hemp.
It is also easy to be misled by marketers who claim they have found some miracle cure in a bottle — don’t believe them!
Sure, early results are promising and show a huge range of potential medicinal uses. However, we still need more extensive testing and clinical trials before anyone can definitively say whether cannabis extracts are an effective treatment option for specific diseases.
So, do your homework. Understand the basics of CBD and how it interacts with the endocannabinoid system before you start promoting your products to potential customers.
Pick a Product Line
Now that you’ve done some research into the industry itself, it’s time to decide what it is you’re going to sell.
Narrowing down your product line can be challenging. After all, there are so many different products available that it can be hard to settle on just one or two items.
CBD has been shown to have analgesic, anti-inflammatory, and anti-anxiety properties, making it a popular choice for many people.
If you want to sell CBD topicals (such as lotions and balms), CBD tinctures (drops you place under the tongue), or other oral drops, these are also great options for your first business venture.
However, if you decide to start with CBD edibles like gummies, make sure you check with local authorities first before setting up shop. Many states still haven’t approved the sale of marijuana edibles.
Get Your Licenses and Permits
If you live in a state where marijuana is legal, congratulations! You won’t need to go through all the red tape that much of the country currently has to endure when it comes to CBD production and sales.
However, if you’re like most entrepreneurs and operate in a state where weed has yet to be legalized, then you’ll have to adhere to certain regulations before you can start running your business.
The good news is this: once your paperwork is filed and permits are procured, operating a legitimate CBD business isn’t too complicated.
So how do you get started?
First, you’ll need a license or permit to sell your CBD products. Depending on your state, this could mean anything from a $50 business tax registration certificate to a $5,000 commercial cannabis “local authorization.”
Second, if necessary, find out if you need any additional certifications such as:
- A Food Handlers Permit
- Farmers’ market vendor’s license
- Wholesaler’s permit
For more information, check out this state-by-state breakdown of CBD laws and regulations.
Find a CBD Supplier
Once you have your licenses and permits squared away, it’s time to find a reliable source for all the hemp-based CBD extracts and other products you will need to start putting together your new line of CBD products.
Where do you find a supplier?
Well, once again, the answer depends on where you live.
If you’re located in a state where weed is legal, you can go straight to the source. Otherwise, check with hemp suppliers near your state or keep an eye out for local farmers selling CBD-rich crops.
One reliable supplier is GVB Biopharma. Check out GVB Biopharma company information here.
Estimate Your Start-up Costs
How much is it going to cost you to get up and running with your own CBD business?
Well, that will depend on how many products you plan on selling. Many variables go into calculating the total cost of setting up a new company.
For example, if you decide to purchase your ingredients from an out-of-state supplier, delivery and shipping costs will eat your bottom line (and may be subject to additional state taxes).
Alternatively, if you’re willing to start small and keep things local, then you can save lots of money by buying products wholesale or in bulk. And don’t forget — some states offer tax breaks for entering the hemp industry.
Design Your Brand’s Identity
This is one of the most fun parts about starting your CBD company: creating a unique brand identity that will set your new business apart from all the others in the industry.
Ideally, you should have some sort of logo ready before everything else. If you don’t, at least make sure your website’s design matches your branding goals.
Develop a Business Plan
Now that you’ve done some market research on the CBD business and are familiar with how it operates, it’s time to put together a clear-cut business plan for when potential investors ask for it.
In this section, you’ll want to provide a comprehensive overview of your company and its mission statement. It also includes any additional information that will help solidify your business’s standing in the community.
Purchase Business Insurance
One of the most important things an entrepreneur has to do when starting a new CBD enterprise is to protect their personal finances and their business’s reputation.
What’s the best way to do this? Ensure your new CBD company is properly insured with all the coverage it will need for day-to-day operations.
Basic insurance policies you may want to consider include:
- General liability insurance
- Insurance against theft
- Employer’s liability/workman’s comp
If nothing else, you should at least carry general liability insurance because it protects your company against third-party claims.
Market Your Business Effectively
If you don’t make any sales, no one knows about your CBD business, and it’s completely pointless. So how do you market your new enterprise?
Here are a few tips that will help you get the word out about your new CBD company:
Make social media pages for your business. Use Facebook, Instagram, Twitter, etc., to promote the products and services you offer.
Build up your website. Include basic information like hours of operation (if applicable) and customer testimonials if possible. Also, include links to all the relevant social media pages where customers can find updates on upcoming events or promotions.
Offer product trials or free samples with purchase (but make sure this doesn’t run afoul of local laws).
Give discounts for certain purchases (e.g., buy one now at a regular price or get another one at a half-off).
The more you market your CBD company, the better chance you give it of succeeding.
Starting a CBD Business Explained
Starting your own CBD business is a fantastic way to get into the cannabis industry and earn some extra money on the side.
All you need is an idea, a website (if you’re selling online), and some innovative marketing strategies to make your company stand out from the crowd.
We hope this article helped provide you with the information you need to get started. If you want more guidance on starting a business, keep reading our articles.