The CBD industry is booming. In fact, the retail market expected to reach $19.5 billion by 2025. With so many consumers interested in a wide range of CBD products, it makes sense to look at starting a business to capitalize on this industry’s growth.
However, even if you have a talent for business and a passion for CBD, you might not know how to start things. You may experience some success by following the steps below.
If you’re looking to get into the CBD retail business stocking CBD products. First, take some time to explore the well-known names in the industry that could help you start.
Find a business to assist with packaging, labels, and design, like Green Tech Packaging. Take time to check out multiple CBD manufacturers to find one that aligns with your values the most. This process can take time and research. Thus, make sure you allocate plenty of time to it. This will help you to avoid working with suppliers that you aren’t entirely happy with.
There are many different CBD-related products on the market. For example, lotions, gummies, tinctures, and vape liquid. However, you don’t have to stock all of them.
Think about the type of store you want to operate. Will it be one that focuses on tinctures and oils or one that diversifies into pet treats, beverages, and skincare products? Having online or brick-and-mortar establishments may also help you decide how extensive your product line will be.
CBD laws and regulations are complicated. Even though the 2018 Farm Bill made commercial hemp production in the United States legal, there are several restrictions that manufacturers and suppliers have to remember.
For example, the hemp in your products can’t contain more than 0.3% dry weight THC. If it has a higher concentration, it’s classed as a marijuana plant. This has another set of strict rules. CBD from marijuana plants is not legal for recreational use in all states. Thus, sticking within those 0.3% parameters can be paramount if you’re selling where it’s not legal for recreational use.
Go through all rules and regulations with a fine-tooth comb. This will ensure your new business venture is going to be 100% legal. If it’s not, you may find yourself facing problems before your business even has a chance to thrive.
A business plan can be essential for many reasons. It may assist with securing funding for your new business venture, and help you bring on business partners. Additionally, it acts as the road map you refer to at various stages of growth.
When creating a plan, you can also learn more about your business and what you anticipate getting out of it. Generally, these plans include market analysis. This ensures your business idea is viable. Also consider, your brand name, product range, financing options, and marketing.
Often, business plans are something you can create yourself. But, you may see the value in talking with business experts to gain insight into the best ways to form them.
As you begin finalizing details, don’t forget to gain your CBD selling licenses. These are necessary for legally selling CBD products and paying tax. A standard business license from the IRS is essential for any new business, regardless of whether they sell CBD or something else. You can register your business, become incorporated, and obtain an EIN/TIN.
You will also require a reseller license for purchasing CBD from wholesalers. This license allows you to buy wholesale products without paying sales tax and lets you collect tax from customers.
It can sometimes seem like setting up a new business in CBD sales is straightforward until you reach the marketing stage. At this point, you have to be mindful of the many regulations and restrictions around advertising. Particularly in the digital environment.
Come up with different ways to market your products. From relying on influencers, advertising on podcasts, to investing in content marketing. Google and social media platforms like Facebook don’t allow advertising for CBD products. Thus, you have to get creative to ensure you can get your name in the public eye.
There can be a lot to remember when you’re trying to start a new CBD business. However, these steps above may be an excellent place to begin. Focus on suppliers, a business plan, and marketing, and you might be on your way to having a successful new business venture.