If you are eyeing on a lucrative source of cash flow over the next few years, you might as well consider starting your own CBD business. But of course, it isn’t easy as starting a regular online shop. However, just to keep your spirits high, according to the latest market research, the Industrial Hemp Market is estimated to grow from $4.6 billion in 2019 to $26.6 billion by 2025.
This isn’t impossible at all considering the popularity of CBD today. In fact, CBD products are no longer focused on oils alone. CBD is also starting to saturate the skincare and beauty industries, food and beverage, and pharmaceuticals. But still, the CBD hemp oil is estimated to be the fastest-growing product in the industrial hemp market.
Is This Business Right for You?
Just like with other business, one’s success can also be attributed to the owner’s genuine interest to what he is selling or to what the business is all about. The CBD business is great for people who have a genuine interest in how cannabis can be used to alleviate symptoms of different health conditions, and/or to bring relief to the users.
Who Is Your Target Market?
Basically, anyone can use CBD products even kids. Currently, CBD is used to alleviate symptoms of several health conditions such as arthritis, cancer, diabetes, anxiety, depression, epilepsy, Alzheimer’s disease, heart disease, acne, and a lot more.
What Are the Steps to Starting Your Own CBD Business?
Once you are ready to set your foot in the CBD oil business, you can follow these steps to avoid wasting time and money while keeping your business legally compliant.
Step 1: Plan Your Business
Benjamin Franklin once said, “If you fail to plan, you plan to fail.” As such, we couldn’t emphasize enough how crucial it is to have a clear business plan.
Step 2: Name Your Business
Although you might want to put the word CBD, hemp, or cannabis in your name, you shouldn’t do so. If you want to avoid problems with your bank or other unnecessary difficulties, just drop these three words in your business name.
Moreover, putting these words would also limit your business to these products. Years from now, there might be another booming market as far as organic products or health and wellness products are concerned. It would not be quiet fitting to add that product later on to your business considering that people have already associated your business with CBD alone.
Step 3: Form a Business Entity
Once you’ve figured out your business name, you can set up your LLC under the same name if you want to save on additional paper works. But of course, you still have the option to get a DBA (“Doing Business As”) if you prefer it that way. You can ask the assistance of a registered agent to help you stay compliant and to protect your privacy.
Step 4: Register for Taxes
Before you can operate your business, you need to register for several state and federal taxes.
Step 5: Open a Business Bank Account and Set up Business Accounting
By now, you should have gotten your EIN (Employee Identification Number) and your LLC is getting set up. Recording your expenses, as well as your sources of income is important in order for you to better understand the financial standing of your business.
Step 6: Obtain Needed Licenses and Permits
Step 7: Get Business Insurance
Step 8: Choose a Partner or Supplier from Whom You Purchase Your Product
You want to be sure that your partner has a reputation for selling high-quality CBD products that lead to high reorder. Chances are if you’re offering low-quality CBD products, you might have higher refund request or return rate. You surely don’t want this to happen.
Step 9: Build a Website
If your business can’t be found online, then you are missing a lot. A business website helps you connect with your target market easier, and they can have quick access to your company and learn more about your products.
Step 10: Establish Your Web and Social Media Presence
It’s important to have your own website since it is more formal and makes your business more credible and respectable. However, it is equally crucial to establish your presence across several social media platforms.
Step 11: Build Your Marketing Strategies
Thinking about ways on how to market your products and your company can be overwhelming, and it can also be exhausting. There are countless ways for you to choose from. You can start by writing down at least 20 marketing strategies, and just keep on challenging yourself to think outside of the box. Initially, it may be great to start with one or two solid marketing methods and evaluate if these methods work for you.
CBD is really a big business opportunity with unparalleled chances for growth. At present, it may be extra challenging for entrepreneurs to begin their CBD business considering that there are still a lot of gray areas surrounding this industry. Nevertheless, all of these difficulties might just be at the start. With the estimated massive growth of the CBD market over the next five years, the struggles today could definitely be all worth it tomorrow.