If you want a business opportunity with guaranteed profits, there is no better sector to get into than the CBD industry. With the stigma around hemp products decreasing, many manufacturers are now dipping their toe in this lucrative industry without fear. Although hemp is notorious for its recreational uses, most people buy CBD products for various medicinal purposes, such as mitigating anxiety and managing chronic pain. Since dabbling in hemp extracts is still a grey area from a legal perspective, you should put a lot of thought and consideration into your project before you decide to join the CBD market. So, check out the following points to discover how you can build a successful CBD business.
All business ventures require sizable capital. Yet, don’t sweat it if you do not have enough savings. Because you are probably not a millionaire, you will need to find investors who are interested in your business proposal. The easiest way to do so is to search online or attend CBD-related events. If you try this, we guarantee that you will be able to raise the capital you need and start your business in just a few months.
Understand the Legality of Selling CBD
There is always a risk associated with building a new business. However, this risk is twofold in the CBD field. Unlike other trades, selling CBD products is not legal everywhere, so you have to be extra careful about where you conduct business. Despite the 2018 Farm Bill, which legalized the trade of hemp products that have a THC concentration of less than 0.3%, all states have the freedom to enforce their own regulations, which means that starting a CBD industry in your hometown may not be feasible. As of 2020, only three states, Nebraska, South Dakota, and Idaho, consider hemp products strictly illegal. On the other hand, the European market is generally more tolerant, with only Slovakia and Albania having strict rules about the selling and possession of cannabis.
Look for a Wholesaler
If you are thinking about starting a CBD business, then you cannot just grow cannabis in your dorm room and expect to make thousands of dollars! Because you need to turn to mass production to fulfill orders, there is no way around partnering up with a wholesaler. When considering cbd wholesale, you must ensure that your potential partner meets certain criteria. For starters, you need to make sure that the CBD they provide does not contain a THC concentration of 0.3% or above to avoid legal repercussions. The CBD you will sell also needs to be free of contaminants like arsenic and mercury if you want to eliminate the risk of your clients’ developing nasty health conditions.
Build Your Brand
You will not cash in on your investment until you have learned how to build a trustworthy brand. In this regard, you can use some simple techniques to inspire brand loyalty. First off, you need to come up with a unique logo, making sure not to rip off your competitors’ ideas because it will only make your business seem unprofessional. Then, you can create an online store to drive more sales. Luckily, you do not have to be a tech whiz to do so, given the popularity of services like Shopify that allow you to create an e-store with no fuss.
Test the Products
We have already covered the importance of making sure that your wholesaler is providing you with quality CBD. However, you cannot just take their word for it, especially when it is your first time purchasing their products. For this reason, we strongly recommend that you test the products before you put them on sale, just to guarantee that everything is up to par. Failing to do so can have serious repercussions and may even run your business to the ground. As an astute business owner, building a trustworthy brand should be your top priority, and while this extra step will not take time, it is going to help your company stay afloat for longer.
Invest in SEO
The CBD business is extremely competitive, which is why you must rise to the occasion and dominate the field. Whether you are planning to have a brick and mortar shop or an online one, SEO, search engine optimization, is a powerful tool you should certainly invest in. In a nutshell, SEO techniques will help your business get the exposure it needs to grow by enabling it to attract more customers. The best thing about this strategy is that you do not even need to hire a professional if you are willing to dedicate some time to learn more about it.
Consider Affiliate Marketing
If you really want to grow your CBD business, you can leverage an easy shortcut to gain momentum quickly. Affiliate marketing involves partnering up with marketers who will then advertise your products and get a small profit for their efforts. This is an easy solution for business owners who are not ready to commit to thorough marketing campaigns yet but still need to gain an edge over their competitors. Moreover, based on your budget, you are free to choose from dozens of affiliate networks that specialize in marketing CBD products.
Look for Payment Solutions
Unfortunately, most banks are not keen on dealing with CBD sellers even if federal and state regulations have nothing to say against the hemp industry. This makes starting a CBD business somewhat tricky. If you plan to have a physical store, using cash as a payment method is your best bet. However, it can get a lot more complicated if you want to establish an e-store. In this case, you have to look for payment processors that are willing to deal with CBD businesses. Currently, Visa is not a viable option, so you have to depend on Discover and Mastercard.
Starting a CBD business can be very profitable if you know how to play your cards right. However, you cannot ignore the challenges and restrictions associated with the industry. To stay on the right side of the law, consider the above suggestions, and don’t forget to check the legality of CBD trade in your state or country. Most importantly, be patient; building a business empire takes time!