Starting a CBD business may seem like a good idea right now. The market is about to explode and new investors and products are coming out every day.
Even people who fought against cannabis legalization are seeing the green. They’re jumping on opportunities now because the financial rewards could be very lucrative. By 2020, the market for CBD products may well be worth over $2 billion.
The thing to be aware of when starting a business is that not every business makes it big. Many businesses fail within the first 5 years.
Keep reading if you want to know how you can avoid becoming another statistic in government charts and build a successful CBD business that lasts.
What Are You Selling?
There are dozens of types of CBD businesses. Your first decision is to decide what type of CBD business you’ll have.
Will you sell CBD oils, vape products, edibles, cosmetics, or wax?
Making a decision as big as this isn’t something to do based on a gut feeling or what you think will sell. You need to do your research and determine what people are buying now and what they will buy over the next 5-10 years.
You can research by looking through industry journals, Google Trends, and keyword tools. These will give you an idea as to what’s shaping the industry and what people are searching for online.
Who Will Buy Your Products?
When you have your product line down, you’ll next have to sort out who will buy your products. This is otherwise known as your target market.
Beginner business people tend to say “anyone who’s interested in CBD products.” That’s ok, but if you try to target such a broad range of people, your message misses the mark.
Let’s put it this way, would you talk to a 45-year-old the same way you would a 23-year-old? Of course not. Then why would you try to sell your products the same way to each market?
Drilling down on your target market allows you to be an effective marketer. Get clear as to who you’re selling to and what they’re looking for in your CBD products.
It could be pet owners who want to calm their anxious dogs or busy women who want to relax without feeling high.
What’s Your Vision for the Business?
The best part about starting a CBD business is that you get to dream of your future. You have full reign to create the vision of your business and your life.
Take the time to figure out what you want your business to be like in five years. What will your life look like?
Take a few hours to dream and write it all down. You’ll then create a formalized plan that will outline how you will get there.
Think of it as your roadmap to your dream life.
If you plan on getting financing, you will need a formal business plan that has sales projections, operating expenses, and details about your business and products.
It Takes a Village
There is a mindset among many entrepreneurs that you have to do everything by yourself. That mindset will cause you to burn out and put your business at risk.
You aren’t going to become a tax, legal, marketing, real estate, or human resources expert overnight. That’s why you need to have people who are experts in these areas on your side.
Especially with the legal and financial questions surrounding CBD businesses, it is critical that you have people around you who can guide you to make smart decisions.
You may want to avoid the expenses to add advisors to your team at first, but you have to weigh what happens if your business has to close because you made a legal error.
Market Your Business
The most important part of choosing your target market is that you know how to communicate with them.
You’ll know where they hang out online, what messaging they respond to. You’ll also have additional insight into what your brand is about.
Let’s say you’re targeting people who are new to CBD products. They have a household income of over $100,000 a year, are educated, and between 35-45 years old.
Since they’re new to CBD, you can incorporate educating potential customers into your marketing plan. For example, you can start a blog and write about hemp oil benefits.
This will help you in many ways. You’ll have a blog that can help with SEO. You’re educating potential customers, which creates brand loyalty and trust.
Marketing a business is tough. It takes patience because you rarely have overnight success. It takes consistently taking action every day.
It’s easy to get overwhelmed with so many options to market your business. There’s Instagram, Facebook, SEO, networking, PPC ads, and so much more.
Take the approach of picking a few things and mastering them. Do them like it’s your job and your life depends on it because it does.
The Mindset of an Entrepreneur
If starting a CBD business is your very first business, you may be in for a shock. You could be going from the stuffy corporate environment where you were pretty much guaranteed a regular paycheck to not knowing where your clients are coming from.
You’re suddenly responsible for everything that happens in your business. If things go south, you may be tempted to blame the economy, bad employees, or anything else.
The truth is, the responsibility lies with you. Blaming others for your business is the easiest way to have an excuse. If you want your CBD business to lead to your dream life, it’s up to you to do the things that will make a difference every day.
Starting a CBD Business Takes Guts
If you’re interested in starting a CBD business, there’s no better time to do it than now. The market is about to explode. With the right foundation in place, you can position yourself to capitalize on this business and be a massive success.
It won’t happen overnight, but with a little consistent action every single day, you’ll have a thriving business.
Want more great tips from other entrepreneurs? Check out our Small Business Forum.