The cannabis industry has greatly expanded in the last 5 years thanks to the increasing acceptance of cannabis as a medical treatment. Studies show that CBD oil offers many benefits to patients with chronic diseases and pain conditions.
Savvy entrepreneurs hoping to dive head first into this rapidly growing pool of potential customers need to do it right the first time. If you are starting a CBD business, check out these 5 excellent tips to ensure your success.
Starting a CBD Business? 5 Must-Have Tips for Success
In 2016, researchers valued the international cannabis industry at $9.3 billion and expect it to increase up to 34.6% by 2025. Now is the time to break into the industry before it gets totally flooded. Here are 5 tips for how to start a CBD business today.
1. Do Your Research
If you’re asking yourself, “how can I start my own CBD oil company?” you probably already know a little bit about CBD oil and cannabis. If you don’t, that’s the first place to start.
Be sure to check with the cannabis-related laws in your state to avoid legal troubles. You’ll need to follow the typical steps to set up shop, like getting business licenses, incorporation, and a tax EIN.
2. Create an Actionable Business Plan
Next, you’ll need to create a business plan with actionable steps and time-based goals. Some of the vital factors to incorporate into your plan include:
- Services and products you plan to provide or sell
- A target customer profile with market analysis
- A plan for business finances and funding
- A marketing plan with branding and both online and offline strategies
- Predictions and sales forecasts with realistic sales benchmarks and steps on how to reach these goals
Your plan may contain more than these factors, but these five are key to a great small business plan.
3. Locate and Buy from Top Suppliers
It does not matter if you want to manufacture or distribute CBD oil, you must partner with a legitimate supplier. Double-check where the supplier obtains their CBD. In the past, it was likely Europe, but more US-based hemp growers are popping up.
The CBD oil you source should come with a certificate of analysis. This COA confirms the levels and purity of THC and CBD as well as the other chemicals in the product. (See page for an example of a reliable supplier.)
4. Create and Search Engine Optimize Your Website
Very few businesses succeed nowadays without a visually pleasing website. It must be easy for users to navigate and buy your products securely.
Do some research into the best website platforms for a CBD e-commerce business. Then remember to generate original content and search engine optimize every page for better rankings.
5. Build and Market Your Brand
Finally, you need to build up your brand and begin marketing. Ensure you can answer any and all questions customers may have to create a trustworthy reputation as a CBD authority.
Use your website, build an email list, and be active on social media. You can find many guides online on how to market a small business.
Get the Best Business Advice for Any Industry
Much of this advice for starting a CBD business applies to other types of businesses in other industries as well. It always makes sense to have a good business plan to follow and an eye-catching website with proper SEO.
Want more awesome business tricks to boost your revenue and make your customers even happier? Check out the Small Business Brief blog with tons of advice for small business owners including how to cut business expenses in 2019.