How To Legally Launch Your CBD Business in 2020
Cannabis is an enormous business opportunity and the most buzzing word right now in the USA. People have a huge amount of information on the internet regarding this topic, though it has legalization issues across different states in the U.S. In this article, we will discuss how big the business opportunity is in CBD industry in 2020 and how you can extract some information for your already existing retail business, (i.e.: Medical Practice, Holistic Treatment Facility, Spa Saloon, Pet Care Shop, Vape Shop, Natural Food Store, Yoga Center etc.) from this booming industry.
If we consider cannabis and its many uses, most thought is paid to Tetrahydrocannabinol (THC), the psychoactive element that gives cannabis its “high.” However, consumers and industry insiders increasingly recognize that Cannabidiol (CBD) has got what it takes to benefit general users with hemp plant’s health and wellness properties.
The legal hemp market in the USA is expected to increase from 688 million dollars in 2016 to 1.8 billion dollars by 2020. A 53 percent annual growth rate has been predicted for hemp-derived CBD products in that time as well. Entrepreneurs have ample opportunities to leverage CBD products to foster their business horizon. Like many profitable opportunities, there is a blueprint for success that you can adopt. Make sure you consider the following five factors to start and run your CBD business successfully.
1. Understand and Comply with the Laws and Regulations Regarding CBD
The federal government considers hemp-extracted CBD products as legal, which are made from industrial hemp. Any CBD Products (i.e. CBD Oil or CBD Vape) is considered legal to sell as long as it’s active THC level doesn’t cross the authorized threshold of 0.3%. Most often that is not the case for marijuana extracted CBD products. When this 0.3% THC threshold exceeds for any CBD products, it is federally illegal to sell.
If you are planning to sell CBD products as a retailer, either online or in store, you need to do the following:
- First, obtain your business license, get a corporation and EIN/TIN number for your newly registered CBD company.
- Next, gather knowledge about CBD products and how it is extracted and developed from Cannabis plant.
- If you are in a state where medical marijuana is not legal, make sure that your CBD products are derived from Hemp.
- Ensure that your CBD product dosage, packaging and company terms are transparent.
- Finally keep an eye on the laws set by your state government and align your company policies to abide by those laws.
2. Develop a strong business plan
You have to launch your company with a feasible business plan and policies, which will help you to increase your business growth and reach your goals. You also need to develop strategies for financial supporters, as well as other stakeholders. You should focus on the following parameters, which will help you to develop a strong business plan:
Factors Linked to Products and Services
- Array of CBD products that customers are looking for
- Determine your target market segment (i.e. personal care, health, beauty, pet care, etc.)
Factors Linked to Market Analysis
- Your target customer market
- Interest and demand of your customers for CBD products
Factors Related to Methods of Financing
- Determine alternative sources of money to finance your business
Factors Related to Marketing Plan
- Set your product or brand name
- Create a plan that will boost awareness and sales within your demographic target market
Factors Linked to Planning & Execution
- Your channels for strategic implementation
- Availability of digital channels
- Promotional events – either in-person or in-store
Factors Linked to Sales Forecasting
- Reference for reasonable sales target
- Staying on your track to reach your goals
3. Identify the right suppliers
You need to choose a quality supplier, whether you are interested in reselling and distributing or creating your own branded CBD products. Here’s what you need to consider:
Sources of CBD: In Europe, farmers have many years of hemp-growing experience and many reputable CBD wholesalers collect their CBD from them. In recent years, an increased number of US hemp-derived CBD came into existence. When a supplier cultivates hemp in-house, make sure to get yourself informed of their farming methods to verify that they follow the standards and their raw materials meet the standards of the industry.
COA (Certificate of Analysis): The levels of THC, CBD and other molecular compounds in any cannabis products is determined by its COA (Certificate of Analysis) report. Detailed components combination in each batch (purity, percentage, concentration etc.) should be reflected by this COA report. To confirm the potency and purity of the products, it is recommended to evaluate the products with a third party test.
Related: Learn what CBD Hemp Experts has to offer as one of the top Suppliers and Manufacturers of Hemp derived CBD Oil, CBD Gummies, CBD Tinctures, CBD Sprays, CBD Capsules, CBD Pet Care Products in the USA.
4. Create and upgrade your site
Your website is your gateway to the internet. These days you can sell almost anything online, so is true for your CBD products. Someone out there is searching for your products on the internet, so you have to make sure that your website is accessible, engaging and can be found with different search terms (related to your industry) on Google.
Choose a website development platform: Your web development platform is equally important as your website content is. You have to choose a platform according to the needs and demands of your business. Keep in mind that there are many platforms out there that will not let you sell CBD product right away. We recommend WordPress or Shopify to launch your CBD business website.
Create genuine content: Credibility and visitors can be generated by good and unique content. You should update your site regularly with fresh new content so people will visit your site more frequently. Use a strong SEO strategy to increase your ranking opportunity on Google and other search engines.
5. Establish your Brand
When you’ve created your website, you should concentrate on your branding to let the world know about your company.
Re-education and Serving the Customers: In this industry, you will face many questions. You have to be always prepared by collecting information about everything related to CBD. You cannot make medical claims in regard to CBD products, just provide information to your customers and show them the CBD products that will enhance your customers’ health, wellness and beauty.
Be an expert in Social Media: Not only writing unique content for your website is important, but also you have to develop contents for social media to connect with your target customers. You should build a feasible social media plan that will assist you in establishing your brand and to draw the attention of your customers. CBD product photos and promotional campaigns will attract new customers to experience, as well as old customers for recurring purchases.
Success in any industry can be challenging. With proper planning and little hard work you can get in the ground floor of this booming CBD industry with little to no risk. You can use this article as a blueprint on your journey to the green rush. Your involvement in the Cannabis industry can create a new customer base who otherwise would not know about the health and wellness features of Cannabis plant, at the same time it can create new income opportunities for you.