Experts say the global CBD market will grow at a staggering compound annual growth rate (CAGR) of 47.5% until 2028. With an overwhelming majority of the market located in North America, there has never been a better time to sell CBD products.
New cannabis companies form every day, meaning you too can capitalize on this highly profitable market. So keep reading to learn how to start a CBD business in a few easy steps!
1. Learn About Federal and State Regulations
Before starting a CBD business, you need to understand the laws related to growing, manufacturing, and selling cannabis products.
The 2018 Farm Bill legalized the commercial production of hemp and allows for the sale of CBD products on a federal level. However, there are restrictions to the law you must understand.
Additionally, each state has its own regulations you need to follow. You can research these online. State laws will also tell you the licenses and certifications you need to be a legal business entity in your area of operation.
It’s good to double-check local laws to ensure you remain compliant. Some municipalities have further regulations in place for CBD companies.
2. Create a Business Plan
A business plan defines your company’s objectives and how it plans to achieve its goals. It’s a roadmap that identifies how your business operates and how it handles finances and marketing.
Your business plan should establish what CBD products you want to sell. Some ideas include:
- CBD edibles
- CBD pills
- CBD topical creams and patch
- CBD vapes and cartridges
You can also detail how you’re going to package your products. For example, consider using SecurSlide for child-resistant packaging. This is a great selling point for premium CBD products.
3. Register Your Business
Before you can begin operations, you need to register your business. Most small businesses operate as a limited liability company (LLC).
Once you register your business, you can request an EIN from the IRS. Then, you can obtain the licenses you need to operate legally.
4. Establish Suppliers
It’s possible to grow cannabis and create your own CBD products. While this gives you autonomy and brand control, it’s also far more costly and time-consuming.
Instead, find a CBD supplier. This will lessen upfront costs and allow you to start operations faster. However, you must do your due diligence to find a reputable supplier for your products.
5. Create a Website and Marketing Strategy
With the legalities of your business in place and your line of products solidified, it’s time to create a website and start marketing to customers.
Even though the market is hot, you still need a solid marketing plan to draw customers to your business. And since many misunderstand CBD products, it helps to educate interested customers with accurate information.
How to Start a CBD Business Explained
Now that you know how to start a CBD business, you can launch a profitable business in no time. Follow the steps in this guide to help you get started.
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