The CBD market is expected to grow by 22% a year between now and 2025. With that kind of growth, you’d be crazy not to start a CBD business.
Now, just because you start a CBD business doesn’t mean you’re going to be successful. The competition is growing fast as everyone seems to recognize the opportunity.
That doesn’t mean you should walk away from your dream. You just need to learn how to start a CBD business. Keep reading to find out how you can take your business idea and make it a reality.
What Is Your CBD Business?
The cool thing about starting a CBD business is that you have plenty of options available to you. You could start a CBD business as a consultant, working with product companies on branding and marketing.
You could start a dispensary or sell CBD infused drinks or products.
Before you pick your business, you have to do your research in the marketplace. You want to choose an area that has a large upside. Look carefully at the competition, how they position themselves, and the potential market size for your business idea.
What you don’t want to do is pick a business type that’s already saturated. For example, if you want to open a dispensary, you want to do so in an area that’s not already full of dispensaries.
On the other hand, creating a refreshing drink that is infused with CBD could have a huge upside with the right branding and distribution.
Write a Business Plan
Once you have your business idea, you get to write your business plan. This is the working document that will help you build your company from the ground up.
Your business plan details everything about your business, from the brand to the day to day operations. You’ll provide information about your ideal customer and why they would use your company as opposed to the competition.
You’ll need to include financial information as well. Sales projections, start-up costs, operating expenses, and profit and loss statements all need to be created.
Writing a business plan is difficult, but it’s important. Companies that have a written plan before they start are more likely to be successful than ones that don’t have one.
Gather a Team Around You
Entrepreneurs often buy into the myth that they have to work super-hard and do everything themselves. That is a lie that will only burn you out.
You’re not an expert in a number of business-related topics, and making decisions on your own can be a risky proposition. CBD businesses are highly regulated and watched by tax and government authorities.
You need to protect your business by surrounding yourself with experts who can help you make the best decisions possible. You need a tax professional because CBD businesses often have complex tax and financial issues to deal with.
You also need a business attorney to make sure you set up your business correctly and comply with all regulations. They can also help you navigate the licensing process.
You should have a bookkeeper to help you manage finances, and you’ll need to hire outstanding employees for your business.
Get the Right Licenses for Your CBD Business
You need to be ready to go through a bureaucratic maze of people and documents to get the right licenses. You’ll need to have a business license, which you get from your state’s business division.
Depending on the type of business you have, you may need to get local permits or meet FDA regulations. This is where an attorney can be very helpful.
Find Top Suppliers
How will you get the best CBD products? You have to start with high-quality raw materials to create CBD products or sell at a dispensary.
For example, if you want to grow your own hemp to turn into products, you’ll need feminized hemp seed. If you have a dispensary, you’ll need to find top products to sell.
Promote Your Business
As part of your business plan, you should have come up with a complete marketing plan. Now is the time to execute it. The marketing campaign to launch your business should come in three phases.
The first phase is the pre-launch phase. This is to build interest in your brand and generate excitement about what’s to come. You can slowly reveal your core product line, use influencers to promote it, and share the excitement.
The second phase is the launch phase. This could come as a soft launch that builds into a full launch.
For example, you could release your product for sale online to a select number of subscribers of your list. A dispensary could open its doors for a week or so to test systems and welcome customers.
Once you know that your business is working and your customers are happy, you can scale that into a full launch. You can invite the press to your business in this phase for PR coverage.
The final phase is to continue to build on the momentum of the launch. You want to keep building awareness of your brand and a following of loyal customers.
How to Start a CBD Business That Thrives
If you want to know how to start a CBD business so your business will thrive, don’t overlook the planning process. The CBD industry is competitive, and you need to choose the right CBD business that will give you an edge over everyone else.
When you launch your business, you’ll have created enough awareness and interest that will bring in customers right away. Maintain that momentum and you have a thriving business.
For more tips to help you run your business, check out more of our informative articles on the blog.