Cannabis, specifically CBD oils, is a fast-growing business niche today with people getting more information on how it benefits them in their daily lives. This article can help you set up your own CBD oil business, whether as a stand-alone product or if you want to incorporate it into your existing retail business – Medical practice, Wellness Boutique, Vape Shop, etc. But like any other profitable endeavor, you’ll need to have a plan and execute effectively, here are some important factors you’ll need to consider:
- Legal Obligations
The 2018 Farm Bill has removed hemp, consequently, CBD products, from the list of controlled substances. It has made the FDA the regulatory body to oversee the industry. The FDA has not yet created definitive regulations, which leaves CBD in a grey area. After you get your business permits sorted out, you’ll have to align yourself with your state’s policy on CBD. For example, if your state doesn’t allow marijuana-based products distributed, then make sure your product comes from hemp. Also, make sure the dosage and the company terms are clear in your packaging.
- Develop A Business Plan
This right here is purely business and you’ll have to gather information about what your market wants. You will also have to target your customers like determining which market segment you’re in – wellness, vape shop, cafe, etc and create a market plan around it. Then find a source of funding, now, banks are a little reluctant to lend money for this business so you can get financing from external investors. It’s important that you have a clear path as to how you’re going to move your products and your forecasted sales so that you can gain the confidence of potential investors as well as for yourself.
If you want to start small with very little overhead, then online is the way to go. Many people use the internet to inform themselves about CBD as well as how to get quality products. Setting up a CBD dropshipping business model can help you maximize a strong network. By partnering with a reputable wholesale supplier with the logistical and warehousing capacity to fulfill orders you’ll be able to ship products to your customers with little cost and inconvenience.
- Marketing
Regardless if you’re going for a dropshipping model or a traditional dispensary, CBD marketing is a key component to your success. You’ll notice you don’t often see CBD products in the usual online platforms, that pose a unique challenge but it’s not that bad. Depending on your situation, you should rely on organic searches or having loyalty programs for your customers. Be creative and always be safe when you’re selling your products.
- Build Your Brand
Gaining an advantage in a close-knit community is to establish your brand by offering quality products through certification and lab results. Making sure that every product sold must pass government scrutiny as well as educated consumers. Getting certifications from USDA Organic, FDA facility, and Good Manufacturing Process can help you earn your customer’s trust and gain ground in the industry.
Riding on the high of CBD that has right now can be very profitable if done correctly. A generous portion of due diligence and innovation can help you set yourself apart from other brands. There will be things that you didn’t anticipate, you should have the resilience and creativity to turn every situation to your advantage. We are in unprecedented times now so you’re in a great position to be a leader in the industry.