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The sales of CBD products are booming, with products available in various industries such as health and wellness, beauty and food sectors. For the entrepreneur, starting a CBD business could prove to be a lucrative choice in today’s market. But, before you decide to launch a CBD startup, it is important you understand the risk factors involved, from federal and state regulations to product demand to insurance protections.
The cannabis and cannabidiol industries require certain legal considerations that you don’t have with most other commerce businesses, as well as a robust business acumen to set your company apart from the growing competition. So, how profitable is a CBD store? Armed with the right tools to make informed decisions and a determination to put in the work, you can create a successful company in an industry that could grow to 16 billion by 2025.
How Do I Start a CBD Business?
A CBD startup requires some research before you begin the actual legwork of getting your company off the ground. Once you’ve laid the groundwork, you can begin structuring your company and marketing your brand. Here are some guidelines to follow.
Understand the Legalities
CBD can be derived from hemp or from cannabis, and each has very different regulatory structures. Cannabis contains more than the 0.3% legal limit of THC set by the federal government. It is federally illegal to sell products containing cannabis, though individual states have made it legal. Hemp-derived products, however, contain less than the legal limit of THC. If you start a CBD oil business, you can ship your products to all 50 states, as long as it tests below the 0.3% threshold.
Create a Business Plan for Your CBD Startup
A successful company begins with a solid business plan. Follow these steps as you set up your plan:
- Research market demand for the different product types.
- Determine your line of goods, your suppliers and your target audiences.
- Investigate available finance options.
- Choose a brand name and develop a marketing plan.
- Outline a path to grow your business.
Design Your Website
Once you have your business plan laid out, you can start designing the website. Potential customers will most likely find your CBD startup first on the internet, whether you have a brick-and-mortar store or an e-Commerce shop. Take the time to make a good first impression. If you do not have the expertise to develop an engaging and professional site, hire someone to do it for you. First impressions can be the difference between acquiring a customer or having them choose your competitor, so it’s worth the initial investment to create a professional and functional website.
Get the Word Out
It is a big decision to invest in a CBD startup, so you want that choice to pay off. Get the word out on all platforms available to you and drum up excitement before opening. Begin implementing that marketing plan you developed and be prepared to give your customers a great experience.
Protect Your Business with CannGen Insurance Services
For more information about our comprehensive insurance solutions for the cannabis, CBD, and hemp industries, please visit our website at www.canngenins.com or email marketing@canngenins.com.
