The CBD business is growing by the minute. It has been estimated that the business will grow to become a $22 billion industry by 2022. This has, understandably, piqued the interest of so many people.
However, starting a CBD business is more than just buying products and placing them on a shelf. There are several steps to take if you’re interested in starting a company and selling CBD. Read on to find out what you need to know when starting a CBD business.
- Be conversant with the laws guiding CBD trade
Knowing the laws surrounding this market could mean the difference between the business blossoming or folding within a short while due to legal issues. CBD products are only classified as legal by the government when they are made from hemp that contains only 0.3% THC. Until your products are FDA approved, be careful about using terms such as “prevent, treat, or cure diseases.”
- Get all the licenses and permits required
To get started in the CBD business, you’ll need some federal and state business licenses. You’ll also need to obtain employer or tax identification numbers. If you’re dealing with CBD oil, most times these are done where the oil is produced, in that case, you’ll need to get a Certificate of Occupancy from.
- Create a solid business plan
Carry out a feasibility study and work with the results. Think about what CBD products you want to deal in. Find the right customer base and target them. Also, it might be difficult to get bank loans for CBD businesses, so look up alternative means of funding.
- Build your brand
Choose a great name for your company. Try to pick one that doesn’t include hemp or cannabis as these can be flagged and create issues for you. Also, choose one that is broad and will not limit you.
- Find the right supplier
There’s no point going through all the rigorous processes only to sell inferior CBD products. This will make you lose customers faster than you can say CBD. Good CBD is typically sourced from Europe as they have had years of experience growing hemp.
Ask the supplier for two documents – a Current Good Manufacturing Practice (cGMP) which shows that the business works in conformation with the state and FDA rules, and a Certificate of Analysis (COA), which shows the exact species of plant and the CBD levels in it.
- Open a business bank account
You should absolutely get a separate bank account and credit card for your business. This separates your business and personal accounts making it easier to do your taxes and accounting.
- Create a website
An official business website makes it convenient for your customers to get all the information they need about your company. Selling CBD online is also an incredible avenue to grow your brand, so you should definitely pursue this to get the word out about your products.
Ultimately, the CBD business promises to be massive in just a few short years, and you’ll not regret getting on board now. In the long run, you’ll be glad you did, as there are few industries that are currently experiencing this volume of growth.