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how to start a cbd oil business

Whether you use CBD yourself or you’re just interested in the industry, now is a fantastic time to enter the market and open your own online CBD store. Shift4Shop has everything you need to handle this unique industry and tap into the huge opportunities offered by the CBD market. You’ll have access to the most powerful eCommerce tools available for starting your store, reaching your customers, and getting the brand recognition that leads to a successful business.

When evaluating a CBD supplier, find out as much as you can about their manufacturing process. Remember that you want to sell CBD oil products derived from industrial hemp with a THC content of less than 0.3%, processed from the plant itself and not the seeds. Here are some other considerations to keep in mind when looking at suppliers.

Understanding CBD and CBD Products

Some CBD suppliers offer additional services like dropshipping and private labeling. While the quality of the product should come first, it’s also very helpful to know if a supplier can provide these services. If you’re planning on dropshipping your CBD products, this option is crucial to your business model. In addition, private labeling allows you to sell fully branded products with your own business name and logo, which helps you become established in the industry and start earning the trust of your customers.

Patches are another method for absorbing CBD through the skin. Similar to nicotine patches and various types of pain relief patches, CBD patches gradually release their ingredients into the body over the course of the day. Customers prefer CBD patches when they need to maintain a low, consistent dosage throughout many hours, or just for the convenience of patches over other methods. Patches are also useful when a person won’t have access to other CBD products during the day or won’t have a chance to take them.

CBD has been shown to have similar effects on animals as it has on humans, so it’s popular with people who have pets that suffer from pain or anxiety — even if the customer doesn’t use any CBD themselves. Since animals can have much more sensitive systems than humans, CBD oils for pets should be specially formulated to ensure their safety. CBD for pets can also come in flavors like fish and bacon to make it more appealing to cats and dogs.

CBD has had an explosion in popularity. That means countless brands that want a slice of the pie slap their logo on a boilerplate oil or topical cream from an industrial manufacturer. The difference between many of them is only label-deep. As a pharmacist, I had a vision of CBD oil that set a new bar in taste, effect, and mouthfeel. I refined the recipe over and over again until I got there. I didn’t want to create a CBD oil that was curdling, bitter, and like, “taking your medicine.” I believe our proprietary CBD oil is a premium wellness experience, but even brands who aren’t manufacturing their oils should keep pressuring their manufacturer to improve the customer experience.

Never in my life did I expect to become an entrepreneur. For more than 20 years, I worked as a licensed compounding pharmacist. But in 2013, everything changed. I learned about CBD when I was introduced to it by my friend and talented entrepreneur, Arby Barroso, who struggled with health issues. He thought CBD could help, so I started making simple CBD oils and topicals for Arby and my friends and family.

As an entrepreneur, your product is everything. Because of my background as a pharmacist, I knew we owed it to our customers to meet the high standards needed to get our facility for making CBD topicals certified as an OTC maker. That means the FDA has certified that our equipment and procedures meet the strict standards to make over-the-counter quality products. The truth is, this is rare in the CBD industry. It’s time-consuming and a challenge, but one we accepted gladly.

Set strict standards

I was thrilled to see how much health and happiness it brought to their lives. It was incredibly fulfilling to use my expertise to create products from scratch and then see their impact. As word of mouth spread, I knew I had to leave my previous career behind and launch Green Roads.

Still, if you’re serious about doing what’s best for your customer, I believe products should meet certain standards of quality. Here are a few quality control processes that represent the best practices of how a CBD company can make its products.

Today, launching a CBD company is relatively easy. Dozens of manufacturers are ready to provide finished goods to any entrepreneur with a logo and a label. Somebody with any background can get into the CBD business, and there are now more than two thousand CBD brands means that many novices have jumped in.

There were very few CBD companies in existence at the time and no roadmaps on how to start one. My background as a pharmacist guided my decision-making in those early days. It forced me to put the patient (i.e. customer) first and focus relentlessly on product quality, efficacy, and consistency—even at the expense of profit.

Customers are going to need to feel relief after taking your products. While research is few and far between, you can do your own analysis of which products are working for different demographics by asking for feedback. This can help you suggest the right product so that there’s less experimentation (and frustration) on the part of your customers.

Although CBD oil does not produce psychoactive effects like the THC found in marijuana, the two products are associated closely enought that the production and sales of CBD are currently in a legal grey area. Before starting your CBD oil business, it is important that you make sure to read up on both state and federal laws regarding CBD products. This will help ensure your business functions smoothly and avoids legal trouble.

Recommended: Learn what business insurance for your CBD Oil Business will cost.

How to keep customers coming back

In order to register for taxes you will need to apply for an EIN. It’s really easy and free!

Recommended: Get a logo using Truic’s free logo Generator no email or sign up required, or use a Premium Logo Maker.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our CBD Oil Business Name Generator

Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.