Success in any industry can be challenging. With proper planning and little hard work you can get in the ground floor of this booming CBD industry with little to no risk. You can use this article as a blueprint on your journey to the green rush. Your involvement in the Cannabis industry can create a new customer base who otherwise would not know about the health and wellness features of Cannabis plant, at the same time it can create new income opportunities for you.
Factors Linked to Market Analysis
Be an expert in Social Media: Not only writing unique content for your website is important, but also you have to develop contents for social media to connect with your target customers. You should build a feasible social media plan that will assist you in establishing your brand and to draw the attention of your customers. CBD product photos and promotional campaigns will attract new customers to experience, as well as old customers for recurring purchases.
5. Establish your Brand
Factors Linked to Planning & Execution
Factors Linked to Sales Forecasting
Sources of CBD: In Europe, farmers have many years of hemp-growing experience and many reputable CBD wholesalers collect their CBD from them. In recent years, an increased number of US hemp-derived CBD came into existence. When a supplier cultivates hemp in-house, make sure to get yourself informed of their farming methods to verify that they follow the standards and their raw materials meet the standards of the industry.
The federal government considers hemp-extracted CBD products as legal, which are made from industrial hemp. Any CBD Products (i.e. CBD Oil or CBD Vape) is considered legal to sell as long as it’s active THC level doesn’t cross the authorized threshold of 0.3%. Most often that is not the case for marijuana extracted CBD products. When this 0.3% THC threshold exceeds for any CBD products, it is federally illegal to sell.
If you are planning to sell CBD products as a retailer, either online or in store, you need to do the following:
Not all lab testing is created equal. My work in laboratories taught me that pay-to-play laboratories and in-house lab testing do exist and are more common than you may want to think. (This amounts to grading your homework!) We have our ingredients and whole finished products tested for quality by an independent laboratory. For the sake of transparency, we put a QR code leading to the results on every package to give our customers peace of mind.
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.
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.
Find the right testing lab
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.
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.
All of our CBD and other hemp-derived ingredients come from American-farmed hemp plants with certificates of analysis. These certificates show that the hemp extracts do not contain unsafe pesticides or contaminants like heavy metals. Hemp plants have a sponge-like quality. They’ll draw up whatever elements are in the soil, including those nobody would want to consume. That’s why I insist on this sourcing and certificates.
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.
An important note for this step: CBD businesses currently cannot use Shopify for their shopping cart. We recommend using WooCommerce instead.
This is one of the most important decisions you'll make when starting your CBD business. In our brick and mortar store, 50 percent of all of our traffic is return customers. Our second source of traffic is referrals. Why? Because people love the results they get, so they come back for more.
The most stressful part of opening Joy Organics was arranging our merchant account. There is an astonishingly small number of banks in the U.S. that process CBD sales. The industry is full of theft right now: People will tell you one thing and then turn around and do another. You have to be careful to avoid getting scammed.
6. Design your website
Really understanding CBD is the first step to growing a successful brand. For me, it started with a series of Google searches, learning everything we could about CBD: its benefits, its history, its different extraction processes, and more. Next, we spoke to many experts and other companies in the field. It took us two months of research before we knew enough about the product to secure a supplier. This empowered us to make informed decisions as we went forward.
What you name your CBD business will have a huge impact on your ability to move forward. The unfortunate reality these days is that banks don't want to work with someone selling CBD. If your business name includes the words "CBD," "hemp," "cannabis," or any other overt reference to CBD, a bank is likely to tell you to take your business elsewhere.
Another area where new businesses can get bogged down is website design. There's no need to create a new website from scratch. Get on Google and search for templates. Use free or inexpensive services such as WordPress, Squarespace, or Wix. Find a designer who can take that template and fill it with content and images.
We encourage anyone new to the CBD industry to read our Ultimate CBD guide. This guide contains accurate information on CBD, its history, its production, and its health benefits. It's a great first step to expanding your knowledge.