Special to California Business Journal.
CBD is one of the most popular supplements on the market today. In fact, 1 in 7 adults in the United States use CBD as part of their regular routine.
This makes it a particularly attractive industry to get involved in and the sooner you do, the sooner you can start making an impact. However, starting a CBD business isn’t as simple as you might think.
There’s more to it than choosing the right CBD oil and offering it for sale. You need to take your time and set your business up for success form the very beginning. Here are a few tips to help.
1. Read up on CBD
Before you can start forming a successful CBD business, you need to make sure you understand the product. Learn about how it works, how it’s made, and what sets high-quality products apart from others.
This will help you find the right supplier and helps you better understand what your customers will use CBD for. When you understand their needs and their motivations, you’ll be better able to grow your brand and foster long-term customer relationships.
2. Create a Solid CBD Business Plan
The key to starting a CBD business that can prosper for years to come lies in creating a good business plan. Think of your business plan as an outline for your entire company.
It should include your goals and financial projections for the first few years and explain how you’ll get there. You’ll also want to explain your company’s mission and values. These are the things that will set your company apart from others in the industry.
Take your time with this step and really dial in your business plan. Remember, lenders and investors will use your business plan to see if they want to lend you the money you need. If it’s not well written or clear, they may not be comfortable partnering with you.
3. Be Cautious When Choosing a Name
Your name is often the first thing people notice about your business and it can mean the difference between finding investors and having to fund the business on your own.
Try not to mention hemp or cannabis in your business name. Some lenders and investors may not be willing to work with businesses that they feel are part of an illicit industry, even though CBD is legal.
If you’re not sure where to start, think about your company’s values and mission. What stands out most? Use this as inspiration for your company’s name.
Don’t hesitate to run names past your friends, family, and business partners. They can help you narrow the list down.
4. Register Your CBD Business
Once you have a name, you need to register your business with your local government. Start by choosing the right organization type for your company.
Most CBD companies form limited liability corporations (LLCs) to protect their personal assets as best as possible. If you’re not sure which type of structure will work best for your company, reach out to a business attorney.
Once you have everything in place and register with the local government, you’ll be able to start working in earnest.
5. Separate Your Personal and Business Finances
Before you start a CBD business it’s always best to separate your personal finances from your business finances. Open a dedicated business checking account and credit card before you start working with customers.
This will make it easier to figure out how much you’re spending and what you’re earning as profits every month. Even better, those separate accounts will simplify your tax filing process.
When your personal expenses aren’t part of your business expenses, your accountant can more easily prove that you qualify for certain deductions. The more deductions you qualify for, the less you’ll owe in taxes every year.
6. Find a Trustworthy Supplier
Your CBD business should focus on providing the highest quality products possible. That means you’re going to need to find a trustworthy supplier to produce your products.
Take the time to research each company you consider working with. Read up on customer reviews and see what they have to say about the quality of their products.
Make sure you’re working with a supplier that gets its CBD products tested by a third-party lab. These labs verify dosages, concentrations, and quality of every product they inspect.
Without those tests, you have no way of knowing that you’re buying quality CBD.
7. Hire a Professional for Logo and Website Design
According to the experts behind https://www.greeny.com, your logo and website say a lot about your brand. Don’t take chances with them.
Let a professional help you design a logo that will resonate with your customers and leave the website building to a qualified web developer. This way, you know that your company will look as professional as you imagined right from the very beginning.
Remember, more people rely on the internet to help them make decisions on the brands they want to support every day. When you have a website and logo that’s user-friendly and eye-catching, you’ll be ahead of the curve.
Customers will feel more confident buying from you in the long-run.
Once you have your website and logo in place, you can launch a marketing strategy, increase brand recognition, and create long-term growth for your brand.
Ready to Start a CBD Business?
Starting a CBD business takes time and determination. However, if you’re willing to put in the work, you’ll be able to make a dramatic difference in your customers’ lives.
Keep these tips in mind and you’ll be up and running in no time. Just remember to put your customers first and focus on the quality of the products you sell. This way, your customers will trust you over other brands every time.
Looking for more tips on streamlining your business? Check out our latest posts.