The CBD market is now worth over $22 Billion. And it’s no surprise because CBD oil and its medical benefits have been all over the news lately.
It seems like cannabis is creating the new gold rush.
With the CBD products seeming to be the future, and with weed legalization becoming common in more and more states. You may want to start considering starting your own cannabis-based small business.
But starting a small business from scratch in the cannabis industry is harder than it looks. Not only do you need to know about the health benefits of CBD.
You also need to know about marketing and advertising, as well as law and accounting.
If you want a piece of this industry then you’re in luck, we’ve compiled the perfect guide to help you out when starting a CBD business.
Know the Laws in Your State Before Starting a CBD Business
If you’re starting a CBD business you’re in luck. Products containing CBD are largely considered legal according to the federal government. Though the rule is that the product must contain less than .3% THC.
THC or Tetrahydrocannabinol the chemical substance in Cannabis that causes its mood-altering effect. Effectively this is the chemical that makes you high. In many states, selling this chemical is considered illegal.
One thing to keep in mind is the medical impact of CBD is still being studied and researched. Right now there isn’t enough evidence that it cures diseases to make specific claims. It’s best to avoid statements that it will cure or prevent any diseases.
Know Your Product
Before beginning your business make sure that you understand how CBD works and that you know how to communicate that to customers.
To be sure that you’re complying with certain laws your CBD must be hemp derived especially if you live in a state where marijuana isn’t legal.
Be sure that you’re aware of dosing instructions and transparent about what each product is for.
Find a Good Accountant
If you want to know how to start a CBD business for the first time make sure that you someone to help you set up your financial plan.
You should have an accountant who’s an expert in tax to help guide you through getting the best tax deductions for your small business. Make sure that the accountant you’re working with has a CPA and experience working with companies that sell cannabis.
If you’re planning to take your company public and sell shares of your company keep in mind that you may need an accountant that is familiar with Generally Accepted Accounting Principal.
Build Your Online Brand
The first step to knowing how to sell CBD oil is to go where the people are and now that’s mostly online.
Many of your sales will happen online so you should have a functional and well-designed website.
When selling CBD online you have to keep in mind that much of your traffic will come from search engines so have a good SEO strategy.
Make Friends With Your Supplier
Much of your reputation as a CBD retailer depends on your supplier. Make sure that you have a good relationship with them and know the quality of the product they are sourcing.
Be sure that your CBD oil has a COA or a Certificate of analysis that tells you the amount of every chemical in the product your supplier is giving you. This should tell you the amount of THC and any other chemical in the CBD oil.
Want to Learn More about CBD Oil?
Starting a CBD business can seem endlessly complex but it doesn’t have to be. If you have any questions about CBD oil and how to sell it contact us today.