Cannabidiol or better known as CBD is big business and is taking the world by storm! With the industry expected to hit $20 billion in 2020, it is no wonder you see many companies jumping on the bandwagon. CBD is sold everywhere now from grocery stores to smoke shops to gas stations to health food stores. Maybe you have seen this trend towards growth and given a thought to starting your own CBD business, whether from home or your own brick and mortar shop and why not? Now is the time to hop on board and ride the CBD train into the CBD sunset. Read on to find out more with this seven-step guide to help you get started in becoming a CBD distributor.
Step One: Failure to Plan is Planning to Fail
A centuries-old Chinese proverb said by a man named Laozi says, “A journey of a thousand miles begins with a single step.” But your first step before taking that initial step should always be the planning process. Now is the time to get out some good old-fashioned pen and paper and figure out what it will take to start your own business by creating a solid plan. Some things to consider are what will it cost? Who are your customers? And how long will it take to make a profit? Do you want a brick and mortar location or an online-only shop? It is best to write all these down, do the necessary research, and come up with a formal plan of attack. This way you know what to do and when to do it. That being said, it is also helpful to be adaptable to the situation. While planning will mitigate any extreme failures, it is best to plan for the worst but to hope for the best.
Step Two: Choosing a Name For Your CBD Distribution Business
This step may seem pretty straight forward, but some real thought should go into this. You want to choose a name that conveys to your customers, you are an expert in the business and have the best products available to them. You also want to pick something that is easily remembered and inspires confidence in your customers. Try not to pick things that sound bad or jumbled out loud, stay away from initials, or something that may make your customer think of another industry altogether. Choosing a great name can be an excellent way to catch people’s attention and make them check you out for that reason alone so be sure to put much thought into this aspect of your business.
Step Three: Business Banking
It is never a good idea to mix your personal expenses and business expenses. Be sure to open a business account when in the early stages. This can be a great way to track expenses and manage the money for your business without getting it tied up into your everyday life.
Step Four: Location, Location, Location
Maybe you want to open a mom and pop shop on the corner of your downtown streets or maybe you prefer the internet to be your storefront. Each avenue has its pros and cons and they should be considered. Starting an online shop means a larger crowd of potential buyers and it is also cheaper to start up. The main drawback of an online shop though is there is no direct engagement with the customers. That is where a brick and mortar shop excels. While the startup costs are much more a physical location can mean you have a direct, friendship relationship with your customers. This leads to regulars, referrals, and the satisfaction of being part of the community. There is nothing stopping you from doing both at the same time, but just remember that means more work and more money.
Step Five: Get Legal
Check the local laws in your area to see if you need a special license to retail CBD or if you just need a standard business reseller license. Some areas regulate CBD, and some do not, so it is best to make sure you are in compliance with your local laws. Whether opening a physical store or online shop be sure to do the research necessary and do not be afraid to ask other shops or sellers in your area.
Step Six: What CBD Products to Sell?
Think about what CBD products you would like to sell. While CBD oils and tinctures are some of the best known there are a plethora of products that sell like hotcakes. CBD Gummies, pet treats, bath bombs, and lotions are to name just a few. By having a diverse portfolio of products, you can be sure to attract more customers and in turn sell more products which just makes your business more successful in the long run.
Step Seven: Partner with a CBD Wholesaler
The final step is finding a CBD wholesaler with high-quality products. You will want to seek out a wholesaler that only carries the highest-grade products at the best prices that will help you start your CBD business whether dreaming big or dreaming small. They should offer a variety of raw CBD products such as CBD isolate or distillate if you are looking to create your own product lines as well as offer a myriad of finished products for resale.