Launching any new business is scary, but even more so when it’s one with strict legislations and laws that haven’t been around for very long, such as a business that sells CBD products. As daunting as it might be, it can be straightforward; you may just need to consider some of this information below.
Identify the Products You Want to Sell
Even before you align yourself with a reputable and safe CBD product manufacturer like Joy Organics, you’ll need to identify the products you want to sell in your new CBD business. Several niches are proving popular, such as pet products, cosmetics, wellness products, and food and beverages infused with CBD.
You might aim to sell a combination of all of them or base your store on a specific product type before potentially branching out at a later date. It’s worth setting your intentions early on, as it can help you decide which manufacturer that you’d like to purchase your goods from.
Understand the Laws and Regulations
Even though the 2018 Farm Bill made commercial hemp production legal in the United States, that doesn’t mean CBD store owners have free rein over what they sell. There are several regulations to familiarize yourself with, such as making sure you stock CBD products with no more than 0.3% THC. You may even need to be mindful that CBD is legal for medicinal use in 36 states and recreational use in just 15 of them.
Create a Business Plan
Thanks to the abundance of business plan templates on the internet, it’s easier than ever to put one together yourself. Business plans are crucial so you can have direction in your new venture and understand what your customers want.
They can typically include a market analysis to learn the best strategy, a brand name, and how you intend to finance your new venture. It can also be worth including a marketing plan, especially given the challenges around marketing a product that faces several restrictions on most platforms.
Get Your Licenses
Regardless of your business structure, it’s imperative that you apply for your business licenses before you commence trade. There are two you may need: a business license and a reseller license.
A standard business license is required for you to register your new business and start selling. You will also need to contact the IRS for a taxpayer identification number (TIN). If you buy your CBD products from a wholesaler, a reseller’s license may be required. This allows you to purchase wholesale goods without paying sales tax.
Choose a Supplier
There are plenty of well-regarded CBD product suppliers, so it may take some time to narrow down your options. Ensure the one you opt for can provide certificates of analysis that outline their products’ content, along with lab testing. It can also be worth requesting microbiological, pesticide, and residual solvent testing to give buyers complete peace of mind that your CBD products are safe.
There can be a lot of effort involved in setting up a reputable and well-regarded CBD business. You must understand your market, make sure you have all the correct licenses, and choose a CBD product supplier you can trust. However, by taking all the appropriate steps, you can make sure your customers can have complete confidence in what you offer.