- On August 16, 2019
- benefit, business, cannabinoids, cannabis, CBD, customers, design, Farm Bill, hemp, how-to, products, succeed, tips, website
Ever since the Farm Bill passed in 2018, people have been jumping to get into the hemp, and more specifically CBD, industry. CBD was technically legalized (for products testing less than 0.3% THC) when the bill passed, and it opens a whole industry to all kinds of new CBD business.
Cannabis and hemp are likely America’s next big Dotcom-style boom, but before you think it’s all healing products and big money, keep in mind that starting any new business has its pitfalls. The truth is, starting your own CBD business can be an uphill battle; but owning your own business can be a career that is rewarding and self-sufficient.
Where Do I Get Started?
First off, like any start-up, you’ll need to begin by getting your business documents and planning in order. You should never start a new business without a couple of core things ready:
Write a business and/or marketing plan.
It doesn’t have to be complex, but you should know what you’re going to sell, how you’re going to source it and how you’re going to market and sell it before you spend your first dollar on product. A business plan should also detail both present and future planning, including things like:
- How to we plan to expand? Do we start online and grow to a “brick and mortar” store?
- Where do we see the business in 2 years? And in 5 years?
- Will we need additional funding and who will provide it?
- How will we market ourselves and sell our products?
- Do we need a website or graphic designer? (Hire us!)
Create a budget
It’s best to begin a new business with some money in the bank or a guaranteed source of income if this is your side hustle. Keep in mind – the hemp business isn’t magic! There are a ton of competitors, lots of pitfalls and still plenty of government red tape to work your way through. Many start-up businesses take up to 3 years to start making revenue. Unless you’re working a really good angle, or fancy yourself a prime salesperson, be prepared to grind for your earnings and invest a little of your time into planning for your CBD business’s future every day.
Get a bank account
You can’t take in your customer’s dollars if you have no way to accept money. This can be much more difficult with a CBD business since many banks are still wary of working with any cannabis-related products. Be prepared to have a business plan and financial documents ready to show the bank. You don’t have to have a clear credit record, but you do need to be totally transparent that you plan to work with hemp – otherwise they could shut you down for not having the proper paperwork.
Do your research
Plainly put: make sure you understand what you’re getting into. Putting money into cannabis or hemp/CBD products is not a yet foolproof bet, and there are many challenges to meet. Make Google your friend and invest at least 20 hours of your own time into learning more about how hemp is grown and processed, how CBD is derived, what CBD stands for (cannabidiol), and what anecdotal evidence is available to determine how CBD can actually benefit your customers.
How Does My CBD Business Succeed?
This is a brand-new industry, and at times it suffers greatly from misinformation. By making sure you’re the one driving your customers towards good products and information, you’ll build that brand trust that will get them coming back, referring their friends and eventually resulting in long-term business.
CBD and hemp-derived products, both retail and industrial, are becoming a new worldwide revolution and we’re barely at the tipping point. In our home base of Colorado, THC cannabis has been legal for ten years now, and we feel like we’ve seen a lot, but within the next ten years, we can only imagine how far cannabis/hemp THC, CBD, and its many other cannabinoids and flavonoids will take us.
If you plan to get in on it – now is the time to succeed as long as you manage your expectations and your business with care, caution, and planning.