2020 is certainly the right time for any action-taking entrepreneur to jump onto the CBD bandwagon. With the astronomical growth currently being experienced by the industry as well as the ongoing research being performed on CBD, you can bet that this industry is well on its way to attracting more customers to its already expanding base.
If you are an entrepreneur interested in selling CBD in 2020, you will first have to accept the possibility of coming across several hiccups along the way as well as the importance of apt planning required to ace this new but popular niche.
Here are a few steps to consider before selling CBD online.
- Choose Your Products
The first step is to identify the products that you are willing to sell. This involves carrying out in-depth research before deciding on which CBD products to sell. You can also grow your inventory over time as your sales volume increases.
The number of CBD products available today is on the rise. At the moment, one of the most popular among them is CBD gummies. You can also consider adding some all-purpose CBD oils and topical pain relief creams to your catalog to appeal to a wide audience.
Other products that can fit in well with your online CBD store include CBD vapes, juice, chocolates, tinctures, lotions, capsules, and beverages. While choosing your products, ensure that you source them from high-quality organic hemp.
Investing in low-quality products will only end your business before it even starts.
- Establish Funding
Although more banks are starting to tolerate CBD business loans, many are still against providing such loans for various reasons. Most banks see the CBD business as an extremely risky one as a result of the nature of the laws guiding its sale and distribution.
As an entrepreneur interested in selling CBD, take the time to seek out banks that are willing to provide loans for CBD businesses. You can also choose to present your business as a health foods company that also sells CBD.
A lot of online CBD stores have used this strategy to successfully secure loans for their start-ups.
- Know How to Market CBD
Marketing CBD products can prove to be difficult, especially for new businesses with no customer base. This is as a result of most of the big-name advertising platforms rejecting CBD advertisements.
However, you can choose to go creative with your marketing and advertising of your CBD business online. You can also choose to adopt offline print advertising, email newsletters, organic search strategies, and influencer marketing strategies which are often just as effective as other top ad choices.
- Form a Legal Entity
This is a good way of preventing your CBD business from being found liable in case you were to face a lawsuit for your CBD products. Try as much as you can to create a fully legal business entity.
Some of the formats that you can adopt include limited liability companies (LLC), Partnership, corporation, DBA, among others. Paying attention to the right functions of what legal entity you will need before getting into the CBD business will ensure that you don’t run out of business soon.
The CBD industry is growing more and more. Even at this stage of infancy, it is still expected to grow approximately 32 percent in the next five years. As such, there is no better time to take part in it than now.