CBD is a huge business and one with lots of potential for companies. Here are some tips on how to take advantage of this growth and market your company.
1Understand CBD And The Laws Governing The Same
CBD oil extracted from industrial hemp is considered legal by the federal government. Products from the same are also deemed legal for as long as they contain less than 0.3% THC. This includes supplements, oils, and other products considered safe to use. CBD extracted from marijuana, unlike hemp, contains more than 0.3% THC hence illegal in most states. If looking to sell CBD products either online or in a store, you then need to familiarise yourself with several laws and comply with the same as well. You will need to:
- Obtain a business license, incorporation, and TIN.EIN for the new business
- Make sure the CBD and related products are hemp-derived. (if in a non-legal marijuana state)
- Have a knowledge base of the cannabis plant and what role CBD plays
- Have a transparent company policy, genuine products, and transparent packaging
- Comply with the law
It would also be advisable to consult a lawyer with a particular understanding of cannabis and CBD to help you keep the business current. It would also be advisable to avoid ‘misleading’ consumers with terminologies such as treat, diagnose, prevent, or cure any certain disease with CBD. This is because there aren’t clinically or federally-approved research supporting its validity. Be sure to use descriptors that only educate the consumers.
2Have A Robust Business Plan
Create a business plan to help provide a roadmap for you to follow according to cannabis marketing experts Greens Canna Care With a business plan, you will be able to plan well for the growth of the business, strategies, communication goals, stakeholders and financial backers. Creating a business plan today is a lot easier than several decades ago. There are software, consultants, and even guides to help you create a great business plan. A business plan is especially crucial if you wish to seek funding.
Some of the things to include in the business plan include:
- Products and Services – Describe the type of CBD products you will be dealing with. This can be pet care, health and wellness, personal care, and beauty.
- Customer and Market Analysis – Outline who your target customers and clients are. Be sure to include reasons why you chose the assortment, and why the customer will like it.
- Financing Methods; How will you fund the business? Are you seeking funding elsewhere?
- Marketing Plan; Describe what strategies you intend to use to drive product/brand awareness. What measures will you be taking to drive sales within the target niche?
- Strategy and Implementation; Discuss the approach, implementation, and execution of whatever marketing plans, as well as the acquisition of the product. Be sure to outline the channels you will be using, in-person, digital channels, and promotions.
- Sales estimates; Set a realistic sales benchmark, and how you will ensure you meet the goal.
3Find Virtuous Suppliers
You need a good supplier for the product. This is regardless of whether you will be re-selling or distributing the CBD products. Some of the things to look for here include:
- CBD Sources; Many of the CBD products sold here are sourced from Europe. This is because the farmers there have the experience required to grow hemp. This however doesn’t mean there aren’t US-based hemp farmers. Although you can get a good supplier in the U.S, it would be advisable to look into the farmer, farming practices used, and determine if their raw materials meet industry standards.
- Certificate of Analysis; A certificate of analysis confirms CBD and THC concentration among other molecular compounds in the product. The report provides a detailed report of purity, percentage, and other factors that affect CBD purity. If in doubt about the analysis, you can always have the product tested by a third party.
- Claims: Manufacturers shouldn’t make medical claims on their products. The FDA doesn’t approve this too. For this reason, CBD products are treated as dietary supplements. The products must also have Disclaimer by the FDA or on the business’ outlets/website.
4Create A Website And Optimize It
You will need a fully functional and running website to maximize revenue opportunities. First, the website needs to be attractive, user-friendly, easy to navigate, and safe for customers to order from. Customers need to feel safe while on the site.
The website platform plays a crucial role too. With various platforms for you to choose from, you need to pick one that best suits the business. It would be advisable to research platforms where you intend to sell CBD before starting off. Some platforms are less favorable than others. Identify platforms that are receptive to the products to promote your products on. WordPress is a good example of platforms that will come in handy for such a business.
Creating a website, and on the right platform is one thing, creating content is another. That said, you need to create useful, informative, and compelling articles for your website. Customers should see the website as a trusted source of both quality information and CBD products. Creating good quality content should help attract more target audience your way. Be sure to update the content regularly to keep it afloat. You will also need to optimize the website for search engines and organic visitors. Doing this increases the business’ visibility online, hence making it possible for the target audience to find you. You can also tap into your audience content as well. Their success stories, reviews, and testimonials will go a long way in influencing purchase decisions.