CBD startup is the perfect business opportunity that you should consider this year. Recently, since CBD has been legalized in many states, there is a massive section of the market waiting to be explored. More and more businesses are entering the CBD market since its potential growth is absolutely undeniable.
Are you looking for a chance to step into this fast-growing industry? Then you’ve just come to the right place. We’ll show you everything you need to be a CBD startup. From the market’s potential, explanation to how to begin, it’s all right here.
Before everything else, we found it extremely vital to understand all the basics first. So, what is CBD and how could it become the business idea you should at least know about in 2021?
CBD, or cannabinoids, are the processed compounds of cannabis and hemp. Although you might have heard about THC and its effects, CBD is a much different aspect. It offers a great deal of therapeutic and health merits and now has been used mostly for medical purposes. Most CBD products have to go through a lot of examinations and must get FDA approval before being introduced to the market. Thus, all the raw materials, or plants, must be cultivated to extract oil. After that, you can now use CBD oil on its own or infuse it into edibles, drinkables, and many other types of products.
According to BDS Analytics, the CBD market is predicted to reach over $20 billion in revenue by 2024. More and more states, as well as people, are accepting CBD for its health benefits. People began to use CBD to control and calm stress, better quality sleep, or even for pain relief, and it’s showing a significant result. Since its first debut in 2018, the industry is coming up with more and more CBD startup ideas. Thus, businesses are enhancing the customers' online experience by opening up websites and e-commerce platforms. So to be completely honest, the potential for CBD startups to take advantage of the industry is extremely positive!
If you want to hop on and ride the trend, here are some products to consider for your CBD startup:
When it comes to CBD startups, there are countless possible ways for you to join and make money from the industry. However, it also has all the hard work related to legal, supply chain, marketing and so much more that you must get your hands on. If you’re wondering how to start a marijuana business, herbal pain relief, wellness connection of Maine, then here is your answer.
First things first, you must have a business plan. This is your full vision of the entire industry, market section, competitor review, and most importantly, your business plan. When starting any business, let alone a CBD startup, if you do not have a strong foundation, things tend to not run as smoothly compared to if you did spend time putting this in place. We often recommend to our clients to utilize free services from your local SBA to assist in creating your business plan.
Your business plan should include an action guide for all aspects of the business, along with realistic expectations and projections. This will help you control how and what you’re doing when first starting a business.
If you’re scrolling through CBD e-commerce sites these days, you can easily be flooded by the massive range of products people are trying to sell. Of course, choosing what be the product of your business totally depends on you. But just in case you’re a bit lost, here are some niches you can actually have your hands on:
Understanding your line of products and market niche will give you a powerful advantage. Instead of going mass for the whole world, you can now focus on serving the right customers who will be more likely to purchase from you. Find what you are passionate about and apply that to your new business. Love your pets and want to create a CBD line for them, there is an instant niche you can follow.
After knowing who you are and what you're going to sell, you’ll have to know your customers. Just think of specific people who would immediately buy your products. What’s their age, income range, their personality, what do they like or dislike? This will help you to visualize your group of the target audience to choose the right tools to communicate to them.
Although most states are now open with CBD consumption and retail, there are still some regulations and restrictions that you must follow as a CBD startup. For example:
Finding the hemp supplier for your business is undoubtedly one of the most important steps. To ensure your business is completely legal, you must get supplies from licensed providers, farmers, etc. Not to mention you’ll need to do a lab test to check on the quality and THC dosage regularly.
Next is the shipping method. Choosing a trustworthy delivery service will help to boost your customers' experience as well.
Now that you have your foundation set, it’s time for branding and marketing. It’s vital to have a proper brand identity before you enter the market, since the first impression counts! Invest a bit extra for your packaging, logo, and communication material, you’ll be thankful for that later. Having something unique and true to your business will help set you apart. People want to invest in purchasing from companies who share similar values as they do so great branding tells your story and connects you to your consumer.
It’s 2021 already, and if your business doesn’t hop on the latest tech trend, you’re missing out. Prepare a website and choose your e-commerce platform, make sure customers can buy your product with ease.
Now, once you’ve ticked all the boxes, it’s time to put yourself on the market. Give it a little boost with advertising and social media, get ready for a great journey ahead!
Are you ready to start your own CBD company? Reach out to us for a free discovery call where we can discuss branding, packaging, and a commerce website for your new business.