Who would have thought that CBD – a product made from hemp and cannabis plants would turn into a profitable niche one day? Since its debut in 2018, the CBD industry has grown tremendously and is expected to reach over $20 billion by 2024. The popularity of this dietary supplement has also opened up opportunities for entrepreneurs to build profitable businesses.
So if you are looking for tips to run a profitable CBD business, you are in the right place. Here are four tips;
- Plan your business
The first step to creating a profitable CBD business is to make a plan. Ensure that you map out everything from the business name to the legal technicalities and the type of CBD products you will be selling.
Your business name should be simple and catchy, a name that will represent your brand, whether online or offline. After you have come up with a name, start by conducting business analysis and make your budget.
Thanks to federal legislation, it’s legal to sell CBD products across all states, but rules differ from state to state. There is a THC threshold for all states, and the minimum percentage of THC found in CBD products approved to be sold should be less than 0.3%.
Lastly, you must know which CBD products you want to sell when venturing into the CBD industry. There are different types such as CBD edibles like candies, baked products, and food. CBD oil or CBD topicals like gels, sprays, and creams, or CBD capsules and pills.
- Find your supplier
If you are not planning to grow your hemp and create your CBD products, the next step is finding your supplier. You should look for a reputable producer of finished goods, raw materials or retailers depending on whether you will make your products or resell ready-made CBD products.
Getting products from a trustworthy supplier means that you will provide quality products to your buyers, which will keep them coming back, therefore, making your business successful. To determine legitimate CBD products, you must find out where your supplier gets their CBD products, how it is extracted and what percentage of THC is in the products. Finding this out will ensure you are selling legitimate stuff, boost loyalty amongst your customers, and build your brand.
- Know your target market
The CBD market is huge and keeps growing daily. Determining your target market is another tip that can ensure a profitable CBD business. The type of CBD products you wish to sell will influence your target audience.
On average, mainly adults from 25 years to 35 years old consume CBD products. Everyone, even in that age group, consumes or uses CBD for different reasons. About 65% of people use it for medicinal reasons. It is also said that men use it more than women to treat anxiety. These are just a few statistics to get to understand how to clarify your target market.
If you are making CBD products for medicinal reasons, understand your target audience and where they hang out. If it’s for beauty purposes like creams and gels, build your marketing strategy around the skincare and beauty realm. So whether you are formulating your unique formulas or reselling popular products in the market, knowing your target market will make it easier to sell and make profits.
- Market your business
The CBD industry has exponentially grown, and it is, therefore, a competitive market. More people are joining the industry; thus, making your products stand out will be a challenge. Moreover, ads online do not accept CBD ads, so you must develop a solid and effective marketing strategy for your products.
You need to draw a marketing plan that targets your audience if you want to be successful. Word of mouth, a great eCommerce platform, and experiential marketing are examples of ways you can market your products. Both conventional methods and digital platforms are awesome ways to market your brand.
Ensure that your website is simple, implement an SEO strategy, and leverage social media to build an audience and attract traffic to your website. Remember that when you are promoting CBD products online, there are regulations you must follow.
Conclusion
There you have it. Starting a profitable CBD business is not as challenging as it seems. Making use of these simple and effective tips will ensure your brand will grow into a profitable business. CBD is a profitable niche, and if you do extensive research on the industry and create a solid business plan, you can create a profitable business.
Do your research, identify your target audience and ensure you find high-grade products from a legit supplier, and have a good marketing plan to market your products. Take advantage of social media, word of mouth, and build an eCommerce platform; all these will guarantee you success in your business.
About Carson Derrow
