In 2018, the number of US customers using CBD doubled. A survey by Consumer Reviews shows that the number increased from 2.6% to 4.8%. The majority of the users opt for the products to manage pain, sleep issues, and anxiety. This is a clear indication that the CBD business is growing and attracting more investors every day. If you wish to start a business dealing with Exotic CBD Flower, this is the right opportunity for you to establish it. You need to consider the following tips to starting the business.
Know the laws around CBD
At the end of 2018, the Farm Bill was passed in the United States. The bill legalized the commercial production of hemp. However, the bill has various restrictions. The cannabis plant need not have a higher concentration exceeding 0.3% of THC. Also, marijuana plants are legal in only 15 states for recreational use and 36 states for medical use. You need to understand the laws and regulations in your state before starting the business.
Create a CBD business plan
You can’t jump into the business without a business plan. It is wise to structure a solid business plan that will act as a blueprint for your business. It will be your navigator, help to understand what to prioritize and how to ensure that business hits the market. In the process of developing the business plan, start with a thorough market analysis. Know your potential customers, competitors, industry size, and market variables. Come up with a brand name that explains what your business is offering the market, and it also differentiates you from your competitors. Additionally, determine your financing by estimating the amount of money to spend on establishing the business.
Get business documents
Apply for a regular business license. Register the business with your state before starting it. Request an EIN/TIN for the newly established business from the IRS. Additionally, you will need a reseller license. The license is essential as it permits you to purchase products wholesale without making sales tax payments. Also, with the license, you can collect sales tax from your customers. These are vital documents you have to get to ensure the business run smoothly.
Find your CBD suppliers
Look for reliable CBD suppliers. Your suppliers will determine the reputation of your business depending on the products they bring. It might not be easy to identify the best ones in the market. Nevertheless, consult with friends running a similar business. Ask for recommendations and reviews of some reliable suppliers they know. Research more on the suppliers, check out reviews on their websites, and maybe you can pick some of their previous clients’ contacts to inquire about their services. This way, you are likely to get some reliable and trustworthy suppliers.
Discover a perfect eCommerce platform
You need a good eCommerce platform for your operations. Your tech infrastructure is equally as important as getting reputable suppliers. It positively facilitates customers’ satisfaction with your business, especially when you have identified good options. There is a variety of eCommerce platforms like Shopify and shift4shop, which might interest you.
Determine a shipping and payment terms
You have to determine your shipping policy to help your customers understand how the products will reach them. It is necessary to serve your customers diligently to earn their trust. Determine factors like, what is the threshold for free shipping? Will you offer a variable fee? What delivery timeline will be feasible? Which logistics carrier will your business work with? Then, choose an appropriate payment mode that is suitable for all your customers. Consult with experts before deciding on the payment terms to have ideas on which to opt for.