Selling CBD: How Can I Start My Own
CBD Oil Company Legally?
The CBD industry is predicted to reach $24 billion by 2024. This shows there’s a high demand for CBD products so it’s likely your business will thrive.
You’re intrigued but you’re left wondering: “How can I start my own CBD oil company?”
If this sounds familiar, you’ve come to the right place. Here’s everything you need to know.
What Is CBD?
Before we answer the question “How can I start my own CBD oil company?”, it’s important to understand what we mean by the term.
CBD, or cannabidiol, is found in cannabis and hemp plants. Unlike THC, a psychoactive cannabinoid, CBD doesn’t make you intoxicated. CBD products contain 0.3% of THC (maximum); otherwise, it’s not legal to sell.
Instead, CBD provides potential therapeutic and health benefits, helpful for those suffering from physical ailments or anxiety.
CBD oil is extracted from plants using a variety of methods and you must decide whether you want “full-spectrum” or “isolate” CBD.
Alongside cannabinoids, the former contains terpenes. These create a flavor profile and aroma compared to CBD isolate that only contains CBD. Like Colorado Breeders Deport hemp seeds, choose a full-spectrum CBD so you can produce higher quality products.
Plan Your Business
When starting a CBD business, you must have a clear plan of your budget, target market, and brand.
If you grow your own hemp, costs will be low, and you can sell products via your website. Or you may collaborate with an established farmer and buy from them. You may also want to hire a lawyer to help you with the ever-changing hemp laws.
Next, your CBD business must know its target market. CBD oil is used to reduce anxiety, soften skin, help you relax, and eliminate chronic pain.
With this in mind, figure out how to create high-quality products and base a marketing campaign around this. Then you can choose a business name and sign up for a web domain to begin.
Your Product Options
Now you know how to start a CBD business, decide on the most effective products for your target audience. There’s a wide range that all have their pros and cons, so consider this in the brainstorming stage.
Following are a few examples...
Tinctures, Topicals, and Edibles
Sublingual tinctures come in a small bottle with a dropper. Consumers drop the CBD oil under their tongue and wait for the oil to absorb.
CBD-infused topicals include gels, creams, and sprays, aimed at those with aches or pains. You rub these on your skin to target the affected area and relieve any discomfort.
CBD edibles include everything from CBD oil muffins to gummies. The U.S Food and Drug Administration (FDA) hasn't approved any CBD edibles but they're still common in the industry.
Vape Concentrates and Capsules
CBD oils come in waxes and vaporized concentrates which you inhale through an electronic device.
You can create CBD capsules for people who experience seizes or have digestive problems. Animals also enjoy calming effects, in small doses, so you could consider creating CBD products for pets.
Establish Your Business
Establishing your business as a legal business entity protects you from being sued if there are issues with your products. You must then register for state and federal taxes before you trade, so start by applying for an Employer Identification Number (EIN) via the IRS website.
Next, open a business bank account and credit card to separate your personal assets (e.g. home) from the business’s so if you have financial problems, your personal assets are safe. Plus, business credit cards improve your company’s credit history, which is useful if you need to apply for loans later on.
Get Necessary Permits and Licenses
Producing and selling CBD is in a legal gray area so consider state and federal laws to avoid any trouble.
You may need state permits and licenses to run a CBD oil company. Because of this, research your state’s stance towards selling CBD products so your business runs smoothly.
It’s important to get insurance to protect your company’s finances in case of a disaster. Start with a General Liability Insurance and Workers’ Compensation Insurance as they’re the main ones you need.
Market and Sell Your Products
Unlike regular products, you can’t sell CBD oil on giant online platforms so create an e-commerce store or open a brick-and-mortar location.
Evaluate your products and ask for customer feedback so you constantly improve your CBD oil products. You should learn which CBD oil products work best for certain ailments so you know who to advertise to.
When considering CBD business opportunities, create a premium product that withstands criticism from regulators and avid CBD enthusiasts.
You should also post third-party lab test results, either in a manual or on the bottle, to validate the product’s quality. Plus, getting certifications like USDA organic and Good Manufacturing Practices shows your business and product is credible.
How Can I Start My Own CBD Oil Company?
Hopefully, we’ve answered your question: “How can I start my own CBD oil company?”
Start by knowing your target market, budget, and how you want to establish your brand. It’s important to research state and federal laws regarding CBD businesses, know how to do business taxes, and sign up for adequate insurance.
Get creative with your marketing strategy and sell products through your website and social media. And listen to feedback and prove your products are safe by posting certifications. Good luck!