Ever wondered why Google as a search engine conquered the world of internet and Yahoo turned so pale. Why Facebook survived while Friendster died? It is all about the timing of taking business decisions.
Right Time + Right Decision = Business Success
A few years back cryptocurrency received a lot of buzz on the internet and people started following the trend. Some made a huge profit out of crypto trading and some lost a lot. It is always the early adopters that become the gainer of any new phenomena.
Something similar is going on with CBD business and Cannabis industry. That is the reason why you can see a multitude of entrepreneurs and social media influencers are advocating about CBD consumer products.
Success in any business depends on proper planning and execution of processes that are time tested and proven to work well in the right market condition. It is no different for CBD products. In this context, we will discuss 10 important steps that will enable you to start your CBD business quickly and efficiently.
1. Choose a Name for Your Business
It is advised that you don’t use the word CBD or Cannabis or Hemp while choosing a name for your Business. Sometimes it can create red flags from your Bank or Merchant provider as CBD is still in a legal grey area. Rather you can choose a name in two words that tell more about your brand and its niche. You can easily market your CBD products under health and wellness supplement category. Also, you don’t want to confine your business by selling products that are made using CBD. Little research has taken place explaining the health benefits of plants that contain medicinal compounds. Only 5% of plants of the world have been tested for their medicinal benefits. The number will surely grow in the future and you might be selling products containing CBN, CBG etc.
Choose a name that is easy to remember, easy to spell and is something that people can remember. Imagine one of your customer telling his friend about the benefits he or she experienced using your product. It is likely that your customer will recommend your products to their friends. Word of mouth marketing will help you reach your business goal. So it is important for you to choose a name that they can recall easily.
Check if the name is available to register as a domain name on Godaddy. If not, see is there any website currently live on that domain? If there is no website in place with that domain name, find who owns it. You can go to ICANN website to find out the name of the owner. Then you can search on Google with the owner name to find their contact information.
2. Register Your Business as an Entity
The next important step for you is to register your business as an entity. You can choose to open a LLC (Limited Liability Company) using your business name as the name of the LLC. Sometimes people use a separate name to form the LLC. In that case, they need to mention (Doing Business As) DBA. By using the same name for LLC and Business you can avoid additional paperwork.
Services like LegalZoom or Stripe Atlas can help you launch your LLC online. They are fast and cost-effective. They can help you avoid additional paperwork, although it takes some time to get the paperwork done. May be 2-3 weeks. In the meantime, you can focus on other things.
3. Design a Logo for Your CBD Business
The third step is to get your brand’s logo designed. You can find a creative designer by choosing platforms like Upwork or Fiverr. You can also crowdsource your logo design task with a platform called 99designs. Provide your brand name, niche and color choice to the freelance designers and you will be amazed by the kind of response you will get from them. Finally, choose a logo that better represents your brand.
4. Open a Business Bank Account
Once you get the LLC setup completed with EIN number open a bank account for your business under health and supplement niche. Again you don’t need to mention CBD to avoid red flags. Tell them that your business is under health and wellness product category and you will be good to go.
5. Get A CBD Merchant Account
You can apply for a merchant account with your EIN and Bank Account information. Many merchant processors will not allow you to process CBD related transaction. Open a merchant account with a company like GreenPay that accepts CBD merchant processing.
6. Partner with a Manufacturer
This is the most important step for your business. The success of your CBD business depends on the quality of your products. You need high quality product to avoid customer dissatisfaction. 1% chargeback request will shut down your merchant account which will result in the shutdown of your business. So you want to partner with a white label CBD manufacturer that provides quality products at a competitive price.
7. Get Your Website Up and Running
You can use WordPress and Woocommerce to launch your website associated with your CBD business. Again you can outsource your website development project to freelancing platforms we mentioned above. They can help you launch your CBD website real quick. Shopify won’t allow you to sell CBD products.
8. Ensure Social Media Presence
Once your website is ready, secure your presence on social media platforms like Facebook, Twitter, LinkedIn, Pinterest, Quora, Instagram, YouTube etc. Use the very same name, logo and description to open social media accounts. This is the beginning of your branding and marketing effort.
9. Find a Fulfillment Company
If you are going to use your own label you need to find the right fulfilment aka shipping company that can pick the product from your warehouse or business location and ship it to your customer.
10. Marketing for Your CBD Products
You have to be creative when it comes to marketing your CBD products. There are so many ways out there. You can list a few strategies that will better represent your products to customers. You can do it yourself or you can hire a marketing agency to work on your behalf.