5 TIPS FOR STARTING A CBD BUSINESS
Putting together a plan to start a CBD business can be a difficult process to navigate. There are a number of possibilities. In this guide, we will showcase 5 ways to help this process along and save you time and money!
If you’re just starting the research to opening a CBD business or are already in the beginning stages, you know how expensive and complicated it can be. I have one question.
If you could save tons of time and money to start your business, would you pick up a phone to call an expert to help you? I’ll come back to this question later.
I will answer the first 5 questions that will give you “real” help in your desire to jump in to the CBD arena.
It’s time to start saving both your time and money!
1. Brick and Mortar CBD Sales
If you have ever started a business, any business, you know there are numerous tasks to perform before a Grand Opening can occur. Everything from getting a business license, finding a building, turning on the electricity and doing costly build-outs with no return on your investment for months or perhaps years.
What a headache that can create. Here is what I consider to be the main problem with that type of business model when it comes to starting a CBD business.
(The Number One Problem) Exposure – Your clients / buyers are only located in your community. That’s it. This model is very, very limiting. When just starting a CBD business, we believe it is a terrible first step to limit your territory and your potential clients. Step back and take another look before running out to sign that lease for your corner store. There is a much better to start a CBD business.
2. Online CBD Sales – Massive Audience
With this model, you have broken through the “community” limitation of selling your products. You now have a nationwide audience. Yippee! If you’re just starting a CBD business adventure, why not do it in front of millions of people rather than hundreds or thousands of people?
3. CBD Website Problems and Solutions
Okay, so we now know we want to be online with our new CBD Store. But you don’t know anything about websites. This can be a “huge” problem. Or maybe not.
Simple rules to follow:
Step 1 – Own your site. That means, no Wix, no Shopify, No entity that controls your files. Imagine spending hundreds of hours in development to only have your site shut down! Solution: WordPress. Always have your site built on WordPress, period. The magic is that you can back up a copy of your site, and it is yours to move to anyone you want. The correct term is to have it hosted by anyone you want. Don’t like your host? Move it. Try that with Shopify. Can’t be done. Nuff said.
Step 2 – If you don’t know how to use WordPress, then buy a turnkey site (with training provided). Don’t pay more than $500 for the package. I just talked to a prospect that paid $4000 for a website to be built, and he didn’t even get training to use it! He was very happy after talking to me about shaping a better model for starting a CBD business. Here is a resource for that: TURNKEY CBD SITE
Step 3 – Advertising – Prospecting. CBD is not like most products that you can just advertise anywhere you like. No Amazon, No Facebook, No Google Ads and so forth. So what do you do to get the word out? Talk to someone who does this for a living. They have already done what you are about ready to do. Just ask, all they can say is “no I can’t help you”.
Step 4 – Know what your website is required to have to be able to process credit card payments through your site. CBD is a tricky animal when it comes to collecting money for sales through banks. Your company can pay 3-4% or 15-20% just in credit card fees. The credit card company can shut you down in a minute if you break any of the rules. This effectively would put you out of business until you find another processor. Talk to an expert (for free) They can give you the answers before you make mistakes. Here is a resource: 626-888-4016. Call and ask any questions you may have. It’s free.
4. Don’t Sell Other Brands Of CBD
What is wrong with that business model? Well, people are people. When they buy another companies CBD brand, they can do two things that will hurt your business.
First, they can try to go directly to the brand maker to purchase, cutting you out of the sale.
Second, they will shop online to compare pricing. Don’t you? And most likely will purchase the cheapest deal they can find. So who is really benefiting from this model? The brand is. Who is this model building brand awareness for?… Not you!
This is why you should start with your own brand. This way you capture your clients for any future sales. They can’t purchase your branded products anywhere else except though you and your CBD company.
1. Get your own CBD brand – Never sell other branded products.
2. This is a big one – Don’t Spend Thousands on Branding your CBD.
When starting a CBD business, you will find that CBD companies charge far too much to brand their products with your label. Why? They lose repeat business. They are willing to do it, though, at a price. Do you have to spend thousands to get your own brand? No, and you shouldn’t.
Look for these two things, and it will tell you the whole story.
1. What does the company charge to put my label on their bottle?
2. Do they require an MOQ? This is short for Minimum Order Quantity.
So how do you choose a good White Label CBD company?
Find out if they charge a reasonable fee for your labeling. A $100 one time fee is good. A $2000 one time fee is bad.
NOTE: If they say it’s free, then look for a padded MOQ. That’s where they make the money back.
Second, look for a company with a (0) Zero! MOQ – You don’t want to sit on inventory until you have a chance to sell product.
Third, check margins. Margins are what you can get in profit. 100% markup from wholesale to retail is great. Example. You buy your boxed and bottled product for $20 wholesale and can sell it for $40 retail. Try not to settle for less in your White Label Company. True partners should be splitting profits. Not one partner getting rich while the other struggles to make ends meet.
And that is all you’ll need to look for. Here is a resource: WHITE LABEL CBD.
5. Conclusion: To Sum It All Up
Follow these tips, and you’ll be way ahead of the pack when it comes to problems CBD companies face.
1. Online is King and cheap.
2. Get a WordPress site with training and don’t spend more than $500
3. Get your own brand – Don’t spend $2000
4. Don’t carry inventory – Get a no (MOQ) Minimum Order Quantity.
Remember my question: “If you could save tons of time and money, would you pick up a phone and call an expert?”
Here is that telephone number: 626-598-0314. I personally will answer these and many other questions you may have including marketing and promotion to save you time and money on your adventure absolutely free. No strings attached!
I also started this adventure the same way you are. I feel it is a privilege to be able to help others in the same way I have been helped. Likewise, I must admit that the ones who have helped me were few and far between. I suppose that is what separates those who do and those who do not. Furthermore, I have always been a doer. Ask anyone who knows me. I wish only the best for you and what you’re trying to accomplish. If I can be of help, just let me know. Click here to “CONTACT US”
My best regards,
Mark A. Lewis