Oct
How to start 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 you’re time and money!
1. Brick and Mortar CBD Sales
If you have ever opened a business, you know all of the things you have to do. Everything from getting a business license, turning on the electricity and doing costly build-outs with no return on your investment for perhaps months.
What a headache. Here is the main problem with that business model when it comes to CBD.
Exposure – Your clients/buyers are only in your community. That’s it. This is very limiting. When you are just starting out in this business we believe it is a bad first step to limit your clients. Step back and take another look. There is a better way to go.
2. Online CBD Sales – Massive Audience
With this model you have broken through the “community” limitation of selling your products. You now have a nation wide audience. Yippee! If you’re just starting your CBD business adventure why not do it in front of millions rather than 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:
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 backup 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.
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 his business. Here is a resource for that: TURNKEY CBD SITE
4. Don’t Sell Other Brands Of CBD
Imagine building a CBD business that is yours, but based on someone else’s products like Joy Organics or MedTerra CBD or any other number of CBD brands I could mention.
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 and building brand awareness for? Not you.
This is why you start with your own brand. This way you capture your clients. They can’t get your branded products anywhere else except by purchased from you.
1. Get your own CBD brand. Nuff said.
5. Don’t Spend Thousands on Branding
CBD companies charge way to much to brand there products with your label. Why? They loose 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 do 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.
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. 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. I have always been a doer. Ask anyone who knows me. I wish only the best for your and what your trying to accomplish. If I can be of help, just let me know.
My best regards,
Mark A. Lewis
Owner – Galaxy Naturals CBD
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