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Learn How To Start A CBD Business in 2021

Introduction

If you want to create your own CBD brand, sell CBD product in your store or boutique, or even if you just want to earn a commission by promoting other people's (or company's) CBD products. then this is the most important blog article you'll read. Ever!

Here's why...

Because in today's cannabis world, CBD is a billion dollar industry that anyone can enter and make millions with little to no money, licenses, experience. I want to show you how.

My name is Cory Holmes and I am the founder of Holmes Organics, a wellness brand that offers CBD products. We offer products from CBD Oil, Softgels, and Gummies… to even CBD doggy treats.

This blog/course will teach you how to start a cbd business in 2021!

Every day you wait is another day the other people and companies are making money in the CBD industry while you DON'T!

 

In Fact, Here's Just The Tip of The Iceberg of What You Get...

  • You'll discover exactly 3 different business models on how to earn money in today's CBD market. Which you can literally start in 30 days or less.
  • You'll understand exactly how to structure an entity for your CBD businesses.
  • You'll skip past most of the mistakes and obstacles that stop MOST cannabis startup business owners from competing in the CBD industry.
  • You'll know exactly how to build a money making CBD e-commerce website that literally makes you money while you sleep.
  • You'll understand how to choose the right distributor of your CBD Products
  • You’ll have access to insider information and personal business contacts for high risk banking and credit card processing.
  • You will learn the best selling CBD Products that will make you the most money in a short amount of time.
  • You'll even learn marketing secrets to getting your business and services in front of millions of people.
  • And much more...

Be sure to follow this blog/course from start to finish and implement everything you learn immediately. Before you know it, you'll be competing in a billion dollar industry. Good luck.

 

Step 1: Educating Yourself On Cannabis Industry

This is extremely important. You can't just start selling products without being knowledgable about them. CBD is no different. In fact, you need to strive to know everything and the Cannabis industry.

Currently the government is working diligently to get laws in place for the industry so you need to stay current. Below are helpful resources.

Know The Law

  • Do NOT sell any CBD products that has more than 0.3% of THC
  • Third Party LabTesting is Essential
  • Do NOT make any medical claims
  • It's advised to have transparent labels and packaging
  • Please consult a lawyer

Valuable Resources

Minorities for Medical Marijuana(MM4M)

M4MM INDIVIDUAL/START UP BUSINESS MEMBERSHIP- $100 YEARLY

  • Membership Certificate
  • Free admission to dice networking mixer
  • Business logo on the M4MM website
  • 1 hour complimentary business consultation
  • Member of the week social media posting
  • Monthly virtual membership meeting

Green Entrepreneur

CANNABIS BUSINESS NEWS & TIPS

  • Get the latest news on the cannabis industry
  • Business advice, jobs, and more ideas
  • Excellent marketing opportunities

The Weed Head

CANNABIS BUSINESS NEWS & TIPS

Aimed at those interested in investment, entrepreneurship and changing careers, the workbook uses guided exercises to help committed readers develop personalized plans for success.

Ministry Of Hemp

CBD BLOG

  • Top hem CBD blog site in the USA
  • New updates daily
  • Product reviews
  • Marketing Platform

Holmes Organics

CBD WELLNESS BLOG

Visit the Holmes Organics blog today for the latest information about CBD products, news, information, resources, recipes, business,
and wellness.

Audible

AUDIOBOOK LIBRARY

  • Tons of books on CBD and cannabis
  • Reasonably priced membership
  • You can't wrong investing in yourself. Books have millions of dollars worth of information

Step 2: Top 3 CBD Businesses You Can Start NOW

Have you ever wanted the opportunity to start your own brand? What about your own brand in a billion dollar industry with no clear market leader at the moment? This is the chance of a lifetime to get in early and establish yourself as the brand of choice for CBD products.

You will be doing the same thing as people like Rihanna and Kylie Jenner ..finding a distributor and putting YOUR BRAND on the label.

You may be wondering...

  • What's the cost of owning your own brand?
  • Who do I buy product from?
  • Do I need a license?

Well read further for the answers...

Affiliate Marketing

The Free Business Model

  • All you need is a URL
  • Your Facebook, Instagram, YouTube, Or Your Website
  • Promote reputable CBD companies for a commission
  • Sometimes up to 40%!!
  • Easy Sale
  • It's easy to sell products that help people
  • Cookie System
  • 60 and 90 day cookies
  • Keep earning money from the same person over and over with little to no advertising

Reputable CBD Affiliate Programs

Wholesale CBD

The Inexpensive Business Model

  • Fast start for as little as $250
  • Buy at 50%-60% of retail pricing.
  • Sell at whatever price you want
  • Sell as many brands you want
  • Mix CBD with your current products and services
  • Sell in your shops, restaurants, farmer's market, trade shows

Private Label CBD

Why You Should Own Your Own CBD Brand?

  • It's relatively inexpensive to start...as little as $2500
  • You can play ball with the bigger brands...and win
  • You're in control
  • Gain recognition
  • You're known as the expert
  • Change people's lives
  • No licenses required

Click here to learn more about Holmes Organics Private Label Partnership.

 

Step 3: Setting Up Your CBD Business Structure

Structuring your business is not as hard as you may think. In fact, it can be done in a very short amount of time without spending a lot of money. You’ll want to follow these steps to make sure you don’t hit any annoying roadblocks down the line with things such as banking and credit card processing.

Name Your Company

Your brand’s name is everything! You need to make sure you choose a name that’s easy to remember, differentiate yourself from all of other CBD companies. Your name needs to be able to withstand the test of time.

Study your competitor’s names to get a better idea of what or what not to name your company. Avoid using words like “Hemp”, “CBD”, “Cannabis”,”Canna” or any similar words in your name. You’re going to put your company in a box and not stand out as much. You could also run into issues with getting a bank to let you open up a business account. More on banking later on in this chapter.

Once you have your name, you’ll want to trademark it. Check the U.S. Patent and Trade Office for any marks on your chosen name. If there aren’t any, it is best that you contact a Patent Attorney. If you find that your chosen name has a mark, then you’re shit out of luck. Choose another name so your can avoid any lawsuits down the road.

Take a day or two to think on it. Also ask your friends and family and get their opinions on a name.

Set Up Your Business Entity

Missouri's Secretary Of State Example

  • Visit your Secretary Of State's website
  • Legal Zoom is a great option!
  • Speak with an attorney

Receive Your Employee ID Number

Internal Revenue Service

  • Apply for your EIN online
  • IT'S FREE!

Purchase Your Corporate Domain And Email Address

  • Use a ".com" preferably. Do not use @gmail.com, @yahoo.com, @hotmail.com
  • Use SiteGround, G-Suite, Host Gator, Blue Host, or GoDaddy
  • Example: "info@yourdomain.com"

Set Up Business Bank Account

Bypass a bank all together and find a CBD friendly local credit union.

Documents needed to open your CBD business account:

  • Articles of incorporation/ organization
  • EIN number
  • Operating agreement
  • Visit Law Depot For A Free Operating Agreement

WARNING: BE CAREFUL ABOUT MENTIONING YOUR CBD BUSINESS TO YOUR BANK. THEY MIGHT TELL YOU TO TAKE ALL OF YOUR BANKING ELSEWHERE.

Business Phone Number

Use Google Voice for a FREE business phone number.

  • FREE real phone number from Google
  • You can send text, phone calls , and voicemail
  • You can also use with your current smart phone

Business Address

If you're starting an E-Commerce business, you can purchase a virtual business address for as little as $10/month.

Click Here to sign up for your Real USA Mailing Address

Listing Services

Clients and other professionals often search for reviews through listing services such as "Yelp".
Below are four listing services to register your business for.
  • 411
  • Yelp
  • Yahoo
  • Bing

Step 4: Designing CBD Merchant & FDA Compliant Website

Let's build a strong backend that can handle traffic, process transactions , and grow your online presence. If you don’t get this right, then there’s a possibility that your store could lose the ability to make money online. This means that your credit card processing will deactivate after the first transaction is made and you won’t be able to take orders.

Important Website Must Haves

There are a number of requirements that must be on your website before you can be granted a high risk credit card merchant account. Here’s a list of them all:

  • Your website name and business name must be exactly the same or closely match.
  • DO NOT list Stripe or PayPal as a payment method. At the time of this writing, neither Stripe or Paypal approves CBD transactions.
  • You must specify your shipping methods and timeframes.
  • You must have a registered domain.
  • Your website must be SSL secure. For example your website should read “https://yourwebsite.com”. The HTTPS is important. There should also be a green lock in front of the URL.
  • If you offer pet products, they must be in a separate category from your other products. They can not be listed on the same page as your non-pet products.
  • All products must list:
    • Price
    • Description
    • Pictures of labels with ingredients visible
  • The website’s footer should have:
    • Terms & Conditions
    • Refund Policy
    • Privacy Policy

Choose Your Shopping Cart Wisely

Your website’s shopping cart solution is also extremely important. You can use Shopify but DO NOT USE Shopify’s shopping cart, "Shopify Payments". They will shut down your credit card processing. You may now be thinking, “Well, I can just use PayPal.”. Nope. Once PayPal finds out that you are taking orders for CBD products, they will shut you down.

Use Plug And Play Templates

Creating your website has never been easier than it is today...even if you’re not a technical person. Gone are the days of spending tens of thousands of dollars to hire someone to build your website, which might take over a month to complete. There are free or inexpensive platforms like Wix, Squarespace, or Wordpress that allow you to utilize plug and play templates to build your website in hours.

I recommend using the Wordpress platform because it gives you a ton of flexibility for cheap. You’re going to need that flexibility to navigate around the pitfalls of setting up your shopping cart and credit card processing.

WordPress also allows you to download themes. But a lot of them are not intuitive to use. My theme builder of choice is Elementor which you get for FREE.

Pictures Are Worth A Thousand Words

You should definitely have pictures of your products as well as lifestyle photos on your webpage. Use professional 3D renderings for your online store’s shop page for a more professional look.

A Nice And Simple Logo

Your logo is usually the first thing people see when they reach your website. So it should be easy to read font with a simple design that describes your name and brand. Use platforms live Fiverr, Upwork, or my favorite Tailor Brands for quick and affordable logos for under $10.

Copywriting Is Everything

Copywriting is extremely critical to your website’s ability to convert. If you want to drive your website viewers from click to close, then you MUST master this skill. To further drive home the importance of copywriting, professional copywriters can command at least $10,000 per page on your website. It’s important!

You may be thinking, “what is copywriting and where do you use it?” In simple terms, copywriting is words that sell a product or service that you offer.

Copywriting can be used on the following:

  • All of the pages on your website.
  • Social media posts
  • Email marketing campaign
  • Social Media Ads (If social media platforms ever approve CBD ads)
  • Youtube Videos
  • And much more

There are plenty of things to write about when creating your copy.

I want you to focus on 6:

  • Grab attention with a bold headline.
  • Identify the problem your CBD products will solve.
  • Identify the solution to the problem.
  • Provide proof on why your products will solve the problem.
  • Show the benefits in using your CBD products over others.
  • Provide Testimonials to show that your products have helped others.

Study the copy techniques of large companies like Bose or Apple. If you can create persuasive copy for your website, you’ll will experience constant sales transactions.

 

Step 5: Choosing The Right CBD Partner (Wholesale & Private Label)

Choosing the right partner is crucial your longevity in business. The CBD market is booming and there are lots of companies fighting for market share in the space. There are also lots of companies that offer low quality products and are not operating with integrity. You want to do your due diligence and vet companies and their products thoroughly before you partner with them. The quickest way to fail in your CBD business is to offer low quality products and services.

You will soon realize that the CBD industry is highly unregulated so you need to try products from various companies. You also want to pay attention to their processes and customer service.

Here are 5 main factors to consider when choosing your CBD distributor.

  • Choose a high-quality product
  • Choose a company with great service
  • Choose a company that fits with your standards
  • Choose a company with logical pricing and product selection.
  • Choose a company with great marketing support.

View for more information:

https://www.greenentrepreneur.com/article/322265

 

Step 6: CBD Banking & High Risk Credit Card Processing

Without the ability to process credit card payments, your CBD business will be limited. But things are so bad in the industry right now that small businesses are choosing to risk it all to process credit cards in a way that could shut their business down for good.

This topic is definitely a topic you want to stay up-to-date on...daily!

You must have special merchant processing to take payments for your CBD business.

Banks & Credit Unions

Be extremely careful when opening up a bank account with your current bank. Do NOT tell them you're in the CBD business. If they find out then they will close ALL your accounts and tell you to take your banking elsewhere.

I recommend using a credit union. Some of them are CBD friendly due to the fact that don't have to follow FDIC rules.

NO PayPal or Stripe

Paypal and Stripe are NOT CBD friendly. If they find out you're processing CBD product, they will close your accounts.

Top 4 Credit Card Merchant Processors

Square

  • Startup friendly
  • Lowest rates in the industry
  • Use of Square's Free Swipe

Digi Pay

  • Startup friendly
  • Integrates w/ Shopify

E-Merchant Broker (EMB)

  • Custom pricing for each merchant
  • Startup friendly
  • A+ BBB Rating

 

Step 7: Marketing Your CBD Business

So you've set up your business and now you're ready to start making sales. The real work begins now. Marketing your CBD brand will be a huge challenge in itself. You'll have to get really creative but there are ways to get your products in front of eyeballs without a huge financial commitment.

Let's discuss what NOT to do first.

You Can't Use These Popular Marketing Strategies

FB/IG ADS

  • Facebook is NOT cannabis friendly
  • If you try to create ads, they will "red flag" your business
  • You run the risk of your Ad account being shut down
  • You CAN create posts, stories, videos

AMAZON

  • Also NOT Cannabis friendly
  • Your ARE allowed to sell CBD but your labels CANNOT say "CBD" anywhere
  • Your labels and descriptions should read "Hemp Extract"

Top Ways To Market Your CBD Brand

Word Of Mouth

  • An endorsement from a single person can bring lots of attention/ sales
  • People believe follow what they see. If one person they trust gives the "OK", then other people are willing to try
  • If your product works, then word can spread
Blogging/Vlogging
  • Start an informational blog or vlog
  • YouTube, Facebook Live, IG stories are great ways to market your business
  • Have links to your brand and website in your content
Trade Shows And Vendor Expos
  • Choose expos that fit your target market
  • Allows for face to face interaction
Influencer Marketing
  • Leverage other people's large following to boost your brand for a cheap price
  • Focus on "micro Influencers"
Emails Marketing
  • The easiest way to may a quick $1000+ in one day
  • Send out email blast to your audience about sales and information
  • The most cost effective email solution we've found (and use) is called MailerLite. You can create landing pages, email campaigns, list segmentation, automation, etc. starting at $0.

 

Step 8: Drop Shipping CBD Products

Drop shipping your products can save you lots of time and money. It's also away to provide a consistent shipping experience for your customer. Now you can focus on building a scalable business while possible working less. Automated Passive Income!!!!!!!

Here's a couple of solutions for you:

CBD Fulfillment By ShipBob

  • Start with as little as $5/month plus shipping costs(which your customers can pay)
  • 2 Day Shipping
  • Fulfill Order 7 days a week
  • Integrates with major ecommerce platforms like Shopify and WooCommerce

CBD Drop Shipping with Joy Organics

There are four major requirements for joining the Joy Organics Partners’ Fulfillment Program:

  • Website
  • Shopping cart compatible with ShipStation
  • Approved CBD merchant processor
  • First order for products placed and paid for

Charlotte's Web Drop Shipping (Coming Soon)

In order to join their dropshipping program you need to have:

  • A website that we can review
  • A shopping cart compatible with our dropshipping management system ShipStation
  • An approved CBD merchant processor
  • A sales tax license

 

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