CBD Business

Is The CBD Business Right For You?


Wholesale hemp flower can be a key part of your business

Business owners and entrepreneurs are turning to CBD wholesale companies to include hemp flower and other related CBD products as part of their product offerings, but is this the right business for you?

The simple fact is that CBD has proven to be a source of money and it looks like it will continue to be for the foreseeable future. According to Grandview Research, in 2018 the global cannabinoid market is estimated at $ 4.6 billion and is expected to grow at a complex annual growth rate of 22.2% from 2019 to 2025. Obviously this is a huge market! But does it make sense for the average small business owner or entrepreneur to enter this market?

In today’s article we will discuss the benefits and pitfalls of a thriving hemp flower market and what you need to know to get started in the CBD business. We will offer you a reputable hemp company with a great wholesale program to contact and give you some tips to help you start your new business venture.

We will start with benefits.

We looked at the benefits of wholesale hemp flower and how to decide if it is suitable for your business. (Photo: Mr. Hemp Flower)

Advantages of wholesale hemp or CBD

The CBD market is an emerging market with great potential for existing business owners who are looking for additional products to offer, or for those who are interested in starting a new business venture. Either way, CBD may be the perfect choice.

Let’s look at 4 main benefits.

There is money to sell CBD products. For example, the profit margins from hemp flowers are about 50%! And with an average sale of about $ 100, that’s a net profit of $ 50.00

CBD is making a real difference in people’s lives. Owning a business that helps people help is a business that is worthwhile.

It doesn’t take a lot of advance money to start a CBD business. We’ll talk more about this below, but realistically, a few thousand dollars can help you get started.

You don’t need a lot of inventory to start the hemp or CBD business. In fact, only a small amount of inventory is needed.

Not that we have touched on the key benefits of entering the CBD business, it is time to address the potential challenges.

State legislation against federal laws

Of course, it is important for every business owner to follow the law. Depending on where you live, the hemp flower may exist in a kind of “gray zone”.

You see, in 2018, the production and marketing of hemp was declared federal law through the Farm Bill of 2018. However, although federally legal, the states have something else to say.

Some states allow retailers to sell CBD and hemp flowers freely, but require testing or labeling requirements. Other countries prohibit the distribution, marketing, sale and use of CBD or hemp flower (hemp for smoking). You can see a complete breakdown of the countries where CBD is legal, published by Leafly.

Every business owner depends on learning state and federal laws, consulting a lawyer, and moving forward accordingly.

Even if CBD, hemp flower or something related is legal, that doesn’t mean you can easily run a successful hemp business. The state / federal gray area does not make things easier for resellers. It can be a challenge to open a bank account or accept credit card payments. Although it is not easy, it is not impossible. There are options available.

It is up to you to explore the options available to make the best decision. It is important to plan in advance how you will handle cash flow before investing in the business.

You’ll also need to be a little more creative about advertising than with other products. Both Facebook and Twitter largely ban open advertising of hemp products, but there are sometimes workarounds. You will need to be flexible and use organic marketing techniques (word of mouth, etc.) to promote your products.

Find a wholesale hemp flower supplier that offers transparency and laboratory results from third parties. It may be a good idea to check online reviews as well. (Photo: Mr. Hemp Flower)

Finding a Hemp Flower Partner Wholesale

It is much easier to find a CBD wholesale partner than about a year ago. However, it is up to you to do your due diligence to find a reliable and trusted partner. The last thing you want is to invest time and money with the “wrong” CBD / hemp wholesale company. Below are some key points to focus on when researching CBD companies.

  • review: This is pretty obvious, but reviews can tell you a lot about a company and its products and services. Don’t forget to really immerse yourself in the reviews to read what others are saying. Also note whether the company responds to negative reviews. Everyone makes mistakes; this is how a company handles its mistake, which makes all the difference.
  • MOQ (minimum order quantity): Some wholesale programs require customers to order a certain number of products or spend a certain amount of dollars each month to do business with them or qualify for discounts. So those with limited budgets may not be able to meet the MOQ requirements.
  • COA (certificate of analysis): A COA is a document issued by an accredited third party laboratory that outlines the composition of CBD products and all possible contaminants. This includes the percentage of CBD and other cannabinoids (including THC) and the terpene profile, as well as contaminants, heavy metals, etc. It is vital that you carry out an in-depth review of the potential supplier’s certificates of authenticity during your due diligence.

Wholesale selection of CBD products and hemp flowers for sale

The CBD market has become a competitive market. And while that’s not necessarily a bad thing, it’s something a potential CBD business owner should be aware of. Like all competitive markets, to be successful, business owners need to focus on what makes them different from their competitors, and one way to do this is with the products on offer.

Existing companies like to stay with what works, and CBD companies are no different. The vast majority will sell their tincture of CBD and other similar oils, but may miss the boat on other items such as Delta 8 or hemp flower. Both products are attracting a lot of attention in the market and can be a good entry point for a new CBD store owner or someone who is interested in expanding their product offerings.

Hemp flower, for example, is gaining popularity in the market due to its effectiveness and flexibility compared to CBD oil. Hemp flowers are unprocessed; they will have a full profile of cannabinoids, terpenes, flavonoids and other compounds such as chlorophyll. Depending on the extraction method, CBD may not contain the same full profile. Hemp can be evaporated, smoked, used for cooking and tinctures. CBD oils do not have the same level of flexibility.

Of course, this does not mean that one should not offer tincture oils or CBD isolate products, but perhaps one should focus more on products in emerging markets. It is also important to note that emerging product sales usually lead to higher profit margins – another plus.

Budget

Indeed, this section should probably be at the top, because setting a working budget will dictate so much. Many of the areas already shared will be determined by available working capital.

The great thing about the CBD business is that it can be started on a relatively low budget. For example, Mr. Hemp Flower has a good reputation for its quality products and competitive wholesale hemp flower prices, with an entry point of around $ 500.

In addition to inventory, there will be other business costs that need to be considered. One such expense is the marketing budget.

Don’t neglect your marketing budget: keep up with your new products or business!

Marketing budget

Sometimes business owners forget to include marketing in their budget calculations, and this can be a costly mistake. You can have the best product in the world, but you still have to sell it.

When doing your due diligence, be sure to consider the various marketing opportunities available and set aside a portion of your marketing budget.

Realistically, a marketing budget of $ 500- $ 1000 should help you get started. These tools can help:

  • Signs of the store
  • Mailers
  • Advertising in magazines
  • SEO (for online stores)
  • And many others

So make sure you don’t forget about this important part of the business.

Can a large hemp flower work for your business?

Going into the CBD business can be a source of money for many future entrepreneurs. With a solid plan, proper care and a little hard work, who knows what might happen.



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