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How to Run a CBD Business

Do you know that the CBD market is projected to grow to $20 billion in sales by 2024? This is exactly what makes the CBD business one of the fastest-growing segments in the hemp and cannabis industry. Lately, CBD has become a buzzword, making headlines and gathering increasing attention in the press and business world alike.

This sparked interest among entrepreneurs have caused a massive wave of investment, let alone an unprecedented market growth in CBD. Moreover, more and more countries are now relaxing their laws related to CBD, making legal CBD products easily accessible to people worldwide.

Thus, if you are wondering how to join this thriving CBD business community or have a lucrative business proposition but don’t know how to run a CBD business, read on. In this article, we will discuss all the steps you need to take in order to understand and run a successful CBD business.

So, without further ado, let’s get started!

  1. Understand Legal Obligations

The commercial production of hemp was legalized in the U.S. with the passing of the Farm Bill in 2018. However, this does not mean you fully understand the regulatory or legal considerations surrounding the hemp industry. While the Farm Bill removed CBD from the oversight of the Drug Enforcement Agency and the federal Controlled Substances Act, it placed governance of the CBD oil and hemp industry in the hands of the FDA.

Thus, the FDA is still devising regulations that have left the CBD industry in a gray area. This is similar to the misconception that all banks and processors consider CBD oil high-risk. Whereas many banks have now opened their doors and encouraged secure payment processing for CBD businesses without considering merchants ‘risky.’

Therefore, in this highly securitized industry, ensure you fully understand your legal obligations to avoid the complexities and play it safe. Also, as FDA continues introducing new regulations, always stay apprised of new developments.

  1. Determine the Target Audience

When it comes to the CBD business, it is unfeasible to identify and reach every demographic. Thus, another important step to running a successful CBD business is to research the target audience or the people you will cater your products to. Once you know the target audience, building your brand around their specific needs becomes easy. Also, your target market helps determine every detail, from the content you should incorporate in your marketing campaign to the product’s packaging.

One way to ensure successful target market analysis is to ask yourself the following questions;

  • What does your target audience care about?
  • What do they do?
  • What products do they prefer?
  • Where do they regularly shop?

Remember, identifying and targeting the right audience is an ongoing process. Thus, regularly revisit your strategies and refine your approach based on new insights and data to ensure the success of your CBD business.

  1. Register Your Business

Another crucial step to selling CBD products online or in-store is registering your business legally. However, before registering your business, one of the requirements is to have a business name as your identity. So choose the name that encapsulates your services, objectives, and mission, and keep it short and easy to remember. Then visit the U.S. Patent and Trademark Office’s website and check if it is available for registration.

Once confirmed, move on and select the business type. When it comes to establishing small businesses, LLCs are a popular structure. However, consider all the available business types before making the final decision.

  1. Find the Right CBD Supplier

When it’s about finding the CBD supplier for your business, there are two distinct routes you can take with your cannabis or CBD business. First, you can have more autonomy by creating your own CBD products. This will give you more control over establishing brand loyalty and credibility. The second option is associating or partnering with a drop shipper or existing brand.

It is ideal if you wish to establish a CBD business without incurring too many upfront costs. With this option, you can purchase CBD products in bulk quantities without maintaining inventory on hand. However, before you take this route, do your research and due diligence by selecting only a reputable brand to partner with.

  1. Market Your Products

While the Farm Bill 2018 liberalized the industry somewhat, it is still tricky to market and sell CBD products. You cannot sell these products on major online platforms like eBay or Amazon. Similarly, paid ads promoting CBD products lead to bans or suspensions, just like advertisement through social media is virtually nonexistent. Therefore, your only option is to drive growth through organic content following the guidelines of each online platform.

Also, to successfully sell CBD products, you need to be creative while establishing your online store or promoting products in a brick-and-mortar location. Just because CBD is in demand and you have a registered business or website doesn’t mean that consumers will come running. In fact, you will have to devise a solid marketing plan in order to draw the target audience to your offered products.

  1. Stay Protected From Industry Risks

Last but not least, the CBD business is a risky endeavor. The adoption of CBD in daily life and the legislation landscape has been difficult to contend with. Also, with laws and regulations changing almost daily, there are just so many variables to keep track of. Thus, being the owner, you must keep your business up to date. Stay abreast of all the legal business requirements to uphold a legitimate business status.

Also, make it your priority to secure capital and emergency funds for your business. Secure your vendors’ backups and devise a plan of action for possible future scenarios. Also, as your business grows, consider adding a lawyer and financial advisor to your team who can help act upon legislation, detect changes, and mitigate issues beforehand.


Establishing and growing a successful CBD business requires determination and hard work. From understanding laws, registering your business, finding suppliers and target audiences, and marketing products to avoiding industry risks, it may feel a little overwhelmed initially. However, don’t let that stop you from moving ahead and pursuing your aspirations of establishing a successful CBD business. So, follow the steps mentioned above to start and grow your business, and soon you will find yourself on the short track to success.

Weeds Leaf

The Weeds Leaf is an online CBD and Weeds magazine, who share an article about weeds, CBD, CBD Health, and Vapes. Please use this email [email protected] for any collaborations, advertorial placements, and others.

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