Are you planning to start a CBD business in 2021? While entering one of the hottest growing markets seems attractive for multiple reasons, the market for CBD products is still new, and the probability of having a successful business is quite high and promising, but only if built the correct way!
The most important thing you need to do is research to understand the products, cannabinoids, market, and regulations before you press the start button. As they say, knowledge is power; therefore, a good understanding of these aspects is a recipe for a successful CBD business.
Over the last 24 months, the Respect My Region team went through the process of building a CBD business.
According to COO Joey Brabo (@joeyjayping), “RMR put countless hours into creating the first nine CBD products ever offered by Respect My Region. Vegan and Gluten-Free CBD Gummies, Hemp Tinctures, Hemp Pre-Rolls, and CBD Topical is finally available via Respect My Region.”
While there are many topics to touch on in terms of how we’re coming to market with CBD, the research that went into which items to offer, packaging, retail vs ecommerce, etc, we decided to discuss 4 topics that you should consider when building a CBD business.
Marketing Strategy
Today CBD products have turned out to be one of the hottest consumer goods. Since the most influential digital channels don’t allow such brands to run paid ads, company reach is supported by valuable organic content supported by strong SEO strategies.
You have to target customers where they’re physically located at with content, keywords, and discoverability. SEO and content is more cost intrusive up front rather than a scalable advertising model, but content needs to be prioritized in this space.
Interactive websites, earned media, and user-generated social content is also highly effective, but requires up front work. For these reasons, these channels are becoming saturated, and CBD brands are missing out on the growth-accelerating power of paid acquisition, leaving the CBD industry in limbo. However, to succeed in a CBD Business in 2021, you must either develop creative strategies to maneuver through such challenges in-house or find the right person to do so.
Establish Your Online Presence
One of the secrets to ensuring the most customer experience is establishing your online store and making sure it’s equipped with the up to date software and features required. In this space, there are numerous things needed in order to gain consumer trust for increased conversions.
Finding the right payment processor will take work, and numerous applications. You’ll end up having to sacrifice some fees on the payment processing side due to the limited number of financial institutions wanting to touch anything green. Make sure their payment processes are in alignment with standard online consumer check-out experiences.
We’d also recommend not skimping on photography and providing great visual examples. Extended information and testing results for products are also great for consumer trust and don’t be afraid to stand out from others with your product descriptions and copy.
Find Quality Raw Materials
To start any successful business, you must create something that will promote repeat business. The best way to achieve this is by producing quality products. Many big companies sell CBD wholesale to smaller merchants in many states. To ensure a superior product’s supply, they often use third-party labs to test their products for purity. They often want to assert that whatever they sell is 100% pure.
With pure raw CBD materials, you will be able to offer a range of CBD products, like oil, capsules, gummies, and energy drinks, which are widely accepted. Additionally, make sure your company’s website provides adequate information about products, CBD usage, and news from within the industry. Some companies will even work with you to white-label CBD products with your own brand and might even offer CBD drop-shipping too.
Understand Your Customer
To succeed in your CBD Business in 2021, you must identify your customer and understand their interest. If you do not know your customer, it means that you will not understand what products to provide and how to market your business.
You need to know who you’re reaching, where they’re at, what they’re looking for, and how to build trust with said customers.
Knowing your customer’s needs can also help you teach whoever may not be interested in your products and narrow your content and reach targets. Apart from finding a supplier of pure raw materials for your products, offering the highest quality customer service will also be a key player in your CBD Business’s success.
