“My goal in life is to unite my avocation with my vocation,
As my two eyes make one in sight.” - Robert Frost.
Do you love CBD? Have an entrepreneurial spirit? Right now could be the perfect time to unite your avocation with your vocation by starting your very own CBD company. Keep reading for some insider tips on how to succeed in the world of CBD.
Is CBD Legal?
Due to the cannabis plant’s history as an illicit substance, many would-be CBD CEOs wonder, is it even legal to sell CBD?
The 2018 Farm Bill federally legalized hemp, and since CBD is primarily derived from hemp, it too has been federally legalized. However, just because the federal government says it’s okay doesn’t necessarily mean that it’s completely legal. Ultimately, it’s up to each individual state to determine its own unique laws governing the sale, possession, and cultivation of hemp. Certain states are more CBD-friendly than others, so consider location when deciding where to set up shop.
Do You Need A License To Sell CBD?
Even if you live in a part of the country where cannabis products are more generally accepted, you can’t start selling CBD right away. If you have plans to open a brick-and-mortar retail establishment, you may be required by your state or local municipality to obtain certain CBD-specific licenses before opening. Similarly, if your company will be doing any of the hemp cultivation or CBD extraction itself, you will likely have to acquire a slew of licenses and permits from the various bodies that govern your area.
However, if you plan on simply buying CBD wholesale and reselling online, you’ll only need a standard business license to get started.
Selling CBD Pre-filled Cartridge
One simple way for a CBD oil reseller to increase profit margins is by selling CBD cartridges for vaporizers. Many cannabinoid consumers choose to buy CBD cartridges over other intake methods because of the high bioavailability of inhalation. There’s a huge market, particularly for pre-filled vape carts. Refilling a vape can be a messy and arduous task. Why would I fill my own CBD cartridge when there are disposable ones available?
Once you’ve sourced your oil, the next step in starting a disposable CBD vape cart business is acquiring the cartridges themselves. Luckily, most vape batteries are standardized, meaning they are compatible with any 510 cartridge, so you will only need to buy one type.
Next, you’ll need to fill them. Unless you own a pricey CBD oil cartridge filling machine, this process could take a while and rack up significant labor costs. Fortunately, there is another option.
Vape Cartridge Filling Solutions
S10 Labs offers comprehensive cartridge filling, packaging, and storage solutions so that you can spend more time and energy focusing on your company’s brand. Their reliable, American-made filling machines can help your company cut down on labor costs and turnaround times. Not to mention, the state-of-the-art LEED-certified facility at S10 is not only cost-effective, but it’s also eco-friendly as well.
In the future, S10 labs also plans on providing design services and vape hardware as well, making them a truly one-stop-shop for anyone in the CBD, delta 8, or CBG vape business.
Manufacturing vs White-Labeling vs Drop-shipping
When looking to start your own CBD business it’s good to consider the available options in regards to the creation, storing, and shipping of your product. The three main options to think about include white labeling, drop-shipping and manufacturing.
While these terms may seem confusing at first, knowing the difference will help you decide how involved you want to be in the technical side of your business.
White labeling is when a seller purchases plain, unmarked products from a wholesale manufacturer and then labels and brands it themselves to sell. This method is cost effective and allows the manufacturer to focus solely on the production side of things, letting the seller focus on their own branding, marketing, and sales tactics.
Drop-shipping takes the cost saving associated with white labeling one step further by eliminating the need for warehouse space and tedious inventory management. You, as a seller, pay a wholesale price to the manufacturer, allowing you to make a profit based on your decided mark-up. Customers buy directly from your website. From there, you send the orders to the manufacturer where they will pack and ship directly to the customer for you. The manufacturer gets to skip the sales and marketing side of things while the seller no longer has to worry about warehouse storage and order fulfillment.
If this sounds like a good deal to you make sure to find a manufacturer or wholesaler that offers drop-shipping services!
The last factor to consider is manufacturing. While overseeing the manufacturing process may be daunting, it grants you the most control over what you are selling. Manufacturing allows you to be an integral part in the design and sourcing of materials, ensuring you create a product that will be unique to you and your business. From there, you can move on to the selling, marketing and branding of your product or you can work with other agencies and sales experts to coordinate these steps. If you’re someone who likes the idea of a hands-on approach to business then getting involved in the manufacturing process can open up the doors to some very cool and innovative ideas.
Choosing Which CBD Product to Sell
Now that you’ve been briefed on the technical side of starting your own CBD business the next (and possibly biggest) factor to consider is what type of CBD product you’re looking to sell.
These days it seems like CBD is everywhere. With products on the market ranging anywhere from skincare, to classic hemp joints, gummies, and even dermal patches, the options are endless! As a CBD user yourself you may already have an intake method in mind based on your own tried and true favorites.
One important thing to consider when choosing what type of CBD product you want to sell is the difference between full spectrum, broad spectrum, and CBD isolate. From there you can decide what would work best for the consumer base you are trying to reach.
Best of luck in your entrepreneurial endeavors!