CBD being federally legal is big news — and it means big business, too. The cannabis industry, in general, expects to see revenue of $22 billion by 2022. CBD products and getting in on the ground floor of the CBD industry is the modern-day gold rush tinted green.
Although one of the greatest business opportunities of our time, opening a CBD shop is no small task. It was half a decade ago when hemp was legalized for the market (thanks to that handy 2014 Farm Bill), and since then, we’ve seen an eager market for CBD products skyrocket tremendously.
With such an eager market, you’re probably considering jumping into the CBD industry, maybe by starting a CBD shop?
New opportunities, though plagued with start-up problems that must be solved before your business can be successful, can be fruitful under the right conditions. There are solutions for every problem, after all — it just takes finding that solution. Let’s get down to business and show you how you can solve a variety of problems that could come up with this business venture, as well as how to properly start a CBD shop.
Know (and Understand) the Laws
Got an attorney? You’ll need one. It’s important to learn and understand the laws required for opening a CBD shop yourself, but it’s also important to have someone else there accountable for maintaining compliance.
Upholding the requirements and regulations that will be expected of you is a team effort and there’s no better team member than an attorney who knows what they’re doing.
Build a Blazing Business Strategy
A thorough business strategy may seem over the top when you think you’re just opening a CBD shop, but it’s so much more than that. As the CBD industry continues to surge through record-breaking heights, most business owners going into the industry know that they can dream big if they want to. Dreaming big has never been so possible in any other industry, so with a thorough business plan, you can put your CBD store on the map — fast.
An exceptional business strategy also has another bonus to it. With a proper business plan ready to present, you can entice business partners, investors and even groundwork customers before the company has ever sold its first product.
A business strategy gives your investors, partners and other businesses a clear overview as to what your company is, who you are and what your end game is. A plan laying out exactly what you want to achieve and how you’re going to achieve it sparks confidence in your product and in your brand.
Choose a Prime Location
The spot you choose to house your CBD shop plays a valuable role in the foot traffic you’re going to see. Being hidden on the outskirts of town is going to give you dramatically different results than a premium spot right in the middle of the city.
While your budget will obviously play a role in this factor, don’t settle for less just because you can’t afford the shiny spot in the middle of the city — the prime location for your CBD shop will show itself when you least expect it.
Hire the BEST Staff!
Customers will walk in and out of a location before you can blink if they’re met with a rude staff member. You want friendly staff that will go the extra mile for customers, but also give them space. The best staff has the perfect balance.
It doesn’t just take being friendly, though.
If you were to implement a CBD POS system in-store, you need staff that can easily pick up on the interface and assist customers with ordering products through the virtual system.
If you were to integrate multiple discount offers for similar products at the same time, you need intelligent staff that can keep track of all the offers they need to. You’ll also want to keep in mind your industry — having staff that is knowledgeable and excited about the CBD industry can prove to be invaluable.
Providing an extraordinary experience means having the whole package — make sure that’s what your staff can bring to the table.
Decide: Grow or Source?
Okay, you’ve got an attorney, a failsafe business plan, the perfect real estate and a staff so friendly you’ll never want to leave. Now, you must decide where you’re going to obtain the product!
You can source your product from outside the United States as the cheap option, but it’s vital that you know hemp grown outside the states isn’t held to the strict standards and rigorous compliance requirements that our local growers are held to. If it’s feasible, shoot for naturally grown hemp within the United States. This is not an area to skimp on.
Create an Unforgettable Brand
Your brand is often the first thing that customers will see. Your product packaging, social media accounts, website and so on should have a cohesive look and feel across the board. Not only that, but you also want your brand to be original. Take time to think about your audience and what you really want your brand to be. Classy? Approachable? Bright? Muted? Narrowing this down will allow you to take action and create a brand that is strong.
Stand Out from the Competition
And there will be a lot of competition. The competitive landscape set before you is the CBD industry and it’s only getting more competitive as more top-quality, reputable CBD stores open their doors. Figure out what makes you as a CBD shop stand out and run with it. For example, Joy Organics now offers a USDA certified organic line of products!
Add a personal touch, go the extra mile for your customers, offer incredible deals they can’t get anywhere else, offer a unique product — whatever you must do, do it with style and wear that style with pride.
Do you have any questions about how to start a CBD shop? Reach out today!
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Todd Smith is Joy Organics Chief Partnerships Officer and Co-founder. Before Joy Organics, he worked in the wellness and nutritional industry for over three decades and helped generate over 1 billion dollars in supplement sales. He has applied that knowledge and experience to empower over 1000 businesses through Joy Organics’ partnership programs. Todd is also the author of a book, podcast, and blog titled Little Things Matter.