If you’ve been thinking about getting into the CBD oil space, why not become a CBD oil distributor? According to a recent report from Brightfield Group, the U.S. hemp-derived CBD market should reach $5 billion in retail sales by the end of 2022 and could jump to $11 billion by the end of 2027.
As a CBD oil distributor, you would sell hemp-derived cannabidiol products to customers. Along with the potential financial benefits, you get to help people cope with pain, anxiety, and other ailments by providing them with high-quality CBD oil.
8 Steps to Becoming a CBD Oil Distributor
Here are eight essential steps to help you get started on your journey to becoming a CBD oil distributor.
1. Draft a Business Plan
In essence, your business plan provides a road map or guide for your company to follow. It outlines who you are, your market analysis, target audience research, marketing and sales strategies, financial projections, and other essential aspects of your organization. It may also come in handy if you need to apply for financing.
2. Brainstorm Your Company Name
A great name catches the attention of your target audience, is easy to remember, and reflects who you are as a business. Run prospective names through an online search to make sure other companies aren’t already using them.
3. Check the Legal Requirements for Your State
The Agriculture Improvement Act of 2018 removed hemp from the Controlled Substances Act, legalizing hemp-derived CBD at the federal level. However, you should still check your state’s legal requirements, as some have strict conditions that CBD products must meet for you to sell them.
4. Establish a Bank Account
Opening a business bank account separates your business from your personal finances, protecting you if something happens with your company. It’s also helpful for tax purposes and makes managing your money and tracking your expenses easier.
5. Plan Your Financing
Most business owners don’t have the money to fund their startups themselves. You may need a loan or other financing solutions to get started. Obtaining financing from traditional lenders can be challenging for CBD businesses, though. Instead, look for lenders that specialize in the CBD industry, like Bespoke Financial.
6. Find the Right Location
If you’re opening a brick-and-mortar CBD oil shop, you’ll need a place to stock your inventory and sell your products. Along with being convenient and easy to access for your customers, it should provide a comfortable shopping experience.
7. Get Your License
Some states may require you to obtain a special license to sell CBD products, while others don’t. Either way, you’ll need to obtain at least a reseller’s license. Check with your city or town to see what you’ll need to operate legally.
8. Determine What Products to Sell
Finally, you’ll need CBD oil to sell to be a CBD oil distributor. You may also consider offering other infused products, like gummies and topicals. Research wholesalers and CBD oil brands to ensure you stock only the highest-quality items for your customers.
Ready to Take the First Step?
When you’re ready for financing, Bespoke Financial offers a variety of fast, flexible solutions that can help you start — and grow — your CBD oil business. We help companies like yours eliminate financial obstacles and achieve their full potential. Visit us online to learn more about our financing options or to start your application!