Looking for the best CBD business opportunities? Good. Because today, we’re going to talk about how to start a CBD business from home, even if you have no money.
With that said, I’m going to make some big assumptions to make this the best guide possible.
I’m going to assume that you know what CBD is and that it’s also an extremely regulated industry. In fact, it’s so regulated that you can’t even advertise it in most ad networks. This makes it an extremely unique business to start.
But, because it’s still so early, there is still a massive opportunity to build a wildly successful CDB brand.
So with that said, let’s get started.
The Best CBD Business Opportunities
Like in regular retail, there are a ton of ways to get started in the CBD industry. The main three ways include starting a CBD shop, becoming a CBD manufacturer, and starting a direct-to-consumer CBD product like CBD oil or food/beverage enhanced with CBD.
The criteria to choose the best CBD business opportunities though come from data.
Which route is the simplest, easiest, and most affordable to start?
Which route can start small, but has the potential to scale really big?
Which route is the least likely to give us legal trouble in the future?
When you combine all three, the answer becomes clear…
Starting a direct-to-consumer CBD product.
Unlike starting a brick & mortar location or becoming a manufacturer, it’s simple, easy, and affordable to start. If you go the private label route, you can start really small, yet be able to make millions of dollars worth in sales in the future. And it’s the least likely to get you into legal trouble because you don’t have to deal with real estate laws or manufacturing laws.
With that said, the direct-to-consumer CBD space is highly competitive.
So if you really want to know the best CBD business opportunities, you have to differentiate.
This means while you can start with the most basic of CBD products, you want to at least build up to a product that is unique from the get-go. For example, Populum sells regular CBD oils, but they differentiate the brand with their unique orange flavoring. Another example is CBD chocolate, which is super niche compared to CBD oil. Heck, you can even differentiate by using super high end ecommerce packaging.
So if I were to nail down the best CBD business opportunities onto a list, it would be…
2/ CBD Food
3/ CBD Beverage
Everyone in CBD is competing based on “higher grade CBD” with tons of scientific tests behind them and everything. You should still do all of this because it leads to tons of credibility that make selling your product 10X easier, but you shouldn’t build your brand around it.
Instead, focus on those 3 elements.
They are the most likely to be the easiest to grow because they are the least obvious categories, the more expensive ones to get into, and all while having a high consumer demand.
How To Come Up With CBD Business Names
If you want to take advantage of the best CBD business opportunities, it’s also a good idea to have a great name. Especially when you consider that CBD space is one of the only spaces where having a bad name can actually hurt your business.
So what don’t you want to do?
You want to completely avoid using the letters “CBD” in your name.
In addition, it’s also a good idea to avoid anything generic to CBD. Examples include anything related to “green”, “leaves”, or “plants” of any kind. Not only does everyone use them and it’s boring, it doesn’t really help your chances if you want to advertise.
Instead, what you want to do is find a different metaphor.
So let’s say you want to start a CBD drink, I can call the brand “Recess”. It has nothing to do with CBD or anything “green”. It also still implies a benefit in a way that stands out compared to all of the other CBD beverage brands.
To do this yourself, follow these steps…
1/ Write down your top 5-10 direct competitors’ brand names
2/ Write down the top 3-5 benefits or features of your product
3/ Write down your top 10-15 keywords and use them on Word Hippo
4/ Write down the top 20 “cool” words or phrases you see
5/ Pick the top 3 based on which stands out next to competitor’s names
How To Start A CBD Business From Home
The great thing about CBD business opportunities like direct-to-consumer CDB brands is that learning how to start a CBD business from home becomes easy.
You can get up and running by following a few simple steps.
The first thing you want to do is open up Google and start typing in phrases like “CBD manufacturer”, “CBD private label”, and “CBD turnkey”. Doing this will give you a ton of potential manufacturers to contact. Just narrow them down based on their capabilities.
Then, you want to go through each one and call them.
If you can’t call them, then email them.
Regardless of what form of communication though, you want to tell them exactly what you’re looking to make. They will respond back with capabilities that aren’t usually posted on their site. Then ask them these three very important questions.
1/ What are your minimums?
2/ What are your costs?
3/ What are your lead times?
These answers will tell you whether your idea is viable or not.
Either way though, this can all be done from home. While it’s OK to ship your own products from home, you don’t want to be the one making your products. So if you need to go through this process multiple times to find a product that is economically viable to start, then do so.
This part can either take a few days to a few weeks to figure out.
How Can I Start My Own CBD Oil Company With No Money?
Just because you have no money, doesn’t mean you can’t take advantage of any CBD business opportunities. You just have to think about your problem differently.
You see, your problem isn’t that you have no money.
Your problem is timing between cash and inventory.
So while there is no going around needing money to build a CBD business, the solution is simple. If you can figure out a way to get or raise the money you need first, you’ll then be able to pay for your manufacturing and marketing.
And no, I’m not talking about raising money from friends and family.
I’m talking about crowdfunding your CBD oil company by first building an audience that might possibly want your product and then pre-selling your CBD oil to them. One famous example of this business model is Kickstarter. Everyday, there are tons of people crowdfunding their business ideas months before they launch.
You can do this either on Kickstarter or your own Shopify store with a crowdfunding app and Shopify theme.
It doesn’t matter which one.
What really matters is that you build a health enthusiast audience for at least 6 months before your official launch. This can mean a Youtube channel, TikTok, Twitter, blogging, or anything else you want. Your goal is to get traffic and then send that traffic to an email opt-in form that notifies people when you launch. This is called a “hot list” or newsletter.
Then, when you’re ready to launch, just email your list to pre-order.
And there you go!
You now have money to invest into your inventory and marketing efforts.
With that said, you don’t want to stop your audience building even after your launch. Because CBD is still a touchy subject for most ad networks, you need to be building your owned audiences from the start anyway. This means spending the next 12-18 months after your launch to build your audience and then diversifying your audience building efforts to other platforms.
The Ultimate CBD Oil Business Plan
So you’ve built an audience and launched your CBD brand.
Here’s what you should do next…
1/ Grow with earned media. This type of media involves things like PR, influencers, and even social shares. Because a lot of paid media won’t work, earned media will become one of your most important channels. So you need to find every outlet that covers CBD products like yours. You also need to send free products to tons of influencers who can promote your product to their audiences. Lastly, it might help to do CDB giveaways on social for that extra “oomph”
2/ Scale with niched paid media. As stated before, ad networks like Facebook aren’t really ready for CBD. This means you have to go off the ad networks and do paid advertising the old fashioned way. This means finding the top 100 publications you can sponsor. Ideally, you focus on email newsletters because they’ll bring the biggest return. The way you scale this is by going from publication to publication and get your banner seen everywhere.
3/ Triple down on owned media. CBD brands are some of the best at email marketing, out of necessity. It’s their primary channel to make sales. Hence why it’s absolutely critical that you drive 30%-40% of your sales from email marketing and SMS. It’s also a good idea to do any sort of ecommerce SEO that will help you get sales directly from content.
Once you’ve got the online stuff nailed down, then you can worry about things like getting your product in stores where CBD is allowed or hosting pop up shops in places where CBD is OK to sell. Check with a lawyer before doing any of these things though.
The CBD Business Tips No One Else Talks About
1/ Compliance. CBD is a highly regulated industry. This means promoting the wrong claims can get you in trouble real quick, even if you meant well. The best way to avoid this issue is by sticking to only things you can 100% prove. For example, you can claim how many grams of hemp your oil contains. However, you can’t claim it’s any sort of cure for anything.
2/ Shipping. If you’re using Shopify, you’re only allowed to ship to certain states because not all states allow for CBD products. So take this into considering because while there are CBD business opportunities everywhere, it still is limited.
3/ Go old school. While you can learn how to start a CBD business from home, you’ll eventually have to wander out like entrepreneurs of old. This means getting your product into retail stores, holding events, being in farmer’s markets that allow CBD-enhanced products, and more. In the CBD space, offline is your friend.
4/ Start as a side hustle first. Because CBD is a difficult business model, it’s much smarter to take some time to test your business idea first. If you can validate your product, then it’s worth going all in. But never quit your job to start a CBD without any data to back up your choices.