Cannabidiol, also known as CBD, is becoming more socially acceptable and popular with people of all demographics with each passing year. 

These tinctures, infused edibles, topicals, and vapes have gained so much attention because of their purported health and therapeutic benefits, leading many eager entrepreneurs to cash in on the craze.

Incorporate these tested tips into your CBD business model to ensure that your operation flies high in 2024 and beyond.

1. Find the right payment processor.

In order to receive customers’ online or in-person payments, you must establish a relationship with a merchant account provider who can furnish you with the account, software, and hardware you need. 

Although CBD products are legal and can contain no more than trace elements of the THC that has psychoactive properties, the truth is that this sector still carries with it a certain stigma. 

For this reason and because the industry is highly regulated and subject to chargebacks, your business will be deemed as “high-risk.”

As such, you will need to partner with a high-risk business-oriented, CBD-friendly payment processor. 

While you can expect to pay higher per-transaction fees, to undergo a more rigorous application process, and potentially also be subjected to additional restrictions as a high-risk business operator, this merchant account provider will have extensive knowledge about the CBD sector that will lead to a smoother payment experience for you and your customers.

2. Determine your product offerings.

CBD can be found in a wide selection of merchandise types. Although you can offer a few, it is important to narrow down what you are going to provide. Doing so will make completing your business and marketing plans much easier.

3. Scope out the CBD landscape.

As with any business launch, it is important that you have a thorough understanding of the playing field in which you will be operating before you get started. This should include any relevant laws as well as insights about your potential customers. 

Gather intel on your biggest competitors to get a sense of any unmet needs or holes in the marketplace that you can fill.

4. Obtain permits and licenses.

In addition to the standard business license necessary for all startups, you may also be required as a CBD seller to obtain special permits. 

Check with local and state officials to ensure that all of your credentials are in place before you go live.

5. Vet external vendors.

Most businesses in this sector elect to partner with an outside wholesale supplier for their CBD oil. You will also need to establish relationships with vendors such as payment processors, office equipment suppliers, insurance providers, etc. 

The specifics will depend on your company’s unique needs.

6. Make final adjustments to your business plan.

Before you open your CBD store, take a last look at your business and marketing plans. This will enable you to make last-minute adjustments to prices, solidify your shipping strategy and tweak your marketing plans.

Selling CBD products provides hard-working entrepreneurs with an opportunity to offer products they are passionate about to a diverse and growing pool of interested customers. 

When you devote sufficient time and effort into the initial stages of your company, you will have laid the groundwork for growth and success.