- Ever dream of a career as a CBD oil distributor, and opening your own store? The demand for high quality CBD is increasing.
- Learn what it takes to build your own self-sustaining storefront.
- Learn the advantages of wholesale White Labeling, so you can spend less time managing, and more time making money.
Be Your Own Boss
Work from home has revolutionized the labor industry. Telecommuting has changed the way the “working class” views full time work. Entrepreneurship is on the rise.
Being an entrepreneur is more than selling products. It’s a matter of ducking and weaving through misconceived permanence. It’s a reevaluation of corporate morals, to say, “what I have today may not exist tomorrow,” and ensuring that you set aside the time to do what you want, where you want, with whomever you want.
Regardless of where you are, or what you do–the workplace is adapting to you. In terms of self-worth, marketability, and income–it truly is the “buyers market” for employees right now. Work options are more flexible, hours are less stodgy, and bosses are… well… becoming obsolete.
Which means there’s never been a better time to start your own business.
As a blanket statement–it’s booming. It’s legal to sell, and a litany of industries are looking to implement CBD in their current offerings, from food, drug and cosmetics, all the way over to fashion and apparel.
The market also seems to be turning to its highest buying source, Gen Z and Millenials.
Despite making up over 40% of America’s population–these two generations hold only 4% of the total US Wealth in circulation (a full 2% of which is Mark Zucherburg alone). This correlation however doesn’t seem to transfer to spend trends.
The top 5 spending trends (not necessarily in this order) for Millennials and Gen Z are:
- Online shopping.
- Debt payments.
- Streaming Services
- Social impact.
CBD falls right in pocket with that.
The full breadth of market share in the CBD industry spans some $9 Billion. As far as consumables, it splits with about 7-9 other market shares at an even $1B (project to be $1.8 by 2025).
So not only is there demand, there’s growth. Not to mention a laundry list of studies, benefits, and insights about how it’s impacting people’s daily health and wellness.
Quality CBD products seem to be modern America’s naturalistic answer to overpriced medication, and unpronounceable drugs. And since CBD (as opposed to THC) isn’t regulated at a federal level–anyone can get in on this gold kush– I mean gold rush.
How Much Does It Cost To Sell CBD?
Technically? However much it makes the manufacturer to get it to you.
How much do you want to profit? That’s a different story. There’s a slew of startup checkoff’s we should run through before you start throwin’ John Hancock’s on dotted X’s.
Let’s break down the actual process of what going “all in” would actually look like. We can split everything from ideas to execution into three categories.
Starting up the business looks more like:
- Business Formation
- Insurance, Permits and Licensing, Trademarking, LLC’s, etc.
- If you’re running a physical store–think about rent, security deposit, office supplies, utility costs, wifi.
- If you plan on solely white labeling from a CBD wholesaler or established CBD brand (like 5 Day Private Label), you won’t need to rent a facility.
- Staffing / Infrastructure
- Purchasing / Processing
When we’re talking about actually starting up your startup, you’re investing all of your time into making the business physically exist. Think of this step as the Who & Where, in order to achieve your What & How. Without people to sell your product, just having goods is no good at all.
According to Starter Story*, a case study of 100 Trending businesses revealed the following averages.
*Go to their website to see the range of minimums and maximums they encountered on startup costs for a better picture.
|Retail Expenses||Avg. Startup Cost|
|Storefront Property Rent ➜||$4,000|
|Utilities (storefront business)||$500|
|Building improvements and remodeling||$475|
|Formation Fees||Avg. Startup Cost|
|Small Business Insurance||$1,250|
|Permit and License Fees (depends on the state)||$375|
|Set up business: LLC & Corporations||$275|
|Cost||Avg. Startup Cost|
|IT Support ➜||$1,075|
|Online data storage||$150|
For ease and length, most startup costs have been omitted (even some extreme’s like “farm bill,” for harvesters, and “employee incentive programs” to incentivize hiring). But there’s a great deal more you need to consider:
- Training and Consulting
- Product Costs
- White Labeling Costs
- Custom Formulations
- Lab Testing
- Inventory Expenses
- Third-Party Lab Testing
- Advertising and Marketing Costs
- Business Signage
- Social Media
- Paid Ads & PPC
- Influencer Marketing
- Email Marketing
- Content Creation
- Product Marketing
- Website Design & Upkeep
- Content Creation
Is a CBD Store a good investment? Maybe not for everyone. High startup costs, and lofty overheads can make it a little difficult for those without a sizable investment fund to stay afloat. With such high funding investments there’s high risk, without guarantee that you can gain and keep traffic (although CBD is booming, and with proper location, foot traffic should be simple).
But there’s a solid alternative.
OR – Sell CBD Online
Avoid the hassle and skip more than 75% of startup costs with White Labeling and online sales.
Online stores see huge mark-ups of products sold, resulting in massive profit margins. Low scale products can sit in the $15 dollar avg. range, while quality products see an average yield of $60 with a 50% markup.
Sales at average markups mean:
- 300 Products Monthly = $9,000 Profit
- 200 Products Monthly = $6,000 Profit
- 100 Products Monthly = $3,000 Profit
And so on–you get the idea.
The advent of online wholesale removes the middle brick and mortar. That’s THOUSANDS of dollars less in startup costs that can move directly to purchasing, processing, and shipping products (social media takes time, but if you’re willing to devote to it, can be relatively inexpensive while being wildly effective).
You can save even more by using a White Label wholesaler, to skip the manufacturing, warehousing, and production costs. Meaning you:
- Buy wholesale
- Print the label
- Ship the product
- Make the money
Things To Consider
Can You Sell CBD Without a License?
While it’s not regulated under federal law, it’s still important to get a business license to sell products, mostly for tax purposes. You don’t need a medical license (the product can’t make medical claims) but your business and products will still be monitored by the FDA and FTC.
Most CBD companies simply bolster benefits and how the products make their customers “feel” rather than talk about claims or impacts that it makes on the body. Sticking to how your products make you feel, and you’ll steer clear of any legal implications.
Is It Too Late To Start A CBD Business?
It’s never too late. If you’re on the fence about startup costs, revenue shares, licensure, rent, etc. look into the white label structure. Few key points of operation mean that your funds can stay closer to you, your products, and your brand.
It all starts with an idea, and those are never in short supply. The difference between the money makers, and wish fakers is that they actually get up and do it. It’s simply a matter of doing it. Being your own boss means committing to yourself that you’ll follow through, show up, and continue to provide–not just to your customers (that will LOVE your products), but to yourself, your work ethic, and your pride.
Is it too late? Never.
Is it worth it? Absolutely.