Guide on Starting a CBD Oil Business

Starting a CBD Business: How to Enter the CBD Industry. A Step-By-Step Guide To Run A Successful CBD Business

Starting a CBD Business: How to Enter the CBD Industry
Starting a CBD Business: How to Enter the CBD Industry

So you’ve decided you’re ready to start selling CBD, but are not sure where to start; no stress, this article will guide you on how to set up a successful CBD oil business. The CBD industry is a multi-million dollar industry with huge markets to tap into, and new markets are constantly popping up as more people learn about the huge health benefits of using CBD oil.

Who are you targeting?

Before you set off to start any business, there should be a plan in place to target and convert your audience, and in this case, you’re looking for people who are likely to purchase CBD oil, or already use it.

Because of the wide use of CBD today, you can focus on specific markets like the skin care industry, in which case you’d be selling to women (mostly) who want smooth, soft skin. Other markets include the fitness industry; where athletes and fitness enthusiasts use CBD oil after workouts to soothe joints and muscles. There, of course, are many more markets that you can target with CBD.


Who is this business right for?

If you enjoy using CBD or have discovered the therapeutic effects and want other people to know about it too, then you’re the ideal person to start this business. It goes without saying that you should familiarize yourself with cannabidiol, hemp, cannabis, and all aspects of CBD including how the plant is grown, the chemicals used in the extraction process, and whether your products are eco-friendly.

How to Get Started Selling CBD
How to Get Started Selling CBD

The growth prospects for a CBD business today are pretty good. In fact, market experts predict that by 2020, CBD oil will be a $3 billion industry. Having some knowledge of the CBD market will help you build your brand and become an authority.

What happens during a typical day at a CBD oil business?

Since much of what we know about the CBD industry is still new and currently being developed, there haven’t been any well-established routines about the business in general. As an entrepreneur, if your job is to farm or distribute CBD oil, then many aspects of your job will be changing along with consumer habits.

Consumer demands are always growing, and in the CBD oil market, a business owner can be doing anything from recording inventory, checking lab reports, or scanning social media for consumer sentiment; and this would all be part of the job.

What is the growth potential for a CBD oil business?

According to a comprehensive report published on Reuters, hemp oil revenue reached 30.7% CAGR in 2017 and was worth $150 million then. This report also predicts that CBD oil will be worth $760 million by 2023 – not to be confused with projections for CBD products in general, which place the value of CBD today at over a billion dollars. Successful CBD oil companies all have a strong digital presence, and consumer engagement is a major part of their business model. Once all the common business challenges are addressed, the growth potential is enormous; and if those numbers are anything to go by; this is the best time to start a CBD business.

how to start CBD business
how to start CBD business


There is a standard method for starting a business, but for the sake of this article, we’re going to mention a few steps that should be followed, or at least considered.

  • Have a plan for your business. Having plans makes it possible to measure growth and it determines things like who you target, how much you spend, and the size of your workforce.
  • Create a legal business. This means following all the right procedures for certification and purchasing insurance to protect the business from fines or other legal issues. You will be required to file taxes with the state and at a federal level.
  • Have a web presence. This is where you define your brand and engage with your audiences to market your business. Your digital footprint will give you access to new customers and it will be essential for creating communication channels between you and existing customers.
  • Have a business mentor. Find someone online who sells the same product as you, and learn from them. Read all industry projections and use resources such as this one to educate yourself on how to run a CBD business.

What do you need to start selling CBD Oil?

Ideally, you need to have a good product to sell, and that means getting quality CBD oil from a reliable manufacturer and having an audience to sell to. The good news is, you don’t have to grow hemp to sell it; you can get it from a commercial farmer and avoid the time and cost of running a farm. If you have a team ready to start working and have already got all the proper documentation for the business, then you have what you need to start selling CBD oil.

Talk to people who understand this business or have connections within the cannabis and hemp markets because they might have unique insights that you can use. Learn about the populations in your state that use CBD and see if you can spot any patterns or trends on how they use CBD, why they use it, and what they want in terms of product packaging or the ways to take CBD.

What are some insider tips for jump-starting a CBD oil business?

Having a deep understanding of the CBD market will enable you to make business decisions that grow your brand and build trust with consumers. The cannabis market is largely a grey area, and that’s because the U.S. government classifies cannabis as a prohibited substance while still allowing specific cannabinoids like hemp oil. A large section of consumers still don’t know enough about the legality of hemp or the differences between CBD and cannabis; and that leaves you, as the business owner, to educate potential customers who have no experience with CBD.

A Step-By-Step Guide To Run A Successful CBD Retail Online Business
A Step-By-Step Guide To Run A Successful CBD Retail Online Business

The rise of CBD oil has come mainly from the studies and consumer reports that reveal its health benefits. Because of this, one can expect growth to continue over a long period of time, as more people become aware of CBD oil – and to be more specific, once people stop associating hemp oil with regular marijuana.

It’s never a good idea to make huge health claims if a product hasn’t been sufficiently tested, so as a business owner it would be wise to keep the health claims consistent with existing research. That being said, most studies show that a vast majority of users find CBD well tolerable, and this includes both men and women of all ages. From a business standpoint, this just means you have more people to target.


Federal Business Licensing Requirements

While it’s true that CBD is not psychoactive, it is still a product closely linked to marijuana, and because of this, state and federal laws should be considered when setting up the business to make sure you’re not breaking the law. Remember, CBD is present in both hemp and cannabis plants, but it’s only hemp oil that is allowed by law in most states.

State & Local Business Licensing Requirements

Legal issues surrounding CBD and hemp are constantly being updated, so it’s worth checking out where things stand now. Check this SBA reference, and this other one, to learn about state licenses and permits for starting a CBD oil business.


We’ve already established that the CBD market is huge and has great potential for growth; both for new startups and for established companies. But as far as targeting as specific market; there are many to pick from, however, there may be other considerations. Millions of Americans suffer from pain and anxiety, and that’s only a small example of the kinds of audiences that need CBD. People who use CBD recreationally may not be the most lucrative market when compared to say, patients using CBD oil to manage long-term conditions like arthritis, or women using it for skin care, but they are still worth checking out.


Online reviews will impact growth for your business and it’s quite easy to lose business if people start posting bad reviews about your business or products. Set up a platform for customers to post reviews and testimonials about the product and this honest approach should work in your favor provided your products and services are good. This is also a good place to remind people that your product is clean and has been farmed using the safest methods today. Having a Clean Green Certificate will also set you apart as a modern, health-conscious company.


Starting an LLC is just one step in a long journey to building a business. Setting up a funding plan is a way to keep the business protected. Have a separate business account for your new company to avoid linking your business with your personal assets. It is possible to lose your house or car if your business is sued, so the finances for running the business should be separate from anything else.

How much will I make?

A small bottle of CBD can cost anywhere from $20 (for the lower quality products) to something in the range of $60-$100 for pure, highly concentrated CBD oil.  The question of how much to charge should come out of your market research and of course, the production cost. For a startup, the ongoing expenses will include the cost of running a farm (though not always), staff, insurance, and building costs. If you’re selling your product at $50, for a 50% markup, then you would need to move over 200 units every month to make $6,000.

Don’t worry though; CBD oil is in high demand, so once the digital marketing aspect is laid out, you can expect a decent profit. To make the business more lucrative, create different products or have distinctive packaging to make the products stand out. CBD oil can be mixed with other ingredients like coconut oil or aloe vera to make potent skin care ointments.


You can never have too much information when going into business; so take time to research the market and come up with creative solutions for creating good products and selling them to people online. In case your business operates out of a brick-and-mortar store, then have your shop listed in online directories and take out cheap ads on local papers. It’s important that you spend enough time developing an idea into a business because that way you will have covered all the angles. But even so, you can find newbies that have gone into business without expert knowledge and turned out alright – but there aren’t many of them. Create a good product that helps people, and selling it won’t be hard. Good luck!

I'm NOT a doctor! I'm just passionate about health and healthy leaving. The information on this website, such as graphics, images, text and all other materials, is provided for reference and educational purposes only and is not meant to substitute for the advice provided by your own physician or other medical professional. The content is not intended to be complete or exhaustive or to apply to any specific individual's medical condition.