Steps You Need to Take to Start a Side Hustle Selling CBD
May 06, 2022 01:14
Having multiple sources of income is empowering, to say the least. You can pay off your debt quickly, increase your savings, achieve financial freedom, and become less reliant on your job. However, having a side hustle isn’t just for covering expenses.
You can explore your passions and develop skills that will make you successful in life. If you're genuinely passionate about what you’re doing, the long hours and challenges become worthwhile because you derive great satisfaction from making progress towards achieving goals.
One of the surest ways you can make money is to sell CBD products. CBD stands for cannabidiol and it’s different from THC, which means that you won’t get high from consuming it. It has a wide array of benefits, including health, lifestyle, and recreational use. If you use CBD yourself or you’re simply fascinated with the cannabis industry, there’s no better time than now to enter the market and start a business. CBD continues to receive attention as one of the most original, versatile, and diverse products on the market.
Building a side hustle with a limited amount of time outside your day job isn’t easy. It takes focus, selecting what gives you the best likelihood of achieving the outcome you desire, and the willingness to get creative day by day. If you want to become a hemp entrepreneur, follow these steps.
Know Your Market and What Your Customers Want
Understanding your market is paramount if you want to build a successful side business. Find out what your customers want so that you can improve your products and services to meet their needs. Get to know what people like, how much they’re willing to spend, and what they enjoy to maintain profitable operations. A professional market research consultant or firm will provide you with a wealth of information on this subject. If you have access to someone with experience, that’s great. If not, get started. Your methods don’t have to be perfect.
Before making an investment in inventory, make sure there’s profit potential in implementing your ideas. For instance, you can make a good profit out of selling CBD honey, a health food and sweetener. You can buy CBD honey wholesale products up front or stock your own. There will be customers willing to purchase at prices that are profitable for you. Take advantage of an emerging trend and carve a spot out for your brand. Start thinking of CBD products that have been trending up in recent times and capitalise on them before they hit peak popularity.
Figure Out What Type of Business Entity to Set Up
Before you can start earning money, you need to make sure your side hustle is set up correctly both legally and tax-wise. A sole proprietorship is the simplest structure. You can operate under your own name or a trade name. The sole proprietorship is a popular business form owing to its simplicity, ease of setup, and nominal cost. You don’t have to file special paperwork. However, it provides no legal protection and you’re personally responsible for the business’ debts. In the event that the business gets sued, the party suing can go after your personal assets.
As your business grows and your liability increases, you can switch to an LLC. You’ll have flexibility in your management structure and ownership similar to a partnership. The LLC will limit your level of personal liability should your business get sued. Changing your business legal structure means having to re-organise the governance structure. It might take some time to convert a sole proprietorship into a limited liability company. You might want to get professional assistance, but it’ll cost you. More often than not, you’ll need to open a new business bank account. At minimum, you should update your bank information to reflect your new status.
Find The Right Wholesale Supplier for Your Business
A wholesaler supplies your business with inventory that you’ll sell to customers. Regardless of whether you operate a brick-and-mortar store or an e-commerce website, a wholesale supplier plays a vital role. You can obtain large quantities of products at a lower price to resell at higher prices. There’s no shortage of wholesale suppliers to choose from, especially in the hemp industry. You’ll want to partner with a company that offers high-quality products that offer the marketed benefits. Do your research. At your first contact with the wholesale supplier, ask about their minimum order requirements, their wholesale unit prices, and the region they supply.
You can make sure a CBD product is legal by checking the certificate of analysis (COA). It’s a document that provides comprehensive information about its makeup, including THC content. Put simply, you can understand exactly what type of product you receive. Some wholesale suppliers list the COAs on their websites, while others will list QR codes that, when scanned, link to the COA.
Consumers seek variety when it comes down to products. Therefore, you’ll want to distribute all sorts of CBD products, including oils, gummies, drinks, capsules, topicals, and more. You’ll enjoy extra benefits once you develop a close relationship with the supplier. For instance, you can lower your unit costs with CBD drink wholesale purchases. A larger order will drop your shipping prices. Price and value are important to take into account when selecting a CBD wholesaler. Establish value by dividing the perceived benefits by perceived price.
Set Milestones That’ll Force You to Launch
How are you going to measure success? Set your milestone targets to keep the bigger picture within view. Don’t obsess over offering the perfect solution because you have no idea what your customers will resonate with the most. You’ll waste precious time and it’ll kill your business. Come up with a simple action plan that lays out objectives and deadlines. Most importantly, work towards achieving these goals. Don’t allow yourself to make excuses.
If your side hustle becomes too profitable, it may be time to quit your job and run your CBD store full-time. Make sure you’re generating enough profit before making the big move and going all-in on your side hustle.
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