Picking A Plan That Works For You
There are 2 paths that come to mind when I think of choosing a CBD Business Plan to start your own CBD Business. 1st we will cover creating a business plan for starting your own CBD Company and the 2nd will be talking about building a sales team with an already well established CBD Company.
Both of these options can bring you great success. It just depends on your goals and what struggles and victories you are willing to strive for.
The first thing that you need to consider is how you would like to build your business. For instance, If you want to build your business from scratch and carve out your own slice of this billion dollar industry and negotiate the best profits for your business, you will want to complete the following tasks.
Building Your Own Company
- Consult With An Attorney: When you are ready to start building a company the first thing you will want to do is to consult with an attorney about all the legal issues that are sure to come with selling CBD related products. Don’t let this scare you too much. When I first got started in the CBD Industry It was a tough market but so many laws have been passed that have finally open people’s eyes to the truth about the healing effects of the hemp plant and with each law that has been passed it has become easier and easier for people to legally sell the wonderful products that CBD has allowed us to develop. So, go ahead and get your contracts and permits in order so that when your sales team hits the ground that they can hit the ground running.
- Corp/LLC Vs Sole Proprietor: If you choose to establish a corporation or setup an LLC for your business. Part of starting your own company means reporting earnings and having annual or quarterly meeting minutes and paying yourself a salary from the business. This isn’t necessarily a bad thing. It’s just something that certain people need to have a mind shift change from thinking that every dollar you earn belongs to you versus every dollar earned belongs to the company and then the company pays you a designated salary. This is necessary to protect yourself from lawsuits and other issues that could arise when running your own company. Now if you would prefer to just run the sales side of the company you could always just find an affiliate company that already has a good compensation plan and not have to worry about all the details of running the company but we’ll get to that in a minute.
- Choosing A CBD Supplier: You will want to speak to suppliers and find one that is using a clean extraction process and has 3rd party testing to ensure that there is a strong concentration of CBD. Another thing you will want to check for is if your supplier has other ingredients in their CBD Oil that are used as fillers as this could dilute the effectiveness of the product. You may want to find a CBD supplier that also offers a full spectrum CBD Oil as long as it contains less than 0.3% THC in order for it to be within the legal amount. It’s technically better to have full spectrum due to all the health benefits that come from the CBD and the THC working together to keep your nervous system firing on all cylinders.
- Software: Now before you jump the gun on building your website, we first need to talk to some programmers and hire someone to help you build a software to integrate with your website. Do Not Skip This Step! I have seen so many businesses sink because they did not have a system for their sales team to use to plug customers into. Now remember, software engineers are like robots. They will only build what you tell them to build. That is why you need to think about everything you want your sales system to be able to do. So here are the top things I would suggest you integrate into your website as part of your cbd business plan. First I would decide on your compensation plan and have a system that counts any new sales for each individual affiliate. If you plan on paying bonuses or providing special incentives for hitting a certain amount in monthly sales or if each person should make an additional amount for each sales person they recruit under them. A lot of health supplement companies out there like to adopt the multi-level marketing concept. So, that may be another option you may want to consider as most software companies may already have a system that they can modify from previous customers to fit your business.
- Building A Website: Now, after you do all that you can finally begin working on your website. I often find it easiest to find a company that does both web design and software so that you can avoid the pain of trying to tell one design company how to implement the other companies software into your website. This also makes it easier when adding a customer relationship management (CRM) system into your website so that anytime a customer or affiliate signs up that they receive the correct e-mails and follow-up correspondence. This system can also be setup to send reminder e-mails to customers that it has been 30 or 60 days since their last purchase and they may want to reorder. I like to give people options to setup a monthly or bi-monthly auto ordering feature on the website. Other than that, you want to have a home page with social proof like Facebook testimonials and a products page. You will also need an about us page and a general contact form that goes to your customer service team.
- Support: Once you have your website setup and your systems have all been integrated into the website then you will need a place to send people that have questions or need help in the case that there is a system issue or a user error happens to pop up. So, you will need a technical support group that can handle tech problems that will inevitably come up. You will also need a customer service team to handle billing questions related to cancelling product shipments, refunding orders for people with product issues and to deal with irate clients that have both legitimate and illegitimate reasons why they hate you, your company and all your products.
- Sales: Then there is sales. Without your sales team your company would cease to exist. Creating a vibrant sales team with great marketing techniques is the key to growing your business. The more you grow your sales team and create rewards and opportunities for your sales team to compete against one another to win awesome prizes the more your sales will skyrocket and your company will grow and grow.
It can be so awesome to start a company from scratch and build that company in such a way that you are able to bring people together who are in love with your products and passionate about sharing those products with the masses. Unfortunately, it takes quite a bit of time and money to start your own company and my family wasn’t real keen on me taking out a business loan.
So, I decided that I would join a company that already had some incredible, high quality products and a 3rd party company that tests every product that is shipped out to ensure they meet the company guidelines for quality.
The 2nd Way: Becoming An Affiliate Entrepreneur!
What is an affiliate entrepreneur? Well, an affiliate is basically someone who promotes a product for a company but does not have to buy large quantities of the product before they sell it. As an affiliate, all I really do is send people to the website that the company made for me with my own unique ID and then I get paid a commission on the sale and that is it in a nutshell but let’s talk about how I promote products to get sales.
Now I have been involved in marketing for the past 10+ years so I know a thing or 2 about marketing but the truth is that traditional marketing of going to events and leaving business cards at businesses and traditional networking has really become saturated with sellers.
That is why I teach people to use online marketing techniques to find people who can benefit from CBD products that have never been introduced to them. The products basically sell themselves, there are so many testimonials online and all over social media that all you really have to do is introduce them to the product and your done.
My Most Successful Campaigns:
- Social Media:
Facebook is a CBD marketers “Frinemy” and no that is not a grammatical error. Facebook can indeed be your friend but as soon as you try to run an add about CBD products Facebook will obliterate your ad like a heat-seeking rocket. So, if you want to take advantage of Facebook’s paid advertising then you will need to create a page and run ads to get likes and then introduce them to your products. I see a lot of people simply by doing Facebook Lives where they talk about the products and how it has helped them and then they end up having their friends telling their other friends about it and soon you just have this swarm of people asking where they can buy it and how much to take. Next thing you know you become a super affiliate.
- Video Marketing:
When you think of videos, what is the first thing that comes to mind? That’s right! YouTube!! YouTube is the cheapest and easiest video platform to advertise on but like Facebook they do not like CBD Ads. Even though CBD products with less than 0.3% THC are now legal nationwide, several companies still want to be careful and who can blame them. So, If you want to do video marketing I would suggest creating testimonial videos on how CBD has worked for you or other people you have talked too but personal video testimonials always work best.
- Display Ads:
Now I have never used display ads before but I have talked to a lot of people that swear by them. A display ad is basically an image ad that is displayed on someone else’s website that goes to your site when someone clicks on it. I know that you can hire an advertising company to publish your display ad across the United States for a monthly fee. Depending on the company display ads can range from $100 a month to $1000+ per month. I can’t really testify to this one but I have heard from others that it works quite well.
- Content Marketing:
So, I don’t always share my methods for content marketing but I’ll make an exception this time. If you want to be successful, the best advice that I can give you is to start your own website and write articles about how you have benefited from taking CBD Oil. You can also write about how it has helped people in your family or maybe a friend and then publish it. This has actually brought in more sales than any other marketing I have tried. You can get a domain on bluehost and install WordPress for free. (In case you don’t already know, WordPress is a website builder platform that allows you to create a beautiful blog with ease.) The only big difference with content marketing is that it can take a while for your site to gain authority, so you may not get a whole bunch of traffic at first but trust me, if you build it, they will come.
- Social Media:
These are the 2 most common CBD Business Plans broken down with what you need to know to get started today. Now I’m not an attorney, so I can’t really help you with starting your own company but if you want to start building your business with an established company that really takes care of their affiliates then I would be happy to welcome you to my team. If you would like me to start working on helping you grow your business you can click here to get started today. I can’t wait to hear from you and welcome you to the team.
Making a Suitable Plan
To start a cannabidiol based business, one may need to choose between two ways, which when carried out diligently, may result into success depending on one’s objectives, challenges as well as the victories they wish to achieve.
The first one is coming up with a business plan that will enable you in coming up with a CBD company and second, coming up with a sales team to work with an already established CBD company.
One needs to strategize on how they want to build their business first. If you would wish to start your business from scratch and get your market share of the billion dollar CBD business market, you can consider the following well thought points:
Creating Your Own Firm
- Consulting a lawyer
This is the first thing one needs to consider when they want to start their own business especially a company.
Getting advice from an attorney about the legal aspects that govern building a firm is very essential. This is because you get to understand what legally affects selling CBD related products. Nowadays it is easy to carry out CBD business as compared to earlier days as many laws that have been passed are favorable. Getting permits and contracts in order will help your sales team to carry out their tasks effectively.
An attorney helps you in many ways such as giving you an assurance that the startup is being done the right way, enables you to focus on other areas of the business so that you do not waste time learning about the law, assisting you in trademarking your business name and products, reviewing the lease documents, discussing potential legal structures and preparing incorporation forms. It is not advisable to seek assistance from online legal form providers as they do not get to interact with the business in person.
Also, business lawyers can connect you with investors. This is because lawyers have connections and if you build a good relationship with your attorney, they may be willing to introduce you to some of their connections in a way that benefits your business.
Consulting and probably hiring a company lawyer helps you in correcting mistakes before they cause problems. For instance, founding a startup as an LLC and then changing it later into a corporation would be more expensive than choosing the right type and filling the right forms from the beginning.
Also, an attorney helps you in avoiding legal problems early. You get to understand how to handle various offenses that may arise in your company such as wrongful termination of contracts, sexual offenses among other issues that may lead to litigation. It is better to have a lawyer advising you on corporate employee rights before trouble occurs.
- Choosing between a Corporation, Limited Liability Company, and Sole proprietorship
Establishing a corporation or a limited liability company (LLC) requires one to report earnings to the relevant authorities so as to determine your level of paying taxes, carrying out annual and quarterly meetings, salaries among other things.
People perceive that every income generated from the business belongs to them of which is not the case. It is prudent to understand that the income generated from the business belongs to it as it is a legal entity distinct from the owner and hence it is the business that pays your salary.
The fact that the company exists as a legal entity protects you from lawsuits and other issues. For instance, when someone sues your company, it is not the owner who is answerable but rather the business itself.
Also, you are not limited to run the business from a specific position, for instance, you can choose to run it from the sales side then look for an affiliate company that can compensate you well to head over the company such that you do not stress yourself on how to run the company.
- Choosing a CBD supplier
It is essential to check on a few suppliers so as to choose one that has a clean extraction process and their products are further tested by a third party so as to have a concentration of the CBD.
Also one should be keen on checking whether the products from the supplier has other ingredients in the CBD oil products being used as filters to avoid corrupting the effectiveness of the product.
It is better to have full spectrum due to all the health benefits that come with the CBD and a combination of THC working together to stimulate your nervous system.
One may consider a few aspects such as the following to avoid getting substandard products;
- Quality of the product – one needs to choose a high-quality product as there are many substandard goods in the market. You can use a few aspects to help you in getting the best quality. These may include;
Full-spectrum – It’s best to choose a full-spectrum product as full spectrum CBD products contain a wide range of beneficial cannabinoids, vitamins, minerals among others. Choosing a full spectrum product will give you or your clients better results.
THC free – THC refers to tetrahydrocannabinol, one of the cannabinoids found in cannabis. It is important to sell a family-friendly product that can be used by anyone. One should look if the supplier states that their products are THC free as removing it from a product is more expensive. If there is a presence of THC it should be at least less than 0.3 percent so as to be in within the legalized amount.
Consistency – you should go to the supplier who uses consistent formulations in every release of their products. Some companies create their own spectrum formula which may be more beneficial than an isolate though they are inconsistent.
Variety – go for the company that will supply you with different varieties to ensure your customer needs are met. In addition, one should also choose a CBD company that offers various delivery methods.
- Choose a supplier with great service to avoid inconveniences such as delayed orders, missing products, and unanswered phone calls among others. It is advisable to partner with a company that has a high level of service that leaves you confident.
- Associate with a company that fits with your standard – the brand you choose to work with portrays your image hence one should go for the one that suits this aspect best. One has to consider product packaging as well. Associating with a quality brand gives the best results.
- Pricing and product selection – while assessing a company’s pricing and the product line, it is worth comparing it with the prices you wish to set for your clients and which they can afford. Most full spectrum CBD products cost almost the same what differs is the type and strength of their formulations. This is when one needs to understand your customer needs.
Formulation strength brings about the biggest misalignment between price point and customer interests. For instance, many people choose formulations that are less potent, less expensive but effective at the same time.
- Choose a company that will support you in marketing. This will help to ease the burden of educating the customers and your employees about the benefits of CBD. You should consider if the company offers brochures, product displays, availability of educational materials for your team and also if there are any other marketing assistance you can get from the company.
This is a very crucial marketing tool that one is not supposed to ignore. It is recommendable that you hire someone to develop software that will be integrated with your website later on. The software is kind of a system that can be used by the sales team to engage and get more customers. One should have a clear picture of how they want their software to look like as the software engineer only develops a system based on the specifications you provide them with. For instance, one can have a system that records any new sale for each affiliate individual among others. Many health products companies use multi-level marketing concept and you may wish to opt out to this as it is easy for the system to be developed because many software companies may have such a system which can be modified to suit your needs.
The software will help your business in several ways;
- It assists you in making the correct technology choices. This is because with the wrong technology, a good idea will be hard to actualize but with the right technology choice, it becomes easy.
- Makes it easy to follow sales leads. The software enables one to store new leads as well as capturing existing ones. Lead software management helps the sales team to easily contact customers and start from where they left off. In addition, tracking down stock, how much you owe to your vendors, and how many your clients owe you, keeping track of various business accounts and other necessary accounting information becomes easy.
- Increasing revenue – an efficient, integrated system brings about efficient communication throughout your business so as everyone understands the terms and conditions surrounding your products and services. Also, the sales team can work from multiple locations and this will help you identify information about your target market such as age, gender, their tastes, and behavioral patterns. Having this kind of information at hand, you can decide on what upsell and cross-sell opportunities that suits you best.
- Improves customer services – business information software makes it possible for you to track customer queries quickly and offering a quick response to these queries, it is more likely that customers will give the company a good rating which can boost the overall goodwill of the business.
- Reduces time and complexity – having a software that is integrated with a business information software will help you to manage multiple systems at once. Also, you can access clients’ information without causing redundancy to cut down on time by simplifying your projects.
- Enhances employee communication and collaboration – enabling sharing of information among departments enhances collaboration and communication amongst everyone. The software enables visibility and transparency thus opening room for discussion and teamwork among employees towards a common goal.
- Improves productivity – linking your different social profiles together creates an automatic process that publishes an update on every social profile when you simply update one. Also when you integrate systems, employees can accomplish various tasks faster without compromising quality as they won’t be juggling between multiple tools.
- Improves data accuracy – duplicating data in several systems results into losing accuracy which is a bad thing because you depend on this data to make strategic decisions. Data inconsistency between different departments brings about confusion among employees which may take a lot of time to correct. Reducing the need to duplicate data entry in multiple systems greatly reduces the probability of human error. Doing this assures you that decisions are made based on accurate information.
- Creating a website
It is more convenient to choose a company that deals with both software development and web design for easy integration of the software into the website. It also makes it easy to integrate other features in the website such as customer relationship management for customer follow up and receive correct emails. In addition, this system can be modified to send reminder emails to customers after a certain period of time. For instance, sending reminder emails to place another order after every one or two months. Other features you may include a home page, products page, about us page and a general contact form for the customer care.
Having a website will be of more benefit to the business in various ways such as helping customers place orders online, quick response to customer grievances, customers get to view products’ benefits, customer follow up and update on new arrivals among others.
Here are some detailed benefits of having a website for your business;
- 24-hour accessibility – everything on the internet can be accessed at any given time provided one has the avenues needed to access them and it takes a very little effort from the customer to purchase through the website. One can purchase through the website from any part of the world and this saves time.
- Economical – one gets to know exactly how much a website will cost them as compared to having a stall that has varying monthly expenses and the threat of theft. Affordable web hosting together with a website that is strategically developed are beneficial as they require minimal maintenance cost. Costs associated with website development, hosting and maintenance are consistent as they are set by the developer.
- Provides credibility – by building a website, the business creates an opportunity for customers to trust it then provide testimonials. Many times customers search online for the credibility of a product before making a purchase and in doing so when you have testimonials, you will definitely win them over.
- It is convenient – it is much more convenient to shop from the comfort of your home than having to physically shop for something. Basing your website on this perspective helps in maximizing your sales. This is because the aspect of the client being able to add an item to a shopping cart or bookmarking the product allows them to conveniently locate the product at a later date. Also, potential clients get to browse and purchase any products at any given time.
This comprises of the tech support team and customer care. The tech support team will help in queries arising from the system such as website failure or an online order that fails to go through for instance. On the other hand, customer care will assist in handling billing questions such as canceling orders, refunding orders for clients with product issues and such.
Here are some benefits of having a tech support team in your company;
- Enhances communication – businesses thrive on relationships hence communication is very important. Employees use computers 70 percent of the time to communicate to clients or amongst themselves. A tech support team can improve communication in your firm by recommending and implementing communications systems such as emails or VoIP to increase the effectiveness of communications.
- Fixing, optimization and repair – the tech team will help in not only troubleshooting but also in optimizing computer hardware and systems to ensure everything runs faster and efficiently. Also, they help in updating data security.
- Tech support outsourcing has a lower cost as compared to having your own IT staff.
A sales team is crucial in helping the business to grow. One should instill great marketing techniques on their sales team to ensure the sustainability of the business. Gifting the sales team with prizes will raise their morale to put more effort into getting more sales hence increasing your customer base and so the business continues to thrive.
It is great to start a company from scratch and build a brand that brings people together who are in love with your products or services and passionate about sharing your products with the public. But on the other hand, it takes a lot of time and resources such as money to accomplish this.
Without the resources, one can opt to join a well-branded company with quality and credible products or a 3rd party company that tests their shipped CBD products to ensure they are in line with the company’s quality guidelines.
Becoming an Affiliate Entrepreneur
Apart from starting your own company, one can also be an affiliate by promoting products for a particular company without buying large quantities to resell. As an affiliate, the company uses the referral concept whereby you refer customers to the company’s website via your referral code and one gets paid on commission.
To succeed as an affiliate one has to promote products so as to get sales through various online marketing channels as traditional marketing methods are fully exploited. Here are various online marketing tools that one can use;
- Social media
By use of various social media platforms such as Facebook can help in reaching many CBD consumers. To take advantage of Facebook’s paid advertising, you will be required to create a page where you can run ads to get likes and also introduce them to your products. People go live on Facebook to talk about their products and the benefits of using them and this reaches many people who get interested in the products.
Some of the advantages of using social media include;
- Easy to use and reach many clients
- Cheap to create and maintain an account
- Easy to get clients as one interacts with clients one on one
- Does not require many resources. A smartphone is enough
- Results into increased brand awareness – implementing a social media strategy greatly increases your brand recognition since you will be engaging a large audience of customers. Each shared post reaches to a new network of individual who can turn into your customers.
- More inbound traffic – without marketing your business on social media, your inbound traffic is limited to your usual customers. By optimizing social media as part of your marketing strategy will greatly help in reaching more clients outside your client’s circle. Also, it helps in directing more clients to your website.
- Improved search engine rankings – search engine optimization is very important for achieving higher page rankings and obtaining traffic to your website.
- Higher conversion rates – with increased visibility, your business gains more opportunities for conversion. This is because every blog post, image, video or even a comment may lead viewers to your company’s website thus increasing traffic. When businesses are interactive by sharing content, commenting and posting statuses on social media, it personifies brand which people find easier to interact with.
- Social media gives better customer satisfaction – being a networking and communicating platform, creating a voice for your company through it is important in humanizing your business. Customers appreciate when they post a comment on your pages and receive personalized response rather than an automated message. When you interact with your customers on a one to one basis on social media, it makes them more loyal and the more they will want to associate with you.
- Improved brand loyalty – developing a loyal customer base in any business is very essential. Customer satisfaction and brand loyalty go hand in hand hence it is important to engage with your customers regularly so as to create a relationship between you. Customers view social media as platforms to directly communicate with the business.
- More brand authority – in as much as customer satisfaction and brand loyalty play a part in making your business more authoritative, communication plays a major role. When consumers see your business posting on social media, and more so replying and engaging with customers and posting original content, they will view your business as more credible. Regular interactions with the customers demonstrate that your business cares about customer satisfaction and is available to answer their queries about your products or services.
- Gain market place insight – this is one of the most valuable advantages of using social media as a marketing tool. By talking directly to clients you get to know their needs and thoughts regarding your products or services. By monitoring the activities on your profiles you can be able to see your customer interests and this will help you in making strategic market insights.
The best example in video marketing is YouTube although it restricts CBD ads. Several companies to are cautious on running these ads although CBD products with less than 3 percent have been legalized. The best way to go about video marketing is through testimonials. By talking about how CBD products have been beneficial to you and also getting other people to talk about the same.
Video marketing appeals more to clients as they get to visualize what you are talking about.
III. Display Ads
To achieve this, one can look for an advertising company to place ads on their behalf then pay on monthly basis with prices ranging from a hundred dollars to ten thousand dollars per month depending on the company. This method is also productive as people who use it testify it works for them.
Investing in display ads can pay off as it reaches many internet users and it appeals to them because one only has to click on the ad to access the service being advertised. It is less hectic to customer and interesting as well.
Starting your own blog or website where you write articles on how you have benefited from CBD oil products can have a positive impact on your business. More so you can publish about how it has helped other people as well. Content marketing refers to sharing about the product you are dealing with on a website or a blog. Even though this method may pick up slowly, it is the most effective among the rest. One can get a domain on sites such as bluehost or wordpress. Word press offers website building services for free.
Content marketing assists in building brand awareness, trust, and loyalty because by publishing well-researched articles about your product, people will start viewing your business as trustworthy.