cbd business plan example

Cbd business plan example

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So What is CBD?

A quick sweep through the (digital) shelves of any wellness store will prove that you can now buy CBD-anything. Creams and ointments, human and pet chewies, hemp clothes and accessories — when the consumer interest is high, loads of entrepreneurs try to capitalize on the hype.

Get Your Business Documents in Order

    Key product information has a prominent spot: Most of your customers will want to know the key product specs: dosage/strength, hemp origin, extraction method, and possible benefits. Make sure all of this information is displayed in a digestible manner for each type of product. CBDistillery goes straight to business and highlights product ingredients and suggested use:

Cbd business plan example

Don’t be afraid to do things a little differently than everyone else. Seize the opportunity by creating a distinct brand with quality products. CBD oil is not the only useful CBD product. Consider bath bombs, candy, chocolate, salve, cream, coffee, etc. It’s up to you to do the research and figure out the smartest and most effective way to enter the industry.

Scale of Opportunity

Be realistic when you compile target market information for your CBD business plan. To say that your target market is everyone in the US over the age of 21 is a little far fetched. More likely, your target market is anyone over the age 21 that is willing to pay your desired price and you are able to reach in your first year of business.

The Market

The most successful businesses are those that solve a common need or issue. Go into detail about an issue or a problem you discovered and how you are going to go about solving it with your CBD company.

These days, at least 47 countries cultivate hemp for commercial or research purposes. The largest producers of hemp are currently USA, China, Canada, France and Colombia. Hemp acreage in North America and the European Union countries reached record levels in 2020, over 360,000 acres and about 135,000 acres respectively, which put global acreage at about 675,000 acres. China – the world’s largest hemp fiber and seed producer – planted more than 160,000 acres of hemp.

FAS data also report hemp production in Columbia, Ecuador, Chile, Iran, Japan, South and North Korea, Pakistan, Russia, Syria, and Turkey. Other countries with active hemp grower and/or consumer markets are New Zealand, India, Egypt, South Africa, Thailand, Malawi, and Uruguay.

According to a new report Grand View Research, the global hemp market size was estimated at about $5.33 billion in 2020 up from $4.71 billion in 2019 and is projected to grow at a compound annual growth rate of 16% to $15.26 billion by 2027.