In recent years, the CBD industry has seen tremendous growth, with many entrepreneurs looking to start their own CBD businesses. However, starting a CBD business can be challenging, especially if you are new to the industry.

In this blog, we will discuss everything you need to know to start a CBD business and build your own CBD brand.

What Exactly is CBD?

CBD is a natural compound found in the cannabis plant. Unlike THC, another compound found in cannabis, CBD is non-psychoactive, meaning it does not get you high. CBD is often used to help with pain, anxiety, and other health conditions.

Types of CBD

There are two main types of CBD: hemp-derived CBD and cannabis-derived CBD. Hemp-derived CBD is legal in Canada and the United States, as long as it contains less than 0.3% THC. Cannabis-derived CBD is only legal in Canada for medicinal purposes.

Hemp CBD Vs Cannabis (Marijuana) CBD

Hemp Vs Cannabis difference image

Hemp and cannabis are two varieties of the cannabis plant. It contains very low levels of THC and high levels of CBD, while cannabis contains high levels of THC and varying levels of CBD. Hemp is used to making CBD products, while cannabis is used for medicinal and recreational purposes.

Here are some more differences between Hemp CBD and Cannabis CBD:

THC Content

The primary difference between hemp and cannabis is their THC content. THC is the psychoactive compound in cannabis that produces a “high.” Hemp contains less than 0.3% THC, while cannabis can contain up to 30% THC.

CBD Content

Both hemp and cannabis plants contain CBD, but the levels can vary depending on the strain. Hemp is typically high in CBD, while cannabis strains may contain varying levels of CBD.


Hemp is legal in most countries, including the United States, Canada, and Europe, as long as it contains less than 0.3% THC. Cannabis, on the other hand, is illegal in many countries and is only legal for medicinal or recreational use in a few states and countries.

Medical Benefits

Both hemp CBD and cannabis CBD have potential medical benefits. However, the higher levels of THC in cannabis may provide additional benefits for certain medical conditions, such as chronic pain, anxiety, and insomnia. Hemp CBD is often used for general wellness and as a natural supplement.

Product Availability

Due to the legal restrictions on cannabis, products containing cannabis-derived CBD may be more limited in availability than products containing hemp-derived CBD. Hemp-derived CBD products are widely available and can be found in many health food stores, online shops, and specialty CBD stores.

How to Start a CBD Business, a Thorough Guide

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Read Up on All Local and Federal Regulations for CBD Businesses

CBD businesses operate in a highly regulated industry. It’s essential to understand all of the local and federal regulations that apply to your business. Also includes regulations around production, distribution, labeling, advertising, and sales. Understanding these regulations will help you operate your business legally and avoid potential legal issues.

Discover Your Target Audience

Understanding your target audience is critical for developing effective marketing strategies and creating products that meet their needs. Research your target audience’s demographics, lifestyle, pain points, and interests to create customer personas. Furthermore, these personas can help you tailor your messaging, branding, and product offerings to your target audience.

Identify Your CBD Niche and Products

There are many different CBD products and niches in the market. Identifying your niche and products will help you differentiate your brand from competitors and develop a strong brand identity. Research the market and identify gaps in the market that you can fill with your products. Also, choose the types of products you want to offer, such as oils, topicals, edibles, and pet products.

Find Your CBD Supplier

Finding a reliable CBD supplier is critical for the success of your business. Your supplier should provide high-quality products that meet all regulations and standards. Research different CBD suppliers and ask for samples to test the quality of their products. Choose a supplier that can meet your specific needs and offer competitive pricing.

Solidify Your Shipping and Handling Strategy

Shipping and handling can be challenging for CBD businesses due to regulations and carrier restrictions. Develop a shipping and handling strategy that ensures your products are delivered safely and on time. Research different shipping carriers and choose a carrier that can transport CBD products. Develop a process for tracking shipments and handling customer inquiries about shipping and delivery.

Apply for Your CBD Merchant Account

CBD businesses are considered high-risk by payment processors, which means finding a payment processor can be challenging. Moreover, apply for a CBD merchant account that can meet your unique payment processing needs. Also, choose a payment processor that offers competitive rates, has experience working with CBD businesses, and can handle the specific needs of your business.

Build Up Your CBD Website

Your website is your online storefront, and it’s essential to create a professional and user-friendly website that showcases your products and brand. Moreover, your website should be optimized for search engines, easy to navigate, and have a simple checkout process. Also, choose a website platform that can handle the specific needs of your business and create a design that reflects your brand identity.

Market and Sell Your Products

Effective marketing is critical to the success of your CBD business. Develop a marketing strategy that includes social media, email marketing, influencer partnerships, and other channels that resonate with your target audience. Choose marketing tactics that fit your budget and marketing goals. Continually measure the success of your marketing efforts and adjust your strategy as needed.

Select Your CBD Partner

Select a CBD partner that can handle shipping and fulfillment for your business. Your partner should be reliable, cost-effective, and able to meet all your needs. Research different CBD partners and choose a partner that can handle your specific needs, such as shipping to certain regions or handling international orders.

Design Your Logo

Your logo is an essential part of your brand identity, and it should be designed to resonate with your target audience. Hire a professional designer to create a memorable and recognizable logo that reflects your brand values. Choose a design that is scalable and versatile, and can be used across different marketing channels.

Market Your CBD Company

Effective marketing is critical to building your brand and reaching your target audience. Use a variety of marketing channels, such as social media, email marketing, and influencer partnerships, to promote

Do You Need a License to Sell CBD?

In Canada, you do not need a business license to sell CBD as long as your products meet certain criteria. Your products must be derived from hemp and contain less than 0.3% THC. It is also important to ensure that your products are tested for purity and potency. However, it’s important to note that each province may have its own regulations regarding the sale and distribution of CBD products. It’s important to research the regulations in your province and ensure that your business is operating within the law.

CBD Sales Statistics in Canada

The CBD industry is growing rapidly in Canada, with sales expected to reach $1.6 billion by 2025. According to a report by Deloitte, over 50% of Canadian adults are familiar with CBD products, and 20% of those who have tried CBD report using it daily.

The CBD Industry Is Projected to Grow Immensely

The CBD industry is projected to grow exponentially in the coming years. According to a report by Grand View Research, the global CBD market is expected to reach $13.4 billion by 2028 because this growth presents a significant opportunity for entrepreneurs looking to enter the CBD market.

Key Challenges Facing CBD Businesses

CBD businesses face many challenges, including finding reliable suppliers, navigating regulations, and marketing their products effectively.

It’s important to be prepared for these challenges and have a solid plan in place to overcome them.

Legal and Regulatory Uncertainties

CBD is still considered a Schedule I substance at the federal level in the United States, which can make it difficult for businesses to navigate the regulatory landscape. While the 2018 Farm Bill legalized hemp-derived CBD with less than 0.3% THC, there are still inconsistencies in how different states and countries regulate CBD products. This can make it difficult for businesses to understand their legal obligations and ensure compliance.

Payment Processing Issues

Many banks and payment processors are hesitant to work with CBD businesses due to the legal uncertainties surrounding the industry. This can make it difficult for businesses to access essential financial services like credit card processing, loans, and merchant accounts.

Advertising and Marketing Restrictions

Many platforms, including Facebook, Instagram, Google, and Amazon, have restrictions on advertising CBD products. This can make it difficult for businesses to reach potential customers and promote their products. Additionally, some states and countries have restrictions on how CBD products can be marketed and labeled, which can further limit advertising options.

Quality Control and Testing

There is currently no standardized testing or quality control process for CBD products, which can make it difficult for businesses to ensure that their products are safe, effective, and consistent. This can lead to inconsistencies in potency, purity, and quality, which can damage consumer trust and reputation.

Consumer Education

Many consumers are still unfamiliar with CBD and its potential benefits. This can make it difficult for businesses to market their products and build a loyal customer base. Additionally, there is a lot of misinformation about CBD in the market, which can lead to confusion and skepticism among consumers.

Supply Chain Issues

CBD businesses may face challenges in securing consistent and reliable sources of high-quality CBD, as well as other raw materials and packaging materials. This can be particularly challenging for smaller businesses that may not have the same bargaining power as larger competitors.

Price Volatility

CBD prices can fluctuate significantly due to changes in supply and demand, regulatory changes, and other factors. This can make it difficult for businesses to plan and manage their finances and may result in significant price swings for consumers.

What Types of CBD Products Will You Be Selling?


CBD oil is one of the most popular and versatile forms of CBD. It can be taken orally, added to food and beverages, or used in recipes. It also typically comes in a dropper bottle for easy dosing.

CBD Capsules And Pills

CBD capsules and pills are a convenient and discreet way to consume CBD. They are pre-measured and can be taken orally, just like a regular supplement. It can be made with full-spectrum, broad-spectrum, or isolate CBD.

CBD Topicals

CBD topicals are products that are applied directly to the skin. They come in the form of creams, lotions, balms, and salves. It is also often used to relieve sore muscles, joint pain, and skin irritations.

CBD Edibles

CBD edibles are food and beverages that are infused with CBD. They offer a discreet and convenient way to consume CBD. Popular CBD edibles include gummies, chocolates, and teas.

CBD Vape Products

CBD vape products are designed for inhalation and typically come in the form of vape cartridges, e-liquids, and disposable vape pens. It is also can be an efficient way to absorb CBD into the bloodstream.

CBD Pet Products

CBD pet products are formulated specifically for animals and can come in the form of oils, treats, and topicals. They are designed to be safe and effective for pets and can help with a variety of issues, such as anxiety, pain, and inflammation.

CBD Beauty Products

CBD is also used in a variety of beauty products, such as moisturizers, serums, and facial masks. It is designed to provide skin benefits, such as reducing inflammation, calming redness, and improving hydration.

Final Thoughts

Starting a CBD business online can be a challenging but rewarding experience. By following these steps and doing your research, you can create a successful CBD business that helps people improve their health and wellness or for their pets.

Remember to stay up to date with regulations, find reliable suppliers and partners, and create a strong brand that resonates with your target audience. With hard work and dedication, your CBD oil business can thrive in the growing CBD market, and you can successfully sell CBD products.