How To Start a CBD Business in Wisconsin
Note: we are not lawyers and the following shouldn’t be taken as legal advice. We are outlining the best practices we learned while creating and operating our CBD business. Please consult industry experts regarding all business matters.If you live in Wisconsin and are thinking about starting a CBD business, this article may be helpful on how to be successful on your new journey. We’ll look at why CBD is not just hype, but a real opportunity for entrepreneurs. We’ll also share some tips that will help you get ahead of the game while complying with federal and state laws and legislation. So keep on reading!
How Do I Start a Business Selling CBD Oil?
CBD oil and CBD derived products are all the buzz right now among health enthusiasts. And although believed to be just hype, or “too good to be true” by many, there are a lot of studies indicating that CBD may in fact help alleviate stress, promote quality sleep and calm an overly active mind. On top of that, the Food and Drug Administration recently approved the first CBD-containing drug, Epidiolex, for the treatment of some seizures.
Stimulated by the increasing demand from North America and Europe, the global market of cannabidiol oil developed rapidly, reaching USD 429.4 million in 2020. And if you think that is high, the future looks even brighter. The CBD market is expected to reach USD 1.916 billion by 2026, making it one of the most innovative, fast-growing, and disruptive industries globally.
So what’s changed in the grey area of cannabis that’s causing CBD to blow up? And with such a promising forecast, how hard it is to start a CBD brand and business? But more importantly, with every state having different hemp laws, can you sell CBD in Wisconsin?
After issuing the Hemp Farming Act of 2018, the Federal Government has eliminated restrictions on producing CBD products, leaving it up to each state to govern how they grow and process hemp, and where. According to the bill above, hemp and derivatives of cannabis with extremely low concentrations of THC (the psychoactive component of the cannabis plant), with no more than 0.3 percent on a dry weight basis, is legal nationwide in the U.S. Other than this, products can also be shipped interstate.
Although many business owners and legal experts in Wisconsin are saying there's still too much confusion regarding the sale of cannabinoids, CBD businesses appeared in Wisconsin in 2017, under the state’s industrial hemp pilot program. With CBD now legal under federal law, thanks to the 2018 farm bill, those wondering about how to start a business selling CBD in Wisconsin should not be worried about the legal aspects. But there are other things you should consider when looking to invest money in a cannabidiol business, and that’s what we’ll discuss next.
The Step By Step Guide On How To Start A CBD Business In Wisconsin
Decide On What Type Of CBD Business To Start
While there are different ways to operate a cannabidiol business, the difference between them comes mostly from how much money and effort you would like to invest. The most common models include manufacturing, retail, drop shipping, blogging, or affiliate marketing. For many people manufacturing can be too much of a headache, that’s why retail seems the most promising CBD business opportunity. With retail, you can merchandise your products through a brick and mortar shop, or even entirely online. All you need is to find a high-quality CBD wholesale program and you’re all set. Some of these hemp programs offer new businesses all the support needed to start and expand their business, so choosing the right partner is essential.
Pick A Name
The first thing you need to do before looking at how to start a CBD business not only in Wisconsin but everywhere else is to figure out which brand your merch will come under. Don’t take this part lightly. The name you choose should define clearly what you have to offer and will influence the way your business will be perceived. We advise you to choose a name that is easy to understand and spell so that your customers can identify and remember it faster. If you choose to go with a wholesaler and merchandise their products you can use their name, or apply to become a private label partner.
Set Up Your Business Entity
With an economy driven primarily by manufacturing, agriculture, and healthcare, Wisconsin is the perfect place to start your CBD business. With each state having its own requirements for registering a business, here you need to file the “Articles of Organization” with the Wisconsin Department of Financial Institutions. While waiting for your documents to be ready, be aware of the fact that the state of Wisconsin can take several weeks to file the paperwork.
Open A Bank Account
For all those looking for how to start a CBD business in Wisconsin, we recommend that they keep their personal and business accounts separate, and open a bank account that will serve the CBD company solely. To open the account you will typically need your filed paperwork, EIN, and a resolution authorizing your company to open the account.
Apply For A Merchant Account
What does finding a good high-risk merchant account provider for your CBD business involve? From our point of view, it means finding a provider that offers the right combination of reasonable prices, fair contract terms, and high-quality customer service. We don’t guarantee this will be easy though since the processing industry has placed CBD products firmly in the high-risk category, making it much more difficult and expensive to get a merchant account.
Design a Logo
A logo is the foundation of your CBD business and a point of recognition for your clients. Choose a logo that grabs attention and makes a strong first impression, and which can convey to potential customers that your business is professional, trustworthy, and provides quality CBD goods.
Build a Website
Every brand and business in the 21st century needs to have a website, so if you are looking for how to start a CBD business in Wisconsin, you have to consider this aspect as well. A study from Salesforce covering 6,000 consumers and 1.4 billion e-commerce website visits showed that an overwhelming 87% of shoppers are starting their hunt online. So if you wonder how to start a business and promote it, a recent study showed that nearly 62% of CBD users did their research online, rather than discussing it with their physician or close family members. No matter if your CBD business is in Wisconsin or anywhere else throughout the United States, or even the globe, if it’s not on the web, potential customers will have a hard time finding it.