As the cannabis industry is expected to surpass more than 1.8 billion dollars in 2020, The cannabis sector is a huge business opportunity for any investor. Entrepreneurs have ample opportunities to leverage their CBD merchant account to boost their business, and like most profitable investment opportunities, there’s a blueprint for success that you can adopt to give yourself the most unobstructed path forward.
In this article, we’ll take a look at some of the things you should remember in regard to your CBD merchant account to ensure success. From small administrative tasks to all of the essential elements involved in building a successful business. Continue reading below to learn more about some of the most important things you need to remember before entering the CBD industry.
If you are considering starting a CBD business, but want to find a merchant account provider that has the experience to take your business to the next level, contact High Risk Pay today.
1. Create a Business Plan
First and foremost, like any business, CBD-related businesses should create a well-developed business plan that assesses all of the benefits and risks of entering the CBD industry. Your business plan should also provide details on:
- How do you intend to continue developing your company?
- How will you handle the financial records of your business?
- How will you execute specific strategies to attain your specific goals?
All of these should be clearly laid out in the business plan. When creating your company’s business plan, be sure to take into account how current laws might affect your plans, so that you can mitigate any risk moving forward.
2. Comply with CBD Processing Rules and Regulations
The federal government considers hemp-extracted CBD products to be lawful, assuming that they are derived from industrial hemp. If the THC levels are less than the legal threshold of 0.3 per cent, then CBD oils, supplements, lotions, and other CBD products are safe and legal to market.
Marijuana-extracted CBD, however, has THC levels that could go anywhere from 15 per cent to 40 per cent, making the product federally illegal.
Every business owner should know where their goods are deemed legal, and operating your company in a jurisdiction where CBD is permitted does not mean that you may freely transport CBD goods anywhere. To ensure the legal success of your business, you will need to consider all of the rules and regulations surrounding the CBD industry. Furthermore, you should also perform comprehensive research of your company’s CBD processing structure to be sure that your products are produced directly from industrial hemp.
3. Find Reputable CBD Suppliers
Whether your aim is to distribute, sell, or produce your own CBD goods, you want to search for a CBD supplier, you can trust to fulfill your orders. With a reputable supplier, you can be sure that your products will not only meet the legal requirements, but that you will also be able to fulfill the orders of your customers. Additionally, you also want to make sure that you are providing your customers with only high-quality CBD-related products.
When searching for a CBD supplier, you will want to consider a few crucial details of their production process to ensure that your business has high-quality, legal products to market to your clients.
- Sourcing: Where they get their products from.
- Extraction Method: How they extract the CBD from industrial hemp.
- Price: How much it will cost your company to work with them.
- Certificate of Analysis (COA): Confirms that the supplier meets regulated product specifications.
4. Shipping Services
The distribution of your CBD products will also play a substantial role in your company. Typically, shipping CBD-related products across countries and cities requires that you get your shipping clearance from your jurisdiction, as well as clearance from the recipient’s jurisdiction. If you do not have the proper shipping credentials, your merchandise may be returned, and you may be accused of illegal business operations.
5. Choose the Right Payment Processor
Because of the risks involved with the CBD industry, many banks and payment processors are reluctant to work with merchants due to their high-risk status. Because of this, you will want to work with a high-risk merchant account provider that will be able to help you deal with everything money-related regarding your CBD enterprise. While there are several merchant account providers available, it’s critical that you find a service provider that both supports CBD transactions and has experience working with other CBD merchants.
At High Risk Pay, we have plenty of experience working with the CBD industry, and we work hard to ensure we provide you with only quality customer service. Contact us today, and you could be approved within 24 hours to start accepting credit card payments from your customers.
6. Evaluate Your Marketing Plans
Last, but certainly not least, to build brand awareness, you will also need to consider how your business will market your products to your customers. Thanks to the digital era, marketing has become much easier than it has ever been before and provides business owners with a variety of great tools to advertise your CBD-related products.
Additionally, with the help of social media, word of mouth marketing has also become much easier and allows you the opportunity to leverage social media influence to network with other businesses and potential customers, which is something that has never been seen quite like this before.
Are You Considering Starting A CBD Business?
CBD Processing can be difficult for any business owner, but can be especially tricky when your business operates in a high-risk sector. It can be even more challenging to qualify for an e-commerce merchant account in the CBD industry. With the amount of growth expected in the CBD business in the coming years, you need a merchant account provider that can help your business grow.
If you are considering starting a CBD business and want an e-commerce merchant account provider that you can always depend on, contact High Risk Pay today. Together with our e-commerce payment processing solutions, we can drastically change the way your business operates for the better.
Don’t hesitate, contact us today to learn more about how we can help get your business approved in as little as 24 hours.