S
Starter Story
Business Idea
Start A Hemp Products Business
About
Starting a hemp products business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell hemp products, or selling hemp products online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a hemp products business ➜
Key stats
market size
$5.3B
revenue (monthly)
$1M
starting costs
$39.7K
gross margin
76%
avg product price
$60
time to build
12 months
growth
Press
business model
Advertising
time investment
Full time
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
| Office Space Expenses | $35 | $3,250 |
| Employee & Freelancer Expenses | $0 | $5,500 |
| Equipment & Supply Expenses | $500 | $5,000 |
| Website Costs | $232 | $6,500 |
| Business Formation Fees | $5,600 | $20,400 |
| Retail Business Expenses | $0 | $16,150 |
| Inventory Expenses | $350 | $9,750 |
| Training & Education Expenses | $0 | $1,000 |
| Software Expenses | $150 | $3,044 |
| Advertising & Marketing Costs | $0 | $1,700 |
| Other Expenses | $0 | $300 |
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
Hemp Industry Daily | hempindustrydaily.com | #93,005 |
|
Organic CBD Nugs | organiccbdnugs.com | #175,848 |
|
CTFO PRODUCTS | ctfoproducts.com | #195,331 |
|
Mr. Hemp Flower | mrhempflower.com | #201,846 |
|
Hemp Drop Ship | hempdropship.com | #209,981 |
|
Made By Hemp | madebyhemp.com | #220,317 |
|
Uncle Bud’s Hemp | unclebudshemp.com | #221,702 |
|
Canna-Pet | canna-pet.com | #283,018 |
|
PrimeMyBody | primemybody.com | #349,595 |
|
Pure Ratios | pureratioscbd.com | #377,538 |
|
Carolina Hemp Company | carolinahempcompany.com | #453,625 |
Pros & Cons
| Pros | Description |
|---|---|
| Flexibility | You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
| Ability to start your business from home | It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning! |
| Scalable | With businesses and processes changing daily, there will always be demand for new features, products and services within your hemp products business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
| High margins | The gross margins for your hemp products business are typically around 76%, which is considerably high and allows you to grow your business and manage costs easily. |
| You are your own boss! | With starting a hemp products business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating! |
| You can sell your product in various places! | There are various different markets to sell your product, which will help you reach different audiences and revenue streams. |
| Cons | Description |
|---|---|
| Crowded Space | Competition is high when it comes to your hemp products business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies. |
| You may need to charge sales tax | If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913) |
| Time commitment | With starting a hemp products business, all responsibilities and duties will be in your hands. Although this is not necessarily a negative thing, it's important to understand that your work-life balance may be a bit unbalanced at times. This can place a strain on friends and family and add to the pressure of launching a new business. |
| Difficult to build trust with your customer | With a hemp products business and any online business, there is little physical interaction, which means it can be a lot more difficult to establish trust and clout with your customers. You'll need to go the extra mile with your customer to grab their attention as soon as they reach your site + assure them that your brand is legit and trustworthy. |
| Strict regulations | With any hemp products business, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur. |
| Complex development process. | The development process for a hemp products business can be quite complex, which may cause delays and challenges when launching and growing your product. |
Marketing Ideas
-
1
Word of mouth
The most tried and true way to grow a hemp products business is through word of mouth - some entrepreneurs would say it's more important than all social media.
-
2
Advertising on social media
Social media advertising is one of the leading ways to get the word out when it comes to hemp products business.
There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.
-
3
Pay Per Click Advertising
Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.
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