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

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.

    Learn more about advertising on social media ➜

  • 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.