Have you ever thought about having your own CBD oil distributor business in 2020? If so, you might be about to become part of an industry that is thriving at a fast pace. Money flows abundantly in CBD business. The industry is expected to reach an unprecedented revenue of over US$20 billion in 2020. Currently, the cannabis business is literally exploding and there’s a lot of money in cannabidiol (CBD) products. Actually, the CBD industry is expected to reach US$21 billion in revenue in 2020.

For that reason, we’re going to share 12 important tips you must consider to start your CBD business and become a CBD Oil Distributor.

Cbd Oil Distributor
1. Do some research

Probably you already decided you want to take part in all this big CBD movement and you have great ideas for your business. But now, it’s time to contrast your idea against some reality. Do you think your business idea is potentially successful? You must answer these questions to determine that.

  • Are your potential CBD oil products something people need?
  • Who would your potential target be?
  • How many companies are currently offering the same CBD oil products?
  • Who needs them?
  • What is the element that makes some companies stand out more than others?
  • What would your business offer that would potentially be different as compared to other businesses?
2. Decide what type of CBD business you want to set up

To commercialize CBD products you have several options:

You can become a wholesale CBD Oil Distributor, which means you will purchase wholesale CBD products from one or several producers and manufacturers and become the distributor or supplier for smaller CBD businesses or retailers. To do this, you can either have a physical facility or can go as an online business.

You can also become a retailer, that is, you will buy bulk CBD products from the wholesalers and will individually sell them to customers for personal use. This is something you can do from a brick and mortar store on online. It’s a more personal way of becoming a CBD business because you will deal directly with the final user of the product.

And you can even have your own CBD brand, that is, if you buy white label CBD products or private label CBD products, you can rebrand them and commercialize them under your own name. You can sell your own brand as a wholesaler or as a retailer. The basic difference is that you will sell white label CBD products “as they are,” just put your brand on the label, while private label CBD will be a product created by a manufacturer exclusively to be commercialized by your brand.

3. Devise a strong and comprehensive CBD business plan
Once you have your business idea well defined and you’re clear on what you want to do, it’s time to devise your business plan is like the roadmap that takes you to the proper development and growth of your business.1 In general, a business plan includes an executive summary, description of your company, with your mission, history, and vision specified. You also have to include a summary of your market research, an analysis of the competitiveness of your company, a description of your products and your marketing strategies, budget and financial projections and organization of your management hierarchy.
4. Give your CBD business an identity

5. Incorporate your CBD business

The next thing you will do to start your CBD business is deciding on the name of the business. Some people advise not including the words “cannabis” or CBD, due to the fact that CBD is not legal everywhere, so business names including CBD can cause unnecessary alarms in some places, especially in banks. So, you better avoid it if you can.

What is recommended, though, is to pick a name that is sticky and easy to remember, so people can keep it in mind ant it be the first name coming to mind when thinking about CBD business.

Once your CBD business is defined and has a name, it’s time to go legal. You can incorporate your business as an LLC (Limited Liability Company), a Corporation or, if you’re the sole proprietor of the business, you can set up a DBA (doing business as). The main differences between each of them are defined by taxation. To learn more about them and how they are similar or different, click here.
6. Open a business bank account for your CBD Company

Once you incorporate your CBD business, you will receive an ID that is called EIN (Employer’s Identification Number) that will allow you to legally operate as a company, from the taxation point of view. Once you get it, you will go to the bank of your choice and open a business account. Experts recommend that, at first, you don’t mention your bank that you’re on the CBD business. Remember the name you chose won’t give you away. The problem is that many banks still consider all hemp-related businesses as “high-risk businesses”2.

After setting up your bank account, you will need to set up a merchant account. A merchant account is like a bank3 account that enables businesses to accept different methods of payment, generally debit or credit cards. In a merchant account, there’s an agreement between a payee and an acquiring bank to settle the payment of every transaction. Sometimes, a payment processor4, an independent sales organization (ISO), or a member service provider (MSP) takes part in the merchant agreement. Whether a merchant deals directly with a bank or through a third-party collector, a merchant agreement binds the merchant to comply with the regulations of the credit and debit card associations.

Unfortunately, due to the very nature of the CBD industry and all the legal gray areas that exist regarding hemp products, only a few providers sign up CBD businesses on merchant accounts. Usually, transaction fees tend to be higher than average, and occasionally, there could be issues to cash the payments, due to fundholding. As the legal landscape is changing and evolving all the time for the CBD industry, so is the banking. Though it’s known that many banks have denied the service to CBD businesses unexpectedly, it’s also true that few providers are willing to serve the CBD industry5.

7. Design the image of your business, your logo for your CBD business
Image is very important when developing a business. Many times, a business will be remembered for how it visually looks. That’s why you need an attractive logo for your new CBD oil distribution business. Your logo must reflect the nature and mission of your business. Try to keep it simple and balanced. Colors, font and general design must add up to create a lasting impact.
8. Design and build your CBD website
9. Carefully pick your CBD suppliers
Next, your CBD business needs a website. Make sure it’s a friendly, comprehensive website that’s easy to navigate. You can build it from a template or have a designer to do it. The important thing is that you add quality content duly optimized, so you can rank high on searching and your company becomes visible. You can also use turn-key solutions like CBD Startup.io that will build your website to handle credit card transactions and shipping.
Whether you’re starting a CBD wholesale business, retail or starting your own brand, you have to make sure you’re offering your customers a high-quality product. That way, you won’t risk having your product returned or refunds requested. That will negatively affect your record with your merchant processor. So having the best source of wholesale, bulk, private label or white label supply of CBD is paramount to earn respect and a good reputation as a CBD business. Remember the only returning you want is your clients coming back to buy more of your products.
10. Find a reliable packing and shipping company for your CBD Products
If you decide to be a CBD wholesaler or a CBD retailer, many manufacturers will have shipping services included in the packages they’re offering to you. Nevertheless, if you decide to have your own brand through White Label CBD or Private Label CBD or if you have an online store, you will need to find a packing and shipping company that can ship your products in an appropriate and timely way. You can also pay for CBD service with bitcoins. Of course, you can ship your own products, but avoid the hassle of doing so and let an expert do it for you.
11. Develop a marketing strategy for your CBD Business
A very important aspect of your CBD business is to have good marketing. There are many ways in which you can do that. It all depends on your creativity. Some experts say you should brainstorm at least 10 different marketing methods, easy ones and other more complex. In de end, you will come up with a strategy or a combination of them that work properly for your CBD business.
12. Work on your social media for your CBD company

Last but not least, we have social media. Nowadays many businesses that are not on social media, virtually “doesn’t exist.” So make sure your CBD business name and logo are everywhere in the cyberworld. Social media platforms are per se a very good marketing tool for your business.

Be sure you’re at least in all these:

  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • Pinterest
  • Reddit

Starting a CBD business, like any other business, is like a jigsaw puzzle. Once all the pieces are together, your CBD business will begin to prosper.


  1. Wahbe, Andrea, "How to write a business plan (template): 10 steps, 5 tips, and examples to guide you", quickbooks.intuit.com, August 2, 2019, https://quickbooks.intuit.com/r/business-planning/business-plan-template/ 
  2. Branfalt, TG, "Hemp CBD Companies Struggle With Banking Services", leafly.com, June 12th, 2019, https://www.ganjapreneur.com/hemp-cbd-banking-struggle
  3. Wikipedia, "Bank", wikipedia.org, May 1st, 2016, https://en.wikipedia.org/wiki/Bank
  4. Wikipedia, "Payment processor", wikipedia.org, April 1st, 2009, https://en.wikipedia.org/wiki/Payment_processor
  5. Parker, Phillip, "Best Merchant Accounts for CBD", cardpaymentoptions.com, February 1st, 2020, https://www.cardpaymentoptions.com/credit-card-processing/best-cbd/