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HomeHealthCannabidiol (CBD)How to open a CBD Hemp flower business?

How to open a CBD Hemp flower business?

Processing adequate and appropriate knowledge about the product and the market is key to the launch of any successful business venture. Of course, such knowledge will be of necessity to be complemented by the commitment and drive if success is to be guaranteed. 

This article is about starting a premium hemp flower business – the emphasis being on the acquisition, storage, marketing, and distribution of the finished product. Your first stop might be for a comprehensive list of Hemp products that are currently on the market. 

What is Hemp?

Hemp is a low resin plant belonging to the species Cannabis Sativa L. The banned substance marijuana/dagga also comes from the same plant species. The main difference between the two is that the latter has a much higher resin content. Also, unlike marijuana, it contains less than 0.3% concentration by dry weight of a chemical compound called delta-9 tetrahydrocannabinol (THC).

What are its uses?

Hemp has many varied uses. It contains a useful substance called cannabidiol (CBD) which has been scientifically proven to cure body swellings and to promote relaxation. The product is also already being used as an additive in commercially viable consumer products like pet foods and rubbing creams.


The hemp cannabinoid market is well established and continues to grow, especially in countries like the US where regulation is much more relaxed. In 2019, the combined sales of CBD Hemp flower products were about $1.1 billion and are projected to increase as CBD use becomes mainstream (PEW, 2020). Of the various products made from the hemp flower, CBD oils and raw flowers are the most common and most sought after. New varieties continue to be discovered.

Hemp Flower and the Law

In the US, more than 30 states have legalized the growing, processing, and marketing of hemp. The remaining states have passed laws allowing the use of CBD extract to treat epilepsy. More states are expected to ease their stance on hemp as states continue to refine their laws and policing methods to further differentiate between illegal products and the legal hemp products.

Registering the Business

When all the groundwork has been carried out, the next step is to register the business. There are various types of business organization you can choose;

1.      Sole proprietorship – a single person retains full control and ownership of the business entity.

2.      Partnership – co-opting one or more people into the business entity and run it collectively, sharing profits and losses.

3.      Form a company – promote and register a company with limited liability.

The process of registering the business varies from state to state. For any type of business, there are procedures, requirements that your business has to meet and there are fees associated with the registering of the business. Compliance with the requirements of regulatory and licensing authorities are an absolute must. Also, any returns required by law to be lodged with relevant authorities (for example the Registrar of Companies or IRS) must be lodged timeously. 

Choosing Suppliers

The choice of suppliers should be informed by the particular type of hemp flower and/or cannabinoids you want to sell. Undertaking extensive research about suppliers’ suitability before making your final choice is therefore a must. Due to the nature of the trade, suppliers must be vetted using the following guide:

1.      Reputation and Reliability – make sure your suppliers have a good reputation and are reliable. In an area you are familiar with, you should be aware of suppliers who have had lawsuits leveled against them or have a reputation for good or bad customer service. 

2.      Regulatory compliance – make an effort to establish that the suppliers of hemp flower and cannabinoids you choose to comply with the current regulatory requirements of the state. In the US for example, you are required to deal with suppliers who have obtained certification of Current Good Manufacturing Practices (cGMP). 

3.      Quality and Safety assurance – It will be to your benefit to deal with suppliers who have been awarded a certificate of Analysis which guarantees safe levels of CBD and the absence of contaminants in the product.

Markets and Marketing

Where markets are concerned, it is important to decide on your target market;

· Individual customers

· Wholesale business

· Retail market

· Target all of the above

Carry out extensive market research. The methodology you use will depend on the budgeted funds available. Various methods could be used;

1.      Direct house visits in selected areas – you will be able to assess if your hemp flower business will be a success

2.      Distributing questionnaires for completion in places like colleges

3.      Scrutinize published sales figures of established players

4.      Establish a detailed and extensive online presence for the business

Since you are entering as a new CBD Hemp Flower Business owner, the survival and growth of the business depend upon tapping into the market that is already being supplied by the current players in the market. For this reason, some suitably aggressive marketing accompanied by product innovativeness will be necessary.

The following mediums should be a good starting point;

1.      Consider the use of local TV and radio networks. Despite the potentially high costs associated with it, the benefits can be considerable because TV is watched by a wider audience.

2.      Create a website. The website should be loaded with descriptions and specifications of the products and services on offer. Include information about deliveries, discounts, and special offers. The website should also serve the purpose of highlighting what sets the business apart.

3.      The use of social media such as Facebook, Twitter, and WhatsApp should be fully utilized. Social media allows the business to reach a wider and interactive audience. Furthermore, if properly managed, social media can be an avenue for the business to create a brand. Competitors are also likely to be using social media. The content in your adverts should be original, unique, and be able to pique recipient interest. 

These are some of the important things to consider when setting up a CBD Hemp Flower business.

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