Delivery businesses are thriving. The need for delivery services is driven by several factors, including the COVID-19 pandemic, the aging population, and career and family demands. Delivery services bring products right to a person’s home, saving them the time of searching through stores for things they want or need.
The cannabidiol (CBD) industry is also growing. CBD sales reached 1.198 billion U.S. in 2019, which is pretty incredible considering how new the CBD retail market is. CBD product sales are expected to continue to increase, making this an ideal time to launch a CBD delivery service. Follow the steps outlined here to ensure you’re ready to launch a successful CBD delivery service that thrives in the current marketplace.
Learn about the CBD industry and relevant laws.
Cannabis plants include hemp and marijuana plants. These plants were grown and harvested by colonists in the 1600s, but new laws in the 1900s restricted the cannabis industry. It wasn’t until the Farm Bill passed in 2018 that CBD products were legalized federally. Despite the Farm Bill, CBD isn’t legal in all 50 states, and you must check your state’s laws to determine whether CBD products are legal before you set up shop.
The U.S. Food and Drug Administration (FDA) doesn’t regulate CBD products, but it does provide information about CBD products. Reviewing FDA articles is a great way to learn about current laws and how they affect CBD businesses. Consumers must talk to their healthcare provider before taking CBD products, and it’s crucial you ensure patients are using CBD products with medical guidance.
Research your start-up costs.
Every company has start-up costs. Your initial costs will include purchasing vehicles, securing a storage facility, hiring staff, and purchasing supplies, such as packing supplies and accounting software.
You’ll need car insurance for the vehicles you use for deliveries. Using an auto insurance comparison tool is a great way to find the most affordable auto insurance policy. When you provide critical information, including your zip code, the make and model of the vehicle, and the purpose of the vehicle, the tool identifies insurance companies that offer comprehensive coverage in your area. The tool prepares car insurance quotes from companies that can provide car insurance for your company. Compare the data provided to find the best policy for your business.
Whether you opt to use Geico, State Farm, or Liberty Mutual, you may be able to combine your auto policy with other insurance policies you need, such as liability insurance, renters insurance, and life insurance.
You’ll also benefit from acquiring retail analytics software. Retail analytics software collects and interprets data to help you make informed business decisions. Use this software to guide your retail operations. Predictive analytics help you anticipate consumer needs to ensure you can meet anticipated demand. You’ll be able to manage your inventory in real-time and reduce costs because you won’t stock unwanted merchandise.
Apply for small business loans.
The U.S. Small Business Administration (SBA) offers several small business loans to help new businesses cover start-up costs. The loans can also be accessed by existing businesses that need capital to cover their operating costs or expand their facilities. SBA loans are low-interest loans, making them more affordable than hard money loans.
You can also opt to apply for financing from a bank or credit union. Once you have financing, you’re ready to secure the resources you need to launch your company.
Identify your ideal consumers and develop a marketing plan to reach them.
Identify the customers you want to serve. Your consumers may shape the types of products you carry and the services you offer. Your client base will also determine how you promote your services. While you may emphasize social media marketing and search engine optimization (SEO) marketing to target younger clients, you may opt to invest in local ads near medical facilities and senior centers if you plan to target elderly clients.
Develop appropriate policies to ensure optimal customer service.
Your delivery team provides a service to clients, and your business will thrive if you provide exceptional customer service. Implement strategies promoting customer engagement to ensure your clients enjoy an optimal customer experience.
You should also implement protocols to ensure consumers have consulted their physician before opting to use CBD products and check to ensure CBD won’t trigger an adverse reaction from medications they’re taking. Ensuring your clients have sought medical advice before taking CBD products ensures their safety and is an essential part of your customer service strategy.
Starting a CBD delivery service is an excellent way to enter the CBD market. Your staff team can deliver CBD products to consumers’ homes. You’re ready to launch your business when you’ve researched the industry, compared costs of essential resources, secured financing and developed marketing and customer service plans.