With over 50% of small businesses failing after their first 5 years of opening, one needs to ensure longevity in a quickly changing industry.
When it comes to starting a business in the CBD industry, a thorough, detailed CBD oil business plan ensure your business can weather the ups and downs of small business.
Best Practices for Your CBD Oil Business Plan
Below are the elements needed for a successful CBD oil business plan.
Who Are You?
This is just basic information that's needed. This includes the name of your business, your location, your name, and how to contact you.
Your Unique Value Proposition
What is your company's offer? What separates you from the other CBD oil companies in the market? This can make or break how compelling your business is to potential investors.
What you offer and the problem your business solves: What does your company offer and why is it needed? This is your value proposition.
Target Market
Specificity is key when it comes to your target market. This goes beyond just typical demographics. You'll want to be as thorough as you can, including psychographics, additional brands, hobbies, and what he/she values in life.
Creating an ideal client profile is an excellent way to really pin down your target market.
Competition
You want to be as objective as you can, especially if you think your business idea is truly unique. This way you won't be blindsided by a surprise competitor.
Positioning is extremely important when entering a market. You want to occupy a position in your target market's mind. If you can't do that, you won't be able to stick out against your competition.
Study your competitors as best as you can and figure out what their positioning is in relation to your ideal client profile.
Team
Your team can make or break your business. If you're going at it solo, you'll also want to include various contractors and suppliers that you may be using. If you have a team, this is a great time to understand and clarify everyone's roles and responsibilities.
Financial Plan Summary
This is more of the nitty-gritty. This should include your overall business model, what your start-up costs, liabilities and potential revenues.
A flow chart understanding your operations from supplier to consumer, or where you fit in the supply chain or industry can help potential investors understand where exactly you fit in the industry.
This is also the part where you mention any needs for additional funding (if applicable).
Proof of Traction and Desired Milestones
What proof do you have that there's a need in the location you're planning to open?
Obviously, initial traction and existing success will make a much more compelling case for your potential investors. An ideal situation to be in is that you're growing year over year and the additional funding is needed for expansion.
Clarity is the Key to Success in CBD Oil Businesses
Understanding where exactly you fit in the entire industry ecosystem can help you and your business navigate through tough times.
Hopefully, this article has given you clarity on how to get started with a CBD oil business plan. If you're interested in learning more feel free to check out more of our blog posts.