Since CBD became legal in the U.S., the market for products containing it has exploded seemingly overnight. This has created the equivalent of a gold rush within the industry, creating opportunities for profit for savvy entrepreneurs who understand the landscape. There are a number of challenges that any business owner will need to face in the cannabis industry.

Some of those challenges involve working within local laws and regulations, but

many of them center around the traditional supply chain and distribution issues that face all retail businesses. If you own a cannabusiness or are considering getting into the industry, read on to learn about how to start a CBD distribution network.

What do you need to create high-quality CBD products?

After the passage of the 2018 Farm Bill, hemp byproducts like CBD became legal for possession and sale in the United States. This created a booming industry that experts project to be worth $20 billion by 2024. If you’re planning on getting into the business, you picked the right time. However, it can be tough to get started or to

know how to handle the day-to-day operations of your business.

Product development is, in many ways, the heart of your business. Ultimately, there’s no substitute for creating a great product. When you’re dealing with cannabis plants, that means you need to start with quality seeds. Growers Choice seeds are one great option that has a long history of customer satisfaction.

One of the great things about the industry is the amount of diversity in the types of products you can sell. You can focus on edible products like gummies and chocolate, topicals like oils and lotions, or even sell dry flower directly from your cannabis plants. There is a consumer market for all types of products, so you can specialize in whatever area you want to.

How can you start a distribution network?

Once you have a product line, you’ll need to figure out how to package, ship, and distribute your goods. If you don’t operate a digital or physical storefront, this

process starts with getting your products on shelves. Connect with local businesses that appeal to your target demographic. Once your brand starts to gain visibility and you have sales data to demonstrate your growing popularity, it’s more likely that

national retailers will pay attention.

Stock and inventory management will be a crucial part of ensuring you can keep up with customer demand and deliver your products on time. While these things can be done manually, it’s typically worth it for brands and businesses to invest in inventory management software and a point-of-sale (POS) system that can handle the majority of the work.

When it comes time to make a plan for delivery and distribution, it’s worth investing in fleet telematics. Telematics technology can help you maximize the efficiency of your fleet by providing you with the actionable business intelligence you need to make better decisions. Working with fleet management software and experts in fleet telematics can also help you optimize your delivery routes and improve your overall route planning. This can make a big difference when it comes to minimizing costs, reducing delivery time, and maximizing profitability.
Though the market has only existed for a few short years, the CBD business has proven it can generate a lot of revenue. Not only that, but products have captured the attention of consumers across a number of industries, from food to retail to beauty. Once you’ve developed and manufactured a quality product, you’ll need to find ways to deliver them to your customers. Luckily, there are a number of distribution solutions including those utilizing fleet telematics, that can help you do just that. The CBD business is both profitable and continually expanding, but you’ll need a quality product and a reliable distribution network if you want to succeed.