CBD is taking over the smoke shop industry, sparking consumers’ interest and flooding shelves with new products like tinctures, gummies, and oils.
Right now is the perfect time to take advantage of this growing trend and launch a profitable small business selling CBD products — which is why we’ve put together this guide on how to open a CBD store.
Let’s explore the eight steps you can take to make your CBD store dreams a reality.
What Is CBD?
Before we dive into the details of how to start your CBD store, let’s cover the basics.
If you’re going to sell CBD, you need to have an in-depth understanding of what it is, what types of CBD products are available, and how to recommend the right CBD strengths and formulations to your customers.
CBD stands for cannabidiol, a substance derived from hemp. CBD can be consumed in various ways, with everything from cookies baked with CBD to lotions infused with hemp available on the market.
Just like consumers have a broad range of choices when it comes to how they use CBD, they also have diverse reasons for choosing this substance. Experts are still researching CBD’s effects, but some users claim that it has medicinal properties.
Understanding how and why your customers use CBD is an essential part of your business plan for how to open a CBD store, so let’s take a closer look at what steps to take to understand their wants and needs.
1. Do Some Research
Before you make any decisions about how to open your CBD store, you need to spend time researching your ideal customers and your competition.
Learning About Your Potential Customers
Let’s start with your ideal customers. Who are you hoping to attract to your CBD store? What are their interests? Which CBD products will appeal to them?
For instance, imagine your CBD store is located in a walkable neighborhood and surrounded by health-focused businesses like gyms and juice bars. To attract customers to your shop, your best bet would be to specialize in CBD products like tinctures and salves to support them on their wellness journeys.
Sizing Up the Competition
The next step in your research phase is to evaluate your competitors.
Take a look around your neighborhood, identify other businesses that sell CBD products, and pay these shops a visit. Take note of what types of CBD they sell, how they market themselves, and any gaps in the market.
After thoroughly researching the competition, you can carve out a unique niche for your CBD shop and ensure that it stands out.
2. Understand the Law
Another major item on your to-do list is to understand the laws regarding the sale of CBD and other tobacco products.
These regulations vary from state to state, so research the specific laws that will apply to your CBD store. To help you get started with your research, here are three key topics to look into:
- Age verification: All states prohibit the sale of tobacco products to customers under the age of 21. Look carefully into how these laws apply to the sale of CBD and implement a robust system for age verification in your store.
- Licensing: Some states and counties require you to obtain a license granting permission to sell tobacco products. The application process for these licenses can sometimes be long, so start it as early as possible.
- Marketing restrictions: The federal government and some state governments have imposed restrictions on how businesses can market tobacco products. Look carefully into these regulations before launching your grand opening marketing campaign.
Failure to comply with these laws and regulations can lead to hefty fines and potentially the closure of your CBD store, so don’t skip this critical step.
3. Find the Right Location
Now it’s time for an exciting milestone on your journey to open a CBD store: selecting the perfect location.
Location can be make or break for a small business, determining how many customers are likely to stop by and make a purchase. Let’s take a look at a few location requirements that can give your CBD store the best chance of success:
- Good visibility: Your shop should be visible from the road or sidewalk, enticing passersby to come in.
- Easy navigation: Your shop should be centrally located where customers can navigate to it with ease.
- Ample parking: A poor parking situation can prevent customers from visiting your shop, so make sure that there are enough parking spots available nearby.
- Proximity: Make sure you’ve put enough space between your small business and nearby competitors.
Keeping these factors in mind when evaluating locations will help you identify the perfect spot to set up shop.
[H2] 4. Get Your Space Retail-Ready
Once you’ve settled on the right location, it’s time to turn your storefront into a welcoming and comfortable CBD store with an intuitive layout.
During this phase, you’ll invest in shelving, a checkout counter, bright lighting, signage, and security tools to ensure that your CBD store is a great place to shop.
Make sure to keep your business’ niche in mind when designing signage and selecting decor to create the right kind of shopping environment for your ideal customers.
5. Curate an Excellent CBD Selection
Now that you’ve installed the perfect arrangement of shelves, you can stock them.
For your first batch of inventory, consider ordering a wide range of products and paying close attention to which CBD types and strengths your customers gravitate toward. Over time, you’ll be able to tailor your offerings to their preferences.
This is also a great time to tackle another crucial aspect of running a CBD store: inventory management. To keep your shelves stocked, your customers satisfied, and your sales high, invest in inventory management software.
Related Read: 4 CBD Inventory Tips for Vape Shop Owners
6. Invest in the Right Smoke Shop POS Solution
You’ve come so far on your journey to learn how to open a smoke shop! Now it’s time to invest in a point of sale (POS) system to power your business.
Your CBD store’s POS system processes sales transactions, monitors your stock levels, provides you with insights about your business’ performance, and more.
Here are a few features to look for as you shop for the right POS solution for your CBD store:
- Built-in age verification: Your POS system should protect your business by allowing you to scan customers’ IDs to verify that they are of legal smoking age.
- Integrated high-risk payment processing: Since you’re selling a highly regulated product like CBD, you’re required to have high-risk payment processing. Look for a POS provider that specializes in working with high-risk businesses like yours.
- Real-time inventory management: Eliminate time-consuming manual inventory counts and ensure that your customers’ favorite CBD products are always in stock.
- Reporting and analytics: Learn about your customers over time and tailor your store’s inventory, marketing, and operations to their preferences.
- Customer loyalty: A built-in loyalty program can help you build a loyal customer base by offering special perks to your repeat customers.
Since your small business has such a unique specialty, we recommend relying on a POS specifically designed for the smoke and CBD shop industry. Choosing an industry-specific provider will ensure that you have access to all the right features and expert support on your CBD store journey.
7. Hire Your Team
The next step to opening a CBD store is to assemble and train your team.
When hiring, look for employees who are knowledgeable about CBD and passionate about providing top-notch customer service.
After you’ve found the right people for the job, train them well. Give them a comprehensive overview of your store’s selection of CBD products, your policies, and how to use the POS system effectively.
8. Plan Your CBD Store’s Grand Opening
You’ve made it! It’s time to plan your CBD store’s grand opening.
To bring your first customers through the door, consider running a special grand opening promotion. Offering a bundle of a few different CBD product varieties is a great introduction for your new customers, or you might plan a mix and match promotion where customers can choose a few different items to try for a discounted price.
This is also a great time to launch your shop’s customer loyalty program. Encourage your shoppers to sign up and earn rewards starting from their very first purchase.
Learn How To Open a CBD Store With Cigars POS
Congratulations! That was everything you need to know about how to open a CBD store.
Taking the first steps on your small business journey can feel overwhelming, but we’re here to help.
Cigars POS is an all-in-one POS solution designed to help CBD stores and smoke shops operate more efficiently and profitably. With built-in age verification, integrated high-risk payment processing, and a sales-boosting customer loyalty program, Cigars POS includes all the tools you need to set your business up for success.
Create a custom POS system for your CBD store and get an instant quote using our build and price tool, or see Cigars POS in action by scheduling a live demo.
