One of the more frequent questions I receive is, “how do I build a CBD brand?” Since President Trump signed the 2018 Farm Bill, the flood gates spilled open and now, everyone and their mother is looking to start a CBD brand. Over the past 3 years, we have picked up an accumulation of information on building and operating a CBD business. In this series, I will teach you some of the basics of how to build your own brand.
Build a CBD Brand: Branding
The first thing that you must do is contemplate about branding. Ask questions. Stay curious. Why is branding important? It’s the name that everyone will associate you with. Think, Google, Apple, Amazon. Your brand is the most important in starting your business.
Choose a brand name that is easy to remember while it is also something that represents you. Choose a brand name that is not already taken. Use a domain registrar like namecheap.com or domains.google.com to search for a domain name.
What type of branding should I use?
Should I use a weed leaf? That highly depends on who your target market is. Would you be able to sell to a 60-year-old grandmother if she sees a cannabis leaf? Do you think that she might associate the leaf with “getting high? Again, always ask questions and look at it with all angles before making a decision.
Does choosing the right color scheme also matter? Yes, it does, especially psychologically speaking. Did you know that red is often used for branding because it’s seen as an energizing and stands out easily? Most of the information we receive from a logo comes from the colors contained within it. That’s because different colors influence different feelings and emotions.
Should I use the “Rx” symbol in my name? This is also an important question to consider. The “Rx” symbol is highly associated with prescription medicine. The FDA has made it known that you cannot use CBD to treat any ailments. I highly recommend not having “Rx” in your name unless you are a pharmacist or a doctor.
Once you have chosen your name the next step is applying for an LLC and obtaining an EIN number.
What is an LLC and how does it help me build a CBD Brand?
A limited liability company (LLC) is a corporate structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities.
An LLC protects you if your CBD brand gets sued. They can only go after your brand and not you. This is not the case if you are considered a sole proprietor.
What is an EIN?
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service and you can get your EIN immediately.
We will discuss sourcing CBD in the next article. Leave a comment below or send us a message if you are in need of guidance.