How To Sell CBD In South Africa

As a CBD oil distributor in South Africa, you must be aware of the legal status of CBD products in the country. In South Africa, CBD products with a quantity of less than 20mg of daily dose are permitted and legal to be used. It doesn’t come under the Medicine Act. The legal product of CBD contains THC ingredients less or equal to 0.001% and is derived from the Hemp plant rather than marijuana but if the product contains more than 0.001% THC then these products do not have any legal status in South Africa. 

What are the steps to start a CBD oil business?

Once you’re ready to start your CBD oil business, follow these steps on how to start a CBD oil business to ensure that your business is legally compliant and avoid wasting time and money as your business grows:

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. A few important topics to consider are:

  • What are the initial costs?
  • Who is your target market?
  • How long it will take you to break even?
  • What will you name your business?

Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

STEP 2. Form a legal entity & Register for taxes

CBD products are now legal, but there are limitations on the market imposed by the Department of Health. First, any products in the market may only contain a maximum daily dose of 20 milligrams (mg) or less. Second, CBD products can’t claim to cure or treat any specific condition. They can only advertise broadly about general health enhancement or promise to relieve minor symptoms.

Establishing a legal business entity such as PTY LTD it prevents you from being personally liable if your CBD oil company is being sued. When you register your business CIPC automatically registered you with SARS

STEP 3. Open a business bank account

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 4. Set up business accounting system

It’s a crucial step that allows you to monitor the growth of your business, build financial statements, keep track of deductible expenses, prepare tax returns, and support what you report on your tax return. Right from the beginning, you should establish a system for organizing receipts and other important records.

STEP 5. Get Business Insurance

Insurance is highly recommended for all business owners.

Growing Your Business

How to promote & market a CBD oil business

CBD oil is popular enough that you’re going to have some stiff competition. Most people are going to be looking for CBD oil online — especially if they’re looking for more concentrated, medicinal products. Paid online ads, organic blog content, and social media can help attract people to your product. If you’re selling general, lower-intensity sprays, then you can develop relationships with general health stores or even grocery stores to stock your products.

How to keep customers coming back.

Customers are going to need to feel relief after taking your products. While research is few and far between, you can do your own analysis of which products are working for different demographics by asking for feedback. This can help you suggest the right product so that there’s less experimentation (and frustration) on the part of your customers.

How and when to build a team.

You don’t necessarily need to build a team right away if you’re growing the hemp yourself. However, if you’re partnering with other people, you should consider hiring someone to help you decipher the legal puzzles and marketing strategies of the CBD oil business.

How much profit can a CBD oil business make?

CBD oil businesses can make a good deal of profit once their customer base is established. If you charge an average of R600 per product at a 50% mark-up, you’ll need to sell 200 products every month to make R60 000 in profit. This goal can be easier to meet than you may think given the exceptional demand.

How can you make your business more profitable?

CBD oil owners can branch out to different types of products to boost their profits. From skin care to make-up to tinctures to vaping to edibles, there are a lot of different options available.

Useful Links on how to start a CBD oil business.