The ins and outs of operating an on-demand cannabis delivery service. 

The growing popularity of the CBD delivery business has created an abundance of opportunities for cannabis entrepreneurs. 

As the pandemic unfolded, consumer preference quickly shifted to delivery for convenience and safety. The proof is in the pudding: Eaze, the “Uber of weed”, reported a 71% increase in customer sign-ups in 2020! 

Looking to start a CBD delivery business? We’re here to walk you through the main steps: building a business plan, fulfilling licensing requirements, and setting up a solid delivery infrastructure.

how to start a cbd delivery business

Organize your business plan

A CBD delivery model requires careful planning. There are many moving parts, so you’ll want to get started with a strong foundation: a comprehensive business strategy mapping out everything from marketing, to logistics and more. Financial planning is one of the most important elements here; it’ll help you determine if your business concept is profitable. 

This financial model is one of many methods of costing out a CBD delivery business. It factors in key numbers, including:

  • Cost of goods and projected cost of goods sold. 
  • Expenses (vehicle, security system, gas, and so on).
  • Licensing (depending on your home state).
  • Projected revenues. 

Licensing requirements for your CBD delivery business 

Regulatory compliance is non-negotiable. Here’s the deal: Delivery across state lines is illegal, and each state has its own set of rules and licensing requirements. Some permit medical and recreational cannabis delivery, while others allow for only one… or none whatsoever! 

For example, in California, you must apply for a non-storefront license to sell medical and recreational cannabis exclusively by delivery. The application costs $1000, and if approved, there’s a licensing fee based on annual revenue projections. 

To see where your state stands, check out this resource.

Establishing a delivery infrastructure 

Every CBD delivery business needs a solid infrastructure to ensure the shopping, tracking and delivery process is as seamless as possible. 

This is where a dispatch system comes into play. Without the appropriate software, it can be difficult to make deliveries on time and to the right customers! There are several options, like Tookan and Drop Delivery, that allow you to track orders, inventory, dispatch deliveries, and drivers. You can even create a mobile app, so that customers can quickly place their orders with just a few taps and swipes. 

Is a CBD delivery business right for you?

Well, you still have quite a bit of research to do! There are many other details to evaluate, such as demand by location, the amount of CBD you’re permitted to deliver in your jurisdiction, and plenty more. 

To learn all about the business of CBD, consider applying to become an oHHo Community Builder! You can earn cash, rewards, and network with fellow entrepreneurs who may also be interested in launching CBD delivery services.