Q&A: Want to start a Pet CBD Business? Here’s what you need to know

Q&A: Want to start a Pet CBD Business? Here’s what you need to know


The pet CBD industry is a booming business! Sales of CBD pet products quadrupled last year to $32 million from $8 million in 2017, according to the Brightfield Group. The cannabis-focused research firm estimates the market could balloon to $1.16 billion in the U.S. alone by 2022. 

Want to get in on the pet CBD action and have some questions? Here are some answers:

What are the necessary steps in starting a Pet CBD business?

The necessary steps are no different than starting any company. You need funding, a business plan, business license, LLC, marketing, etc. It is important though to do your research and understand the industry and regulations on a city, county, state and federal level. It is also important to understand the challenges, which are covered below. 

What are the qualifications required to start a Pet CBD business?

The main qualifications would be to be business savvy and have strong desire to succeed. There are many obstacles to starting a CBD business, which we will answer in the following question, so you have to have a strong desire to win and be able to withstand the challenges.

What do you need to know prior to starting a pet CBD business?

First and foremost, you should get a good understanding of CBD itself – what’s the difference between full spectrum vs isolate? How is it made? Who are the reputable growers? How does CBD metabolize in pets as opposed to humans? Dosage requirements? THC-free vs. industrial grade, etc…

It is also important to understand the laws, which vary state by state, county by county and even city by city as this could affect your shipping and distribution.

As with any business, do your research. Who are your main competitors? Where is there a need that’s not being addressed? There are plenty of CBD pet treats and oils on the market. How can you differentiate?

Furthermore, how can you scale your pet CBD business? Can you offer workshops? Host events? Offer online courses? Help others in the pet CBD business grow and scale their business?

What challenges could beginners in the pet CBD business possibly encounter?

One of the main challenges is banking. Most banks is the US are reluctant to work with CBD companies for fear of getting into legal trouble. That’s why we always advise people who are looking to start a CBD business to keep industry terms out of their company name, terms such as “CBD”, “hemp”, “cannabis”, etc. If a bank sees those terms in a company name, it’s highly unlikely that they will work with that company. There are cannabis specific banks, but they require a large deposit and significant reserves.

Also, we’ve learned that shipping companies (USPS, UPS, FedEx, etc.) won’t ship known CBD products, so it’s is advisable to select a name that won’t be a red flag for the banking and shipping industries. 

Merchant processing is also an issue. Most merchant processing companies such as Square won’t handle CBD merchant processing. There are a handful of banks that will do it. It is VERY important that people starting a CBD business work with a U.S. based processor. Otherwise, you run the risk of banks declining the foreign charge out of fear of fraud, which becomes an inconvenience to customers and will have a negative impact on your business and sales; or customers are hit with high foreign transaction fees.

CBD processing is considered high risk, so banks will often require a minimum of $10k in a person’s checking account for 3 consecutive months.. 

It’s the same issue with shopping cart companies such as Shopify: they will not work with CBD companies, so you need to find one that is CBD friendly.

In addition to selecting a company name that avoids the obvious terms, we also suggest that anyone starting a CBD business say they are in the health and wellness business because technically, that is what CBD is for: your health and wellness.







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