Q: What should I consider when taking my CBD business international?
A: Deciding to broaden your horizons and take your CBD company international can create new revenue and opportunities, but it can come with risks. Looking very closely at each individual country is very important, especially considering its “business environment indicators.”
What are the business environment indicators, you might ask. There are three important indicators that will reveal if a country is right for you to do business: Ease of Doing Business, Corruption Perception Index, and the Country Risk Rating. We will focus on the Ease of Doing Business indicator in this article.
The Ease of Doing Business score (0 to 100 scale) will show you how easy or difficult it will be for you as a foreign company to start and operate your CBD business in that country. The scale ranges from 0 to 100, with 0 representing the lowest and 100 representing the best performance. The Ease of Doing Business index averages the country’s percentile scores on 10 topics: starting a business, dealing with construction permits, securing electricity, registering property, obtaining credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
All 10 topics are important if you are wanting to establish a brick-and-mortar company in a foreign country. If you are simply wanting to export your CBD products into a foreign country, enforcement of contracts and ease of trading across borders will be the top two indicators of core interest for simply exporting.
Expanding your CBD company internationally will take research and weighing the risks and rewards. The Ease of Doing Business score is very important and should be considered along with other indicators such as the Corruption Perception Index and the Country Risk Rating. Make sure you have an international trade attorney on deck for guidance and direction. Ensure that the entire team is on board for the exciting and often winding journey of international commerce.
Jenny Dembiec is Founder and Owner of RxCOMMEND, a premium CBD brand found at www.RxCOMMEND.com and @RxCOMMEND. Her passion is to help people feel and live better. Being in the healthcare field for 20+ years and receiving her MBA, she set out to provide the most effective CBD products while uplifting the CBD industry into a respected treatment option. Jenny’s goal is to spread correct, medically-based information on CBD to help companies and customers thrive.