Kratom, a powder extracted from the leaves of the Mitrogyna speciosa tree, has been around for generations in Thailand.
It is consumed by adding it to tea or food, swallowing it as is, or in capsular form. The red maeng da kratom, whose popularity continues to grow, has made the drug a hot commodity.
Users report experiencing relief from chronic pain, social anxiety, a boost in energy and focus, and eased opioid withdrawal symptoms after consumption.
Entrepreneurs, therefore, see it as a perfect business opportunity. Starting a Kratom business can be tricky and risky. Since kratom is a relatively new product, it can be daunting to venture into. However, here are eight tips to help you take on the challenge.
1. Make Sure It Is Legal In Your State
The FDA has not cleared kratom for sale or consumption, and it is illegal in some states. This is because there is little evidence-based research on the subject.
Since its action mechanism involves interaction with the opioid receptors, the DEA had put it under the Schedule 1 class of drugs in 2016 comprising heroin, cocaine, etc.
Therefore, make it a point to check in with your state laws to know if the idea is workable.
2. Get Enough Capital
Have you saved up enough? If not, do you have another source of income?
It is not advisable to quit your job to invest in kratom for fear of missing out. Have a plan that saves you when things start to go wrong.
You still need food, have bills to pay, and it could be weeks or months before the business starts to peak. Be prepared for all that. Because who knows? Kratom laws might change right after you buy tons of products.
Since it is an uncertain market, being ready and bouncing back when failure sets in will come in handy.
3. Stocking Up on Kratom
Now that you have surveyed the market’s viability and your capital is sorted, it is now time to get the product on your shelves.
Where can you get kratom?
That depends on whether you plan to be a wholesaler or a retailer.
For a Wholesaler
As a company, you need to know where kratom is cultivated and arrange for importation.
Kratom is mainly grown in Southeast Asia countries. Here is a list of different strains and where you can get them:
- Borneo kratom from the Borneo rainforests
- Maeng Da Kratom from Thailand
- Thai Kratom in the jungle of Thailand
- Kali Kratom in the Kalimantan region of Borneo
- Indo Kratom strain in Indonesia
- Malay Kratom from Kapuas Hulu
- Sumatra kratom from Sumatra Jungle
Other countries include Papua New Guinea, Myanmar, and Malaysia.
For the Retailer
If you are a vendor sourcing your kratom from the companies above, make sure they stock up on as many strains as possible. A comprehensive catalog is suitable for convenience purposes, as you don’t want to waste money on delivery from various companies.
However, don’t bank on one company to deliver. Have several based on whether they provide you with the best deals. Also, this cushions you if the one you depend on fails you. Balance it out according to your needs.
Lean Business Practices
Do your research on how to get your product at a low price, as this will factor into the final price and affect sales. Also, remember to take inventory of everything as slacking will cost you dearly.
Next, to sustain the business, keep track of the strains with positive reviews and drop those that don’t do well.
4. Remember, You Are Not the Only One
Setting up the business is not enough. The next test is to convince customers; why you? You have to keep in mind that people are searching for reputable vendors.
Thinking from that endpoint, remember that a high-quality product is about 80 percent of the marketing you need. Word of mouth spreads like wildfire.
What to Avoid
There have been cases where kratom powder has been contaminated with drugs like benzodiazepines, acetaminophen, or bacteria, and you don’t want to be part of the bandwagon.
You avoid this by creating and enforcing high standards from acquiring the product to sales.
Third-Party Testing and Reviews
Test your powder using reputable laboratories for pesticides, heavy metals, or mold.
Next, ask customers to leave a review on your website. This provides customers with social proof that you are indeed legitimate.
Once you get the analysis certificates from labs and customer reviews, start piling up, display them on your website.
You can also hire or connect customers to medical experts conversant with kratom to help advise customers on consuming kratom with little risk as different strains have different strengths.
Going the extra mile allows them to make informed decisions and thus solidifies trust.
5. Have your Lawyers on Standby
Response to kratom is subjective and unpredictable to users, and customers might not get the desired effects, and this can lead to you getting sued.
Therefore, notify users that you are not responsible for anything that might or might not happen to them as research is still in its early stages.
Also, don’t try to embellish your products with medical or recreational claims, as this might land you in trouble with the law and damage your reputation.
6. Play the Long-Term Game
Remember that quality and high standards will always take care of you.
You might have to cut on profits for a while to make sure that your product is affordable. But as sales increase, you can then gradually increase your prices.
Trust is already established, and since humans are naturally wired for self-preservation, they will gladly pay extra since they are aware that you are making an effort to look after their health.
Attracting customers with low prices for low-quality products will fill your pockets in the short term, but you will soon be out of business. Even if you change your product quality thereafter, your stature will have already been spoilt.
7. Be Professional
Set Up a Website
Invest in a high-quality website to facilitate a smooth customer experience through finding products and checking out easily.
Respecting your customer’s time and peace of mind will not only guarantee their satisfaction but also stamp your name as a reliable vendor.
Build Your Brand on Social Media
You can also solidify your online presence by posting reviews on social media. Advertising kratom may not be allowed, but it can be an avenue where you get to talk to your customers and take feedback.
You can then use this information to adapt your product to suit their needs, converting it to more sales over time.
Embark on Marketing
Let advertising be through the exciting deals you give your customers. The target is organic growth and regular customers.
You can achieve it through free shipping, extra capsules or grams of the powder, loyalty and referral programs, or reaching out to influencers and giving them free products. Whatever is necessary to make noise out there, but remember, it is not a substitute for hard work and quality delivery.
Put in Place a Reliable Customer Care
It is also helpful to have a customer care team that responds to messages or questions from users promptly.
If you can’t afford this, it is still possible to do it on your own, a chance to make it more personal and share your vision with your customers, thus solidifying the relationship.
8. Your Mindset
Overcoming Doubt and Obstacles
As with any other business, it is an adventure, and it requires you to take it one sale at a time. The goal is to make progress, however slight it may be.
Don’t get lost in the future and lose the moment because that is all you have. Take inventory of your mistakes and promise yourself never to repeat them.
What Drives You
Knowing this will help you when challenging moments arise. It could be that kratom could help relieve pain from people with chronic conditions.
There is a possibility you could be assisting an introvert somewhere be comfortable making friends. You could as well be saving an intern from experiencing burnout from the stress at work.
Whatever it is, make sure it is close to your heart and let it drive you.
Choose your Team Wisely
When it comes to talent search, hire people who free up your time and energy so that you may concentrate on other aspects of the business.
Bring in people who care about high standards as much as you do and advise on what you can do better to help the business grow. You are only as good as your team.
The uses of kratom to potentially solve specific ailments are slowly becoming apparent to the larger population. With a market to be filled, entrepreneurs can thus establish themselves.
With the lack of familiarity with kratom’s legal status in your state and inadequate capital, the idea is as good as dead. You also need to know where to get your product, ascertain its quality, market it effectively and learn how to manage yourself and your team.
With the aim of exponential growth, this guide can give you a chance in the market while other vendors close up shop. However, it is not all, so you should keep digging for different ways to improve and scale up your business.
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