CBD is big business. Known by its full name cannabidiol, this product is a type of oil derived from cannabis. Its perceived health benefits have seen people use CBD as a form of treatment, helping with everything from seizures to general body pain.
So just how popular is CBD? According to 2019 statistics, 64 million Americans were estimated to have tried CBD within the last two years. That number’s only going up. Plus its prevalence isn’t restricted to the US – CBD is a worldwide craze.
As a result, it’s a lucrative market for any entrepreneur to enter. If you’re wondering how to get going, here’s a quick guide on starting a CBD business.
Before you do anything else, it’s essential to gain a strong understanding of CBD. This helps in two distinct ways. Firstly, you learn about how CBD cannot claim to cure any illnesses, as it is generally not an FDA approved treatment, so making false claims might get you in a spot of legal trouble.
You also need to learn about the properties and that CBD products in the US cannot go above a THC level of 0.3%. Plus if you operate in a state where medical marijuana is prohibited, you have to make sure your CBD creations are derived from hemp.
When beginning any business, developing a strategy is imperative. This will give you a clear idea about what is required, understand the unknowns of the CBD industry, and map out an actionable plan.
Here are some questions that require answers:
When it comes to your CBD products, you have two options available: partner up with an existing brand or create your own items.
If you want to limit your upfront costs, partnering up and selling a producer’s CBD products is a wise choice. This means you don’t have to worry about the manufacturing side of things. However, it does limit your scope in terms of product range and profit margins per item sold.
If you decide to craft your products from scratch, the process becomes a lot more complicated. You require the cannabis plants and CBD extraction equipment for a start. Then after extraction and it has been turned into a sellable product, it needs to be packaged ready for retail.
Yet there’s a reason for this added work: the potential rewards are much greater. You have complete control over your products and brand.
Due to the popularity of the product, there are many different CBD outlets out there already. This means it’s going to be a serious challenge to gain a slice of the market. One way of standing out is by developing a strong brand.
Don’t overlook the effectiveness of a memorable name and eye-catching imagery. This can go a long way when promoting your CBD products on social media, ads, and other marketing channels.