How to Legally Start a CBD Business in 2020
Cannabidiol (CBD) has exploded across the nation. The more people learn about the benefits of CBD, the broader the cannabis industry becomes. Business is booming as new CBD products become available every day. From creams to gummies to pills to oils, you can get CBD in many different forms to help with all sorts of afflictions. Whether you need help with anxiety, insomnia, or other health issues, the benefits of CBD may be able to help you out. If you’re searching for a great industry to invest in, now may be the right time to explore the cannabis industry. Just know, there are some legalities to consider if you start on that journey. Because CBD comes from the hemp plant, there are concerns about the level of THC. THC is the element that gives you a high when smoking or digesting marijuana. However, CBD does not include enough THC to give you a high, but instead, it takes the health and wellness properties of the hemp plant to help you cope with discomfort or occasional anxiousness.
Because of the nuances of CBD sales, you may come across unexpected problems that you may not face in another industry. So while this industry can be lucrative, be prepared to do your research on legalities, find a reliable manufacturer, and create a strong brand for your product. This is how you will succeed with a CBD business.
Find a Manufacturer
If you’re looking to sell CBD products, you probably aren’t making them yourself. First, you need to find the best manufacturer to buy your CBD oil, gummies, supplements, and other cannabis products. You need a guarantee that your products are all-natural, without THC or other harmful substances.
Rely on expert CBD oil manufacturers who will also package and sell all cannabis products from oil to capsules, balms, and lotions. There’s an expansive process of getting CBD ready for consumption. Testing raw materials, hemp oil extraction, distillation, batching, and packaging is just the framework for creating a great product for you and your customers. A reliable company will follow these best practices and help your cannabis business thrive.
Know your audience and angle.
While CBD is legal in all 50 states, you can’t necessarily find it at your local Walmart. Know your audience and how you want to market your product. You need an angle to drum up business and prove that customers should choose your company. Know what kind of CBD you want to sell and in what form. Having a business plan will help you succeed.
Just because you’re selling CBD products, doesn’t mean you’re too cool for some great business structures. Communication with your customers is key. Through workforce management, you can analyze your customer interactions and forecast your future sales. This data will lead your business decisions and help you gauge your audience’s satisfaction. Empower yourself and your agents to reach your key results with great communication software.
Research regulations and legalities.
In 2018, the Farm Bill legalized industrial hemp production which includes CBD products. Even though selling these is legal, regulations and restrictions are still being solidified by the FDA. For example, you’re not allowed to market that CBD has tremendous health benefits. As well as that, you need to be aware that there are some CBD food products you’re not allowed to produce. Each state will have different rules, so research your market. If medical marijuana isn’t legal, you’ll have to be sure your products are exclusively made from hemp. Overall, it’s important to do your research in this area. With so much scrutiny put on the CBD industry, you don’t want to put a foot out of line.
Prepare for Challenges
Starting a CBD business may come with some challenges that other industries don’t face. Because of the ever-changing landscape of the industry, banks and insurance companies may not want to work with you. Just know you may have to be flexible as you work to get your business off the ground.