How to Start a CBD Business: 5 Incredible Things to Know
The cannabidiol (CBD) industry has witnessed a consistent growth trajectory over the past few years, as research continues to unveil more therapeutic benefits of CBD. According to industry analyst BDS Analytics, the CBD oil market is expected to grow to $20 billion globally by 2024.
With such a lucrative industry, it’s understandable why CBD businesses are mushrooming at every turn. But as with any business, there are things you should familiarize yourself with before launching your CBD venture.
Read on as we present the five incredible things to know before starting a CBD business.
Understand how to invest in the CBD industry
The first thing to know before starting a cannabidiol business is that there are various ways to invest in the industry.
First, you could invest at the production level, in which case you’ll mostly involve yourself in cannabis cultivation. If you choose to become a cannabis grower, remember to opt for hemp instead of marijuana cultivars. While both are variants of the cannabis plant, hemp cultivars are preferred as they tend to yield higher CBD levels than their marijuana counterparts.
You can also set up a distribution company. Through the company, you’ll be able to supply products like CBD vape juices, edibles, packaging materials, etc.
Another way you can invest in the CBD industry is at the processing level. Here, you’ll need to set up a plant where raw hemp materials are processed into finished CBD products.
There’s also the option of investing in the cannabidiol industry as a retailer, which happens to be one of the most common ways people enter the industry.
Last but not least, you could trade in CBD stocks. This option is recommended if you’re looking for a hands-off approach to investing in the computer glasses industry or CBD industry.
Focus on informing your clients as opposed to being salesy
It’s not unusual to find many of your potential clients wondering what CBD gummies, vape juices, or oral tinctures are! That’s perfectly fine, as cannabidiol is yet to be mainstreamed into the global pharmaceutical industry.
As a retailer, always strive to offer your potential clients as much information on CBD as possible. Try to understand what CBD is, its health benefits, common administration methods, side effects, etc.
Remember that you’re dealing with a compound that is relatively new in the market. Therefore, it would be counterproductive to focus on pushing sales when the very people you’re trying to market your CBD products to are still skeptical about CBD’s perceived health benefits. Once they’re adequately informed, your prospects will be eager to purchase and try out your products.
Choose the products to deal in
As we’ve just mentioned, many investors choose to venture into the CBD industry at the retail level, which is a great thing.
But as a retailer, there are numerous products that you could offer your customers. Essentially, CBD products are manufactured depending on the user’s preferred delivery method.
Some of the common products you might consider stocking include;
- CBD-infused edibles, such as gummy bears, baked goods, beverage drinks, etc.
- Inhalable products like CBD vape juices
- Encapsulated CBD products
- CBD-enriched beauty and cosmetic products
- CBD oral tinctures
- Smokable products, such as dried hemp extracts
The conventional wisdom is to understand your target audience before choosing the right products to offer them. If you need to understand CBD products, you can refer to cbdoil.co.uk, which deals in various CBD products and is one of the leading CBD companies in the market today.
Identify the right marketing channels.
The success of your cannabidiol venture will rely heavily on how effectively you carry out your marketing campaigns. Now, it’s important to note that many consumers of cannabis-based products like CBD prefer to purchase their products online.
That means your business will need to have a robust online presence, including an official e-commerce website, as well as a blog and social media. It also implies that you’ll need to consider digital marketing channels like social media marketing, influencer marketing, and search engine optimization.
However, note that major search engines and social networking companies still prohibit cannabis-related advertisements on their platform. A creative way around these restrictions would be to focus on informative content as you seamlessly weave in calls to action and referral links. Better yet, there are numerous cannabis-friendly social networking platforms that you can leverage to market your CBD products. Examples include LeafWire, Weedable, WeedLife, Reddit, to mention but a few.
Remember that CBD laws vary by region.
There’s no better way to emphasize this! Much as research continues to cite cannabidiol for its immense healing properties, it’s sad to observe that CBD and other cannabis-based products remain illegal in various countries worldwide.
The good news, however, is that there’s a general trend towards legalization.
In the United States, the 2018 Farm Bill made it legal to sell and distribute hemp-derived CBD products. You only need to ensure that those products contain a maximum of 0.3% of the psychotropic cannabis compound, tetrahydrocannabinol (THC). Interestingly, cannabis remains illegal at the federal level, which means that you cannot be found in CBD possession on federal property.
By and large, remember to establish the legal status of Cannabis in your jurisdiction before setting up a CBD business.
Although the CBD industry shows promise for better times ahead, there are plenty of things to know for aspiring investors. Feel free to bookmark this post for reference when you are ready to launch your CBD venture.