Cannabidiol, better known as CBD, seems to be turning into a household name. Despite only grabbing consumers’ attention a few years ago, the popular cannabis compound has created a buzz that nobody could have seen coming. It’s now available in the form of sprays, tinctures, gummies, topicals and even for your pets.
It’s easy to see why so many people are trying to tap into the potential of the CBD industry. A dwindling number of consumers have negative opinions on the product, while the market for enthusiasts and consumers who are interested in the health benefits of CBD is booming.
If you want to make a name for yourself in the CBD industry, it’s worth noting the challenges that’ll inevitably stand in your way. After all, starting a CBD business is like starting any other kind of business: tough work. That said, there’s no better time to do it than now, so let’s take a look at 5 things you need to know about starting your own CBD business.
Educating Yourself
Educating yourself on everything you can learn about CBD before starting your business will empower you to make more informed decisions moving forward. Start with a simple series of Google searches. Take a look at current businesses in the industry, especially those that are making it big.
Learn about the history of CBD, the laws surrounding it, the extraction processes, the different types of CBD products and how well they’re performing on the market. Learn about the businesses that failed and what caused their demise. The internet holds a wealth of information on the topic, so brushing up on your CBD knowledge is far from tough work.
Legalities
On the topic of educating yourself, one of the most important areas to focus on growing your knowledge of is the legalities surrounding cannabis. While the 2018 Farm Bill legalized CBD products, the U.S. still has its fair share of regulatory considerations. The governance of CBD was given to the Food and Drug Administration.
At the moment, regulations are still being devised by the FDA. This means that the industry is in a sort of gray area, with analysts foreseeing a number of changes in regulations moving forward. Be sure to keep up with them.
Making Your Own Product
CBD businesses that decide to make their own products face countless challenges, from meeting regulations to expenses to lab testing and more. Fortunately, there is a great alternative, which is becoming a CBD oil distributor.
This way, you can skip over the biggest challenges that come with making and selling your own product, while still being able to make your own custom private label product or formula.
Brand Name
The unfortunate reality is that conservative industries like banks and insurance companies are still skeptical when it comes to working with businesses in the cannabis industry. This is why it’s important to avoid including cannabis-related words like “CBD,” “marijuana,” or “hemp” in your company name.
Opt for one that still tells customers what your business is about, but also one that won’t raise any red flags. In addition to making it easier for you to deal with banks and insurers, having a safer brand name will also make it easier to expand into other product areas, even if they have nothing to do with cannabis.
Starting
It’s easy to keep holding yourself back, but there’s no better time to start your business than now. Avoid getting caught up in over-analyzing and trying to ensure that every decision is perfect. Learn as you go and get your product onto the market.
The longer you wait, the less you’ll have to leverage in this booming industry. Avoid hesitation and give it all you have. Chances are, it’ll pay off in the end.
