If you’re wondering whether you’re too late to the party, you’re not. The CBD party is just starting in earnest and it’s the perfect time to go into the CBD business. Let’s see what the buzz is all about.
What is CBD?
You hear a lot about CBD oil, but what is it exactly? It’s full name is cannabidiol, CBD for short, and it is a compound that can be extracted from both hemp and the Cannabis Sativa plant. CBD oil products have seen a tremendous increase in popularity as countless studies have shown they are very efficient in combating anxiety and depression, as well as reducing pain and inflammation, common symptoms in many diseases.
What’s the legal status of CBD oil products?
As of 2018, industrial hemp and derivates such as CBD oil are legal under the Farm Bill. CBD has been removed from the Controlled Substances Act, it is no longer under DEA supervision, and has been placed under the control of the FDA. Basically, it is legal to produce and sell hemp-based CBD oil products. As for cannabis-based CBD, that remains to be seen. On Nov.3, 2020, several US states have voted to approve the use of marijuana for recreational purposes so we might see interesting developments in that area over the next few years. For now, it is estimated that the CBD market will reach $20 billion in sales by 2024, so, yes, there’s still time to jump on the CBD band-wagon.
What are the main products on the CBD market?
Sublingual tinctures have the lion-share on the CBD market, with oil extracts sold in small bottles for therapeutic purposes. Capsules and pills are another form of delivering CBD oil of various concentration for medical use. The CBD edibles market is growing at a fast pace, as is the vape concentrates one. Finally, you have CBD topicals, used as pain relievers, as well as skincare products. Plenty to choose from!
How to start your CBD business?
Pick any of the products mention above or come up with a novelty, especially in the CBD edibles range. Basically, starting a CBD business is no different than starting any other business, but you have to keep in mind the many hurdles you will be faced with, most of them due to unclear regulations. This is going to change over the next few years, but for the moment you might run into some problems. Here’s what you need to pay attention to. Financing your CBD business might be a bit complicated as many banks are reluctant to offer financial services to CBD companies.
Payment processing is another headache, as some companies, like Visa, refuse to do business with CBD companies and those that do have high fees. Marketing your CBD business is where you need to get creative. While major drugstores like CVS and Wallgreen do sell CBD products, you will find it hard to market your products on online platforms, like Amazon or eBay. To make things even more complicated, social media platforms do not allow advertising for CBD products.
Organic growth marketing is your best shot for the time being. You will have to establish your own website and work hard to grow it. Having a modern eye-catching design and good-quality content will help a lot. And you will have to rely heavily on good old word-of-mouth marketing. Focus on quality. If you’re planning on selling no matter what to make a quick buck, you’re doomed to failure. CBD oil consumers are very well informed and they look for high quality products. At the very least, you will have to offer your customers guarantees, such as third-party lab certification of your products. Looking into organic and sustainable-growth products might also help drive up your business.
Keep an eye on changing regulations at all times. Things are moving fast in this field and if you want to stay ahead of your competitors you need to be informed and take advantage of new opportunities, for there will be many in the years to come!