Given the boom in the popularity of CBD in the UK at the moment, it is not surprising that more and more people are wanting a slice of the CBD pie. According to a recent survey by YouGov, 36% of 18-24-year-olds would consider using CBD – with CBD oil being by far and above the most popular of CBD products in the UK.
It is clear, therefore that there is already a substantial market for CBD products and one which is growing. As we get more and more research on how CBD oil shows how it can be beneficial for your health – not only in terms of your general health and well-being but also for more specific ailments, it is a growing industry.
What exactly is CBD?
CBD is short for cannabidiol. It is one of over 100 compounds that are present in the cannabis plant, and one which scientists have found can have a unique effect on the human body. Unlike Tetrahydrocannabinol – or THC – another of the compounds in the plant, CBD doesn’t make you high.
CBD (and THC) belongs to a group of substances called cannabinoids – or more specifically, phytocannabinoids – cannabinoids made by a plant. When they are taken, they interact with the body’s endocannabinoid system in a similar way to the endocannabinoids – cannabinoids which have been made naturally by the body.
The endocannabinoid system is one that helps to keep the body regulated, affecting systems such as the immune, digestive, skin and central nervous systems. It works through the interaction between endocannabinoids and cannabinoid receptors. So, by taking on extra cannabinoids – such as CBD – you can help to give your endocannabinoid system a boost and especially those systems which are specifically affected by CBD.
There is mounting scientific evidence and an abundance of anecdotal evidence that shows just how effective CBD can be for many reasons and this is why it is proving to be an excellent business option for more and more people.
4 factors to consider when starting a CBD oil business
The CBD market is a brand new one. It is one that hasn’t existed in the UK until the past few years and due to its nature in terms of regulation, its unique past in that it has previously been part of an illegal drug and the fact that it is a brand new market, a CBD business is not as easy as some of the others.
There are a number of things which are specific to the CBD industry which you should think about if you are considering starting a CBD business:
Regulations and the law
Given that the CBD market is new and closely linked to cannabis there are often parts of running a business in an industry that is lagging behind in terms of regulation. For example, some people find it difficult to open bank accounts or process payments online. Not all financial establishments are allowing for CBD businesses yet, so it is important to check that your bank of choice will. There is a big grey area as financial institutions often use box-ticking to decide who to work with.
There are, however, places out there, and you just need to be patient and do your research properly.
It is important, if you are working in an industry with regulations which are continually being reviewed and changed, that you keep on top of the changes to firstly ensure that you are operating within the law, but also not missing out on opportunities which could arise due to changes in regulations and laws.
It is important that you are up to date with the laws around marketing. Many companies in the US have recently been stung as they have made medicinal claims about CBD which – although they might be supported by anecdotal evidence, have not had licenses granted yet. This means that at the moment, you can only advertise your CBD oil as a food supplement which is good for general health and well-being – but not for any more specific medical issues.
This is also a good thing to bear in mind with your branding. At the moment, CBD is a natural wellness product and not a medical product, so brand it as such. This will mean that you don’t end up in hot water with regard to your marketing.
Be professional and transparent
Trust is a massive thing in business – and even bigger in the CBD industry. It can be difficult for some people to dissociate CBD from cannabis the illegal drug. You need to, therefore, show that you are trustworthy and honest. Talk openly about issues, join regulatory bodies, give customers easy access to third-party lab testing certificates, respond to complaints or comments in an honest yet positive manner and embrace reviews for example CBD Shopy a UK-based CBD oil retailer proudly displays their TrustPilot reviews throughout their website. This will all help your business to be professional and trustworthy.
One of the biggest problems that any new industry has – and especially CBD, is the fact that they go largely unregulated. Responsible businesses in the CBD industry have therefore taken it into their own hands to self-regulate to ensure transparency, that products are of sufficient quality, work with good practice and provide practical advice. The main trade organisation for CBD in the UK is the Cannabis Trades Association.
There are many benefits that you can gain from setting up a CBD business – especially at the moment when we are seeing an explosion in the popularity of CBD. There are, however, some considerations that must be made before you take the plunge, to ensure not only what you are getting into but to also ensure that you make a success of your CBD business.