According to a survey, one in every seven Americans uses CBD-infused products, and the amount of sales from industry is expected to reach $1.8 billion by 2022. The growth of CBD or cannabidiol can be credited to its health benefits and a wide variety of products – today, you can use CBD oil, gummies, vapes, and coffee to improve your overall health and wellness.
This status quo is one of the most obvious reasons why starting your own CBD business can be a great investment. Starting a CBD business can be your ticket to earn a stable income and help other people, especially those who were unsuccessful in using over-the-counter medications for their health ailments. CBD is a natural compound that doesn’t harm any organs even after regular use.
Before you can succeed in your CBD business, it’s important that you consider the following things first:
1. Grow your knowledge
Knowledge is power when starting your own CBD business. Sure, you might know that more and more people are using the product, but are you aware of its health benefits? Does CBD oil lower blood pressure? How does it impact the user’s skin? You should have accurate answers to questions like these before your CBD business starts to operate.
Understanding the CBD industry is the first and most important step when running your own CBD business. You should spend time doing online research about CBD – its history, benefits, extraction processes, and most bioavailable variety. Additionally, you should also reach out to experts in the industries for you to know more about your product.
Aside from gaining in-depth knowledge of the CBD landscape, this process will also make it easier for you to find reputable and credible suppliers. Having the necessary knowledge about CBD can also help you make sound decisions for your business as you move forward.
2. Understand your legal obligations
A CBD business is more complex than other niches in the business arena. Unlike when you’re selling clothes, selling CBD-infused products will require you to comply with several legal regulations. Rules and regulations about the production and advertisement of CBD products vary from one state to another, which is why you should know what to follow for your business. Your business has better chances of succeeding if you’re free from any legal repercussions.
Generally, states that legalize the production and advertisement of CBD products only allow those that contain less than 0.3% of THC or tetrahydrocannabinol. As for the advertising, the Food and Drug Authority does not allow CBD products to make claims that it can cure, treat, prevent, or diagnose any diseases.
Never advertise and sell any CBD products unless you have fully understood your federal and state responsibilities as a business. After this process, you can start filing for your business license and tax identification numbers.
3. Develop a strong business plan
Having the desire to earn money or help other people through your products isn’t enough for you to dive into the business arena. For your CBD business to thrive in the long run, you should have a business plan first. This document indicates your business’s goals and the strategies to implement in order to attain these goals.
Having a business plan is essential as it can help you navigate through tough times and come up with solutions when problems arise. Moreover, your business plan should also cover strategies for your financial supporters and other stakeholders.
When developing a strong business plan for your CBD business, the following should always be considered:
- Factors linked to your products and services: This section of your business plan should determine the kind of CBD products you’re selling and for whom these products are for.
- Factors linked to market analysis: In this section, you should be able to know the interest and demand of your target customers. This information is vital for you to know which products to produce and how much you should price them.
- Factors related to marketing: For you to gain profit from your CBD products, you should come up with a smart product or brand name. These details are important as these can make or break the appeal of your products to your target market.
4. Prove your legitimacy
Several studies have been published to prove the efficacy of CBD-infused products to human health, but there are still some people who don’t believe in the product. In fact, some would associate CBD with marijuana and think that both will have the same effects on the body.
If you want to turn these non-believers into your own customers, exert effort in complying with your legal responsibilities. Keep in mind that different states have different regulations in selling CBD products, and as an entrepreneur, it’s important that you know all of these.