Everyday it seems the topic of cannabis has infiltrated more of the mainstream and found a home in our society after decades of living outlawed on the fringes. Yet when people talk about cannabis, they too often focus on the THC element (the psychoactive part of marijuana) while failing to recognize the other half of the plant - CBD. While the purported therapeutic health benefits of CBD are still up for debate, there can be no argument made about the popularity of it among Americans, as the market has blossomed to nearly $2 billion in what could be the gold-rush of our times.
Without the legal hurdles and financial ramifications that plague cannabis manufacturers and retailers, CBD offers potential entrepreneurs the chance to enter the market with hemp products, oils, tinctures and treatments that are now legal under the 2018 Farm Bill. Alongside a healthy growth rate for the industry as a whole, there is ample opportunity for passionate and hungry business owners to make profits in the CBD business. These are some of our own personal tips for getting yourself started:
Research. Don’t rush into things. Take the time at the start of your business journey to do proper research into both CDB as a health product and the business environment surrounding it. Understand that just because there is potential to make profits in the CBD market, there are countless businesses who go belly-up every year because they couldn’t capitalize on opportunity and survive competition.
Find a payment processor. There are a host of payment processors out there that will satisfy the basic needs of your young CBD business, but only a few that will offer you the timely and fast service necessary to keep a strong cash flow and survive the tumultuous first few months of owning your business. Priority has developed a CBD pilot payment program, which is worth checking out at https://cbd.pps.io/. Make sure to know before hand what is required to apply as well.
Lab reports. These are the foundation of your CBD business and building blocks on which you will build your marketing and future. Your products need to be tested in a proper and legitimate lab to ensure you have the answers and data necessary at all times to prove your products are both high-quality and dependable when it comes to using all-natural ingredients
. Marketing. This needs to start now. Right now. Don’t wait. Build a marketing goal and develop a team to chase it relentlessly. Do not make the mistake of thinking you can do this on your own, because you can’t. You will need as much professional help as possible when it comes to dealing with medical claims, the use of images or videos, the copywrite to blogs and a myriad of other legal issues.
Develop a strong website. Building a functional and stylish webpage is no longer difficult or time-consuming to do. Make sure to provide your customers with a safe and secure place to learn about your product and conduct business with your company. Some highly recommended starting places for those looking to design their own site with little experience would include Shopify and Wix, both of which offer platforms and email services to get entrepreneurs like yourself started.
Product Design. I cannot stress enough how little attention most new CBD brands pay to their product design and labelling. Never take for granted how visually oriented the consumer market is, and spare no expense when it comes to the design and appeal of your product. This ties hand-in-hand with marketability and enhances your ability to advertise online and build a social-media presence as well.
Wholesale and retail. Your primary goal as a young and growing CBD brand should never be to carry the weight and financial responsibilities of large-scale production and sale of your product. This is where wholesalers and retailers come into play. Do your research, and source which of each could be right for your brand. Remember to know the pricing and profit structure of similar products before signing deals!
Aim big, march slow. Don’t let the sky limit how high your business can grow. This is a rapidly expanding marketplace with a product that is both natural and potentially healthy for the body, all of which serves to provide plenty of opportunity to those willing to provide high-quality and dependable products the public can trust. Yet always refrain from needless expansion or growth, as money can be hard to find in the wild west market of CBD, and it should never be wasted or misspent.
We will be diving more into each of these topics in detail over the coming weeks, and hope it provides you a strong and trusted starting point for developing your own CBD business. It worked for us through trial, error, blood, sweat and tears. But now we stand better and more profitable because of it - and hope to see you there with us soon.