The CBD business is one of the fastest-growing industries in the country and offers tons of possibilities. And with the stigma and misconceptions surrounding it being dispelled in mainstream media, more and more people are trying to cash in on the trend.
But the issue is that many people don’t know where to start and often have very little understanding of the product and business side of it. If you were thinking of starting a CBD business, here are a few things you need to know first.
There is More than One Way to Get in
The beauty of the CBD business is how diverse it is. You could decide to focus on the health and wellness aspect of it, sell beauty products, or sell common products like oils and tinctures.
Know, however, that you don’t necessarily have to buy isolate or concentrate and manufacture the products yourself. You could get in by private labeling CBD products for instance.
Private labeling is when another company manufactures the product for you, and you stamp the product with your brand. This could allow you to avoid a lot of costly and time-consuming paperwork, and if you work with a reputable company, you’ll benefit from their expertise without having to understand much about the manufacturing process.
Not All CBD is Legal
Most people who are thinking of selling CBD derived products may have heard that the Farm Bill made CBD legal. But what you should know first is that the legality of CBD will depend on its source.
Only CBD that is extracted from industrial hemp and falls under the 0.3% THC threshold is legal. This comes with many implications.
For one, you have to know exactly where the supplier gets their hemp from. And second, you have to know exactly what the THC content is if you don’t want to end up having troubles with the law. That means being able to get your hands on a certified lab analysis, and asking for a visit of the installations if possible.
Your Advertising Options May be Limited
A lot of people turn to social media and online platforms for advertising nowadays, and it could look like a perfect place to advertise CBD products.
However, know that several ad networks have limitations on CBD. Adwords, for instance, completely prohibits CBD ads. Twitter also imposes limits on what type of claims you can make. So make sure that you’re aware of the rules and look at alternative methods to advertise your products online.
Also, know that you are not limited to ad networks either. CBD has a fast growing and already vast community, and doing something like getting active in various groups, having a solid content marketing strategy, and releasing as much constant as possible across platforms and in different formats will allow you to carve a niche for yourself.
Research Your Market Niche
The demand for CBD is through the roof, and many players are coming in to fill it. CBD reaches a lot of demographics, whether it’s young professionals trying to deal with anxiety to older people or athletes dealing with acute or chronic pain.
This is why you need to get familiar with all these players and try to differentiate yourself. No market is immune to saturation, so try to find an underserved niche and capitalize on it.
The CBD business is a great one to get into; it offers almost infinite possibilities, and will only continue to grow in popularity as more people realize its virtues. Make sure that you do your research before you move, and pick a niche that you’ll be able to dominate.