Starting a CBD business is no walk in the park. Unless the park is dark, there’s a blizzard, and you’ve sprained both your ankles.
There are A LOT of things to consider.
This doesn’t mean, of course, that it’s impossible. There are plenty of successful CBD business owners racking in substantial profits.
Plus, the CBD industry is expected only to keep rolling at a breakneck speed like a Mack truck on ice.
In other words, it’s a seriously promising industry. So here’s what you need to know… and do.
Be Cool with Research and Lab Testing
Given its formerly shady (i.e. illegal) status, there hasn’t been much research on CBD.
That means it’s really difficult for CBD companies to state the medical benefits of their product without getting a hardcore reprimand (or closed down) by the FDA.
So current CBD companies are determined to keep discovering more about their product through trials and clinical studies so they can advertise those benefits without fear of repercussions from the federal agency.
You’ll want to be sure to require independent lab reports that demonstrate the purity and potency of the CBD. It’ll also need to comply the with the 2019 Farm Bill. And speaking of compliance…
Follow the Rules
If you fancy yourself a rebel and a rule-breaker, this might not be the right venue for you.
Running a CBD business means you’ll be forever tangled in the web of federal, state, and city regulations that are often at odds with one another when it comes to the legality of CBD. Even the FDA is still trying to figure out the regulations for edible and drinkable CBD items.
So get hooked up with a compliance officer who’s well versed on local production laws.
Create Original Branding
As we said, the CBD industry is booming. It’s a product that’s in high demand.
The downside of this is that the market has gotten saturated over the last year.
So you need to differentiate your brand. Ditch what’s trendy and work toward something with more staying power.
And by all means, don’t be a copycat. Mimicry may well be the highest form of flattery, but it isn’t going to serve you here.
Your best bet is to find marketing experts who specialize in cannabis. They know what works, while understanding the tricky rules and regulations around advertising CBD.
This is just Good Business 101. Especially since your consumers will be putting your product on or in their bodies.
Strong branding will contribute to building trust.
Yet, transparency is also crucial. Once you’ve lab-tested for purity and potency, share the lab reports with your consumers by posting them on your website.
In an unregulated category like CBD, this speaks volumes to potential consumers.
Pair up with a Producer
Many CBD business owners say that this is one of, if not THE, most important factors to consider.
Farmers are the stewards of the land from which you’ll source your hemp. So you should be exceedingly picky in your selection of producers, as well as the raw materials and ingredients.
You want to be certain of where your hemp is grown and that the farmer is licensed in a state with a hemp pilot program
The Hemp Industry Association is a good place to start. This farmers association has vetted members who have to complete a thorough application process before they can be certified legitimate and licensed.
School Your Customers
One of the best ways to make your brand memorable is to educate your consumer base on your product.
A lot of folks are still confused about CBD. They may know of some of the claimed medical benefits. Or they may have a foggy understanding of how it’s connected with cannabis.
So fill them in on the story of hemp and terpenes. Open their eyes to the many ways this plant with non-psychoactive properties can help them. EDUCATE them on how they can introduce CBD into their own wellness regime.
Raise Plenty of Capital
If you think you’re good to go in this area, think again You can never have too much capital when it comes to started a CBD business.
The best thing you can do is find plenty of investors. And the best place to do this is at any of the number of reputable conferences that focus on this field. These conferences are crawling with willing investors both on the state and on the floor.
The CBD Expo Tour is a good example. But if you’re looking for the Comic Con of cannabis, don’t miss the MJBizCon. It’s a gold mine for acquiring investors.
Still Interested in Starting a CBD Business?
If you haven’t been scared off or deterred by the above information, then you may in the perfect position for starting a CBD business.
Play the game right, and you stand to help a lot of people while establishing a successful business for yourself.
And if you’re looking for cannabis marketing specialists to help you in this venture, contact us.
We’ll make sure you don’t get lost in the shuffle.