Points To Keep In Mind When Starting CBD Businesses in 2021
You might think of yourself as an entrepreneur, as someone who seeks and thrives on different opportunities. As such, you might look to new industries to make your mark and earn significant returns while giving the people what they want.
But what industry should you choose? Many people who might be interested in seeking new opportunities may need to turn to the growing CBD market.
Since the passing of the Farm Bill in 2018 that federally legalized the sale and production of industrial hemp in the US, many people seek to move forward with jumpstarting their respective CBD businesses.
According to this legislation, businesses and growers can legally sell, ship, and manufacture hemp-derived CBD. Today, with so many types of CBD products and brands available, starting your own business might seem overwhelming. If you are among those who are seeking the right kind of CBD business to start, then continue to read on.
Let’s start with the basics.
What is Cannabidiol (CBD)?
CBD is a compound found commonly in cannabis and hemp plants. This compound is used for many health and therapeutic benefits. The most popular cannabinoid is Tetrahydrocannabinol (THC), which intoxicates and can make a person high. On the other hand, CBD does not contain THC, which means it does not produce any intoxicating effect but can be used for medicinal purposes.
The CBD substance has reached the market in various forms like infused edibles, topicals, tinctures, and more. According to reports, with the immense growth of CBD oil products, the CBD industry is going to hit around $20 billion in sales by 2024.
Starting a CBD business
As it is one of the thriving sectors of industry, many people worldwide look for the best ways to start a CBD business.
Starting a CBD business does not require a lot of upfront investment.
Rather, there are plenty of ways to sell CBD without involving shipping or even manufacturing. Several businesses run through brick and mortar stores, though starting an online business is far cheaper and easier.
Although CBD is an organic chemical, which is consumed by people for medicinal purposes, there are different types of businesses that sell CBD. These are health food stores, veterinary clinics, medical professionals, cafes and bakeries, cannabis dispensary stores, and other shops.
Understanding Legal Requirements
CBD is legal in many countries across the world. However, the legal requirements depend on a state by state basis. Therefore, businesses need to abide by the legal requirements of each particular state. Make sure to look at the rules that they state to be in line with overall regulations.
Types of CBD Products Available for Sale
Now, this is another important factor you need to consider. There is a wide range of CBD products available online.
These are CBD edibles, oil concentrates, capsules tinctures, beauty products, isolates, and vape oils, to name a few.
When seeking to start a business, you have to do proper research of the products that command significant demand or will have huge demand in the future.
Choose a Reputable CBD Supplier
If you want to resell or are just getting started selling CBD, you need to choose a high-quality supplier. You can find several CBD suppliers, both local-based and international. Several wholesalers in the United States have been sourcing CBD from Europe, where farmers have been growing CBD for several years.
Certificate of COA (Analysis)
A COA report is essential to know the quality of CBD extract or products you are buying when running a business legally. A COA report provides the analytics and test results of CBD goods suppliers. It confirms the species of extracted CBD, THC levels, and CBD levels and makes sure that your products are falling within the confines of the law.
Creating and Launching an Online CBD Store
One of the most robust tools for driving revenue is your online store. So, make sure it is user-friendly and aesthetically pleasing.
eCommerce platforms offer a wide range of features and capabilities, so make sure to pick the right one that makes CBD sales easier and meets your business needs.
The Growing Demand for CBD
From treating everyday stress, anxiety to alleviating PTSD or Parkinson’s symptoms, the demand for CBD continues to increase at a rapid pace.
From spas to coffee shops, CBD use cases are everywhere.
You can see a variety of creams, supplements, chocolates, gummies, oil, and more. This has made distributors and manufacturers more creative with CBD products. There’s opportunities here but you must make sure to choose the business that is best for you.