The CBD industry is flourishing as it enters more sectors like health and wellness, skincare, etc. The cannabis derivative has gained immense popularity over the years, given the significant health benefits of using it. People of all ages, mainly millennials, and seniors, use it to cope with various health conditions like insomnia, anxiety disorder, depression, chronic pain, etc.
If you plan to enter the CBD industry and sell CBD products, now may be the right time to do so. With an expected growth rate of 28.3% between 2020 and 2026, entering the CBD market would be profitable, provided you have a high-quality supply and customer base. If you wish your company to grow like the huge brands CBDistillery and so on, you must remember these eight points mentioned below.
1. Know About the CBD Industry Thoroughly
Market research is essential before starting any business. However, it plays a more crucial role in the CBD industry to avoid any legal complications. Perform thorough research about the manufacturing processes, several state jurisdictions, testing and certification process for the products, and legal updates about hemp sale and distribution. Doing so may help you evaluate the costs and time incurred accurately. Moreover, it’s always good to be on the safer side when it comes to legal complications.
2. FDA Guidelines
Here’s another crucial element of starting a CBD business. You must know and abide by all FDA guidelines throughout the manufacturing of your products. As of now, the FDA has allowed only two CBD-based prescription drugs in the market. So, go through the official website of the FDA for more information about the type of CBD products you wish to manufacture. Reach out to them for approvals and certification processes accordingly. Not following the FDA guidelines can put your business as well as the consumer’s health at risk.
3. Choose the Brand Name Wisely
Choosing the right name that suits the vision and ideology of your company is essential. So, think of a suitable name accordingly. However, ensure that the domain name for the website is available for that particular name. Choosing a name that you can use easily for marketing and advertising your CBD products on social media is also essential. Another pro tip is to trying and avoiding the words ‘cannabis’ and ‘CBD’ in your brand name, as some banks may have an issue with it.
4. Develop a Solid Marketing Plan
We have already established that the current CBD market is flourishing. Though that means profits, it also means more competition. As a budding startup or company, your brand must stand out from the competitors to achieve the target sales. Make sure of the right platforms like the internet and have an SEO-friendly official website. You can also promote your products online through various social media platforms. Discuss with your team and come up with fresh and unique ideas for doing so.
5. Find Suitable Investors
Your business plan may remain solely on paper and computers if you don’t have the appropriate resources to turn it into a reality. So, if you require investors for your business, it’s essential to find the right ones. Several investors invest money in the cannabis and CBD market. However, you may require a robust business plan to find the right ones. Ensure that their interest aligns with your company’s vision for smooth functioning in the future.
6. Deal With Renowned Wholesale Suppliers Only
Not every CBD company cultivates its hemp. If you fall into that category as well, choose a reputable wholesale supplier for CBD. The quality of the hemp determines the CBD quality and the products manufactured from it. Remember to ask the suppliers about the THC concentration in CBD, the source of CBD, the extraction methods used, etc. Having a detailed COA (certificate of analysis) with information about the THC, CBD, and other terpene levels will help you maintain transparency with the customers about product quality. Only deal with supplies that use high-quality CBD extraction methods without using any hazardous additives and chemicals.
7. Payment Technology
Digital payment modes play a crucial role in the e-commerce ecosystem. If you plan on selling CBD products online, you must also have a reliable and robust payment technology for your customers to make secure transactions. But finding the right payment technology partner for CBD businesses, in general, is not easy. That is because most payment processors categorize CBD businesses as ‘high risk’ ones. So, look for a payment technology provider that supports transactions for CBD businesses and relevant experience working with CBD brands.
8. Laboratory Testing Agencies
Here’s the final tip regarding starting a CBD brand. All CBD products must undergo a laboratory test to prove their authenticity and safety by a third-party laboratory. Research about the testing procedures, timelines, and regulations. Get in touch with various testing agencies and discuss the details about testing certificates and procedures. Having your products tested will establish trust among customers, and you can also display the test results and certificates online on your official website.
Those were the eight tips you must follow before stepping into the CBD industry. The demand and the overall industry will only keep growing further, as the government restrictions around the world get lenient around CBD and cannabis derivatives. Look out for the latest CBD trends and focus on creating the right and high-quality CBD products for your customer base.