There is a large part of the cannabis industry that is Cannabidiol (CBD) focused, creating tons of CBD business opportunities. CBD is found in hemp and cannabis and often associated with medical benefits. This part of the industry should hit over $20 billion in the next four years.
CBD is said to have many health benefits and because you do not get the same psychedelic reaction as with THC, it is enjoyed by many through edibles, topicals, and tinctures. This blossoming industry is going to attract a lot of interest when it comes to CBD business opportunities. If you’re already curious about starting a CBD business then you need to make sure you understand the product and complexities that go with it.
CBD is a cannabinoid from the cannabis or hemp plant. Unlike THC, it does not give the user an intoxicating high. It is taken for its therapeutic and general health-enhancing benefits and as more research is done, more and more benefits are discovered.
CBD business opportunities come in different areas. One extracts products like hemp oil from industrial hemp to be used as a concentrate or to infuse products. The second area is cannabis CBD which uses the same process but with a different plant.
Oil can be extracted from both hemp and cannabis plants. The difference is that industrial hemp has less than 0.3% THC. These plants are related though hemp is generally legal whereas marijuana growing and production are much more controlled.
Once you know whether you are heading down the hemp or cannabis road, you need to choose between full-spectrum or isolate. Full-spectrum includes other cannabinoids and terpenes. Isolate means its only CBD. No extras. There is no specific proof yet which one is preferable.
CBD Business Opportunities
While there are areas of opportunity with the growth and extraction of CDB, there are also products ready for production and retail sales. These are just a few of the most common:
Tinctures: These are drops that come in a bottle with a dropper. The drops can be put under your tongue or taken with your drinks or food.
CBD Edibles: These include baked goods, candy, and various food products and are regulated through government agencies and there are a lot of companies already in the CBD business of edibles.
Vape: Oil and wax concentrates can be used with vapes as another way to use CBD products.
Topicals: Gels, creams, and other items that can be applied to the body to help alleviate pain. They are to target a specific area of the body.
Getting into the CBD Business
CBD business opportunities are a little more complicated than other businesses as there is still a lot of shifting uncertainty about the regulatory landscape. Because this industry is up and coming, it’s worth putting extra effort and time into your project. Opportunities include the regular steps such as business plans, insurance, and set up but you also have to know your market well and meet all the regulatory requirements.
While it is no longer classified as a controlled substance, hemp is still being worked on from a regulatory status. You cannot use marketing that includes health benefits and there are restrictions on infused food and beverages as well. Knowing what your legal obligations are when entering the CBD business is a must. You have to stay on top of new developments and regulations as government agencies figure out the next steps.
Entering the CBD industry means you also need to understand the unique nature of your potential marketplace. You are limited as the normal venues for advertising aren’t available so you have to be somewhat creative no matter what area of CBD you are getting into. It’s essential to build relationships with customers and create loyalty programs that meet government requirements without harming your business.
Entering the CBD Marketplace
Make sure your product is good and high quality as it is not only going to have to meet regulators’ demands but the consumer demands as well. Consumers know their stuff. Most have done their homework and know what they are looking for. Make sure your business stands out. Use independent labs to test your product, be transparent, and make sure your clients can see the results easily so you build trust around a quality item. Aim to get certifications for your business so people have confidence in what they are buying. The process may seem complicated but, in the end, being pro-active and thorough gives your new business venture a boost.
Be Aware of CBD Industry Challenges
This industry faces more challenges than most simply because the CBD business opportunities are new and regulations are still being implemented. Here are some of the things you need to be aware of if you are going to act on a CBD business opportunity:
- Financing – Because of the many regulations, most banks are still hesitant to get involved with the industry. They are wary of risk and oversight. Be sure that the institution you choose for your business banking understands the CBD industry so you are not caught with the last-minute financial shutdown. You may need to go a unique route for outside financing and be mindful of who does your day-to-day banking as well.
- Insurance – Insurance is a challenge similar to banking. Even though CBD is legal under the legalization of hemp, insurance isn’t as quick to react. You may need to educate your potential insurer about the difference between THC and CBD.
- Payment – Because payment is usually made through banks, you again have issues with payments and financing. CBD is still not easily separated from cannabis with THC in the minds of many so they hold CDB in the same light.
Once clear and distinct regulations are in place, these issues should start to become less problematic. If you decide to enter the CBD industry, you should be adaptable and well informed to make sure you know what you need to do and how to move with changes as they come.
If you are looking to enter the CBD industry, be ready for unparalleled growth in the next few years. It is moving from illegal to legal hopefully soon on a national level and offering cannabis business opportunities never before seen. You want to be at the forefront of the movement, not catching up. Know the regulations, be ready for change, and differentiate yourself from others for your business opportunity to grow and be successful.