The CBD industry is growing more quickly than almost any other industry in the world. Some projections have it estimated at A 50% annualized Rate of growth For the next few years. So, how do you get in on some of the action in this explosive industry?
Quick Breakdown of the CBD Industry
CBD is a cannabinoid chemical found naturally in cannabis and hemp. It produces beneficial effects on health without causing inebriation the way THC does.
- Hemp CBD
Most CBD sold is harvested from hemp to avoid the legal issues associated with growing cannabis. Hemp is simply cannabis with a measured THC concentration below 0.3%
- Isolate or Full Spectrum
Currently, CBD products are sold in one of two forms: either as CBD isolate or Full Spectrum. Isolate only contains CBD, while full-spectrum has the whole array of cannabinoids found in hemp.
Launching Your Own CBD Company
Starting a company is almost similar in the CBD industry to any other industry. There are rules and regulations you need to follow to operate the business legally. Then, you still have to attract customers who will buy your products.
- Following the Letter of the Law
CBD is in a legal grey area of sorts. While the bill passed in 2018 did make hemp a federally legal product to grow, sell, and market, there still have not been any rulings set in place by the Food and Drug Administration(FDA). Follow the right channels for new updates as they come. If you have a business that is operating once regulations are in place, make sure you adhere to the rules 100% of the time to avoid any potential legal issues you could face.
- Finding Customers and Selling Your Products
CBD oil, CBD edibles, CBD extract, and more are all products known by many people across the country for the beneficial health effects they produce. However, just because you have something available for resale does not mean you will find customers. Make sure you use your social media and any other platform you have available to spread the message for customer outreach. As long as the products are of high quality, you can expect many of the first customers to become regulars. Running the rest of the business is similar to running any other, except that CBD businesses face some key obstacles that others do not.
Obstacles Currently Facing the Nation’s CBD Companies
- Federal Regulations
The lack of clear guidance from the FDA leaves a lot of grey areas for vendors to operate. It can change at any moment and can cause significant disruption to businesses that are not ready for the change.
- Lack of Traditional Banking Support
Due to the lack of clear federal guidance, many banking institutions refuse to work with companies that sell CBD products. Therefore, it has made finding access to capital for Tyne business more difficult. Until new laws are in place, this is unlikely to change. However, we are optimistic that we can still work around it.