If you’re thinking about entering the CBD business, you may be wondering how to get started. Lucky for you, the CBD industry is one that has seen explosive growth in the last few years – and is expected to grow even more in years to come.
This article will tell you all you need to know about CBD franchise opportunities – and how you can begin your own CBD company today.
Understand the Basics of CBD
CBD, or cannabidiol, is one of more than 100 cannabinoids found in the cannabis and hemp plants. Many people don’t realize that this notorious plant has so many powerful compounds – in fact, most are just aware of the presence of tetrahydrocannabinol, THC, which is responsible for the “highs” most people experience when using marijuana.
CBD, on the other hand, does not produce such an intoxicating effect. Instead, it is frequently used for its health benefits and its therapeutic applications. It is created in several steps. The raw material is first cultivated and harvested, usually from a hemp plant.
Then, the oil is extracted (there are several methods of doing this, all of which vary in terms of their environmental friendliness, effectiveness, and affordability).
Finally, CBD oil is bottled and sold. It can also be processed further into products like edibles, topicals, tinctures, and more. There are even CBD dog treats!
Decide What Kind of CBD Products to Sell
As you might have guessed by reading the last pointer, there are several different CBD products you can sell. Options include cannabis oils, cannabis topicals, edibles, tinctures, and more. Deciding which product is right for you will depend on two factors:
How much work do you want to put into processing your CBD?
What kind of market do you have for selling your product?
Understand the Legality of CBD
Like starting any business, beginning a CBD business requires a lot of hard work. You’ll need to pay close attention to regulations in particular, as these are constantly changing and depend heavily on local and statewide authorities.
There are certain steps you will need to go through, like obtaining insurance and writing a business plan. It’s important that you double- and triple-check regional regulations to make sure every aspect of your business is in compliance.
Just because the 2018 Farm Bill legalized industrial hemp and hemp extracts in the United STates, that doesn’t mean there aren’t stringent rules you’ll have to follow. For example, the FDA has repeatedly reminded companies that you can’t market CBD as having health benefits – there is still significant research being done in this area.
Because CBD is an active ingredient in the epilepsy medication Epidiolex, there are implications to using CBD in food products without FDA approval too – it could be illegal.
Make sure you understand your legal obligations. When in doubt, play it safe.
Market Your Products
Once you have a good handle on what you need to do to shore up your business from a legal and financial standpoint, it’s time to consider how you want to market and sell your products. Be creative! You can’t always market CBD on social media, since it tends to trigger account bans and suspension.
Therefore, you may need to use marketing resources like an organic search strategy and customer loyalty programs. Often, joining a franchise can be beneficial because they will take care of much of the marketing for you – but this takes etime.
Get a Competitive Edge
Your first step at a successful CBD business is creating a product that is high quality. This will help your business stand the test of time. Make sure you double check all of your quality assurance procedures and always use third-party lab testing results to show that your product is better than the rest.
Be Aware of the Challenges
There are plenty of challenges associated with starting a CBD business. Some of these are to be expected with any kind of business startup, while others are exclusive to the CBD industry.
For example, many banks and insurance companies are uneasy about doing business with any company related to cannabis or CBD production. You may also have challenges with payment processing and accessing capital as a result.
Explore Franchising Opportunities
In many cases, starting a CBD franchise begins with researching companies that already offer franchising partnerships. You may have to be producing your own CBD product already, but in most cases, you can open a store to sell an already established brand.
Companies like CBD Plus USA, Lifted, Cannabis ONE, and Purely Natural offer these opportunities to new and well-established business owners like yourself.
Decide if Franchising is Right For You
CBD is a challenging industry to break into, but if you’re tenacious and have a drive to succeed, it offers the potential for a serious payout. By being creative and hardworking – and potentially joining a franchise – you can build a business that will be profitable in any environment.