The CBD market is growing, but starting any business can be risky. Keep reading for tips on what to look out for before approaching the CBD market.
1) Learn about CBD regulations
When starting a CBD business, the first thing you need to know is all the regulations that exist in the sale of CBD. According to the FDA, the sale of CBD products is legal if the CBD comes from the industrial hemp plant. CBD derived from Cannabis is illegal in states that have not legalized the use of Cannabis. Also, the CBD products derived from the hemp plant need to have a THC level of less than 0.3%. Anything above this amount is illegal.
If you intend to market your CBD products for their healing properties, these products have to undergo an approval process by the FDA. To avoid this arduous and often unfruitful screening process, consider being label smart. To avoid violating federal law, use general and non-specific terms to label your products. For instance, instead of branding your CBD oil with statements like “This CBD oil treats cancer,” opt for something like: “May ease cancer-related symptoms.”
2) Make a business plan
No matter what business you are planning to build, creating a business plan is paramount to its success. A business plan will outline your business objectives, company mission, target market, how you will fund your business.
3) Find a credible CBD manufacturer
As CBD is the primary offering of your business, you want to guarantee that the products you are selling contain first-rate CBD extracts. When sourcing for a CBD manufacturer, you must consider the manufacturer’s certifications and product range.
Some certifications to look out for include GMP, COA, cGMP, and FDA registration. Good manufacturing practice (GMP) ensures that CBD products are produced according to the CBD industry quality standards. A certificate of analysis (COA) details the levels of CBD, THC, and other compounds found in the product. It also includes information on the purity and concentration of the product. For instance, the CBD manufacturing company Superior Supplement Manufacturing produces their products in cGMP and FDA compliant facilities. Their products also come with a COA to ensure 100% purity of ingredients.
To appeal to a wider audience, consider CBD producers that manufacture a range of product categories such as tinctures, tablets, and edibles, to name a few. Superior Supplement Manufacturing produces capsules, tablets, soft gels, salves, balms, and more.
4) Invest in web design
An effective way to sell your product is through your website. Invest in user-friendly website design that loads fast and is high-functioning.
5) Find a reliable payment processor
Most payment processors are unwilling to accept funds on behalf of a business in the CBD industry. Despite the sale of most CBD products being legal, merchant companies are wary of dealing with CBD companies that might be selling products that break federal stipulations.
6) Get online
With the help of a digital marketing company, you can create brand awareness on social media. A digital marketing agency will help you harness the potential of your business online by first developing a digital marketing strategy. This is an action plan for achieving your digital marketing goals. Once you have a detailed digital marketing strategy, your business is sure to grow and succeed. Just make sure you bring in professionals who have a proven record of helping businesses succeed, like Nettra Media.
7) Incorporate content marketing
Extra digital marketing services offered by a marketing agency include online marketing and content marketing. Content marketing involves distributing targeted, relevant information at the right time to a clearly defined target audience to build a client relationship. A marketing agency will help you put in place SEO (search engine optimization) techniques to make your websites easy to find on search engines.
Launching a CBD company can be a daunting process, but if you remain committed to quality and transparency, you will make a name for yourself in this growing industry.