6 Steps To Starting Your CBD Business in 2k21
According to Grand View Research, the global cannabidiol (CBD) market size is projected to reach USD 13.4 billion by 2028. The same research suggests that the CBD market will expand at an impressive compounded annual growth rate (CAGR) of 21.2% from 2021 to 2028.
Numerous factors have contributed to the sustained rise in CBD’s popularity. In recent years, there has been increased awareness of the health benefits of cannabidiol. These awareness campaigns have resulted in the increased legalization of CBD-based products in various countries worldwide.
It’s also worth noting that, unlike numerous other sectors, the global CBD industry hasn’t borne the brunt of the COVID-19 pandemic. On the contrary, the demand for CBD increased substantially following widespread campaigns to enhance accessibility to cannabis products during the pandemic.
Based on these facts, starting a CBD business in 2021 seems to be an attractive investment idea. But like any business, there’s a clearly defined procedure when planning to venture into the lucrative cannabidiol industry.
This post examines the six steps to starting your CBD business in 2021
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1. Understand Your Audience
CBD users fall into two broad categories, namely medical users and recreational users.
As you shall find, cannabidiol is mainly used for medical purposes. That’s because pure CBD is non-psychoactive. The compound is generally recommended for treating pain, inflammation, anxiety, insomnia, nausea, and seizures. It can also help with metabolic disorders like diabetes, psychiatric issues like schizophrenia, and skin conditions like acne.
Naturally, most of your prospective medical clients are likely people with any of the above conditions.
But while pure CBD doesn’t induce euphoria, many CBD-based products are usually formulated with the mind-altering compound tetrahydrocannabinol (THC). Such products are primarily ideal for recreational users looking to benefit from CBD’s healing properties.
Also, remember to offer safe CBD vape juice and other CBD products to win the trust of your clients. Avoid incorporating many artificial ingredients in your CBD products, especially chemicals known to increase disease risks.
2. Determine How to Venture Into the Industry
One admirable thing about the CBD industry is that there are numerous ways to invest in it.
You can choose to become a cannabis grower. As a cultivator, you’ll mainly be growing cannabis cultivars that produce the highest amounts of cannabidiol, such as hemp.
You can also invest in the CBD industry as a retailer or vendor. CBD retailers generally deal in a wide range of products. Examples inhalable like CBD e-juice, smokeable like dried hemp flowers, topicals like CBD balms, edibles like CBD gummies, and sublingual sprays.
Other ways you can invest in the CBD industry include as a distributor, processor, marketer, consultant, and stock trader.
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3. Do Your Research
The CBD industry is lucrative. However, you can only reap maximum returns on your investment if you set up your business in a largely untapped area.
That calls for extensive physical and online research to establish the presence of any local stores offering the same products you’re planning to provide.
While you’re at it, try to identify any local area businesses that offer products typically consumed alongside CBD. Examples of such products include beer, wine, and other alternative herbal extracts.
Plus, it would be better to research the marketing techniques used by successful CBD brands and your prospective competitors.
4. Establish Your Local CBD Laws
Like all cannabis products, cannabidiol is highly regulated. And despite the growing list of medical conditions that cannabidiol may treat, CBD remains illegal in numerous countries worldwide.
Therefore, it’s prudent to establish your local cannabidiol laws before setting up a CBD business.
In the United States, hemp-derived CBD products are legal in all fifty states, provided that the products contain a maximum concentration of 0.3% THC.
However, CBD remains illegal under federal law. This means that you cannot sell CBD products on federal property.
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5. Set Up an E-commerce Store
CBD may have gained wider recognition than most cannabis products. However, the compound is still looked upon with a degree of skepticism.
This explains why many CBD users prefer to source their products from online retail outlets. Having an e-commerce store will go a long way in tapping into the vast online community of prospective users.
A website also offers you a platform to create blogs on various aspects of cannabidiol, such as the compound’s health benefits, side effects, delivery methods, and dosing information.
The more your potential clients understand about cannabidiol, the more likely they are to purchase CBD-based products.
6. Have a Robust Marketing Plan
Entering the CBD industry may be easy. But staying ahead of the competition requires having a robust marketing plan.
As we’ve just indicated, most of your prospective clients are online. Therefore, it’s essential to focus on digital marketing methods like search engine optimization (SEO), social media marketing (SMM), influencer marketing, etc.
It’s also worth noting that many mainstream search engines and social networking platforms still prohibit cannabis-related advertisements on their platforms.
Fortunately, there are numerous cannabis-friendly social networking platforms that you can turn to. Examples include LeafWire, Weedable, Weed Maps, High There, to mention but a few.
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There goes our definitive guide on how to start a CBD business in 2021. Remember that while the CBD industry is lucrative, reaping maximum benefits from the sector requires treading with caution. We hope you can now proceed to launch your CBD business from the point of information.
