The CBD industry has massive potential for growth. Most people still haven’t tried CBD, especially in the 65+ demographic, leaving an enormous opportunity for CBD business owners. Selling CBD products like CBD capsules, CBD oil, or topicals can be a great way to get into the legal cannabis industry.
Starting a CBD company isn’t easy, but the market potential and the margins offer an incredible opportunity to aspiring entrepreneurs.
CBD Business Opportunities
The diversity of the CBD industry allows business owners the chance to work in a variety of markets. For instance, CBD topicals can be promoted as products used by athletes to recover, giving a business owner the ability to target a specific niche within the CBD market.
Other areas of the economy are seeing CBD products cross over as well. The health and beauty space is getting more CBD products and major brands to infuse their products with CBD. Business opportunities will keep presenting themselves to aspiring CBD oil business owners. We don’t expect the demand for CBD to stop anytime soon.
The Rising CBD Market
While demand for CBD is at an all-time high, and it may seem like it’s everywhere, most people still are unfamiliar with CBD and have yet to try it.
Federal legalization and loosening restrictions on importing CBD products can also present new business opportunities for CBD companies. We expect to see the market rise even more as more people become familiar with CBD and lift restrictions.
How to Start a CBD Business
Starting a CBD business has many similarities to creating a traditional business. Selling products online or in retail requires registering the company with the secretary of state’s office in the business owners’ respective state and obtain a tax id number.
Many CBD companies operate without a hemp license. Some states require additional fees and government regulations to sell products legally. It is up to the business owner to practice diligence while setting up their company.
We recommend operating with a hemp license, especially if the state requires it. Additional licensing offers customers reassurance that the business is legitimate and going through the necessary steps to keep them safe.
One of the biggest challenges unique to the CBD industry is banking credit card processing. Obtaining a reliable bank and a cc processing company with competitive rates can be the difference between turning a profit and going under.
How to Sell CBD Oil?
Starting a CBD company is easy compared to selling CBD. Most CBD companies can get created but fail to sell enough products to stay competitive. Over 90% of cannabis companies fail; we suggest having an extensive plan to sell CBD oil before setting up the company.
The biggest challenge to CBD companies is advertising. Most platforms don’t allow CBD products. Amazon, Google, and Facebook all ban or restrict CBD products creating challenges for new CBD businesses to get the impressions necessary to be successful.
CBD businesses are forced to get creative or use traditional forms of media to get the word out about their company. Cannabis-specific magazines and websites offer ad space, but the reach is limited. Getting new users requires positioning on the major platforms.
SEO and social media influencer marketing are the most common forms of digital advertising used by new CBD companies. While FB and Google don’t allow most CBD companies to buy advertising, paying an influencer with a large following to promote the products is entirely legal.
Starting a CBD company is challenging but delivers incredible returns if the business owner can find a niche and figure out how to advertise their company.