The cannabis business is an expanding one and in the U.S., cannabis laws are changing and becoming more favorable for the production of cannabis products in certain states. Strong business-minded individuals see an opportunity to capitalize on this new change and start a business. The current trend is the development of various CBD products. The big idea is ‘how to start a CBD company?’
1. The Law – Knowledge is Power
Under federal law, CBD that is derived from a hemp plant with less than 0.3 percent THC, you can be purchased by individuals— however, it is important to note that some states still maintain legal restrictions on individuals possessing CBD. CBD derived from the marijuana plant tends to exceed the legal threshold established under federal law. A cannabis plant containing above 0.3% THC is deemed non-hemp cannabis and individuals in possession of this plant have no legal protection under the law.
When it comes to offering a description of the benefits of your CBD product, you have to be mindful of your claims. Currently, only one CBD product on the market has earned FDA approval. GW Pharmaceuticals’ Epidiolex was developed to treat orphan, early-onset, treatment-resistant epilepsy syndromes and was approved by the FDA in June 2018. A CBD product must get approval from the FDA if it will be marketed as a product that can prevent, treat, diagnose, or cure any particular disease. When it comes to packaging and promoting a CBD product, you have to avoid any legal troubles when providing a description of the health benefits a CBD product provides. Having a lawyer with a background in the cannabis industry is crucial to help you deal with legal matters.
Before launching, incorporate your business, get business licenses and obtain employer or tax identification numbers (EIN/TIN).
2. Create a Strategic Business Plan
You want to map your vision and strategic planning for achieving your objectives and the growth of your CBD business. You want individuals to finance your venture and other stakeholders to understand your goals and strategies for success. You want to define the product and service you are offering, provide financing methods, a marketing plan, strategic implementation, and sales forecasts.
3. Develop Your Own Formula with Hemp Labs of America
Hemp Labs of America can help you to develop your own unique custom formulations or CBD products and will guide you through the process. You can also choose from their ready-made products to start your business. Known for using high-quality ingredients and advanced technology to create their products, you can get started online by filling out a product request form, and follow the process through with formulation, packaging, pricing, testing, and filling and manufacturing. Bring your product to life through custom packaging and private label CBD.
4. Create Your Store
If you are starting out with a physical location, you may find that you can capitalize on the reorder rate. Having a physical location can help you to win over customers who you can interact with on a person-to-person basis and answer important customer questions. If you choose an online platform instead, choose a platform that will meet the needs and changing demands of your CBD business. Keep in mind that great content with an SEO (search engine optimization) strategy will help to boost your business.
5. Promote/Brand Your CBD Product
Get people to know about your product and keep the buzz alive. Talk about the health benefits of CBD and how great it is for things like overall health and wellness and beauty, without making any medical claims. Use social media platforms, like Facebook and Instagram, to reach your target audience and expand your brand and attract new customers.
Starting any business can be a challenge, but with a vision, know-how, strategic planning, and the right backing, you can get your CBD business up and running. Know the law, both federal and state, that govern the cannabis production and products. Stay abreast of regulatory changes since the law can change over time and turn to us at Hemp Labs of America for any questions you may have.