Considerations for Starting a CBD Business
CBD is huge in the world of health and beauty right now. And with a ton of potential benefits, from anxiety relief to skin moisturization, is there any wonder? And when a new product hits the shelves, it presents an opportunity that any aspiring entrepreneur can take hold of. But you’ll need to thoroughly investigate your next steps before jumping into any new business venture. These are a few considerations for starting a CBD business.
Considerations for Starting a CBD Business
Think About Your Angle
When people talk about CBD, they’re typically talking about the oil. But all it takes is a quick internet search of CBD products to find out that there are tons of other kinds of products to choose from. As a new business, you can take your pick of the products you might want to feature. Some options include:
Tinctures
Vaporizers
Gummies
Capsules
Topicals and lotions
Hair products
Along with the specific products you want to offer, consider what clients you want to cater to. Whether your ideal clientele intends to use your product for health, beauty, or recreation will change which products you pick and how you build your brand image.
Production Methods
When you decide what products you want to make, your next consideration for starting your CBD business is how you want to create them. Extracting CBD from industrial hemp takes some know-how, after all. You will need to decide between oil-based, solvent-based, and Supercritical CO2 extraction. Any method will do the job, but each produces a different yield and requires specific equipment.
Here’s a quick run-down. Olive oil extraction is the simplest method but doesn’t have a high yield. Solvent and Supercritical CO2 both have a high yield and are a standard method for professionals. Supercritical CO2 extraction typically involves highly specialized equipment. For new small businesses might consider using ethanol recovery appliances that are the size of a coffee maker. However, ethanol and other solvents require careful handling. Do your research on all four methods to decide which will best serve your business’s needs.
Read up on Marketing Best Practices
CBD has been legal for a few years now. Even so, there is still a significant amount of public uncertainty about it. As such, you can’t always market CBD as freely as other health and beauty products can. Often, if you are selling CBD, you may need to have an age warning on your business’s website. You should also avoid making hard-and-fast claims about your product. Since CBD research is still ongoing, keep your language suggestive. Say that CBD may help with an ailment instead of claiming that it will.