Cannabis legalization is spreading quickly, and products like CBD have already become federally legal in the United States. The industry is already bringing in billions on an annual basis, which is why so many savvy entrepreneurs are wondering if they should get involved. However, there are a number of unique challenges that cannabis businesses face, and it’s important to understand and prepare for them before you launch your own brand. If you’re considering getting into the cannabis industry, keep reading to find out what you need to know before starting your business.
What do you need to know before starting a cannabis business?
Though much of the conversation surrounding cannabis businesses is about medical and recreational marijuana, CBD products are actually some of the most in-demand in the cannabis industry right now. Not only that, but they’re legal on a federal level, making it easier to start a CBD business than one focused on selling products that contain enough THC to be classified as a controlled substance. However, there are still additional challenges that CBD companies face, which you’ll need to be prepared for. Educating yourself about the industry is essential if you want your business to succeed.
One of the most basic aspects of any business is developing quality products. Take the time to research the top brands and products on the market to learn why they’re so successful. CBD gummies are one of the most popular types of CBD products, so it’s worth learning more about the best CBD gummies and considering adding some to your product line. CBDFx is one of the most well-reviewed brands, with different flavors and formulations to address various symptoms and ailments.
Another thing to think about is where you will obtain insurance for your business. Sometimes, cannabis businesses experience more difficulty obtaining coverage. Fortunately, there are brokers that specifically provide cannabis insurance to businesses that manufacture, distribute, and sell cannabis products. If you’re planning to start a cannabis business, it’s a good idea to think about logistics like insurance coverage early on.
What is CBD and how does it work?
CBD, otherwise known as cannabidiol, is one of the many cannabinoids found in the cannabis plant. Hemp and hemp plant derivatives like CBD were legalized in the United States through the 2018 Farm Bill. Unlike other cannabis products, CBD doesn’t contain tetrahydrocannabinol (THC), which is the compound found in marijuana that produces its signature high. The more permissive legal landscape surrounding CBD is why it may be easier to focus on CBD rather than marijuana products.
There are many clinical studies underway aimed at identifying what medical applications CBD may have. Though many studies are in their early stages, there has been significant progress made in recent years. In 2018, the FDA approved its first prescription drug containing cannabidiol. The drug, Epidiolex, was designed to treat seizures associated with two rare forms of epilepsy. Researchers and cannabis enthusiasts are hopeful that we’ll learn a lot more about its uses in the coming years.
If you do plan to get into the CBD business, it’s a good idea to remind your customers to check with their doctor before consuming cannabis products for the first time. Their doctor can tell them how cannabis may impact their health conditions or interact with any prescription medications they’re currently taking.
As we learn more about cannabis, including CBD, it’s likely that the industry will continue to grow. Given that the popularity of these products seems sustainable for the foreseeable future, it’s a good time to consider starting a cannabis business. Becoming successful will require some education and preparation, there are some difficulties that cannabis companies deal with that may not be familiar to entrepreneurs who haven’t worked in the industry before. Still, there is a real opportunity to make a profit as long as you know what you’re doing.
About Carson Derrow
