Prospective business moguls and entrepreneurs, this article is for you! CBD business opportunities are everywhere, just waiting for you to take advantage! As the perfect work-from-home job or the latest investment for your expanding portfolio, CBD can be the best candidate for your next business venture. Let’s dive in and see why!
Is the CBD Industry Lucrative?
In recent years, interest in CBD has elevated, boosting the demand for more CBD products. The desire to stay healthy and happy influences consumers to look into the benefits of CBD and what they can do for mood regulation, appetite regulation, comfort, and wellness. CBD is a natural way to relax, positively influence overall well-being, and aid one’s quality of life.
With the list of CBD products available on the market constantly growing, marketing opportunities for CBD are endless. A growing market that meshes well with other industries is prime for investment and business potential.
Which Industries Currently Embrace CBD?
CBD was discovered in 1940 and it has had a rich history thus far. Today it has branched out into the realm of pop culture and has joined the conversation in many other industrial fields, not just in the U.S. but all over the world! That means your CBD business opportunities are extremely varied:
- Wellness: Experts constantly research CBD for its effects on the body. Currently, the FDA has approved Epidiolex for seizure reduction in some epilepsy conditions. Research suggests that CBD might be able to positively impact other issues as well.
- Agricultural: Hemp farms have positively influenced the economy by cultivating a highly sustainable crop with low environmental impact to harvest and grow.
- Fashion: The fashion industry has embraced the hemp plant to produce a sturdy and sustainable fabric. The hemp used for garments can also be used to have CBD extracted from it.
- Food & Drink: CBD oil is often added to food and drinks like chocolate and teas, and CBD-infused consumables have become a hot craze. Several retailers like CVS and Sprouts sell CBD products in their stores and online.
- Veterinary: Pet treats and shampoos infused with CBD are sold at pet stores like Petco and Pet Smart as a part of their pet care lines and are marketed as effective calming and soothing treatments.
- Beauty: CBD creams, lotions, hair care products, and even makeup have become popular cosmetic lines at Sephora and Ulta stores.
With a broad array of industries embracing and creating so many new CBD products, there is a ton of business opportunity in the CBD business.
Is CBD Business Profitable?
With an incredible 1 in 7 adults in America using CBD products, the numbers show that, yes, CBD can be profitable! Currently, the CBD Industry is one of the fastest-growing markets around. So far, sales are projected to have a compound annual growth rate of over 50% by 2030, meaning profits are predicted to increase by over $50 million in less than ten years!
How Do You Enter the CBD Business Industry?
Any business venture can be tricky, but it is possible to get into the CBD industry if you keep a few things in mind when you’re getting started.
The CBD industry is unregulated, so there are no guidelines, but that isn’t necessarily a bad thing! With the right tools under your belt, you’ll thrive in the CBD marketplace.
Do Your Research
How much do you know about CBD? Understanding how hemp is grown and harvested, how CBD is extracted, and the many forms of CBD that exist will be the foundation for your business. You need to know the ins and outs of all things CBD.
Working knowledge of general sales know-how is also a must if you’re going to be involved with the business side of any company.
Have Some Startup Dough
All business ventures are fueled by money. Depending on the business model you pursue, the amount of capital you’ll need to invest can vary. Direct sales, wholesale, and brick-and-mortar stores are some of the options you might base your CBD business on. Dropship, for example, is an easy and cost-effective model method because a majority of your budget will go toward marketing products to larger companies.
Some models require more investment than others, but in general, the most important thing to consider is where your money should go first. Strategic financing can make or break your business.
Know Your Audience
Do you know who your customers are? CBD is most often used by adults aged 18-29, and women are more likely to use CBD consistently, making this the target sales audience. Marketing to your biggest consumers is key to turning a profit.
If you break it down even more, doing further research for the demographics and sales in the area where your business will be located. Or research what specific CBD products sell better than others! Demographics are vital in the marketing field!
Understand the Legislation
CBD has a complicated history with the U.S. government, but the 2018 Farm Bill legitimized its legality on the federal level. However, the Food and Drug Administration has restrictions about more specific aspects, and state law changes in every state.
Know the laws in your state before you start selling, or else your new ventures will all be a waste! That goes for CBD regulation, business licensing, zoning, legal transactions, and importing. Doing things by the book is not only highly necessary but ethical in the long run.
Figure Out Your Brand
Every brand markets itself differently. Will you be the cool and trendy hipster-type of company, or will you cater to a more traditional circle of individuals? The colors, images, logos, and writing style attract certain audiences to your brand.
The CBD market is full of diverse brands that have unique styles and voices. Figuring out which one works for you will set the tone for your brand imaging and marketing techniques.
Find your passion! If you enjoy what you do, the work itself will motivate you.
Can I Start My Own CBD Business From Home?
Starting an at-home business is entirely doable with the ever-expanding success of e-commerce. Having a physical storefront is no longer necessary to be a successful business in the modern world. However, the way you market will change, as will how you operate your business.
What Types of CBD Business Opportunities Are There?
The CBD industry offers many avenues to success and generates profits. You don’t need to start your own business to get involved, and there are many business opportunities to choose from.
CBD distributors help sell products from non-competing companies and sell them directly to customers; they are essentially the middlemen. Distributors generate a profit by marking up the selling price to cover the cost of their services and labor.
Manufacturers look to distributors to reach targeted audiences they could not attain on their own. A hemp flower manufacturing company might look to a distributor to get their product on the shelves of local stores.
Marketers are the creative side of a company’s selling strategy. They do market research and analysis to create advertising campaigns using their data. Marketers then communicate their findings with the company. They also collect information on competing brands to surpass their sales and entice customers to do business with their clients instead.
They might work to develop billboard ads, TV commercials, write copy material for a website, improve website traffic, or run social media pages.
Make Your Own CBD Edibles
You can be a manufacturer of CBD products as well, including CBD edibles. Edibles are any product you can ingest made with CBD oil or isolate. Whether you do this small scale or decide to work with a company to help produce your products widescale, there are still legal limits and regulations for how you can do this.
THC levels in CBD products must be at 0.3% or below and should always have a third-party Certificate of Analysis (COA) stating what goes into your CBD edibles. You may also require special licensing in some states before you can sell your edibles.
The most popular CBD edible comes in the form of gummy candy. Though, you can infuse any food or drink with CBD to make it an edible, such as:
Make Your CBD Topicals
Similarly, CBD topicals follow the same plans and policies as CBD edibles. Infusing CBD into products that you rub on the skin (lotions, salves, gels) creates a CBD topical. Also, many small-scale sellers do this because they are so easy to make!
Adding soothing scents like lavender, eucalyptus, or ylang-ylang can help make topicals more appealing to consumers and moisturizing ingredients like shea butter or coconut oil.
Final Thoughts – CBD Business Opportunities
The CBD business offers the promise of prosperity and success for any prospective businessperson. Several other industries embrace the CBD trend, expanding opportunities in the CBD market, making now the perfect time for you to dive in.
Whether you want to start a business of your own or be a part of the process another way, the CBD business is a cash fruit ripe for the picking!