While the big money in the cannabis industry is in fact owning an actual farm and or dispensary, it can be a costly investment - $80,000 minimum just to get the farm started – and hard to do since cannabis is still not federally legal. There are presently 19 states where recreational use of marijuana is legal, however each state has its own set of rules and regulations pertaining to the farming and distribution of marijuana…not to mention, you still have to deal with the federal government with this.
Nevertheless, as within any industry, we’ve got options! Let’s talk about the CBD business, which is also very lucrative. Cannabidiol (CBD) is one of the many compounds found in cannabis and hemp plants. CBD oil has entered into the marketplace in the form of tinctures, infused edibles, topicals, and more. They even have CBD and hemp products for our pets. Industry analyst BDS Analytics predicts that the CBD market in the U.S. alone will reach $20 billion in sales by 2024…insane right?!
If you are looking to start a CBD business, there is a wide variety of products that you might consider selling:
· Sublingual tinctures
· CBD edibles
· Vape concentrates
· CBD topical
· Capsules and pills, and more.
Starting a CBD business is much like any other business, but with a bunch of added steps. Even though the 2018 Farm Bill federally legalized hemp and hemp extracts such as CBD, there is still significant regulatory considerations surrounding the hemp industry. With that in mind, while creating your business plan for your cannabiz, make sure you research your state specific laws when it comes to operating a cannabis/CBD business and that your plan is in line with those laws. In addition to, you want to make sure that you have a realistic amount of funding in place to contribute to start up costs and at what point your business will begin to see a profit. Your marketing plan, how do you plan to attract customers? What is going to set your cannbiz apart from the others just like it? Who will be, or where will you find your suppliers? But most importantly, you want to make sure you have legal counsel in place to help you keep everything in order.
The growth opportunity in the CBD industry is unparalleled. The cannabis industry is one of the fastest growing in the nation, and CBD is one of the quickest growing sectors of that industry. Especially following the passage of the 2018 Farm Bill, hemp CBD products are proliferating at a fast rate. If you want to start a CBD business, you’re not alone.