CBD is the fastest growing industry segment today. Riding the wave calls for building the right surfboard that can stay upright in the stormy seas that are ready to engulf the unprepared and ill-equipped.
A chemical derived from a plant that was outlawed until recently is suddenly taking the world by storm. Indeed, cannabidiol (or CBD as it is better known) that is derived from hemp has found its way into scores of products across sectors. It is making waves in pain relief, mental health, wellness and beauty streams.
More and more people are jumping onboard in a bid to capitalize the still nascent industry with farming, manufacturing, retail, marketing and other ventures. But haste never wins! Following are some things that entrepreneurs should consider, ranging from licensing to a hemp business plan.
Understand the legal obligations -Commercial production of industrial hemp and its extracts has been legalized in the United States, but the CBD industry still remains in a grey area. The regulatory landscape is not only complex with respect to licensing and other requirements, but also varies from state to state. What’s more, the laws are changing and evolving by the day.It is advisable to play it safe by seeking guidance on compliance issues and keeping abreast with the changes. Any inadvertent oversight of the laws also can prove to be very damaging. Banking services – Despite the 2018 Farm Law bestowing legitimacy on cannabis, the banking sector prefers to keep the industry at arm’s length. They not only avoid extending loans for CBD operations, but also try to steer clear of doing business with them. CBD entrepreneurs find it difficult to set up banking services for accepting and processing payments. Even if some banks accept a CBD business account, they may levy high charges or close the account abruptly fearing the federal fines and other potential risks. Getting insurance at favorable terms is another tall order for a CBD business. Marketing issues – Selling a CBD product can get quite complicated too. There are strict federal guidelines preventing CBD companies from making any direct claims about their products. Therefore, the business is restricted from advertizing the health or beauty potential of its wares. In addition, popular e-commerce platforms may refuse to host CBD products on their portals. Online ads can lead to account suspension. Navigating the tricky scenario calls for a brick-and-mortar store or a personal website powered by organic searches, word-of-mouth publicity and customer loyalty programs. Third-party testing – The most reliable avenue of gaining a competitive advantage is independent testing. The unbiased analysis of third-party tests establishes the true quality, purity, and potency of a CBD product in the most reliable manner. The lab will check the cannabinoid profile along with the presence of pesticides, solvents, heavy metals and other contaminants which are clearly published in the accompanying certificate.
CBD entrepreneurs should pay heed to the above tips apart from packing a compelling hemp farm business plan in their arsenal. And The Plan Writers (www.planwriters.net) is definitely the numero uno resource for all kinds of business plans, including hemp initiatives. Your blog post content here…