CBD is one of the biggest industries in the cannabis business. CBD products are becoming more and more popular, from Sour Space Candy to new strains of CBD hemp flower. If you’re interested in starting a CBD business and want to be a leader in the CBD industry, there are a few things to keep in mind before you take out a CBD business loan.
Know your products
CBD might seem like a fairly simple product, but that couldn’t be further from the truth. First, it’s important to know how CBD differs from THC and what part of the cannabis plant it comes from. The cannabis plant produces both THC and CBD, but the difference is that CBD comes from the hemp portion of the plant and doesn’t carry any psychoactive properties as THC does. CBD hemp flower, like THC-rich marijuana from the cannabis plant, can be measured in grams and comes in different strains like the haze strains. Both are cannabinoids and natural products but the psychoactive distinction is very different.
Carry a variety
Do you want to primarily sell CBD flower, CBD oil, or candies derived from haze? What does your local CBD market look like? Which products sell and which ones don’t? Instead of hyper-focusing, many CBD companies choose to sell a variety of goods from buds to edibles. Because CBD and CBD products are still seen as a novelty by consumers as well as the Food and Drug Administration (FDA), it’s a good idea to give customers a decent amount of variety so they can test out a few different CBD products. Of course, there are CBD companies that focus exclusively on, say, CBD-rich hemp flower, but these are usually established businesses that have been open for a while.
Understand the benefits
CBD has been shown to have numerous positive effects on its users. As a CBD business owner, you need to be able to describe these to customers without making sweeping guarantees. Under federal and state laws, CBD products haven’t been fully tested for their purported medical benefits so you carry a high risk if you offer false claims to your customers. Nevertheless, it’s important to be able to describe the benefits that hemp, CBD flower, and CBD oil can provide. These include relief from chronic pain that helps people who use prescription medications, reductions in anxiety, and help with depression.
Think of how to finance
Unlike some other businesses, CBD companies sometimes struggle to acquire CBD loans. The same holds true across the cannabis industry. Since possession of marijuana is a federal crime in some places, CBD often gets lumped in by association. A CBD business loan or cannabis credit lines are sometimes seen as high-risk by potential investors; however, there are places that will provide you with working capital, business bank accounts, a merchant cash advance, or a merchant account. This can be the best way to get your business off the ground. Keep in mind that, like any business loans, cannabis credit lines and merchant accounts do eventually need to be paid off.
Find ways to stand out
Since the CBD industry is booming, everyone seems to want a piece of the pie. With the CBD industry being so saturated, how are you supposed to stand out? You could develop your own products or buds that are a potent cross of haze hemp plants. You could source only the best hemp flower. You could choose the top flavonoids to develop a truly unique CBD flower strain. As long as you’re different than your competitors, you’re doing something right.
Starting a CBD hemp flower business is a worthy pursuit, but you need to have plans in place before you get started. Think about your hemp farm, real estate for a storefront, and whether or not you need a merchant account. Once you have the basics in place, it’s time to start selling.