How to Start Your Own Business with CBDBy Angelica Malin
CBD oils and other legal Cannabis products are hyped in the UK, starting a CBD business might be a good idea for you. But be aware of these things when entering the CBD market.
Start Your Own Business with CBD
CBD businesses have become extremely successful within the past decade as the natural product is very popular. It is used as a natural painkiller and helps people all around the globe with certain mental issues as well. Even though experts predicted the CBD industry to grow by 400% until 2023, entrepreneurs still have a fair chance to enter the market and get their fair share of the CBD boom. To do so, there are a couple of things you should be aware of.
Pay Attention to Legal Regulations
As CBD is a Cannabis-derived product, you need to pay close attention to legal stipulations. CBD can be legally marketed in the UK. There are requirements, though – the THC content being the most crucial one.
When selling CBD oils or other CBD products in the UK, you need to make sure the THC content within the products does not exceed 0.02% THC. Since THC is known to be psychoactive, the government wants to make sure that CBD consumers don’t get in touch with this intoxicating substance. Most CBD manufacturers even make sure their products don’t contain more than 1 mg THC, which results in products that are far below the legal level.
Apart from the THC content, you should also be aware that you mustn’t make medical claims when advertising – as CBD is a supplement rather than medication, it mustn’t be advertised as one.
Only Obtain CBD From a Reputable Supplier
Cannabidiol is hyped all over the world, and there is still time to jump on the bandwagon. But if you’d like to start a CBD business in the UK, make sure you sell high-quality products. They should be as pure as possible, which is a matter of the cannabis plants and the extraction process used.
The only way to guarantee pure quality is to choose your suppliers wisely. Make sure they stick with legal stipulations and have all necessary licences or certificates. If your supplier has quality assurance, that’s another conclusive indication of its quality standards.
White-Label and Wholesale Services
There are many ways of entering the CBD business. White labelling and buying from a wholesaler are possibly the easiest ones. In both cases, you purchase CBD products from a supplier. Using white labelling, you receive finished goods that are ready for your branding. Purchasing from a wholesaler is even easier – buying larger amounts can increase your margin or save you money, which you can use on advertising.
Private Label: Make Your Own Brand
You can make a lot of money selling wholesale CBD oils or other products. By white labelling, you can add your private business branding to the product and might be able to make it even more appealing for your target group. But if launching your very own label is the only option for you, be aware that manufacturing CBD products brings a lot of responsibility.
Ensuring a safe and efficient extraction process, and assuming liability if your products cause any harm, are heavy burdens – even more so for new entrants. If you prefer to be on the safe side, start out using wholesale services and set foot in the business first.
Create an Optimal Business Plan
No matter if you want to start your own production line or if you only want to buy large amounts of wholesale CBD: as a startup, you’ll need money. CBD has always been a rough business to start in, as banks liked to de-emphasize the prognosis for Cannabis products. After a while, it became a little easier for entrepreneurs to get a loan from the bank or to onboard investors. Now that the market is more saturated, an outstanding business plan is crucial.
Make sure you blow potential investors’ minds and be passionate about your products. By elaborating unique selling points, you can address a more specific target group – but you need to convince investors of that first.