CBD has a myriad of popular uses, from anxiety relief to skin care. Its versatility and ever-growing popularity make it is an attractive business venture. However, every industry has its own unique set of challenges, and CBD is no exception. Knowing the challenges facing CBD businesses before you start your own line of products can prepare you to meet them head-on.
Every business requires capital to get off the ground. Aspiring entrepreneurs need money to set up a store or website, create their products, and advertise. However, because of the nature of CBD, business owners face some extra expenses that their counterparts don’t. For instance, you’ll need to pay for third-party testing for your product as well as a $650 Florida hemp license.
Additionally, the process of making CBD can become very expensive depending on the method you use. CO2 is a popular method because of the quality of the product. However, it requires highly specialized equipment and training, which is why many companies prefer ethanol extraction. This method is less time consuming and more cost efficient.
Because CBD is still relatively new, the FDA’s research on it is limited. Because of this, the FDA discourages companies from guaranteeing CBD will cure or treat any particular ailment. They can only say it might help. In some instances, standard advertising platforms bar or limit advertisements of these products, making it difficult for CBD businesses to reach their intended market.
Standing Out in the Crowd
As mentioned, there are lots of CBD products on the market today. With so many products out there and a limited capacity to advertise, it’s easy for your products to get lost in a sea of others. This is a significant challenge facing CBD businesses, but fortunately, you can meet this challenge. Try the following:
- Clever packaging
- Creating products for a variety of purposes (i.e. beauty products, tinctures, balms)
- SEO optimization of your company’s website
- Promotional sales
- Attending trade shows
You can also reach out to social media influencers to help promote your product. In exchange for compensation, the influencer will share your product with their cultivated audience.