How did CBD become a billion-dollar industry?
Because it is sexy! Many people in the industry will tell you that this is new to the mainstream and is leading in the therapeutic and health market. From oils to edibles, and topicals to tinctures, CBD is quickly ascending to an estimated 24 billion dollars by 2024.
What is CBD?
If you were like me, I thought that CBD was only sold in states where THC was legal. THC or tetrahydrocannabinol is what gives people the intoxicating effect when consumed. CBD, on the other hand, does not produce an intoxicating effect, instead, it is often used to treat many ailments from arthritis to PTSD.
The type of products available for CBD and how they are used
- Sublingual Tinctures
- CBD Edibles
- Vape Concentrates
- CBD Topicals
Sublingual tinctures come in a bottle that usually has a small dropper. It is measured out and is ingested orally by placing the measured amount under the tongue and allowing it to absorb. The CBD Edibles are generally recognized in candies such as gummy bears and gummy worms. These candies are familiar to many people and the CBD industry manufactures these gummies in many forms, sizes, and shapes. Because of the taste and convenience of gummies, they are quickly becoming popular. Vape concentrates are used with vaporizer equipment consistent with e-cigarettes or electronic devices to vaporize and inhale the CBD oil. CBD topicals are consistent with most topical gels, creams or even sprays to use in specific areas for arthritis, pain, skin, or any localized area of the body.
How to start a CBD Business
Starting a CBD company is much like starting any other company, however, there are more regulatory hoops to jump through. There are continual changes in regulation that often create bottlenecks in the process, but once started, it is certain that the growth is worth it in the end.
- Know the part of the industry you want to tap into
- Ask yourself why you want to do this
- What is your motivation?
Some of the challenges you might face when starting your CBD business
- Payment Processing
- Access to capital
There may be some difficulty in accessing a reliable banking service if you are starting a CBD business because of the vicissitudes for regulation. There is an element of risk and fear with banks who have already experienced closures from previous customers. Insurance can be expensive. Because of the industry, prices remain high and the legalization of this market is continually changing. Payment processing can be significantly higher, and some merchants have sworn off CBD stores and merchants altogether. Finding an acceptable merchant processing continually changes. Access to capital from banks and investors can be difficult as many of the CBD companies are perceived as risky and many CBD companies typically bootstrap and find alternative investment opportunities once there has been some revenue.
CBD is one of the fastest-growing industries in the nation. CBD, although regulated, can be prolific with some creativity and forethought.