If you are looking for a new business venture that requires minimal investment capital, and is almost guaranteed to be successful, CBD gummies might be for you. The industry has exploded since the federal government legalized the farming and processing of hemp products in 2018, and is projected to be worth $20 billion by 2024.
Everyone seems to be taking CBD gummies for anxiety, insomnia, chronic pain, and a number of other symptoms or diseases. Which means that almost everyone is a potential customer. You will need careful planning and marketing savvy, however, because starting a business selling products that lie within a legal grey area comes with some challenges and risks. Keep reading for a basic outline of the steps you need to take, in order to make your entrepreneurial dreams a reality.
The federal government legalized the farming and processing of industrial hemp and hemp products in 2018. CBD is no longer on the FDA’s controlled substance list, but there are still restrictions putting CBD gummies in a legal grey area that is a bit of a challenge to navigate.
Some time after the Farm Bill was signed into law, The Food, Drug, and Cosmetics Division of the FDA stated CBD is not approved for human or animal consumption. It is not allowed as a supplement, food additive, or therapeutic substance. This clarification of the law was past due, however, since companies were already producing CBD gummies and other products in a mad rush to meet consumer demand.
After the release of the statement by the FD&C, the FDA clarified further, saying they would focus on going after companies that make erroneous and unfounded medical claims about the benefits of their products.
What does this mean for you, as a budding CBD gummies entrepreneur? You are going to have to pay careful attention as laws evolve. The way things look right now, the dos and don’ts of selling CBD gummies will take some time to hash out, but no one is coming after you unless you tell your customers that CBD will cure their cancer.
Navigating the CBD laws as they evolve may not be your cup of tea. Finding an attorney who specializes in cannabis law may help you relax so you can focus on building your business.
If you plan to run your CBD business entirely online, you will not need a whole lot of money up front. There are even companies that provide dropshipping services, so all you have to do is sell your products. Running a brick-and-mortar CBD business requires more money to get started. You need a location for your store, and be prepared to shell out some money for setup and opening.
In addition to up front finances to get started, plan for a minimum of six months to a year without income from the business. You could work another job while building your CBD gummies business. Just know that the marketing efforts required to get your brand in front of customers will cost you either time or money. Take this into account as you create your financial plan.
Finding lenders or investors can be a challenge in the CBD industry because of the risks associated with a product in the legal grey area. You may want to do a search specifically for high-risk lenders who specialize in the cannabis industry. Or go into business with a friend who is just as enthusiastic about CBD as you are.
Payment processors and banks are the final hurdle before you are ready to dive into developing your business. Again, there is reluctance to take the risks associated with legal grey areas, but every day more and more banks and processors specialize in supporting CBD product movement.
As stated earlier, nearly everyone is a potential customer, but because of advertising restrictions and the abundance of competitors, you need to find a way to differentiate yourself so customers can find your products. Think about who you want to serve and why.
There are plenty of CBD gummies suppliers out there, and you want to make sure the one you choose operates with integrity, offering products that cater to your target market. The best CBD gummies are made from organically and domestically grown hemp, and come with a certificate of analysis verifying potency and purity.
Are you selling CBD gummies for anxiety? CBD gummies for athletes? CBD gummies for inflammation? Whatever your focus is, now is the time to figure out your brand’s identity. It should be based on what you know about the population to which you intend to target your marketing efforts.
Now that you have your ducks in a row and your brand hashed out, it is time to start marketing your CBD gummies. The current market is highly competitive, but your creativity will take you a long way. Learn all the regulations for each of the platforms you intend to use (and yes, you should use multiple), build an engaging website, and start creating content that gets people talking. Keep at it, make it your passion, stay patient, and eventually, you will see the fruits of your labor. Good luck!