When starting a cannabidiol (CBD) business, you probably have plenty of questions. For instance, you might be wondering what products sell best, how to comply with federal state regulations, and other general business questions.
While your attorney will be the best source for legal information, here are six things you need to know before you launch your business.
1. You donít need to create CBD from scratch
You might be wondering how youíll create the CBD for your products. If youíve never done anything like this before, the process can be daunting. However, you donít have to create your own source cannabidiol. You just need to find an existing manufacturer.
Itís not hard to find a manufacturer. For instance, Sawyer Labs produces high-quality, premium CBD for companies that need a private label or bulk order solution. The companyís lab certifications are available to view and all products are created in-house, which makes bulk orders cheaper.
Thereís no need to invest tens of thousands of dollars just to get your own source CBD when there are premium, high-quality sources available.
2. Payment processing will be different
Most major credit card companies wonít process payments for CBD products, so youíll need to look into alternative CBD-friendly payment processors. For instance, BigCommerce uses eight popular processors for this industry:
∑ SMB Global
∑ Easy Pay Direct
Some of these payment processors can be integrated with PayPal, Amazon Pay, and Apple Pay to make it easier.
Why card companies ban CBD payments
The reason major credit card companies ban CBD sales is because of the risk. Although cannabidiol is legal, itís only legal when derived from industrial hemp Ė not marijuana. When a company doesnít follow this law, their payment processor can be held liable, so they choose not to take the risk.
3. Know your federal and state laws
Before starting your business, itís critical to know both federal and state laws. Your state laws might be more lenient than federal laws, but federal law trumps state laws, so itís important to follow federal law.
CBD is legal only under certain circumstances
Although the 2018 Farm Bill made CBD legal, that doesnít mean all CBD is legal. Cannabidiol is derived from cannabis, however, both hemp and marijuana are forms of cannabis. Federally, only cannabidiol derived from hemp is legal. To be legal, CBD must come from industrial hemp and contain less than 0.3% THC.
Although marijuana is legal in some states medicinally and recreationally, federally, marijuana is still illegal. This is why CBD cannot be derived from marijuana and be considered legal.
4. Research what products sell best
Although cannabidiol has been shown to relieve stress, anxiety, and help people sleep better, consumers are particular about the products they consume. Some forms work better than others, and youíll need to research which products you want to create.
For example, capsules tend to produce longer-lasting effects, but take longer to start. On the other hand, tinctures and oils act much faster, but donít always last as long.
Since people have individual needs and preferences, youíll want to offer a variety of products. Sometimes people prefer novelty products, like CBD-infused clothing, gum, and chips. There is a market for just about every product, so itís up to you which ones you want to sell.
5. Know your terpenes
If you choose to produce CBD products with THC, itís important to know your terpenes. Terpenes not only give cannabidiol products their aroma, but they also produce different effects in the body. Terpenes are not just found in cannabis, but are abundant in nature. For instance, in addition to cannabis, pinene is also found in pine trees, and linalool is found in lavender.
Everyoneís body will react differently to different terpenes, but many people have similar experiences with certain terpenes. Youíll want to research terpenes to find out which ones produce the most desirable effects and then source strains that are specifically bred for those terpenes.
6. Use only high-quality ingredients
No matter what kind of products you create, itís important to use high-quality ingredients. If youíre just selling CBD oil, make sure your source product is of the highest quality. If youíre selling edibles like chocolate, cookies, or gum, make sure the other ingredients that make up your product are also high-quality.
Launch your CBD business and start helping people
Now that you know some of the most important things about selling CBD products, hopefully you feel more confident about starting your business. The sooner you launch, the faster youíll start helping people get relief with natural products.