Interested in breaking into the lucrative CBD market? Here are some tips for starting a CBD company.
The opportunity is huge in the CBD market. In the U.S. alone, analysts anticipate the value of the CBD market to reach $20 billion by 2024. Even with its popularity soaring, the CBD industry is very much on the ground floor in terms of opportunity.
Like with any business though, making smart choices in the beginning can ensure your brand’s longevity. Here, Nutralife Labs explores the top tips startup CBD brands need to know for a successful launch.
Get Educated About CBD
Having a solid understanding of CBD, how it works with the human body, the laws governing its sales, and the CBD market itself is critical for success when creating your own CBD company.
A Google search is a great place to start getting answers to your questions. Some topics to search include
Benefits of CBD
Types of CBD products
The endocannabinoid system
CBD extraction methods
Local, state, and national CBD laws and policies
Top CBD brands
Visiting the websites and blogs of established CBD brands can also help give you information on CBD and allows you to see how your competitors are already marketing their CBD products to consumers.
You can attend cannabis and CBD conferences and ask the experts your questions. Meeting with the founders and executives of CBD brands similar to yours gives you the chance to gain first hand knowledge of the challenges you might face when launching your own CBD company.
It’s better to take the time to learn what you should know now, rather than to need to fix mistakes down the road, but don’t get stuck in the research phase. If you don’t act on what you learn, your CBD business will never get out of the gate.
Do Something Different
As you prepare your CBD brand, ask yourself, how will your CBD products stand out? What will you do that is different from the other CBD companies on the market? This could be an exclusive type of product, an untapped customer base, or a unique philosophy.
However, going completely off the map can make it difficult to reach your customers. The two most popular product categories for CBD right now are tinctures and capsules like softgels. Will these two product categories be a part of your offerings?
Market Your Brand Online
Once you have a name and logo for your CBD brand, you’ll want to create a website. This will be the primary place where you will market your brand to your customers. On your website, you can tell your company story and reveal your philosophy and mission, you can educate your customers on CBD and its benefits, and you can sell your products directly to your customers.
The best options for your online shop platform are WooCommerce and, more recently, Shopify. Make sure you know what website services are compatible with each platform and note that if you use Shopify, you won’t be able to use their credit card processors, so you’ll need to find a compatible service to accept payments.
After you create a website and begin generating content, get on social media to share this content with potential customers. Your followers will want to know about upcoming sales, new products, events you are attending, and more.
Don’t make medical claims in your marketing! Right now, only one CBD product, GW Pharmaceuticals’ Epidiolex, is approved by the FDA. For that reason, companies are not able to make any claims in their marketing that suggests that their CBD products can be used to prevent or treat any medical conditions. When companies are considered in violation of this ban on medical claims, the FDA has sent warning letters in the past.
Find a Reputable Source for CBD
Whether using CBD oil, CBD isolate, or both in your line of products, it is important to select a CBD source that you know you can trust. If improperly grown or extracted, residual chemical pesticides, herbicides, and solvents can contaminate the CBD, putting the health of your customers at risk. For that reason, a third party testing lab should be used by the producer to ensure its quality.
A Certificate of Analysis or COA supplied by your CBD source demonstrates that the CBD you are purchasing is safe to use in your products and contains under the federal maximum level of THC to be considered hemp. The COA can also help you determine consistent potency in your products. The COA should include cannabinoid content and show the absence of dangerous contaminants.
Choose the Right Formulator
One of the most overlooked ways to ensure the quality of your CBD products is by choosing an experienced formulator. This experience should extend to working with CBD oil and CBD isolate in its products. Your selected formulator should at minimum follow current Good Manufacturing Practices (cGMP) to protect the quality and safety of your finished products. As the one who will be creating your CBD products, your formulator is critical to providing unbeatable products.
Nutralife Labs works with you to generate unique formulations that will make your brand stand apart from the crowd. Our in-house formulator has over 15 years of experience in the natural product industry and 5 years working with hemp.
Want to Learn More About CBD?
Visit the Nutralife Labs education page for all the latest CBD industry news and information.