What you need to know about launching a company.
Real talk: starting a CBD business is no easy feat! CBD is the fastest growing sector in the cannabis industry, projected to hit $20 billion by 2024; but with a thoughtful approach, you can make a splash in this ever-growing market.
To get off on the right foot, we’re sharing some key steps: identifying your competitive edge, educating yourself on CBD regulations, and mindfully promoting products. Let’s dive in!
Cultivate your competitive edge
How do you stand out from the pack? First, you’ll need to get organized and create a business plan listing goals, finances, challenges, and defining elements that set you apart, like transparency.
Establishing trust should always be top of mind, so that your community feels safe. Show ‘em what your products are made of with a Certificate of Analysis outlining purity and potency. Take a cue from oHHo: each bottle has a QR code linking to a panel of tests. Plus, strong values like sustainability and ethics are everything. Learn more here.
Next, there’s community-building. It’s all about developing a brand that establishes meaningful connections with consumers. This can involve a social media strategy focusing on relatable videos, memes and quizzes—or, a community building program that offers benefits.
Understanding hemp regulations
In 2018, the Farm Bill federally legalized cannabis with no more than 0.3% THC. Although groundbreaking, CBD businesses still face restrictions.
For one, advertising medical claims is prohibited by the FDA. Consequences range from a slap on the wrist to recalls—but, there’s some legislation in the works that may authorize marketing CBD as a dietary supplement. This would give businesses more flexibility when it comes to promoting their goods!
In the meantime, CBD remains in a gray area.
Promoting CBD products
There are many ways to market CBD within the constraints—the trick is to be creative, interactive, and apply many tactics!
To start, get out into the community. A pop-up shop, trade show or promotional tour can elevate brand awareness. Perhaps you’ve spotted our truck, Paco, spreading oHHo goodness!
Influencer marketing also boosts visibility and credibility among your demographic. Followers look to these aspirational figures for product recommendations; collaborate with those who align with your values and have authentic engagement.
Lastly, Search Engine Optimization (SEO) is one of the most organic processes to market your business and become a trusted authority on CBD. Hire a pro to lay down a game plan that’ll bump up your search ranking, so that people can quickly discover you when searching for CBD products.
The future is green
Keep in mind that these steps are part of a much longer laundry list. You’re in for a trip, but you’ve got this! With a dedicated team and a lot of heart, you can start your own CBD business.