You don’t need to have a shrewd business sense to understand that the cannabis industry is a fertile ground for entrepreneurial success. The CBD craze that has been going strong for quite some time now is proof that we’re dealing with a huge industry that is only going to get bigger with each passing year.
The global cannabis market has been growing steadily over the past few years, with the spending on legal cannabis expected to reach over 33 billion dollars worldwide by 2025. The CBD boom was partly driven by people’s growing interest in health and wellness matters, which was only accentuated by the recent Covid pandemic, and partly by the relaxation of the laws related to cannabis which has contributed greatly to diminish the stigma and misconceptions that have surrounded this plant and its compounds for such a long period of time.
So, here we are today, enjoying the green hype to the fullest, and witnessing how the CBD sector is reaching new heights. Given all these factors, it’s easy to see why so many business-minded people choose to start their entrepreneurial journey in the CBD industry. However, the rapid rise in CBD interest also means there are more eager entrepreneurs entering the market than ever before, making it extremely difficult for newcomers to achieve the success they’re dreaming of.
With so many amazing CBD companies out there offering a wide array of products and services, building a good business doesn’t cut it anymore. You have to be truly exceptional if you want to differentiate yourself from the rest. Therefore, if you’re planning on starting a CBD business, or if you’ve already launched your CBD startup, you have to work extra hard to make your business thrive.
Quality first and foremost
You already know there are many players in the field that you have to compete against, but the truth is that most CBD businesses offer more or less the same products, and not all of them live up to consumers’ expectations and standards. With the product range constantly expanding and a lack of clear regulations, the market has been flooded with sub-par CBD goods.
Right now, consumers are having a hard time figuring out which products are worth their money and what they should look for when choosing a CBD brand. So, one way to gain an advantage over your competitors is by addressing this pain point and offering superior products and services to your potential customers. Sure, providing a wider range of products is also important but it’s quality, not quantity that differentiates an average CBD business from a truly great one.
Whether you provide CBD drink wholesale or any other type of CBD goods, your clients have to know that your products are worth every penny. Being transparent, making sure your products are labeled correctly, making third-party lab testing results available, and adding accurate product descriptions will also provide the reassurance and peace of mind that customers are looking for.
Understand your legal obligations
The legislation on cannabis and cannabis-derived products may have relaxed in recent years, but that doesn’t mean there aren’t any legal restrictions and obligations to take into consideration. On the contrary, the journey to building a solid legal framework for CBD manufacturers and retailers has only just started, so from a technical point of view, complying with the regulations and standards in the industry can be a tricky business.
You have to keep that in many parts of the world the commercialization of cannabis-derived products remains illegal. That means you have to consult local authorities and gain a good understanding of the laws and regulations regarding CBD in your area and the locations you plan to ship in order to ensure full compliance for your business. Otherwise, you risk not only getting serious penalties but also losing your credibility with your customers. Once you lose the trust of your audience, getting it back is anything but easy.
Be creative
Unfortunately, when it comes to CBD businesses, legal restrictions also include marketing limitations. That means you have fewer possibilities to promote your products and services than other types of businesses, which makes it a lot harder to reach your target audience and build your brand. You can’t sell CBD products on major e-commerce platforms like Amazon and running paid ads on social media might get you penalties.
One way to overcome these limitations is by using your creativity and looking for alternative marketing strategies that can help you get your CBD products in front of your customers. And that’s where influence marketing enters the scene. Partnering up with influencers can skyrocket your business popularity and bottom line. Building a solid online presence for your brand through SEO and content marketing, or opening a brick-and-mortar store can also help you grow your CBD business organically.
Choose your suppliers wisely
Some CBD businesses manufacture and sell their own products, but if you want to focus only on retail, you have to find a reliable supplier that can provide the quality products that you need. The number of suppliers that provide wholesale edibles, bulk CBD oils, powders, cosmetics, and all sorts of other CBD-related products has grown significantly over the years.
The good news is you have a wide variety of options at your disposal. The bad news is you’ll have to do a lot of research to find a reputable wholesaler that you can trust and build a successful business relationship. Considering this is an aspect that will greatly influence the success of your CBD venture, you should pay extra attention when choosing your supplier.
Final thoughts
Breaking into the CBD market comes with a wide array of challenges that might discourage you from taking the leap. However, the immense growth opportunities that the CBD industry provides, if you know how to approach it, make it well worth the risk and effort. In the end, if you’re determined and you prepare yourself thoroughly, your efforts will definitely pay off.
