In recent years, cannabidiol has become a lot more mainstream than it used to be and the CBD industry is one of the fastest-growing industries in the world. It’s clear that CBD isn’t going anywhere, and entrepreneurs have been flocking to the industry to have a piece of the pie. Every enterprise requires adequate preparation, and starting a successful CBD brand isn’t different. Liam McGreevy and Elliott Findon of Ethnopharm Limited had these tips to share to entrepreneurs looking to join the industry;
Have a Clear Understanding of the Laws and Regulations
Policies on CBD marketing and sale aren’t quite standardized. Having a deep understanding of the local legislation on CBD and other cannabinoids is crucial for business success. Non-compliance could lead to hefty fines and even convictions. Seek legal counsel on matters like product labeling, marketing and other matters that could have legal or regulatory implications. You don’t want the FDA, FTC or other regulators breathing down your neck, do you?
Set Up the Business
Every business needs a cohesive internal structure to run effectively. Relevant legal documents will play a significant role in protecting the business’ and the owner’s interests. Making sure all the relevant documents are in place will ensure operations run smoothly.
Get a Bank Account
You’ll need a place to put all the stacks of money you’ll be making, so it’s wise to get a bank account. Unfortunately, the banking industry is still wary about interacting with CBD merchants. The line between what’s legal or not is pretty thin, and most banks are afraid of being linked with money laundering services. Rome wasn’t built in a day, though, and it’ll take a while before the banking industry is entirely on board. Some banks are supportive, though, while some businesses register as non-CBD entities to access banking services. Do your homework and find a bank that will do business with you.
Brand, Brand and Brand
Building a brand image goes a long way in attracting and retaining customers. Carry out extensive market research and identify your target market. Having your target audience in mind will help you craft a brand that the market will identify with and accept. This is especially important in the CBD industry which has been flooded by a lot of startups jostling for a share of the booming market.
Find Suitable Suppliers
Once you’ve taken care of all that, now you have to stock up. You have the option of getting bulk ingredients or finished products, white-label, private label, or bulk CBD. There’s a whole lot of suppliers, and you’ll have to choose the option that suits you and your business most. Remember, be mindful about getting reputable suppliers of quality products because CBD is largely consumed for health reasons, so your business could tank if the consumers develop questions about the quality of what you sell.
Experts believe that CBD industry players like Grapefruit Boulevard Investments Inc. (OTCQB: IGNG) and Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) have managed to get a foothold in the industry by mastering the concepts above, and much more.
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