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How to Legally Launch a CBD Business in 2020

How to Legally Launch a CBD Business in 2020

May 7th 2020

Legally launching your own CBD business is absolutely doable if you do the proper research. With so much information circulating the internet surrounding this topic, we have narrowed it down to a few of the most important things you should know to legally launch your CBD business in 2020.

For some of you, CBD may be a completely new industry. For others, you may already be running a business – like a vape shop, smoke shop, spa facility, health and beauty shop, physical therapy clinic or other businesses – where CBD might be an extension to this business. Either way, we’re here to give you the pointers you need to be successful.

For many years, the mostly widely known cannabinoid tetrahydrocannabinol (aka THC), which is the compound found in marijuana that causes psychoactive effects, or the high. Recently, the attention around CBD has taken notice among individuals looking for the health and wellness benefits and don’t want the psychoactive effects.

The world of CBD offers a plentiful market that is expected to grow, and many entrepreneurs are looking to take advantage of this opportunity. Here are a few points to consider when launching a CBD business in 2020.

1. Stay up-to-date with federal and state laws and regulations

According to the federal government, CBD products are legal as long as they are derived from hemp plants and contain less than 0.3% THC levels. Before starting your CBD business, you should:

  • Register your new CBD company license and get a EIN/TIN number.
  • Understand the way CBD products are created and the way CBD is extracted. The extraction process with CBD is basically the same with THC. Keep in mind, CBD can be contaminated with THC, pesticides, or solvents if the process is performed improperly – which is why third-party testing is so important.
  • Remember in some states in the United States, selling marijuana is still not legal. Therefore, you should confirm that your CBD products are derived from the hemp plant.
  • Be clear in your messaging on your website, labels, and packaging.

2. Choose the best CBD distributor

It is important to choose a CBD distributor that aligns with your business goals and values. Some things you should consider when choosing a CBD distributor include:

  • Choose a distributer you can trust: You want to check out their certificate for analysis and run their products through third-party lab results to test for the CBD & THC levels, fungus, bacteria, pesticides, and heavy metals.
  • Choose a distributor with experience: Choosing a company with experience is crucial when you are starting your own CBD company. This helps avoid missing products, delayed shipments, and an absent customer service team.
  • Choose a distributor with suitable pricing: Make sure your CBD distributor offers a pricing model that makes sense for you.
  • Choose a distributor with marketing support: Partnering with a company that offers marketing support can help you answer questions that many distributers cannot. Most importantly, it saves you a lot of time!

3. Choose a website platform that works with your business model

When it comes to selling CBD legally, you have already learned that laws and regulations are constantly changing. The same is true with the website and social media platforms you choose to support your business. You should choose a website platform that can reflect the content you want to put out and help you meet the demands of your customers. There are several website platforms that do not allow the sale of CBD products, so you should always thoroughly check the rules and regulations.

You’ll also want to create valuable and relevant content that can help users better understand the world of CBD. Many people are searching for answers to questions about CBD, and proving your transparency in regards to CBD creates loyal customers. You’ll want an SEO strategy that complements this to help drive organic traffic and increase your ranking on Google and other search engines.

Overall, you should always stay current and informed on everything when it comes to the world of CBD. The best advice we can give you when you are starting to launch a CBD business in 2020 is to do all the research you can so you can make the best business decisions.

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