CBD has become a huge business. From just under $300 million in total revenue in 2016 to an expected $20 billion in total revenue for 2020. CBD has surely exploded onto the scene and is rapidly becoming a great way to make money. In fact, the growing CBD industry has been regarded as America’s next “gold rush.” This is evident seeing that CBD has outgrown its origins in small niche health food stores and smoke shops to being available practically everywhere. For good reasons too, many users have reported that CBD has helped them to deal with a vast array of conditions that traditionally would have required costly prescriptions and invasive surgeries. One thing is for sure, CBD is here to stay and many people are now thinking about how they can enter the industry to hop on the gravy train. We have compiled what we believe to be the top four ways to enter the CBD industry and create a successful business. But first lets touch on what exactly is CBD.
What Is CBD?
CBD (cannabidiol) is a cannabinoid extracted from the cannabis plant. This plant probably sounds familiar to most people as it is the same plant that marijuana is also produced from. Marijuana is known around the world for being a plant that produces a euphoria that is better known as getting “high.” This is because marijuana contains a large amount of THC (tetrahydrocannabinol) the psychoactive cannabinoid that produces a mind-altering effect. What most people do not know is that a relative of marijuana called hemp is also produced from the cannabis plant. Hemp is very low in THC, but very high in CBD. This means that it offers the same beneficial effects as cannabis but without the “high” inducing components. CBD has turned many people who would normally shy away from products produced from cannabis into firm believers. Many users have reported it has helped them with a dizzying assortment of conditions from minor ones such as depression and anxiety to life-threatening ones such as epilepsy and cancer. CBD is a non-habit forming, non-invasive, and effective treatment option before moving onto other methods like prescriptions or surgeries.
Grow Your Own Hemp
One way to get into the CBD industry and start making money is to grow your hemp. This can be a challenge for some as state and local laws vary considerably throughout the United States. It could mean getting permits, getting inspections, and can be very costly to start up. However, the investment when done right can turn a huge profit. Cannabis is an excellent plant to grow that has many options other than just for the purposes of extracting CBD. For instance, it can be used to manufacture textiles, paper, food, building materials, biofuel, and a huge variety of other products.
Make Your Own CBD Infused Products
Another great option is to start making your own CBD infused products and create your own brand. This option can also be riddled with a legal minefield as proper permits and certifications will be needed to comply with local laws and regulations. However, creating your own CBD brand can be a rewarding and fun way to break into the CBD industry. Many people have started in their kitchens with simple ingredients and grew their tiny operation into multi-million dollar businesses.
Become a CBD Distributor
Becoming a CBD distributor can also be another excellent way to make money in the CBD industry. Many CBD producers out there offer wholesale programs where you can buy CBD products in bulk at a discounted rate. Becoming a distributor is a great way to get CBD into your local shops and make money while doing so. Just be sure to check the local laws and regulations with this one also. CBD currently has a patchwork of rules and regulations across the country with different states or municipalities having different laws. However, becoming a CBD distributor can be an awesome way to enter the CBD industry while creating your own business.
Start Your Own CBD Shop
Our number one choice is starting your own CBD shop and this can be done one of two ways, or perhaps even both. They both have their own advantages and disadvantages and they are as follows.
Online Hemp Shop
A shop that is present only on the internet is one method to achieve this. The advantage of an online shop is the initial startup cost is a fraction of a physical shop. This is because you do not need to buy or rent a location, do not need a bunch of permits or inspections, and do not have to fill up empty shelves with stock. An online shop can be a great way to get into the business on a budget and can even be expanded into a physical location later on.
Brick and Mortar Shop
The second option can be far more expensive than the previous option as you need to buy or rent a location, obtain and pay for the necessary permits and licenses, and ensure you have enough stock to make the store look visually appealing and functional. A physical location can be excellent as it gives you more direct contact with your customers and you can get to know your community better. Before no time you will have a long line of regulars that will continue to visit time after time and keep pumping money into your shop. Additionally, a physical location goes hand in hand with an online retail shop. They can be started together or later on once the shop gains some more traction.