The CBD Gold Rush: What Canna-Entrepreneurs Should Know Before Entering the Industry

The CBD Gold Rush: What Canna-Entrepreneurs Should Know Before Entering the Industry

Thanks to its purported therapeutic and health benefits, cannabidiol (CBD) is rapidly becoming a household product.

Because of the consistent increase in demand, many entrepreneurs see the CBD industry as one with an abundance of opportunities.

If you are considering entering the CBD industry, there are several things you should know to prevent unnecessary risks and costs.

Keep reading to learn more.

What is CBD?

If you are a new entrant to the CBD industry, the first thing you should know is what exactly CBD is.

Cannabidiol is a compound of the cannabis plant and falls into a category called cannabinoids. Since CBD is a cannabinoid, it interacts with receptors in the immune system as well as the endocannabinoid system.

These interactions may result in several physiological processes that include the alleviation of inflammation and an increase in the production of endocannabinoids.

CBD should be distinguished from tetrahydrocannabinol (THC), which is also a cannabinoid. THC interacts with receptors in the brain and is psychoactive.

Consuming CBD does not result in intoxication.

CBD Oil Production

CBD oil is produced in a number of steps.

First, the plant has to be cultivated and harvested. If you want to create CBD with a high THC content, you have to harvest marijuana, and if you are going to produce CBD products with a THC content that is lower than 0.3 percent, you have to harvest hemp.

After harvesting the plant, the CBD has to be extracted. This step can be achieved with a number of processes, and most companies prefer to outsource extraction.

Once the CBD is extracted, you can sell it as a concentrate or infuse it with other products to create sublingual tinctures, edibles, or topicals.

Hemp or Marijuana

Hemp and marijuana are varieties of the Cannabis Sativa plant. Hemp has high levels of CBD and low levels of THC. Marijuana contains high levels of THC as this plant is selectively bred to create a feeling of euphoria. Since the hemp CBD extraction has low levels of THC, consumption will not get you “high.”

As someone who is about to enter the CBD industry, understanding the difference between hemp CBD and marijuana CBD is crucial, as it determines the legality and usability of the final product.

CBD Products to Sell

There are several CBD products that you can supply to consumers, which is one of the reasons for CBD’s versatility. The most common product types of CBD include:

  • Sublingual tinctures that the consumer ingests by placing the drops underneath their tongue
  • CBD edibles that include gummies, food, and candies
  • Vaporizer concentrates that is consumed by vaporizing the liquid and inhaling the product

“There are many more CBD products to choose from, and you may have to do some market research to find the most profitable ones for your target market.” says Justin Hamilton, co-founder of Royal CBD – a vendor of pure CBD oil based in Anaheim, CA.

Legal Aspects

Before entering the CBD industry, you should acquaint yourself with the relevant federal and state laws.

The 2018 Farm Bill removed hemp-derived CBD from the Schedule 1 list of harmful substances.

At the federal level, CBD oil from hemp that contains less than .3 percent THC is legal.

CBD products from marijuana that contain more than 0.3 percent THC is federally illegal.

Starting a CBD Business

To start a successful CBD business, you need a reputable supplier, a sound marketing strategy, and the ability to work hard.

The demand for CBD is continuously on the increase, but so is the number of vendors who are trying to cash in on the CBD boom.