How to Start a CBD Business

When it comes to getting into the CBD business, there are three main categories of potential clients:

  1. Some have already seen CBD in action and seek a place to grow or purchase CBD oil.

  2. Some wish to learn more about the benefits of ingesting an all-natural, therapeutic form of plant-based medicine that they can make use of in their everyday lives.

  3. Some want to learn more about CBD and begin to take a small initial dosage of the plant to see how it will work for them.

While there are some essential things to keep in mind when getting into the business, it is also important to remember that there are plenty of product manufacturers ready and willing to help! Let's take a look at these three basic categories of potential clients.


Those who already own a CBD firm but wish to expand or perhaps open a new one should consider seeking FDA approval before pursuing the expansion plan. This is important because CBD is considered a Schedule II substance by the FDA, meaning it has a high potential for abuse and can be used without a physician's prescription.


While the FDA has not approved CBD as having health benefits outside of the medical system, many in the medical community have said that it has tremendous benefits for patients suffering from chronic pain and other ailments. The scheduling is in place because it is believed to be highly therapeutic, and consumers should take the time to learn more about the benefits it can provide and whether or not it is right for them.


While the FDA is not likely to approve CBD for recreational settings, the plant does indeed have significant health benefits. Specifically, CBD is most effective when administered in its raw form - meaning that it can be purchased without having to undergo any processing or heating. This makes CBD one of the easiest pharmaceuticals to sell and is highly customizable. In addition to buying the plant and administering it yourself, you also can buy CBD oil, which comes from the same plant and can also be mass distributed.


If you are wondering how to start a business, you need to understand the current legal landscape regarding marijuana. Whereas in the past just a few states such as Colorado and Washington legalized the plant, today there were 20 states plus the District of Columbia which have legalized the use of cannabis for medicinal purposes. Many CBD companies use custom CBD packaging for their products to make a good impact on customers.


Additionally, the federal government continues to prohibit the interstate distribution of cannabis. The question on the table is how this legal landscape will impact aspiring entrepreneurs looking to profit from this rapidly growing trend.


Some analysts believe that the United States is on the verge of fully legalizing cannabis. This would mark a historic victory for those who have been fighting against cannabis in the past, and is a huge step towards completing what could be decades of difficult work towards legalized marijuana across the United States. However, if the Trump administration pursues an aggressive approach to fighting cannabis possession and cannabis-related crimes, it could derail the momentum towards fully legalizing the plant.


The United States federal government, by the United States Congress, passed two different bills that could regulate the production, possession, and sale of industrial hemp. Slovik said that he expects this legislation to go into effect in the 2020 session. However, he did note that the bill is not likely to be passed in the 2020 session due to divided parties in Congress and lack of support by both parties.


It's not expected to get passed this year because Democrats control both houses of Congress. Slovik said that divided government will always lead to gridlock, which means it will be a long-term challenge to pass legislation. He believes that investors must realize that they need to adapt their strategy based on current political realities if they want to continue to generate growth and profits from their investments in the hemp and cannabis sectors.


To successfully move hemp and cannabis from "alternative energy" to "legitimate energy," entrepreneurs need to develop their core roots in the industry. Slovik sees two primary ways to achieve this goal. The first way is to invest in a few select companies and brands with a strong track record of developing successful enterprises, and then position themselves as leaders within these companies.


The second way to do this is to set oneself as an expert in the field who can help investors obtain seed capital for their businesses. Both require hard work, but both are also governed by California's highly regulated and highly leveraged regulatory landscape.


Slovik went so far as to say that if you want to position yourself as a leader within a company, then you've got to have some profound experience behind you. He likened this to being an entrepreneur who founded his or her own company and has spent years building the business from the ground up.


He told us that it requires building core roots and developing a resilient network of business partners that have come to rely on you for crucial strategic advice. In terms of establishing and maintaining those core roots, he said that this would take time and effort but worth it when you look at the potential returns: