So, you’ve been thinking about starting your own CBD (cannabidiol) brand. Honestly, there is no better time to do so than now. Cannabis is moving into the mainstream and people are waking up to the true therapeutic benefits which can be brought about by this naturally occurring compound.
Preliminary research is showing us that up to six million people in the UK have already tried CBD and the market is flourishing. CBD products can now be found in major high street stores and also across ecommerce sights. However, although it seems like you’re seeing it everywhere, there are in fact a considerate amount of preparation that goes into starting a CBD business.
Type of Business
The first thing to decide when starting a business is what kind of business you want it to be. Market research is fundamental for these first stages of conceptualising your company. A few questions you might want to ask yourself are: who is my target audience? What kind of products would they respond to? How do I make my brand accessible and attractive to them? As soon as you decipher who your customers are, you can begin to build your brand.
Building your brand is a challenge of two parts, the creative and logistical. We will come back to the creative aspect later on, but first we should address the question of how you will source your CBD products. This can be done one of three ways: wholesale, white label, and private label.
Wholesale, White Label, and Private Label
Depending on the type of business you want to run, you need to decide which avenue to go down in terms of relationship with your supplier – wholesale, white label, or private label. Wholesale involves reselling an already branded product. This is often the easiest route to go down for a new small business, or a startup, due to the fact that the products have been established in the market alongside all the necessary documentation (which we will come on to later).
White label and private label, on the other hand, let you develop and distinguish your own brand identity – with varying levels of involvement from your CBD supplier. White label products are formulated and manufactured by the original supplier, and then rebranded by a second company. While your formula may not be unique, your branding will be completely your vision. Meanwhile, private labelling allows you to create a unique custom-built product, or in this case – formula. To be successful via wholesale, white label, or private label, you need to build a strong relationship with a trusted CBD supplier who has a guaranteed quality product.
The Necessary Documentation
To start a CBD business you will need a thorough and comprehensive understanding of all the laws and regulations which surround it (as well as other cannabinoids, such as THC). CBD is legal across the majority of EU countries and all 50 US states, however due to the constantly changing legislations it’s important that your business stays within regulation. Failure to do so could result in fines or penalties.
Labelling requirements, particularly within the EU, fall under the umbrella of necessary documentation. In the EU you must comply with rules which require you to state the ingredients of your products and their safety. Once again, failure to do so can result in significant repercussions.
Getting your Products on the Market
Obviously you want to sell sell sell, that’s why you’ve started a business! To start generating revenue you need a strict and tight business plan, what you’re going to sell, who you’re going to sell to, where you’re going to sell, and how you’re going to sell. All of these are interconnected and start with some good market research which will probably lead you to your target market; this will probably be within either health and wellness, sports and fitness, or cosmetics and beauty.
Budgeting and planning for marketing strategies is important for any business model, but particularly for CBD due to online restrictions. Currently Google and Facebook paid digital advertising is off limits for CBD ventures as these corporations restrict cannabis product advertising. This means you will have to get a little bit more creative. Nowadays, advertiser’s best friend (and colleague) are influencers who have organically built up a platform of followers.
If you have any questions or want to talk about starting your own CBD brand don’t hesitate to get in touch with Reakiro. Reakiro is a certified and trusted European CBD producer and supplier who has been a leader in their field for the past few years, and would now like to reach out and help new businesses begin and grow.