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Why now is the perfect time to launch a CBD business

BY READERS DIGEST

22nd Dec 2020 Technology

Why now is the perfect time to launch a CBD business

12 months ago, nobody could have predicted the dramas that would unfold in 2020. On the face of it, the precarious state of the economy might suggest that even the most ambitious entrepreneur would shy away from launching a new business venture right now. However, history shows that some of the most successful startups have been launched during economic downturns.

There is also the aspect of necessity being the mother of invention, and with few big businesses hiring, taking the leap and going it alone might, for some, be the only option. Success is all about choosing the right sector at the right time, and CBD are three letters that have been on everyone’s lips over the past year or so. The market is booming and newcomers are reaping the benefits. 

Soaring popularity

CBD is not a new invention. There has been anecdotal evidence of its medicinal benefits for generations. However, until recently, the waters were always muddied by the fact that it is derived from the cannabis plant. A piece of US legislation called the Farm Bill brought global attention to the different types of cannabinoids, and paved the way for the legalisation of CBD. 

US consumers were instantly attracted by the various therapeutic qualities that CBD claims. Scientific studies are still ongoing to substantiate many of these alleged benefits, but anecdotal support is strong. Unsurprisingly, it did not take long for the hype to spread across the Atlantic and for CBD products to start appearing in UK health stores and with online suppliers. 

CBD products

Another reason the CBD sector is such a tempting one for new business startups is the sheer range of product lines. It might look like a simple oil, but CBD has a wide range of characteristics that are associated with its different components. As a result, there are CBD products for everything from insomnia to stress to arthritis, and a whole lot more besides.

Similarly, product developers are coming up with increasingly imaginative ways to deliver that daily dose of CBD. Traditional oils and capsules have now been supplemented by edible gummies, CBD infused drinks and even CBD vape oil for e-cigarettes. 

Regulatory considerations

CBD is completely natural, so entering the market does not expose you to the hurdles associated with pharmaceuticals. You do not need a license to sell CBD in the UK, provided the product is legal. In other words, you must be able to demonstrate that it does not contain more than the permitted amount of THC or other controlled cannabinoids. Cultivation of CBD is another matter, as to do so inevitably means growing cannabis plants. This requires a special license from the Home Office. 

A world of opportunities

For most CBD startups, success depends on sourcing a high-quality product, developing an appealing brand and marketing it to a clearly defined demographic. In this respect, the CBD business is not so different to any other. If 2020 has left you at rock bottom, perhaps CBD really is the solution you’ve been looking for! 

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