Hemp, the low THC member of the Cannabis sativa family from which most of the CBD-only products are derived, has many uses such as analgesics, clothing, accessories, paper, and even building materials. While marijuana is still federally illegal, CBD extracted from industrial hemp is completely legitimate because it does not have high levels of THC and will not induce any psychoactive effects.

CBD benefits include those of a THC-focused cannabis business, but with fewer risks. CBD minimizes the legal ramifications and financial obstacles that are closely associated with the growth, cultivation, and distribution of traditional marijuana products.

America’s legal hemp market is projected to grow from $688 million in 2016 to $1.8 billion by 2020, creating plenty of opportunities for hopeful entrepreneurs to make it big through the development of CBD products. If you’ve decided to develop a business plan that capitalizes on what the CBD market has to offer in the near future, you may be looking at the most important and result-producing ways to spend your company’s budget.

Hire a team that will help keep you legally compliant.

Hemp-extracted CBD products are considered legal by the federal government as long as they are produced using industrial help and the THC levels are less than the legal threshold of 0.3 percent. Most of the CBD extracted from marijuana exceeds this 0.3 percent level, making it federally illegal. There is often confusion and misinformation surrounding the differences between hemp and marijuana, as well as CBD and THC. Because the plants have both medicinal and euphoria-inducing properties, it’s important to accurately establish your business’s identity by obtaining incorporation, business licenses, and EIN/TIN for your new CBD business and building your real science knowledge base about the cannabis plant and the role of CBD. Ensure that your CBD products are hemp-derived, especially if you intend to operate your business from a non-marijuana state.

Your team should target health-conscious audiences that understand how CBD products interact with the body in unique ways. The anti-inflammatory, analgesic, and paregoric qualities are part of the reason why CBD for pain relief is an industry is rising in popularity now that hemp-derived CBD is legal in all 50 states. Even so, local and state laws differ from one region to the next, so it is important that your team develop policies, packaging, and product dosing that are transparent and meet the requirements of state and local guidelines.

Invest in a quality supplier.

Perhaps nothing is more important than investigating your suppliers and investing in developing a relationship with a quality supplier. If you are interested in distributing in re-selling CBD products or if you intend to create your own, it’s important to do your homework and find the most reputable wholesale sources for hemp-derived. In Europe, farmers have many years of experience growing hemp, although US-based hemp derived CBD is on the rise.

Whichever you choose, you will need to research your suppliers farming practices, confirm that they maintain standards, and ensure that their raw materials meet or exceed industry standards. Make certain that your supplier has a Certificate of Analysis (COA) that can confirm the levels of CBD, THC, and other compounds that details that exact elements in every batch, including their percentages and purity. Your company may also need to obtain a third-party test if there is any question of the products’ purity or potency. You and your team should know how to read a COA and determine the value of the product you are purchasing.

Put your money where your marketing is.

Marketing your CBD Company brand means promoting CBD as a natural way of treating various ailments and using CBD for pain relief. It is likely that you will encounter many questions in this industry, from consumers’ confusion about the product to other brands providing misinformation. Educate yourself on all things CBD, especially the ways in which it can provide an alternative for treating medical conditions and the pain associated with chronic disorders. Showcase products in your line that promote health and wellness, but avoid making explicit claims about preventing or curing diseases.

Start by being a consumer advocate by sampling the products yourself and encourage your team to do the same. Those who have firsthand experience with a product are the most capable of offering intelligent advice and reasoned commentary. Write original content for your website and social media platforms. Remember that paid social advertising may be limited due to restrictions on terms like cannabis, weed, and marijuana. And with much confusion about CBD-only and marijuana-based products, you may find you need to start small and grow your following more organically. A well-rounded and robust social media strategy is the most likely way to build your brand, promote your products, and grow your target audience. This means investing time, effort, energy, and money into a grassroots marketing movement that treats your CBD product as a dietary supplement meant to promote health and wellness.

How else might you spend your CBD company budget? Feel free to share here.