7 Reasons Why Starting a Cannabidiol Business Makes Sense

Aug 23, 2022

CBD Insurance

7 Reasons Why Starting a Cannabidiol Business Makes Sense

As the legalization of medical and recreational marijuana continues around the world, the popularity of cannabidiol or CBD is on the rise. There’s no better time to invest or start a cannabidiol business as more consumers increasingly become aware of and accept the medical benefits of the cannabis derivative. 

Here Are 7 Reasons Why Starting a CBD Business Is a Good Idea

  1. CBD is Not Psychoactive, Unlike THC

    CBD only provides health benefits without the psychoactive effects associated with THC. THC is the main marijuana component that causes users to experience a “high” because of how it affects the brain. However, many CBD products have a more favorable legal status locally and overseas due to their purely therapeutic value.

  2. Broad Cannabidiol Product Options

    There are different ways to consume CBD, each of which presents a viable opportunity to build a successful business in the industry. You can specialize in selling one of the most popular cannabidiol-related products, from CBD oils, creams, and lotions to tinctures, edibles, and vaporizers.  

  3. Health Benefits of CBD

    The therapeutic benefits of CBD mean that there will be customers waiting on your products once you start your cannabidiol business. Consumers from all walks of life use CBD for a host of medical purposes, including pain relief. Most CBD-related medications are associated with little to no side effects and are not addictive. They can also be used to treat cancer and mental issues like depression and anxiety. 

  4. CBD Industry Growth

    By some estimates, the retail market for CBD-related products in the U.S will be $16 billion by 2025. So, if you’re looking to start a cannabidiol business, such as a manufacturing facility or retail shop, the industry’s rapid growth is a major favorable factor on your side. Apart from that, 80% of people who are aware of CBD do support its consumption. 

  5. Multiple CBD Sales Channels 

    There are several ways to enter the industry and set up a CBD business, including with limited capital. An online cannabidiol business is one of the easiest to start and most popular. Other highly viable options include smoke shops and specialty retail. 

  6. CBD Products for Animals/Pets

    As a CBD entrepreneur, you have the option to specialize in or diversify to include CBD animal products. There’s been remarkable growth in the multimillion-dollar sector, with people increasingly buying cannabidiol products for their pets, especially cats and dogs. 

  7. Cannabis Prejudices Are Declining Day by Day

    CBD awareness is on the rise around the world. On the other hand, the stigma associated with cannabis and its derivatives is declining daily. The resulting increase in consumer trust in CBD-infused products, such as food and drinks, is good for cannabidiol businesses. It also means a better outlook for the prices of CBD products.   

    Important Steps to Follow When Starting a CBD Business

    • Choose a cannabidiol niche and products
    • Decide between online vs. brick and mortar
    • Familiarize yourself with your legal obligations pertaining to CBD businesses 
    • Come up with a solid CBD business plan
    • Get your paperwork in order
    • Identify your supplier
    • Build your e-Commerce site
    • Market your business
    • Get CBD Insurance

Also Read: 5 Major Challenges for Insuring CBD Businesses and Operators

Insure Your CBD Business with Graystone!

Don’t let the regulatory and market risks of cannabis operations stand in the way of your CBD business venture. At Graystone Insurance, we can help you find the right CBD insurance coverage to mitigate your risks. Contact us today to learn more!