The CBD market is expanding faster than anyone could have predicted. As they learn more about the benefits of non-intoxicating cannabis, consumers are turning to cannabidiol products and its many uses at an unprecedented rate. With so much popularity and continued growth, entering into the CBD market is an exciting prospect.
But where to start? GVB Biopharma, a global hemp industry leader, has spent years perfecting the art of cannabinoid extraction and product formulation. Whether it’s genetics, cultivation, lab testing, or finished product manufacturing, this renowned company is fully familiar with what it takes to succeed in the CBD industry. For entrepreneurs who want to explore everything the contemporary CBD market has to offer, GVB recommends the following 7 steps:
1. Know Your Laws
CBD and THC are governed by completely separate legal guidelines in the United States. That’s the good news. The FDA, however, has created a strict series of rules that must be followed when selling CBD products, and the US federal government is still debating how to regulate non-intoxicating cannabinoids like CBD.
You can’t, for example, insinuate in any way that the CBD you’re selling is a treatment or cure for any disease or condition. Starting with the 2014 Farm Bill and the 2018 Farm Bill, researching and understanding these rules and regulations will be crucial to setting yourself up for success and ensuring your product line remains federally compliant.
2. Opt for White Label to Ensure Quality
When you’re working within a saturated market, you need to make sure your brand stands out. Regardless of how many competitors you may have, consumers will still want high-quality CBD that is free of contaminants. Following current CBD quality standards adds an extra step in the process for those considering in-house extraction and product formulation.
Having an in-house lab has never been enough, and third-party testing has always been a must to authenticate the purity and potency of your CBD products. Now, however, consumers are also scrutinizing CBD lab tests to make sure they’re free of bias and nepotism.
For this reason, CBD startups with the greatest chances of success choose to work with qualified white label CBD manufacturers rather than self-producing. Partnering with an established company ensures that you’ll have access to top-of-the-line, lab-tested products without any additional investment of money and time, which will set you up for long-term success.
GVB Biopharma, for instance, employs a next-generation, five-step hemp testing system that ensures quality, reliability, and potency. This unprecedented focus on accurate lab testing ensures the best product quality possible—far more than a startup could realistically achieve on its own.
“Our goal at GVB is to provide a turn-key white-label solution for brands of all size and stature. We know navigating the cannabinoid industry can be confusing, which is why we provide our clients with full transparency in quality and testing from seed to finished product. This allows our clients to be confident in the products they are selling.” – Phillip Swindells, CEO at GVB Biopharma
3. Find a Supplier
Once you’ve decided to work with a white label manufacturer to start your CBD business, the next step is to pick your supplier. To find the right CBD supplier for your needs, you’ll need to narrow down your search based on which factors you think will be important to your success.
After all, the product line you choose is going to be the brand you’ll have to live with. Research your options, and consider the following:
- Like GVB Biopharma, does the supplier offer full transparency with its extraction methods and product formulation from start to finish?
- Look at the lab tests and product information – is this a quality, well-made product?
- Are the prices reasonable enough that you can still create a profit for your business?
- What is the product range the supplier offers? Does it fit your needs? If not, can they create a custom product that will?
GVB Biopharma, for example, offers CBD entrepreneurs the option to buy pre-formulated products that are ready to be labeled. Or, if your budget is higher, GVB can create custom formulas and package for a completely unique brand built around your vision. Answering the questions we’ve listed above will help you choose the right supplier for your new business.
4. Choose a Niche
Since the hemp market is currently at the most saturated stage in its history, your next step is to determine your target customer and decide what you’re going to do to set your brand apart. Targeting a specific audience allows you to create personalized marketing campaigns that grab the attention of the people who are most likely to buy from your brand. On the flip side, avoid choosing a target market that’s too limited since doing so could hurt your growth potential.
Do you want to build a CBD brand that’s focused on organic ingredients and sustainability? Or would you rather take a more scientific angle and position your products within the health industry? There are dozens of different ways to diversify your CBD company, and you should always make choices about the shape of your brand based on your dreams and goals as a cannabis entrepreneur.
5. Build Your Brand and Market Wisely
With your product line developed and your target market in mind, the next step is to build your brand persona and make your products relatable. Marketing in a crowded retail space like CBD requires creative strategies that will set you apart from your competition. It makes good business sense to invest heavily in branding to provide proper diversification and create opportunities for consumers to make emotional connections with your products.
Working with your CBD supplier to develop unique, creative packaging and innovative product formulations is a great way to make sure your brand draws proper attention in the crowded cannabinoid marketplace. Find ways to differentiate: will you make your products 100% natural, add trending ingredients, or focus on developing innovative product categories?
Use your marketing campaigns to show potential customers exactly why you are different from the rest. An active and engaged social media and advertising presence is a great way to remain in the public eye. Be sure to keep these consumer communication channels as fresh and original as you keep your brand.
6. Create Your Website
To be successful, your CBD e-commerce website should match the overall tone you are attempting to achieve with your brand. You’ll want to craft a site that’s engaging, responsive, and reflective of your CBD company and its core values.
Make sure your products are eye-catching by investing in professional photography and hire a qualified content writer to craft your product descriptions, about page, and blog. Testimonials, guest posts, influencers, and educational content all help create a brand that consumers will perceive as knowledgeable and trustworthy.
Eventually, verified customer reviews will support your products more than any other aspect of your CBD website. For now, however, you’ll need to rely on the independent lab testing and product quality provided by companies like GVB Biopharma.
Keep your e-commerce site integrated with your social media accounts so consumers will experience your brand the same way no matter where they encounter it. A disconnected, sloppy brand will easily be overlooked in today’s highly competitive CBD environment.
7. Flow With the Market
Establishing your company does not mean your work as a fledgling CBD entrepreneur is finished. Keeping your approach adapted to the ever-changing market is the key to effective brand growth, which is even more true in the CBD industry. It often seems like CBD regulation is changing every week, so make sure you never stop learning.
Keep your web content search-engine-optimized, and utilize the social media market to find out what works and what doesn’t for your target audience. Instagram and Facebook are not only great tools to showcase yourself, but are also invaluable for research into trends.
Staying on top of the market lets you know when it’s the right time to adapt to your brand. Using a white label supplier like GVB Biopharma provides you with the flexibility to flow with the market while making sure your ingredients and product line are relevant and in-demand.
As you start your hemp brand with the help of a qualified supplier, you’ll quickly find that the CBD commercial space is more rewarding than it is challenging. Entrepreneurs who have been successful in the CBD space have simply made smart audience decisions, picked the right white label supplier, and marketed their brands effectively. By following the seven steps we’ve listed in this guide, you can create your own successful CBD brand today.