How to Start Your CBD Business

Entering the CBD industry, you need to be knowledgeable on the product which means understanding the process from start to finish. The trick to start your CBD business is to stay constantly informed as it is an ever-evolving industry. From regulations to extraction processes and ingredients, they all play a key role in achieving successful results when starting your CBD business.

Whether you want to start your own CBD branded product line or want to start cultivating Hemp, we’ve written our top 5 general tips to follow when starting your CBD business.

    1. Know the Regulations

This includes the basics and the not-so-basic regulations. CBD as a finished good product all started with the Farm Bill of 2018 but does not conclude there. Each state has their own regulations based on the sale and distribution of CBD. Waters might be murky right now, but with the current push towards the FDA all industry partners are hoping to solidify what claims can and cannot be made in regard to CBD soon.

Key Takeaways from the 2018 Farm Bill (Act of Congress):

        • Cannabis with less than 0.3% THC is now “hemp” and legal to be grown and sold throughout the USA and across all state lines.
        • Anything more than 0.3% is “marijuana” and a Schedule 1 substance under the CSA. (Schedule 1 is the worst – think, heroin, ecstasy)
        • Specifically reserves the rights of the FDA (which include regulation of ingestible products)

(Information above has been provided by the Beneficial Blends In-House Counsel)

    1. Product Information

To attract a consumer to purchase CBD within the current market you must be transparent. Examples of being transparent include but is not limited to: listing of all ingredients on the product label, identifying the CBD profile (ex. Broad Spectrum, Full Spectrum, Isolate, etc.), THC percentage and referencing the COA.

    1. Manufacturing Practices

From farming to the extraction process to the final finished good, the entire process matters. When sourcing CBD, understand where the hemp is grown. This is where transparency within the company is key. The quality of the CBD impacts your final product which impacts your product information and lab testing. High quality hemp needs to be organically farmed and needs to ensure high quality standards/processes are followed. When choosing an extraction process for hemp, you should know what kind of CBD product you want for your business. Whether it be full spectrum or broad spectrum, it is crucial to understand the differences in manufacturing practices.

    1. Lab Testing

Without regulations, dozens of companies are making claims on their label, but per FDA guidelines, no health claims can be made on CBD products. Be Smart. Make sure your CBD products are tested from an accredited lab before making any sort of ingredient or percentage claims on your label. Credible third-party lab reports will also help determine the quality of the CBD product. High quality products with published lab reports will give your products credibility in the CBD Industry.

    1. Company Certifications

Company certifications represent the quality of your product. Top certifications within food and beverage manufacturing include GMP Certifications and Certified Organic. Since CBD is still in the process of being regulated by FDA, it’s recommended to be Hemp Authority Certified. The Hemp Authority represents high quality standards from seed to production.

Keep in mind that as the industry continues to expand, these key tips might change. It is pivotal to seek guidance from experts in the field, like Beneficial Blends, to ensure a successful outcome.