Looking to be Apart of the Multi Billion-Dollar CBD Market?
With the growing interest in the possible therapeutic benefits of CBD coupled with recent laws passed that make hemp legal to sell, it’s estimated that the industry will be worth $2.1 billion by 2020. Anyone who follows market trends knows that CBD is booming right now, with millions of people taking it regularly to find relief from their physical and mental ailments. Given the industry’s massive popularity, it’s no surprise that lots of entrepreneurs around the country are eager to start a CBD business of their own.
Thanks to the Farm Bill that passed in December of last year, it’s now completely legal to purchase, consume, manufacture and sell CBD. This means that many of the legal hurdles that existed in the industry just one year ago have completely vanished. Therefore, if there was ever a time to invest in hemp, it would be now.
While many CBD businesses thrive strictly as online retail companies, many entrepreneurs are seeing opportunities in their local areas. There are many advantages to starting a brick-and-mortar CBD shop in one’s neighborhood. This type of environment allows one to educate residents on a personal level about the many potential benefits of CBD. And, retail businesses allow potential customers to sample products in-store which can increase sales.
But, before you start looking for commercial space that’s available in your town, it’s important to understand the importance of location when it comes to opening up a CBD shop. As you’ll see, just because the product is now legal, there will likely be some hoops that you’ll have to go through depending on the location in which you live.
Hurdles Regarding Marijuana-Derived CBD
First, let’s get one thing out of the way. If you live in a state in which marijuana is legal, you’re free to sell CBD products that come from the marijuana plant. But, know that you can’t ship your products outside of your state. That’s because marijuana is still illegal on a federal level which means that it cannot cross state lines.
For CBD to be legally sold throughout the country, it must contain 0.3 percent or less THC. THC, as you probably know, is the psychoactive compound in marijuana that makes it classified as an illegal substance. Marijuana is naturally high in THC while hemp is naturally low. That’s why CBD that comes from the hemp plant can’t physically make a person high.
Importance of Finding a Local Law Expert
Whenever you open any type of business, it’s essential that you find a lawyer who understands local laws. They will be able to help you understand what you can and cannot do with your brick-and-mortar shop. It’s even more important to find a good lawyer if you’re looking to open up a CBD shop because a lot of people still don’t quite understand what this compound is or what it does to the body. Therefore, a good lawyer will help you be able to get your business up and running regardless of what members of the town think about hemp.
We strongly suggest finding a lawyer who knows a thing or two about the CBD industry. Because CBD has only recently been legalized, there are a lot of law professionals and even law enforcement members who don’t quite understand its legal status. A lawyer who understands legislation regarding hemp can help you know what your rights are regarding the selling of your product.
Know That CBD is Still a High-Risk Industry
Despite the fact that the Farm Bill made the distribution of CBD legal federally, it’s still considered a high-risk industry. That’s because it’s a relatively new industry, and also because of its close association with marijuana, its botanical cousin. So, regardless of where you plan to launch your business, know that you may be met with some resistance, at least in the beginning when you’re trying to open your doors. And, expect to get some attention from local law enforcement while the laws are still being ironed out.
There’s also the possibility of your products being mistakenly seized by law enforcement officials who don’t understand current laws regarding cannabis. In fact, CBD distributors in both Tennessee and Indiana had their products wrongfully seized because local law officials didn’t realize that the selling of CBD had become legal on a federal level.
Laws Are Always Changing Both Federally and Locally
As we’ve already said, CBD is a new industry that has had quite a complicated history in terms of its legal status. The industry is currently fairly unregulated which means that the FDA is constantly changing its rules regarding how hemp products can be manufactured, marketed and sold. Plus, local laws are also changing regularly in order to adjust to the changing industry. So, when your business is up and running, it’s crucial that you pay attention to both local and federal laws regarding the industry so that you don’t break any rules and risk getting shut down.
Know the Demographics of Your Area
Each area has its own unique demographic makeup, and you need to know yours in order for your brick-and-mortar CBD business to thrive. You need to know the population of your area as well as the general income bracket and other details. This will help you figure out how to properly market, price and overall sell your products to your customers. For instance, you probably won’t have much luck selling extremely pricey CBD products in a low-income neighborhood. Additionally, it will be helpful for you to know the age demographic of your area so you can figure out how to properly market your products to that age group.
Understand Zoning Laws
Zoning laws refer to the ways in which certain zones, or sections, of a town are divided for commercial retail. In other words, certain zones in your town may not allow a CBD business to open while others will. Before you get your heart set on a specific commercial space, it’s important to speak with both the town legislators and your lawyer so that you know if you’ll actually be able to sell CBD products in the location that you’ve selected. And, keep in mind that in some towns, CBD won’t be legal to sell at all because of specific zoning laws unique to that municipality.
High-Traffic Areas are the Way to Go
The CBD industry is still growing, which means that a lot of the general public doesn’t quite understand what this compound is and how it works. That’s why it’s essential that you choose a spot in a high-traffic area of your neighborhood. You’ll need to rely heavily on foot traffic as many of your potential customers are likely to come in because of curiosity. A high-traffic area will be more likely to bring you a lot of customers who are willing to hear you out on the many unique benefits of hemp.
The Growth of Having Your Own Store Front is There
As the CBD industry continues to grow, there are more reasons to invest in your own brick-and-mortar hemp shop. Understanding the importance of choosing the right location is key if you want your business to be successful. And, make sure you continue to follow news relating to CBD laws so that you do everything according to the books.
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