Tip: If you want to differentiate yourself from other CBD businesses, it's key to provide third-party lab testing results to validate the quality of your product.
"It's like any other business; there are steps and procedures you need to go through like getting insurance and writing a business plan," Slovik said. "But in this space, you have got to double- and triple-check everything, know your market and jump through regulatory hoops."
[If you're looking for more details on how to start a business and all the steps you need to take, see our step-by-step guide to get started.]
The federal government considers marijuana a Schedule I drug under the Controlled Substances Act, making it illegal for interstate commerce, even as dozens of states legalize it for adult use. Industrial hemp, on the other hand, was recently removed from the Controlled Substances Act altogether, opening the way for its cultivation and harvest in the U.S. for the first time since 1937.
How to gain a competitive advantage
Further complicating the regulatory landscape is the 2017 approval of the CBD-based pharmaceutical Epidolex, an epilepsy medication that was approved by the FDA. Since CBD is a main ingredient in an FDA-approved drug, using it in food products without FDA approval could be illegal. Clearer guidance is sorely needed for CBD businesses to operate in compliance with federal regulations.
Overall, Slovik said, the formula for success is simple, even if the process is complicated.
If you've done any research into the CBD market already, you've likely encountered the terms "full-spectrum" or "isolate." Depending on the extraction methods used, the CBD oil obtained from the plant might contain other cannabinoids and compounds found in the source plant. This is what is known as full-spectrum CBD. Full-spectrum CBD not only contains other cannabinoids found in the source material, but compounds known as terpenes, which are responsible for creating the flavor profile, aroma and specific effects of the plant.
The CBD industry is projected to grow immensely
CBD isolate, as the name suggests, is a concentrate that only contains CBD and no other cannabinoids or terpenes. While the purity of CBD isolate might sound desirable, there is some evidence to suggest that full-spectrum CBD promotes an "entourage effect;" that is, the compounds in a full-spectrum hemp extract work together to promote more significant effects. The entourage effect is still under investigation by researchers studying CBD and other cannabinoids.
Cory Slovik, owner of Core Roots CBD, started his company after experiencing firsthand what he said were the healing properties of the cannabinoid.
But it won’t always be easy along the way, as you will need to deal with issues regarding insurance, banking, and advertising. There are still some gray areas when it comes to legalities (especially with what people think are legal or not). Because of these gray areas, you may encounter resistance with banks and other sources of funding.
Exactly What is CBD?
But you can come up with your own special food items and have the CBD oil premixed with the edible. A wide variety of foods can be infused with CBD oil, and it’s up to you to discover the tastiest dishes. Obviously, a lot of baked goods can be laced with CBD, but now there’s even a pizza with CBD available. Candies and chocolate can also be infused with CBD, and so can drinks. Basically, it’s like running a food and drinks service, except that your menu consists of CBD-infused food items.
Starting Your Business
You can then extract the CBD cannabinoid from the cannabis plant, and several methods can be used. If you want, you can do the extraction yourself. Another option is to outsource the extraction to a company that specializes in this process.