CBD, short for cannabidiol (pronounced canna-bi-dial) is a chemical compound found in the cannabis plant. Cannabis actually contains 80+ similar compounds called cannabinoids, which include THC. The reason you get high from marijuana is due to the effects of THC—but other cannabinoids (like CBD) don’t get you high at all.The more we learn about CBD, the more it seems poised to revolutionize medicine as we know it. Because CBD is safe and doesn’t get you high, CBD-based products aren’t restricted by the legal ban on marijuana and CBD Business is flourishing .
Where Does CBD Come From?
Is it hemp? Marijuana? Cannabis? There’s actually no need to be confused about this. Hemp, marijuana, and cannabis are different names for the same thing! These all fall under the plant species called Cannabis Sativa L. Hemp and marijuana are simply different varieties of this plant. Both of them contain CBD.
Some people have been misled to believe that hemp plants can’t have CBD in them—this is 100% false. But it’s important to know that CBD doesn’t come from the hemp seeds that many people are familiar with—hempseed oil, which you might have seen in your local health food store, is not a source of CBD. CBD comes mainly from the flowers and leaves of the hemp plant.
The Potential Health Benefits of CBD
According to Stuart Titus, CEO of Medical Marijuana, Inc. (which sells CBD oil products through its distribution subsidiary HempMeds), CBD interacts with the body through the endogenous cannabinoid system (ECS), a neuromodulatory system that plays important roles in central nervous system development and the body’s response to internal and external factors. In other words, the ECS regulates the body’s homeostasis, keeping those who ingest it a bit more balanced, and those who apply it topically a bit less pained — particularly if they apply it to a painful area (a sore shoulder, that kind of thing).
If the CBD products are applied topically and don’t contain THC, they won’t get you high (or require a medical card to purchase). So CBD still might be for you! Particularly if you suffer from aches, pains, are post-operative — or even if you have a breakout.
CBD Won’t Get You High
People who are new to CBD often worry that it can get you stoned, thanks to the association with marijuana and THC. But you don’t have to worry about this one bit. Study after study and thousands of CBD users will tell you that there is no way, no how, that you can get high from using CBD. It’s biologically impossible!
Actually, CBD and THC are like twin siblings, chemically speaking. Their makeup is very similar but slightly different. This slight difference equals vastly different effects. In fact, studies tell us that CBD can have the opposite effect of THC in many scenarios—especially when it comes to getting high. You can take as much CBD as you want and while you might feel a little woozy if you take a lot, you will never experience anything psychoactive. This is why CBD is so great for people who are dealing with problems like chronic pain, who probably need to take a fair amount throughout the day.
*Anecdotally*, CBD products have been found to have some other benefits. You can find lotions and potions that claim to combat acne, rosacea, or other skin issues, for instance but, again, the science isn’t really there yet. Online CBD business is the new trend .
Starting an online CBD Business
A CBD oil business will sell and/or manufacture CBD oil for a variety of purposes. This may happen either online or in stores, though most people won’t open up a specific retail location selling CBD. Most businesses will sell the oil for general purposes (e.g., garden-variety anxiety, chronic back pain, etc.), though some will concentrate purely on cosmetic uses.
Who is this business right for?
This business is great for people who have a genuine interest in how cannabis can be used to bring relief to users. Owners should understand the complexities of the plant and how different strains can help treat certain ailments.
What happens during a typical day at a cbd oil business?
It’s rare there will be a ‘typical’ day in the CBD oil business because this business is so new and there are few established business models. An owner may be doing anything from managing inventory to dealing with new regulations to running lab reports for their product. Owners should also be devoting time on a regular basis to keep up with changing trends in their industry (as they can change extremely quickly.)
What is the target market?
Practically anyone can use this product. CBD oil is used to relieve anxiety, soften skin, and reduce chronic pain. Most famously, it’s given to kids who have severe seizures to reduce their frequency and severity. It can even be taken by people for general relaxation at any time. CBD oil is derived from cannabis, but it does not cause a psychoactive effect like THC will.
How does a cbd oil business make money?
CBD oil businesses will create their own profit margin for their products, based on the scope of their operation, quality of their product, and demand for CBD oil among their target demographic.
What is the growth potential for a cbd oil business?
Because of its versatility and rapid rise in popularity, CBD oil is predicted to hit $1 billion by 2020 in the US alone (some say even closer to $2 billion.)
What are the steps to start a cbd oil business business?
Once you’re ready to start your cbd oil business, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:
- Plan your business. A clear plan is essential for success as an entrepreneur. A few important topics to consider are your initial costs, your target market, and how long it will take you to break even.
- Form a legal entity. Establishing a legal business entity prevents you from being personally liable if your cbd oil business is sued.
- Register for taxes. You will need to register for a variety of state and federal taxes before you can open for business.
- Open a business bank account. A dedicated checking account for your cbd oil business business keeps your finances organized and makes your business appear more professional to your customers.
- Set up business accounting. Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
- Obtain necessary permits and licenses. Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
- Get business insurance. Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
- Define your brand. Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
- Establish a web presence. A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Benefits of Selling CBD Online
There are many benefits of running an online business that are not exclusive to selling CBD. In comparison to a retail storefront, an online store saves money in set-up and operational costs. After an initial a start-up fee, you have access to a broad audience. Customers who may not have found your retail business have access to your store and you can target your preferred audience (more on that later).
By becoming an online CBD oil distributor, you can cater to those who prefer to purchase CBD oil from the comfort of their own home. If CBD oil is not accepted near your place of residence or if you do not think CBD oil will sell well in your area, you still have access to other customers nationwide who are seeking CBD products.
Find a CBD merchant processor to accept payment from your customers.
Securing a merchant processor allows you to charge your customers for products. Though selling CBD oil is legal in all fifty states, banks and merchant processors consider our business “high-risk” and getting approved for a merchant account may be difficult.
iPaytotal’s mission is to bring well-established, proven payment processing, regulatory compliance and banking services to the licensed recreational and medical marijuana industries, thereby reducing the risk of violent crime, illegal money laundering and violation of state marijuana regulations.
We have been professional consultants for CBD businesses helping them utilize the best CBD OIL Merchant Account Services and CBD and Hemp processing solutions available for their transactions.Although we offer incredibly low Interchange Plus rates to all our clients we still treat each account as individual and take the necessary time to fully understand your unique business model to enable us to make sure that you save the absolute maximum dollars each and every month in your payment processing for CBD products.
Apply Now to get a professional quote for your CBD merchant account.