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Overcoming The Challenges Of Owning A CBD Company

Overcoming The Challenges Of Owning A CBD Company

By Ashley E. Mercer, Owner Farm to Pharm

CBD products are everywhere. Folks buy them to ease their arthritis (or that of their old Basset Hound). The odds are good that either you or someone you know safely uses CBD products for any number of reasons. The problem is, it’s still considered a “high-risk” business. So, to be able to sell CBD online or within a brick and mortar, a business faces onerous regulations, challenges, licenses and paperwork.

What Is CBD & What Does It Help With?
Cannabidiol (CBD) is a naturally occurring compound found in the cannabis flower. CBD is an all natural anti-inflammatory. The cannabis plant has a long history of being used for its medicinal properties, but it has a variety of other practical applications as well. More recently, science is further exploring the properties of phytocannabinoids such as CBD. The cannabis plant has over a hundred different cannabinoids, each with unique properties.

CBD has been used to treat many health issues, including:
● Inflammation
● Anxiety
● Chronic pain
● Depression
● Neurogenetic disorders
● Arthritis
● Insomnia
● And many more

Sounds great to have a certified Go Texan local small business to be able to provide all natural relief to you and your loved ones, right? The behind the scenes of owning a CBD company paints an entirely different picture. CBD companies face not only the typical and traditional challenges that come with operating a small business, we also are faced with a whole new set of obstacles to hurdle other small businesses will never have to face. Despite CBD’s popularity and health benefits, CBD companies face many challenges when it comes to production and distribution.

Challenge #1: Tight Regulations and The Farm Bill
In December 2018, former President Trump and Gov.Abbott signed a farm bill that legalizes hemp production for agriculture and removed it from the controlled substances list. This is an excellent step in the right direction for CBD businesses, but there are still strict regulations that may cause issues. One example of a roadblock for CBD businesses is a state’s ability to ban hemp production at its discretion.This ability to ban the production of different hemp products means that any moment, a CBD company may find itself with fewer suppliers, which will increase costs or even prevent them from producing, selling, distributing and marketing these type of products impacting consumers health, affecting revenue streams amid a recession.

Challenge #2: Public Perception
Another significant challenge facing CBD companies is the issue of public perception. It is true that CBD seems to be everywhere and in everything. But, nonetheless, there are still many people who know almost nothing about CBD. Even worse, they believe CBD is marijuana. Thus, they often consider it as something addictive and harmful to their health.

Challenge #3: eCommerce and Payment Processing
CBD companies also face particular challenges when it comes to merchant services, payment processing, and e-commerce in general. The merchant services that do work with CBD companies impose a higher transaction rate to process credit cards, there’s a higher risk of declined payments, and we have to deal with stricter rules regarding chargebacks. Through eCommerce you run into the problem of shipping products to states where CBD products are illegal.

Challenge #4: Marketing
Cannabis SEO (search engine optimization) on Google is not allowed and it doesn’t stop there. Huge social media platforms such as FaceBook, Instagram, and TikTok will not permit CBD companies to purchase or boost sponsored ads either. What does this mean? It means that if you want any kind of exposure for your brand and or CBD company it all boils down to organic word of mouth marketing.

Final Thoughts
Getting started with opening up your own CBD business indeed requires much learning, but this is true for any business. With proper planning, one can readily overcome many of these challenges by finding the right business partner who can help you get started. Lucky for you, we offer consultation packages detailing every step of the process to guide and direct you every step of the way.

For more information, email Come visit us at Farm to Pharm M-Sat 10am-6pm 20540 Hwy 46 | #125 Spring Branch | TX | 78070 830-438-0613

*This is not medical advice and we are not medical professionals. Consult with your physician before use