CBD (cannabidiol), like most new supplements, is an excellent opportunity to establish a business today. If you have always wanted to help thousands of people, CBD is a viable solution for you to start.

It is trending, and most importantly, brings plenty of health benefits. CBD is a promising treatment for plenty of ailments, including headache, insomnia, and anxiety.

Thus, CBD will always be in high demand, which makes it a perfect choice to enter the healthcare and supplement industry. How to establish a CBD business then? Is it legal in the US? Check answers to these questions in our guide.

Is CBD Oil Legal?

In short, CBD is legal. According to the FDA, CBD is allowed for commercial use. Still, there are plenty of restrictions, with the main one touching THC (tetrahydrocannabinol) content in CBD products. Thus, your CBD products will remain legal and safe as long as they contain no more than 0.3% THC.

CBD Industry Perspectives

Despite the overwhelming pandemic, CBD sales didn’t drop in 2020. Health has become the top concern for most people, and they will continue investing in it in the future. Thus, CBD sales will reach $1.6 billion in 2021 (34.8% increase compared to 2020), according to Statista.

Thus, the CBD industry doesn’t show signs of decay, unlike other supplements.

Some sources like Forbes predict CBD market capitalization to reach $20 billion in 2024 (considering the pandemic and global economic recession). Therefore, investing in CBD in 2020-2021 is quite beneficial. So what steps should you take to launch a legal CBD business? Check them below.

1. Comply with the Laws

Before thinking about where to start, you should research the legal aspects of CBD business in your state. What licenses should you obtain to operate your business legally? Compliance specifics vary in different states. At this stage, asking a CBD lawyer a direct question, “Is CBD legal in my state, and what documents do I need to start?” is a must.

What about consuming CBD? Currently, you can take CBD for regular use in some states, like California or Colorado. However, if you live in Alabama, you need a prescription to buy CBD oil. Besides, you can take it for severe ailments.

Thus, it would be much easier to run a business in a state where cannabidiol is permitted for regular consumption. So, where is CBD legal exactly? Is CBD oil legal in your city? You have to research this topic before developing your business plan.

2. Make a Business Plan

A business plan is essential. You need to establish your business’s organizational structure, research the market, define your target audience, and determine the products you will focus on. How big do you want to grow? Will you invest in onsite facilities? There are plenty of questions your business plan has to answer, but the main ones should be:

  • What problem are you going to solve with CBD?
  • Who is your target audience?
  • How will you advertise your business?
  • What will make you unique?
  • How much money do you need?

3. Research CBD Suppliers

Cultivating CBD products on your own is the best approach. Still, it requires far more investments than finding a trustworthy CBD supplier for your business. Here are the points you should pay attention to while choosing your CBD supplier:

  • Lab tests. It is crucial to know what drug testing authorities examine your CBD supplier.
  • Certificate of analysis. Make sure you get CBD oil that contains the legal THC amount.
  • Hemp cultivation conditions. Your hemp producer must comply with CBD cultivation and processing standards.

4. Establish Your Brand

Branding is crucial and requires significant investment if you want your business to get a successful start. So create your business name that is memorable and associated with CBD. Branding also includes developing your motto, designing your logo and product, etc.

5. Establish Your Shop

Where to buy CBD oil most conveniently? You have to answer this question before deciding on your shop. Thus, your potential customers will be eager to buy CBD online rather than in a brick-and-mortar shop. In this case, establishing a website and creating business accounts on multiple social media platforms is vital. At the same time, you may also need a physical store to attract all potential customers from all age groups. Also, you can promote your product by holding online coupons sales.

The Bottom Line

Establishing a CBD business is no longer complicated when you know the exact steps to enter the industry. Planning, researching, and getting a trustworthy CBD supplier are the crucial aspects of your success. As long as you stick to the plan, understand your audience, and deliver them what they want, your business will grow and expand at a breathtaking pace.


Jamie Taylor is the CEO of ValidCBDOil. He has been in the healthcare industry for over ten years. Working as a physician assistant, Jamie helped patients with pain disorders, particularly chronic pain, headaches, and neurological conditions.

After CBD’s legalization, Jamie decided to establish ValidCBDOil to provide his customers with comprehensive guides on CBD usage specifics, products, manufacturers, and more. ValidCBDOil aims to educate people on the CBD industry and help them get the utmost benefit from this effective natural remedy.


Image Source: BigStockPhotos.com (Licen

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