Starting CBG business opportunities in Poteau includes all the hard work and effort of launching any other company in addition to the uncertainty of a shifting regulatory landscape (and all the issues that go along with it). However, in a fledgling industry projected to undergo explosive growth, the heavy lifting today could be well worth it tomorrow.
Understand your legal obligations when exploring CBG business opportunities Poteau
Just because the 2018 Farm Bill federally legalized industrial hemp and, by extension, hemp extract, like CBG oils, doesn’t mean there aren’t significant regulatory considerations surrounding the industrial hemp industry.
The 2018 Farm Bill permanently removed CBG from the federal Controlled Substances Act and the oversight of the Drug Enforcement Agency. Instead, it placed governance of the hemp industry and CBG oil in the hands of the Food and Drug Administration (FDA).
Currently, the FDA is still devising regulations, leaving the CBG industry in a sort of a grey area. So far, the federal agency has signaled that marketing CBG as having health benefits will not be tolerated. It has also initiated a crackdown against CBG infused foods and beverages in some instances.
Understanding your legal obligations and playing it safe is vital in a highly scrutinized industry. While CBG business opportunities Poteau await more explicit regulatory guidance, it is crucial not to craft your marketing strategy around the supposed benefits of CBG. It’s also important to stay apprised of new developments as the FDA moves forward on crafting new regulations.
Market and sell your products
Marketing and selling CBG products can be tricky. While the passage of the 2018 Farm Bill liberalized the industry a little bit (CVS and Walgreen’s now carry CBG products, for example), it is still challenging to sell CBG products on major online platforms like Amazon or eBay.
Likewise, social media advertising is virtually non-existent; paid ads for CBG products risk account suspensions or bans, so all your growth must be driven through organic content that falls under the guidelines of each platform.
To successfully advertise and sell your CBG products, you will have to be creative. Establishing your e-commerce store or carrying your products in a brick-and-mortar location is a must.
Marketing your product with an organic search strategy and customer loyalty programs is always safer than engaging in paid advertising. And, of course, every market is a bit different, so do your research and understand your local and state laws.
Key challenges facing CBG businesses
The CBG and cannabis industry faces unique challenges that other industries don’t. Most of these challenges relate to the regulatory environment and, as federal agencies like the FDA detail specific rules and guidelines, things should stabilize. For now, though, if you want to start a CBG business opportunities Poteau, you should be aware of these significant considerations:
The Considerations Include:
- Banking: Access to reliable banking services can be complicated due to the fluctuating regulatory landscape. Many banks are hesitant to do business with CBG and cannabis companies, fearing a significant risk of burdensome oversight. Frequently, CBG businesses are forced to switch banks or experience the abrupt closure of a merchant account, which can severely disrupt operations.
- Insurance: Finding affordable insurance for a CBG business is another major challenge. Prices remain elevated despite the legalization of industrial hemp, as the industry takes time to catch up to the developments. Education remains a crucial obstacle.
- Payment processing: Similarly, payment processors present high fees and other challenges to CBG businesses. Visa recently cut off all CBG businesses, leaving him capable of only accepting MasterCard and Discover for payments.
- Access to capital: Banks and other lenders are also reluctant to fund CBG companies, viewing the industry as too risky without precise regulatory requirements. So far, the CBG industry has relied on bootstrapping, outside investors, or alternative lenders to find the growth capital it needs.
What’s More?
Each of these challenges will likely be cleared up as more precise regulation appears. But in the meantime, CBG businesses must remain adaptable and well-informed. Changes in the industry come on a day-to-day basis, so preparing backup plans ahead of time could save you a great deal of time and money should the worst come to pass.
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