So, you’re considering stepping into the competitive and lucrative CBD market. But how do you begin? What is the best-case business scenario? How do you balance the combination of starting a business, adherence to manufacturing regulations & guidelines, manufacturing experience and expertise, formulation knowledge, in-process product testing, finished product testing and CoA (certificate of analysis), capital equipment acquisition, legal compliance, insurance coverage, banking relationships, payment processing capabilities, hemp licensing, hemp procuring or cultivating hemp, and developing a flourishing brand? To answer these questions, you have to ask one additional question: Where’s the money? More specifically, where is the most money to be made with the lowest risk and lowest capital outlay?
The answer is surprisingly simple. The largest margins are in selling finished products to the end user. Therefore, partnering with an established white label CBD company like Grow with Redeem, is critical. This partnership will help to alleviate you and your staff of the overwhelming stress and hassles of starting a CBD business from the ground up. Below, we’ve compiled three main points as to why white label CBD is the best market entry point.
A Booming Industry
As one of the fastest-growing markets, the CBD industry is rapidly expanding. Key players continue to make significant strides in the legal and regulatory fields, and a structured, systematic economy is slowly developing around the hemp and CBD market. The 2018 Farm Bill effectively legalized industrial hemp, and gave it an official definition, containing less than 0.3% THC. Toward the end of 2019, the USDA released an interim rule regarding the establishment of the U.S. Domestic Hemp Production Program, which outlines the provisions and requirements for legal hemp cultivation and distribution.
The CBD industry is in extremely high demand and shows the potential to become a 20 billion-dollar industry by 2024, according to Forbes. By working with a white label CBD company, your business can streamline its development and hit its stride well before or in conjunction with these industry projections. As further rigid regulations are put in place, inexperienced and naive CBD businesses will falter left and right, leaving a gaping hole in the marketplace. However, when you partner with an experienced white labeling CBD business, you can tailor your profit margins depending on your particular vision and concepts.
No Experience Needed
Starting a CBD business on your own requires experience. Someone in your organization needs to know the ins and outs of legalities, compliance, and regulation. Not to mention, you need a source of high-quality hemp. Additionally, the most successful CBD businesses receive special licensing to cultivate, process, and distribute hemp and its products.
The best white label partners work closely with you to provide the hemp, process the hemp, ensure adequate licensing and certification, develop a top-quality CBD product, design distinguished packaging and bottling, and craft a compelling brand strategy. Grow with Redeem offers over 60 years of combined experience in product development and FDA compliance. This enables an unrivaled level of truth and transparency between us and our customers, which translates to consistency and quality for their consumers to drive brand recognition and sales.
Save Time and Money
Starting any business can be extremely challenging, as well as time-consuming. CBD businesses, however, require even lengthier, more challenging prerequisites. In addition to supplemental startup costs to cover hemp cultivation, processing machinery, functional space, and distribution methods, starting a CBD company could necessitate several years to establish a compliant, impactful operation.
Working with a proven white label CBD business can save you time and money, while also limiting the need for extraneous third-party partnerships. The best white label CBD businesses already have established adequate legal practices, clean facilities, safe processing methods, and certified testing, which saves you time, money, and unnecessary stress.
Grow with Redeem is a CBD white label company that is dedicated to developing exceptional hemp-derived CBD products that help everyday consumers take back their health. We bring truth and transparency into the world of CBD and enable our clients to deliver a consistent and reliable experience with their products. Our team of CBD manufacturers, suppliers, processors and designers provide the experience, facilities, and knowledge needed to drive your brand and attain your vision. Learn more about the white label CBD process with Grow with Redeem and contact our team today.