Thinking of Starting a CBD Business? Ten Things You Should Look for From Your Supplier
The CBD market continues to enjoy a tremendous boom, with global projections putting it at over £17 Billion by 2025. It’s the kind of lucrative scene where all forms of companies seem to be in a race to hop on the bandwagon. The market is vast, responding to rapidly growing interest in the potential benefits of CBD.
However, the craze also means that the industry is choke-full of substandard offers. As a newcomer in the industry looking to start your own CBD venture, one of the most crucial decisions you will make is the supplier you should work with.
As a new business, the last thing you want is to make mistakes right off the bat, which is why you must keep a few things in mind when vetting suppliers. So, how do you go about finding a reputable supplier for your business?
1. Prioritise product quality
Many businesses fail or succeed in the CBD industry due to the quality of their formulations. CBD has alleged health benefits that are driving its popularity. Consumers looking for alternatives to traditional medications are keen on quality to gauge the integrity of the compound.
Consider a CBD supplier with good manufacturing practices. You may want to verify the extraction process before moving forward. Remember, if you compromise on quality when it comes to formulations, chances are you’ll end up with a subpar final product that will be hard to sell.
2. Consider vertical integration
A vertically integrated company is in control of its entire supply chain. This means that the company is fully responsible for the whole manufacturing process from plant biomass to the final product.
Vertical integration is an important model that ensures consistency in desired plant properties, compliance with hemp regulations, and the availability of a tracking system.
3. Look into GMP compliance
Is your prospective supplier GMP-compliant?
The EU regulations still apply in the UK when it comes to cannabis-based preparations. This includes inspection and certification for Good Manufacturing Practices.
Reputable CBD providers strive to obtain GMP compliance if they intend to engage in the production or distribution of cannabis-derived preparations.
GMP-certified companies are generally more costly to work with, but the upside is reliable product potency and purity standards.
4. Transparency with testing records
Reputable companies are usually? transparent with testing records. Many of them offer QR codes (we do not, but we have the batch COA reference on the labels) on the product labels that enable anyone to access and track batch testing details. A serious supplier should be able to provide some form of verifiable access to these records to prove they indeed meet industry standards for purity and potency.
5. Does the supplier boast a variety of product categories?
It can be tedious to vet and verify a manufacturer as there are many things that affect their reputation, such as the duration of time they have been operating. But since the length of operation is not a legitimate factor, you may want to go with the range of product categories offered. Reputable companies are bold enough to deal in a wide range of product categories.
6. They meet the required THC threshold for CBD
Tetrahydrocannabinol (THC) is a compound in the cannabis plant that induces the psychoactive effects associated with the plant. It’s also a measurable differentiating factor between hemp and marijuana.
As a business, if you want to sell CBD products in the UK, Europe and most parts of the world, you’ll have to comply with regulations regarding THC limits, usually either 0% or max <0.2% THC. When selecting your supplier, you need to be fully informed of THC content in their formulations to avoid serious legal repercussions. This step also goes back to testing for quality assurance. (Note that most CBD companies produce <0.2% THC believing that to be the law whereas it is actually less than 1mg per container).
7. Consider consistency in formulations
As a new business, focusing on consistency when choosing a supplier is essential. You want to go with a brand that maintains consistency in its formulations from one batch to another. That way, you always know what you are getting at all times. While you may be tempted by firms making broad-spectrum formulas, you should know that these formulas are not consistent.
At Prolong we make Broad Spectrum. Broad Spectrum is Full Spectrum, with 0% THC.
8. Go with a supplier that matches your standards
Your standards matter to you as they reflect your image as a business. When considering a company to work with, you may want to ensure their brand values align with the image you wish to project.
Some of the things you need to consider when gauging if a company fits your standards include quality, product presentation, and uniformity of the product with your business goals. You should be able to ask yourself, will this brand appeal to my target audience.
9. How is the supplier’s quality of service?
Excellent service is a big deal, especially in a high-paced, competitive industry like that of CBD. The sheer growth of the CBD market is leaving reputable companies overwhelmed, with subpar competitors struggling to stay in businesses. We are talking about an industry where poor quality services can easily knock you out of the competition.
Sift out poorly run CBD suppliers to avoid ending up with missing orders, product delays, and poor customer care, as this could easily hurt your business. Reliability is essential, and you want a partner who can confidently provide it.
10. Keep in mind the pricing model
Does your prospective supplier’s pricing model meet your needs?
Pricing is a huge factor when determining a distributor. You want to ensure you move forward with a firm whose price range meets your budgetary needs.
Keep in mind that high costs don’t necessarily mean quality when it comes to CBD products. Compare prices offered by various suppliers relative to the concentration and quality of their products. You may want to consider your target market as well and figure out the price range your target consumers will be comfortable with.
The CBD market is robust and continues to enjoy unprecedented growth. Unfortunately, the market boom also means that disreputable companies will continue to infiltrate the industry. It makes it necessary to consider various factors in your search for a CBD supplier to partner with. Worry not; the rule of thumb is, reputable suppliers will always be eager and upfront regarding product consistency, quality, regulation compliance, and customer service.