Everyone in the business industry has that dream of their business making huge sales and profits. However, there are some businesses that are considered illegal in some places and may at times cause conflicts between owners and the state, like in this case of Cannabidiol (CBD). It’s a well-liked natural remedy used for many common ailments.
CBD oil is extracted from the cannabis plant and is then diluted with hemp or coconut seed oil, or a similar type of carrier oil. It is becoming prominent in the health industry. Certain studies confirm that it can treat ailments such as anxiety and chronic pain. Cannabis is not a legal plant in all countries. With that in mind, there are challenges that affect the entrepreneurs in the CBD business. Here are some.
1. The Law
Marijuana has not been legalized everywhere and neither are its products. This is the biggest challenge those in the hemp industry are facing. Some laws that regulate CBD products are very conflicting and complicated in nature. In addition to this, not all financial institutions will want to associate themselves with the Cannabinoids business. The business is also considered risky, which makes retailers in the business turn to high-risk consulting firms that have been in the industry and have dealt with such cases. They acquire solutions regarding accounting and security.
2. Public Opinion About CBD
If not the biggest, this is the second challenge faced by most CBD business owners. A lot of people have a bad perception of hemp products. The fact that it’s also illegal in many states may cause these businesses to be socially unaccepted. One thing most people fail to distinguish and understand is the fact that though from the same plant, CBD oil has lower levels of THC than those in marijuana. THC is the element that causes the ‘high’ in marijuana. This misinformation and misconception is, therefore, a challenge that many in the business may have to endure for some time.
3. Overrated Transaction Fees
At the end of the day, CBD businesses owners need to transact in order to pay for salaries, receive payments, place orders, and make profits, etc. These transactions are primarily made through credit and debit cards and the merchants use virtual methods to make their payments. Due to the high-risk nature associated with business, financial institutions, lenders, or prominent merchant firms may charge above the normal rates just because of the high risk of the business. This forces the CBD retailers to make all their payments on a cash basis or use cbd oil merchant processing services if they’re lucky to access them in their local area.
Despite all these challenges, the CBD oil businesses are witnessing an increased growth due to the many health benefits associated with the CBD products. Over the past few years, pet food manufacturers have also integrated it into their products and no serious side effects have been reported. Nevertheless, there needs to be more research and the public also needs to be educated and informed on all matters CBD.
