With the cannabidiol (CBD) industry growing exponentially alongside consumer demand, more and more franchises, businesses, and startups are trying their hand at the world of cannabis-based wellness. In such a rapidly growing industry, it's easy to lose perspective and have doubts about how to best approach the business. As one of the largest online CBD platforms in Spain, at ONLYCBDFANS we're here to help you make your CBD business successful. We have answers to your questions. However, before launching your CBD franchise, we bring you this brief article where we'll explain the basics, such as:
Who buys CBD regularly and how this could positively impact the market outlook, along with the reasons why many adults in the UK are starting to use CBD for wellness.
- Below, we'll discuss some issues within the CBD industry in general, such as a lack of consumer understanding, misinformation, and often unclear legality across country and state borders.
- We'll guide you through what you need to consider before beginning your franchise journey, including the ins and outs of industry research, the risks and rewards of franchising, and some expectations you should understand before opening a business.
Who buys CBD?
One of the most common problems customers have when entering the CBD industry is the sheer number of options they encounter. From CBD gummies and oils to more specialized wellness products like CBD tampons and lubricants, there's a cannabis-based business opportunity to appeal to any audience. Here in Spain, the most common option is CBD flowers of various types. This is undoubtedly the segment within CBD where we specialize the most. CBD can appeal to a wide variety of adults across diverse demographics.
Therefore, knowing your target audience is vital to building your own internal brand awareness, especially when you're considering expanding your business into a franchise. In fact, many people cite the overwhelming number of options available to CBD consumers as a strength, provided this is addressed correctly. Offering a first-class personalized experience and connecting with your customer base is key to standing out in an ever-growing sector. Furthermore, this industry is expected to reach $20 billion in sales by 2024.
Problems in the industry
Despite this seemingly infinite growth potential, there are still some problems and Challenges within the CBD industry. Being a cannabis-derived product, the social stigma remains. In fact, its reputation is compared to the sale of e-cigarettes or tobacco. The sector is highly restricted but poorly regulated, and advertising is difficult to introduce in this sector. conservative paradigmHowever, we, ONLYCBDFANS, have effective advertising methods based more on new technologies and trends.
Not to mention the problems that arise from the consumer's point of view, such as the following:
- Misunderstandings
- Misinformation
- Legality varies from place to place (and even from state to state in the United States)
Can CBD franchises solve the sector's problems?
More than 3,000 companies are attempting to do the same within the potential of the CBD market: build brand loyalty and differentiate themselves from the crowd. Many will utilize loyalty programs, referral perks, special offers and sales, email marketing, and education to expand their customer base.
Some may see the additional challenges of not being able to advertise through traditional online channels as an obstacle. However, many have found success by breaking the rules: by sharing a carefully curated passion for CBD and positive product reviews, brands don't have to spend a cent. We'll help you every step of the way to reach the top with our marketing strategy.
What you need to consider before franchising your CBD business
Aspects to take into account.
If the CBD sector is growing rapidly, opening your own franchise is certainly an idea worth considering. But as with any business venture, there are several questions you should ask yourself first:
- Are you willing to commit and able to work long hours (including weekends and holidays) while following a strict business plan?
- Are you going to give up part of your business's reputation to a large franchise?
- Can you pay the franchisor a portion of your profits for the pleasure of being part of a larger plan?
- How will you finance your CBD franchise: with personal money or a loan? If you're looking to obtain a loan, you'll want to make sure you have the necessary assets to back it up.
- Who will be part of your team and how will they change over time? While you may be able to work with a small team that has been part of your business since its inception, you can also hire specific help. In that case, a franchise consultant can be essential, due to their expert knowledge of the sector and their help in vital parts of the process (such as site selection).IF YOU REQUIRE MORE INFORMATION ABOUT OUR FRANCHISE, WRITE TO US AT THIS WHATSAPP +34 605 23 35 01
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