19 Pros & Cons Of Starting A Hemp Products Business (2024)

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

High margins

The gross margins for your hemp products business are typically around 76%, which is considerably high and allows you to grow your business and manage costs easily.

You are your own boss!

With starting a hemp products business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

You can sell your product in various places!

There are various different markets to sell your product, which will help you reach different audiences and revenue streams.

Control your own destiny

Starting A Hemp Products Business allows you to control every aspect of your life and make your own dreams come true every day.

You get to do something you truly love

With starting a hemp products business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

Easy to Learn The Business

When starting your hemp products business, there is a ton of information readily available to you online (Facebook groups, Youtube videos, Starter Story etc). This will help you get the business started and answer any questions, doubts or concerns you may have.

Crowded Space

Competition is high when it comes to your hemp products business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Time commitment

With starting a hemp products business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Difficult to build trust with your customer

With starting a hemp products business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

Strict regulations

With any hemp products business, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur.

Complex development process.

The development process for a hemp products business can be quite complex, which may cause delays and challenges when launching and growing your product.

You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

Easy target for criticism

Since your hemp products business has the ability to reach a large audience, you'll need to be able to handle criticism. The internet can be a cruel place, and regardless of your intentions, many people will disagree with you and even take their criticism too far. To survive in this industry, you'll need to have tough skin (or at least learn this along the way).

High liability

Running a hemp products business involves a lot of liability, which means the cost for insurance premiums may also be high.