This week, we’re talking to an athlete who also opened his own cannabis business…
Editor’s Note: This week, we have an exclusive interview with Caleb Simpson. He is the founder and owner of Hemp Daddy’s Therapeutics. He started the company after CBD helped him through the stress of exiting his previous business. He’s a husband, father of three, and an avid ultra runner who lives in the Texas Hill Country.
At the National Institute for Cannabis Investors, something we’ve been watching closely has been athletes getting into the CBD market.
It touches on a couple of different points.
First, it shows the normalization of cannabis, as athletes feel comfortable enough to use and promote cannabis-based medicine.
It also touches on the concept of the marijuana market taking on the pharmaceutical industry. Instead of turning to pain killers, athletes now can use CBD for recovery.
And it also shows how cannabis is truly becoming a growing entrepreneurial movement. Former NFL wide receiver Calvin Johnson wants to open a dispensary in Michigan, and quarterback legend Joe Montana is investing in cannabis companies.
So, when we first heard about Caleb Simpson, we knew we had to share his insight with our members.
He’s an ultra runner, which involves running more than the standard marathon length (26.2 miles). He’s also a CBD entrepreneur in Texas, so he knows all of the rules and regulations cannabis business owners have to overcome.
CBD and Athletics
First, we’re going to talk to Caleb about his use of CBD as an athlete.
NICI Staff: Can you talk about how being an ultra runner led you to using CBD?
Caleb Simpson: As an ultra runner, I’m constantly putting in a lot of miles, and it’s very easy to get injured and/or over train.
About four years ago, I developed Achilles tendonitis.
I began using CBD to help with the pain, and eventually, started noticing improvement in my injury. It still hasn’t fully healed, but CBD helped me make some progress. A side benefit was decreased pain associated with a chronic shoulder injury from a car accident years ago.
Educating the Public on Cannabis
NICI Staff: You’ve become an educator about cannabis for the sports community. When you talk to other athletes, are they worried or wary about trying it?
Caleb Simpson: I’ve been on several ultra-running podcasts and educated thousands of runners about the benefits of CBD. Many of them are only hesitant because of the close association CBD has with marijuana. Many of them are relieved, though, when they hear that there is no high associated with it.
There are still a lot of skeptics, though, or people that tried it but didn’t get results. I try to educate them about how CBD works and how to properly dose. Often, they are willing to try it for a second time and end up getting results.
In general, it really just comes down to educating people.
CBD has the potential to rock the pharmaceutical industry to its core. Even though experts predict a 3,622% jump in sales in the next three years, the true growth potential is unlimited. For more information on how you could benefit, just click here.
Starting a Cannabis Business
NICI Staff: When you found out about the benefits of CBD firsthand, you started the company Hemp Daddy’s Therapeutics. Can you tell us a little more about what the cannabis entrepreneurial experience looks like for those who are interested in starting their own business?
Caleb Simpson: Having run my own business before, there wasn’t really anything unexpected – other than merchant processing issues – that every cannabis company has to deal with. We even got shut down by our bank after a month of banking with them. I was so upset because I had banked with them since I opened my first checking account.
For those interested in starting, though, you have to ask yourself what aspect of the industry you want to be in and what you’re an expert in.
If you are just a general entrepreneur like myself or have marketing experience, creating a brand or starting a cannabis-related marketing agency is going to be the way to go.
There is more to the industry than just CBD and marijuana. Think about all the ways you can get involved in the industry without touching the plant.
Others might have lots of access to capital and might want to start manufacturing for other brands. We chose to partner with somebody that already had all that in place. I prefer a low overhead model.
If you don’t have a lot of capital, you are going to be best off starting a brand and growing slow, or being a part of the industry in another way. If you want to start your own brand, you are looking at $10-$20k as an investment.
That’s much lower than building out an extraction facility or starting a farm.
I also recommend reading the book Profit First by Mike Michalowicz.
It’s a false idea that you have to ‘invest back into the business’ to grow. You should be paying yourself from the start and planning the business in such a way you are not growing beyond your means.
Cannabis in Texas
NICI Staff: As your company is based out of Texas, can you tell our members a little more about the marijuana movement in what most consider a conservative state?
Caleb Simpson: The marijuana movement in Texas is very interesting. There are some factions and lobbying groups, so there is a lack of common goals. There is currently a “medical marijuana program” that allows patients to access CBD with slightly higher THC contents (0.5% instead of 0.3%).
The system is pretty broken – there’s a lack of doctors who can write prescriptions – and there are only a hand full of dispensaries that can sell the CBD that has higher THC content.
There have been attempts at lowering the penalty for possession of small amounts, only to be single-handedly shot down by one senator.
However, this conservative state has shown it has an open mind, too. I used to think Texas was going to be last to legalize, but that might not be the case. There is a HUGE pro-cannabis movement, especially in cities such as San Antonio and Austin.
We want to thank Caleb for taking the time to speak to the National Institute for Cannabis Investors!
We also wanted to take this time to talk more about the CBD market.
Booming CBD Market Is Set to Explode 10X Higher This Year
It seems like everyone wants to get in on the CBD revolution.
Check out some of the big name players throwing their hats in the CBD ring…
- Soft drink giant Coca-Cola recently met with Aurora Cannabis to explore the possibility of developing a line of CBD-infused beverages.
- Lifestyle expert and culinary queen Martha Stewart announced her partnership with cannabis company Canopy Growth. They’re creating a new line of hemp-derived CBD products – starting with calming, pain-relieving products for pets.
- Anheuser-Busch is partnering with Tilray – a Canadian cannabis company – to research the possibility of infusing non-alcoholic beverages with CBD.
- Sträva Craft Coffee added full-spectrum CBD to its specialty blend. And maybe you’ve heard about Willie’s Remedy – music legend Willie Nelson’s CBD-infused coffee beans. This coffee/CBD combo delivers both calm and focus with every sip.
- California-based Sprig has introduced a line of CBD sodas that are currently sold in nine states. The sodas are also available online and are shipped nationwide.
Truth is, we are entering the perfect CBD “sweet spot” where investors could expect to see massive returns over the next couple of years.
In fact, experts project sales in the CBD market to grow over 3,000% in the next 12-36 months alone. That would put sales at $22 billion by 2022.
This sector of the cannabis market is one that investors shouldn’t overlook. After all, Greg didn’t call 2019 the “Year of CBD” for nothing!
To your investing success,
7 responses to “This CBD Advocate Is Pushing the Industry Forward”
August 01 2019