Starting a blockchain cryptocurrency business could be confusing but with the right information, things become easier for you.
In this article titled how to start a blockchain cryptocurrency business, we will be pointing out all the things you need to know about blockchain cryptocurrency business, how to start, possible mistakes starters do make, risks and possible expected losses, the pros and con’s. We also be educating you on how to avoid this possible expected mistakes, losses and how to utilize every opportunity that comes your way.
Firstly, what is a blockchain and blockchain business?
A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain).
Since the introduction of blockchain technology by Satoshi Nakamoto, the blockchain technology has been independent and have become a center focus of concentration among companies in different industries. Several businesses have started operating with a new business model that is based around the blockchain.
blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words “block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public database
According to investopedia, blockchain is literally a chain of blocks, but not in the traditional blocks.“block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public database (the “chain”)
Blockchain business can also be seen as a service business model that describes the process through which third parties install, host, and maintain a blockchain network on the behalf of organizations. The service provider takes care of the setting up of blockchain infrastructure and technology in return for fees. This is according to appinventiv.
Steps to start a block chain business
Draft a Business Plan
Having a defined business plan helps you to evaluate properly your chances of survival, possible challenges likely to be encountered and other factors that are to be brought to consideration. A business plan is like a theoretical version of your business. A clear business plan saves you a lot of losses and possible damages. A good business plan should clearly state out the following;
- Your market audience
- Your expected customers
- Financial budget
- Expected returns
And should contain the following sections
This the outline of your business plan. Its like the summary of your business plan. Executive summary makes it easier for readers to understand what your business plan is all about at a glance; it should also be written in such an enticing way so readers will be tempted to read other part of your business plan. It should summarize all the points contained in the business plan.
Executive summary too must contain the best parts of your business plan to grab interest of outsiders. It should be crisp and clear.
This section should contain all the information’s about your company. The company goal, mission, vision, objectives. A company description is needed basically for external description as its not actually needed for internal purposes. This section should be properly drafted as it serves as part of your company key to attracting investors.
Description of Management and Organization
Breakdown of Your Products and Services
The Bottom Line
What are the startup and ongoing costs?
Who is your target market?
How much can you charge customers?
What will you name your business?
Register your business
Open a business bank account
Obtain necessary permits and licenses
Get Business Insurance
Define your brand