28 July 2021
Blockchain was first introduced with Bitcoin, and it has completely revolutionized the technology industry. As the name suggests, each block consists of information that are chained together in chronological order. It is a type of database, a digital ledger of information. The most common application of Blockchain is seen in Crypto-world due to which frequently, both the terms are used interchangeably. What we need to know is that Cryptocurrency is a digital currency that is based on Blockchain Technology. Similarly, Blockchain has several use-cases and applications in various industries.
Over the years, many Blockchain-inspired projects have paved their way in many industries such as Banking & Finance, Tourism, Healthcare, Law Enforcement, Voting, Real Estate, Supply Chains, and many more. Major large companies such as HSBC, Walmart, Barclays, Pfizer, Siemens, Maersk, Etihad Airways, Mastercard, FedEx, Microsoft, IBM, Overstock are adopting Blockchain. Additionally, the Blockchain companies such as Ethereum, Bitcoin, and EOS have reached millions in market cap.
However, we already have a system in place that performs nearly the same functions that Blockchain offers. So what is Blockchain’s USP?
1. The start to the endpoint of transactions are solved, verified, approved, and added by the network’s users, also referred to as nodes.
2. Blockchain is Digitized, meaning the framework runs digitally through the Internet.
3. Blockchain is Decentralized; hence, it eliminates the need for middlemen and intermediaries.
4. It is Immutable; consequently, it cannot be tampered.
5. The data stored on Blockchain is time-stamped.
6. Blockchain is Cost-efficient and Faster.
7. The network is Secure and Private.
8. It maintains Anonymity.
9. Blockchain creates Trust and Transparency in the system.
10. Last but not least, Blockchain has Smart Contracts.
Blockchain technology usage can enhance productivity and efficiency in the management of projects, information, and finances. Every type and form of Business transaction and service can benefit from Blockchain technology.
So if you have the perfect Business opportunity, and are willing to take the next step towards Blockchain. The first thing you must remember is that “Rome wasn’t built in a day!” Likewise, building a Blockchain Services Business requires meticulous planning, effort, and time.
In this blog, we have put together a Step-By-Step Guide To Start Blockchain Services Business
1. Plan your Business
As Antoine de Saint-Exupéry said, “A goal without a plan is just a wish”. Similarly, research, planning, and strategizing are the key to the success of your Business. These components will help you map your Business journey. Thorough and diligent research can help you discover and learn the odds that you may have missed out otherwise.
You can consider the following topics:
- You can consider the following topics:
- Establish, Define and Design your Brand - your Blockchain Service Business.
- Create a Business Website and Social Media presence, for your customers to reach and connect.
- Define the services that you are going to offer.
- Design a framework for your Blockchain Business application.
- Identify and List the Target Audience and Market.
- Incorporate Blockchain solution into your Business plan, including costs, revenues, and profit projections.
- Study the cost involved in starting a Blockchain Service Business.
- Learn the ongoing costs of running a Blockchain Service Business.
- Design a revenue model for your Blockchain Service Business.
- Know your Risk tolerance, strategize and act upon it.
2. Create a Legal Entity
It is crucial to establish your Business structure type, such as sole proprietorship, corporation, partnership, and LLC - limited liability company. Forming a legal Business entity such LLC will safeguard you from personal accountability when the company faces trouble like litigating.
3. Business Licensing
Licensing is crucial in Business; otherwise, it can result in significant fines or the worse - shut your Business. To operate your Blockchain Business service, you may require necessitating the acquisition of state permits and licenses.
4. Filling out Taxes
You will have to register with a number of state and federal taxes before commencing your Business. You will need to apply for an EIN in order to register for taxes. Furthermore, the taxation options depend on your Business structure; for instance, LLCs may benefit from being taxed as S corporation.
5. Business Insurance
Obtaining insurance is important for your Business to function safely and lawfully as it protects the company’s well-being. There are various types of insurance policies designed for Businesses to mitigate associated risks, such as General Liability Insurance, Worker’s Compensation Insurance, etc.
6. Business Accounting
Maintaining your Business expenses and performance helps you understand the progress of your Business. However, it is important not to intermingle Business and personal accounts as it risks your personal assets when the company is being sued. Therefore, the use of a dedicated business bank account is essential for personal asset protection. In addition, using a Business credit account will provide you increased credit lines, lower interest rates, and other benefits. Moreover, it also simplifies tax filing, accounting, auditing business expenses, and builds the company’s credit history, which can help you in the future. In the Business world, this is referred to as piercing the corporate veil.
7. Hiring Professionals
You can start on your own, but eventually, you would need to hire a team of professionals and advisors to help you build your Business in the public and legal spheres. For example, you would need to staff tech-savvy experts, subject-matter mentors, programmers, Blockchain developers, marketers, financial experts, legal counsel, administrative employees, and so forth.
8. Blockchain Business Marketing
You have created a plan and have eventually executed it, but is it going to widespread on its own? Well, the answer is a partial yes and no. Blockchain is still treated as a newbie and intricated with uncertainties. To make a Blockchain Business a success, you would need to pitch in marketing and advertising of the services. Networking will help your Blockchain Business to create opportunities and reach potential on a global scale. A solid marketing strategy plays an important role in defining a company’s long-term progress and profitability.
9. Providing Services and Offers
Excellent customer service goes miles as it creates a sense of authenticity to your Brand. Customers prefer platforms that work consistently without hiccups. Also, work on building a loyal customer base by offering rewards, discounts, referral programs, and so forth.
10. Stay ahead in the Game
Just playing by the rules in the field isn’t enough; you should know your competitors. Stay updated with the latest developments, projects, etc. Never stop learning, whether it’s the new technology to add to your Blockchain Business or a new marketing strategy.
Blockchain World can be quoted as a Technology of the people, by the people, and for the people! Blockchain technology is gaining traction and recognition; thus, it is not unreasonable to expect that someday, instead of being quoted as Blockchain World, it will be the Blockchain Universe!
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.