Blockchain technology is gaining traction with the mass market. With this new trend in financial services, entrepreneurs are launching blockchain startups to meet the increasing demand for their products and services.
With blockchain technology being so new, it’s important to note that not all businesses will be successful in this industry. However, with proper planning and research, you can ensure your success. So, in this post, we have put together some helpful tips from experts on how to launch your blockchain startup and be successful. Read on to discover all that you need to make good mark in this industry.
Tips for Launching Your Blockchain Startup
#1: Do your research
As with any new technology, it’s important to do your research and learn from the experts. Understand what blockchain is and how it works before you take the plunge into this technology. It doesn’t matter where you live or if you have a background in coding—several resources can help you on your blockchain journey. Luckily, there are knowledgeable communities of people ready to share their insights into the industry.
The best place to start is by reaching out to other blockchain enthusiasts and asking them questions about the startup process. Ask them what they think about your idea, what they think about the industry in general, and what mistakes they made when they first started in this field.
#2: Know your competition
First, you must know your competition. The best time to launch a startup is when there’s a new and emerging trend in the market. When blockchain technology first started gaining popularity, many people were still trying to figure out how it would change their business.
This means that your competitors are still launching their businesses and figuring out how to use blockchain technology for themselves. Knowing your competition will help you plan and ensure your success with your startup.
Second, you must possess certain skills to make you stand out from the crowd. For example, if you have experience in network marketing or finance, those particular skills can easily be transformed into blockchain-related skills.
Third, it helps research what people expect from a successful blockchain startup. What are they looking for in terms of product/service? What are they most concerned about? Once you find these answers, use them as a guide while developing your product/service, exactly what potential customers want and need.
#3: Choose the right blockchain for your startup
Choosing the right blockchain for your startup is important. While there are many options, some are better suited for specific needs.
For example, if you’re looking to create a payment system, you could use a permissioned blockchain like Hyperledger Fabric, which is private and permissioned by design. On the other hand, if you’re looking to create an e-commerce platform and have transactions between buyers and sellers made on public blockchains like Ethereum or Bitcoin, then you’ll need a public blockchain that allows transactions of all kinds.
You may consider the following factors when choosing a blockchain:
- Level of adoption
- Scalability
- Regulatory compliance
- Developer support
- Cost per transaction
When using a public blockchain, you also need to consider how quickly your transaction will go through and whether or not miners maintain it. This determines how much your transaction costs and how long it takes for it to go through.
#4: Make sure to focus on marketing and branding
The blockchain is still relatively new, and it takes time to build up a reputation. To establish yourself with potential clients, you should focus on marketing and branding early on. In addition to focusing on marketing and branding, you’ll want to create token economics that will generate a sustainable product or service. This will ensure your business has a long-term future.
Additionally, it would be best to think about how people will receive your product, service, or token. Blockchain technology is still new, so you must support those who are knowledgeable about the industry before launching into this market.
#5: Make use of partnerships within the blockchain community
The blockchain space is a highly competitive one. It would help if you were prepared to go head-to-head with other companies and startups, especially as the market grows in size.
One way to gain an edge on your competitors is by partnering with related companies that share the same goals as you do. For example, if you’re looking to develop an application that uses blockchain technology, it’s best to partner with a company with expertise in the blockchain space.
This will allow you to work together and help each other grow your business so that neither of your companies has an advantage over the other. Additionally, this is a great way for you to learn from each other’s successes and failures. This type of partnership will give you more insight into what’s working and what isn’t in this industry.
