When people look into doing business on the blockchain most are thinking of how to sell Bitcoin and make a quick profit.
If that is the type of article that you are looking for, then hit the back button. This article is about going much bigger than that. What I am suggesting is that your startup should be built on the blockchain for huge upsides.
As the technology starts to catch up with the idea of what the blockchain can offer, there are loads of opportunities that await those who get in on the ground floor.
In this article, I will give you the basics when it comes to starting a business on the blockchain.
Financing and Fundraising
The biggest difference between starting a business on the blockchain as opposed to the cloud is how you raise money. You’ll likely be starting an ICO, or Initial Coin Offering and creating your own cryptocurrency.
This is much different than getting a venture capitalist to invest or go for a business loan.
When you have a solid foundation for your business or software and the prototype works, then people will be interested in buying coins which you can then use to further develop and launch your idea.
One of the biggest downsides to the blockchain is that many of these startups are centered around the tech guys. They often overestimate what they are able to do and also have trouble communicating to the outside what the benefits are to investors.
To really be successful your business should be a collaboration between the technology and the other aspects of the business. All the teams should be working in conjunction towards a common goal. To succeed as a business and not just another tech startup that shows lots of promise but can’t deliver.
Use the Community
One of the biggest benefits to using the blockchain for your business is that there is a huge community that is very dynamic and passionate about blockchain technology.
There are many people who love to help others using the technology so they should be a valuable resource when you are starting out.
Whether it is a programming guru who understands the tech better than your own team, or somebody who knows how to navigate the ICO, you are sure to find many people who you can lean on for help and guidance when you hit some rough spots.
While this may seem to also fit businesses that start up on the cloud, there is something fundamentally different about the blockchain community.
Be Closer to the Customer
Since you are not usually dealing with banks or financial institutions, you are able to take the middleman out of the equation and deal more directly with your market.
You and your client are in more direct control over the flow of money on the registries which gives you more flexibility in how you run the business. That is one of the biggest benefits to the whole decentralized notion behind the promise of the blockchain.