How to start your own blockchain startup? FAQs
The blockchain technology was just a novelty with no visible application at first. Now, blockchain-based startups are launched more often than not. Let’s find out how to create a blockchain startup and what should be considered.
What kind of blockchain project to create?
First, you should decide what exactly you want to do with the blockchain. You can simply launch your own blockchain. This option can be profitable, but it also requires considerable concentration. Here you can face the problem of finding skilled team.
Another type of project is a decentralized blockchain-based application. For this, you can take an open source software solution and provide it with smart contracts.
Blockchain is used to decentralize certain processes. Therefore, it can be applied to business models with several parties exchanging goods or services. For example, legal companies, financial, marketing, logistics, manufacturing, banking organizations, medical, technical and technological, blockchain can basically be implemented in almost every sphere.
Who will create the product?
If you are good at programming, you can take the existing blockchain code, change it to interact with the network and develop an interface.
But if you have no such skills, you need to find a Chief Technology Officer (CTO). In fact, the expert can even be a co-founder of the project, since it will be easier to launch a startup. CTO will help to create the product, moreover, he clearly has a better chance of recruiting a team of skilled developers than you.
How much does it cost?
You will need 1 or even 2 million rubles to start a blockchain-based project. This will be salary for developers, rent and other organizational expenses. After your MVP (the minimum viable product) is created, you need to promote it. This process also requires money.
Therefore, create a whitepaper, describe your project in this document, all the advantages of your solution and a plan for further development to interest investors. Next, you can post an announcement about the search for investors on specialized forums, using this whitepaper. By this time, you will already have an idea of how much money you need for the further development of the product and the development of the company.
If investors are interested and gave you the money you need, you can start using it. If not, you can consider the ICO.
How not to break the law?
It is necessary to take into account the legal peculiarities of doing business in the chosen country. Now you will need a lawyer. If you can not afford to hire a lawyer, get at least a lawyer in the status of an adviser or consultant, for a while. It will be much better if the expert is not the first time participating in the creation of a blockchain startup. This way you will be able to avoid unnecessary checks by the authorities. The tax service in Russia, and the Securities and Exchange Commission or even the FBI in the US can be interested in your business.
You should constantly monitor all changes in the legislation as well, as many developed countries plan to introduce regulation for the use of blockchain in business.
What to do to develop the project?
After you created MVP and raised funds for initial development, it's time to think about advertising. Now you need a marketing specialist who will build a campaign to promote your project. Why is this necessary? For the costumers to find out about you and your product and start buying it. As cliché as this sounds, business is about money. If you do not get profit, your entrepreneurial career will end quickly.
One of the types of promotion is participation in various specialized exhibitions and conferences to promote your project to the most targeted audience. In addition, you can get new useful contacts at these events: some companies will add the necessary tool to your solution, others will help to adjust compliance with legal norms, and others can become partners or investors.
The above steps are not a mandatory guide. This is just an approximate way that will help you create your own blockchain-based startup and avoid frequent mistakes. Don’t be afraid to experiment, never give up and believe in yourself.