Blockchain technology is the future, and now’s your chance to get in on the ground floor.
We’ll show you how to start a blockchain company from scratch, and we’ll cover the basics and how to incorporate your business.
Here are the ten steps to starting your own blockchain services business
Step 1: Develop A Business Strategy
To be a successful entrepreneur, you must have a well-defined strategy. Your business’s specifics will be mapped out and certain unknowns discovered. A few things to think about:
- Are there any start-up or continuing costs?
- Who are you trying to reach?
- How much money can you make from your clients?
- What Will The Name Of Your Company Be?
Fortunately, much of the legwork has already been done for you.
How Much Does It Cost To Start A Blockchain Services Company?
If you’re starting from scratch, you should only need the cost of computers and the internet to construct your prototype. Liability insurance is required, and the fees vary depending on the limits you choose and the services you provide. Finally, it’s good to hire legal and public policy consultants who can help you understand how blockchain technology is evolving.
How Much Does It Cost To Run A Blockchain Services Company Regularly?
The most expensive part of a blockchain will be the labor, as the company will require specialized personnel to create and market the platform. In addition, it is essential to take into account the cost of electricity, insurance, and the direct cost of the place you are using.
Who Is The Intended Audience?
Even though the blockchain is usually linked with bitcoin transactions, it may be used in any business. In essence, the blockchain makes it nearly hard to hack into a corporation’s information, which is becoming increasingly critical as the number of virtual frauds rises.
Even more importantly, with smart contracts, the blockchain allows us to communicate at a level we’ve never seen before. We can’t even begin to comprehend so many uses for these unique if/then statements.
Working with many vendors is made simpler by using Blockchain in construction. When all transactions are visible in the ledger, there is no room for misunderstandings about who is in charge of what.
It’s already being used in the real estate business to facilitate sales and investing. For example, a person could acquire 2 mm of property on the blockchain if they so desired because it works with extremely small quantities.
What Are The Revenue Streams For Blockchain Service Providers?
Typically, blockchains will either charge a monthly subscription fee or a one-time cost for a specific project. Verifying transactions on their network could cost them money. The ability of blockchains to manage micropayments is one of its most significant features. Cryptocurrencies like Bitcoin and Ethereum are commonly used to pay transaction fees.
How Much Can You Charge?
Owners are still trying to figure out how to charge for their services on the blockchain, which is still in its infancy. Transaction costs, for example, have ranged from less than one dollar to over fifty dollars! If you have direct competition, look at their prices to figure out your own. If you’re launching a new product or service, calculate how much time and money a blockchain can save your customers, and then price your blockchain accordingly.
How Much Can A Blockchain Services Company Make?
To be lucrative, a blockchain must be able to scale its technology to satisfy public demand. For example, to make $100,000 in profits per year, you would have to sell eight projects for $50,000 each.
Is There A Way To Increase The Profit Margins In Your Company?
Consider expanding your firm into new markets. For example, offering additional programming services, such as software that enables businesses to accept cryptocurrencies.
What Will The Name Of Your Company Be?
An important and challenging decision must be made when naming a new product. For example, your firm’s name may not be the most appropriate one for your sole proprietorship.
It is an excellent idea to do some research on your business name before registering it:
- All of your state’s financial data
- In both federal and state trademark databases
- Platforms for social media
- Availability of web domain names.
Register your domain name as soon as possible.
Step 2: Create A Legal Business Entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most popular business structures.
An LLC or corporation safeguards you from being held personally accountable if your blockchain services firm is litigated against.
Alternatively, you can employ an incorporation service for a small additional price to incorporate an LLC and spend only the minimal state LLC costs.
Step 3: Obtain A Tax ID Number
Before starting a business, you’ll have to file various state and federal taxes. You’ll need to have an EIN before you can file your taxes. But it’s simple and completely free!
Step 4: Apply For A Small Company Bank Account And Credit Card
The protection of personal assets requires specific business banking and credit accounts.
In the event of a lawsuit against your business, your assets (such as your home, car, and other possessions) could be at risk. This is known as piercing your company veil in business law.
It’s also a good idea for small businesses to learn how to build business credit since it can help them receive better interest rates, larger credit lines, and more.
- Open a bank account for your company.
- Opening a business bank account is also a prerequisite for securing a business loan.
- Protects your assets by separating them from your company’s assets.
- Allows for more straightforward tax and accounting procedures.
Begin by opening up a total of 30 new accounts
The use of net 30 accounts is an excellent way to develop your company’s credit and increase your company’s cash flow. In 30 days, businesses use a net 30 account to purchase items and pay back the entire sum.
Make use of a company credit card
It’s beneficial to have a company credit card because:
- Put all of your company spending in one location to help you distinguish between personal and business expenses.
- Establish your company’s credit record, which might be advantageous when it comes time to raise capital.
Related Read: Investing When You Have Credit Card Debt
Step 5: Set Up A Bookkeeping System For Your Firm
Keeping track of your business’s spending and profits is essential to determining how well your company is doing financially. In addition, it is much easier to file your annual taxes if you keep meticulous and accurate records.
Step 6: Obtain All Required Permits And Licenses
You might face large fines or even have your business shut down if you don’t have the proper permits and licenses in place.
STEP 7: Get A Commercial Insurance Policy For Your Company
It’s the same with licenses and permits: You need insurance to run your business legally and safely. In the case of a covered loss, business insurance safeguards your company’s financial stability.
Insurance plans are available in various forms to cover a wide range of business types and levels of risk. Begin with General Liability Insurance if you don’t know what kinds of hazards your firm might face. As the most prevalent form of insurance small businesses requires, this is an excellent location to begin building your coverage.
Workers’ Compensation Insurance is a well-known insurance need. In addition, workers’ Compensation Insurance is almost certainly a legal need if you want to employ people.
Related Read: What Insurance Should You Consider For Your Business?
Step 8: Define Your Brand
Your brand is what your firm stands for and how the public sees it. There are several advantages to having a strong brand.
Step 9: Create A Website For Your Company
Creating a website for your business is the next step after defining your brand and creating your logo.
Making a website is an essential first step, but some people may be reluctant to take this on because of their lack of previous website-building knowledge. In 2015, this may have seemed like a fair concern for small business owners, but online technology has made it much easier to operate their businesses.
You should not put off establishing your website for the following reasons:
- Websites are mandatory for any reputable businesses. But, when it comes to getting your business online, it doesn’t matter what kind of business you run or what industry you’re in.
- Facebook pages and LinkedIn profiles for businesses are not a substitute for a company website that you own.
- Easy-to-use tools like GoDaddy’s Website Builder have simplified setting up a basic website. To build a website that you’re happy with, you don’t have to pay a web developer or designer.
Step 10: Create A Phone System For Your Business
Getting a business phone is one of the finest ways to keep your personal and work lives separate. As well as making it easier for potential customers to identify and contact you, it also aids in automating your business and giving your company legitimacy.
Blockchain technology is rapidly evolving and offers immense opportunities for businesses across various industries. By following the steps above, you’ll be in a solid position to start your own blockchain company.
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