Categories: Bitcoin Business

5 Challenges Blockchain Entrepreneurs Need to Overcome

Click here to view original web page at www.business.com

If you’re really interested in incorporating blockchain into your business, here are five challenges that blockchain entrepreneurs need to overcome to run a successful business.

Blockchain technology is becoming more and more prevalent these days. Originally created by Satoshi Makamoto for the popular digital currency, Bitcoin, blockchain technology has now evolved into something more useful and therefore, more valuable, for tech users.

Despite the prevalence of blockchain, not all businesses are open to the idea of blockchain. Since it’s a decentralized system with no authoritative body overseeing it, many still have doubts about how safe this new technology is.

However, if you’re really interested in incorporating blockchain into your business, here are five challenges that blockchain entrepreneurs need to overcome to run a successful business.

1. Creating a new business model

The term 'business model' refers to the company's overall structure in creating a profitable business, which includes the company's purpose, goals and detailed plans. Some business models are as simple as creating a profitable product and selling it to interested customers. Others are more complex, such as ordering products from wholesalers, implementing guidelines for inventory, creating an online catalog, processing orders and shipping domestically or internationally. Many companies make use of a combination of various business models to ensure a successful business.

Traditional business models didn't have blockchain, and very few modern business models have provisions for it. Due to the ever-changing regulations on blockchain technology, you must overhaul or even create an entirely new business model to remain legally compliant at all times. Unfortunately, doing so can be rather difficult, especially for a start-up company that has neither the manpower nor the funds. But if you want to avoid all the hassles and potential legal repercussions that may arise in the future, it’s still much better to create a new business model from scratch. This means rethinking all the elements of a business model, especially your channels, revenue streams, key resources and cost structure.

2. Integrating blockchain

Start-ups tend to have a hard time integrating blockchain into their existing businesses. Blockchain requires special care, which is why business owners need to be creative with their innovations. Preferably, business owners who are planning to integrate blockchain into their systems should also be knowledgeable about blockchain themselves, to avoid or hopefully circumvent any problem that may arise along the way.

3. Finding talented people

Business owners aren't the only people in the company who should be knowledgeable about blockchain. Even the employees themselves must learn something about blockchain.

Unfortunately, finding people who are talented and knowledgeable about blockchain is difficult, despite the increasing relevance of such technology in today’s world. Additional training and mentoring for employees, especially for blockchain basics such as cryptoeconomics, cryptographic mathematics, and other blockchain principles, are imperative before fully implementing blockchain inside the company.

4. Getting the proper funding

Blockchain-based businesses tend to have a more difficult time getting funding due to their nature. Investors usually think twice before investing in these start-ups due to all the risks associated with blockchain.

To get funded, Blockchain entrepreneurs should specifically look for investors that are open to blockchain in the first place, especially those who already belong in the industry. Another way is to look for a trusted connection who can introduce your company to investors and explain to them why your company is a good investment. The best connection would be another individual or company that your target investor has already invested in before, preferably one that is also profitable. The more successful your connection is, the better chance you have of getting funded.

5. Wrongly evaluating the business

Many blockchain entrepreneurs encounter the difficulties of properly evaluating their start-up. When you're first starting out, it’s only natural to want to be optimistic about your company’s future returns and profits.

The problem begins when your estimated profits don’t match the expectations of your investors. This can lead to investors pulling out their funding or losing their trust in your business. To avoid this, make sure that you do a proper calculation of your future profits before giving an estimation of your company’s value.

Before implementing blockchain technology into your business, remember to prepare well beforehand in order to successfully overcome these challenges. Blockchain may be fairly new technology, but it could easily find its place in your newest venture.

I'm a serial entrepreneur and owner of three internet ventures, including My SEO Sucks. A contributor to ZeroHedge, Entrepreneur.com, Forbes, Inc.com, and dozens of other media outlets, I believe in SEO as a product. I developed a proprietary technology fueling the #1 rankings of My SEO Sucks clients. In guest speaking ventures across North American, I advocate for organic search traffic as the backbone of any comprehensive digital marketing strategy.

Blockchain technology is becoming more […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Price Forecast: BTC/USD Volume Could Indicate A Breakout

Bitcoin’s daily volume spike could create a necessary condition for a breakout. Traded price ranges continue to constrict. Bitcoin’s Bullish… Read More

4 hours ago

Billionaire Tim Draper: Bitcoin Will Hit $250,000 By 2022

Billionaire venture capitalist Tim Draper told BlockTV that in the next several years, Bitcoin could reach $250,000 per coin. "$250,000… Read More

4 hours ago

Maduro Mandates Petro-Financed Public Housing Scheme in Venezuela

Embattled Venezuelan leader Nicolas Maduro looks to expand Petro adoption through a new housing initiative. | Image: REUTERS /THIRD PARTY.… Read More

4 hours ago

Malware InnfiRAT Targets Bitcoin And Crypto Wallets

The malware named InnfiRAT could be stealing bitcoins and cryptocurrency wallet information. It is usually downloaded through email attachments and… Read More

4 hours ago

Bitcoin (BTC) Interest in China Driven by Price Action News

Share Tweet Send Share Baidu search trends in 2019 show Chinese bitcoin interest being driven largely by price action news.… Read More

4 hours ago

Crypto and the Latency Arms Race: Crypto Exchanges and the HFT Crowd

Max Boonen is founder and CEO of crypto trading firm B2C2 . This post is the second in a series… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More