5 Obstacles Every Blockchain Business Faces
Get yourself prepared before adopting blockchain technology in your business.
It is undeniable that blockchain and cryptocurrency have dominated most business conversations in the past decade since Bitcoin was first introduced in the market. Blockchain technology sparks huge interest and prospect for businesses across various industries. It did not only give rise to a community of blockchain investors but also piqued the entrepreneurial side in all of us to venture into blockchain businesses. According to recent statistics, the average number of monthly ICO went up from 8 to 200 and ICO investments have increased 16 times - - all within one year.
Despite this tremendous growth of blockchain adoption in various industries, numerous startups have also bore witness of the great obstacles in starting a blockchain business. We can learn this fact from Jack Ma, the founder of Alibaba, about starting a business.
“Today is hard, tomorrow is worse,
but the day after tomorrow will be sunshine”
– Jack Ma (2016)
Running a startup is never easy. Adding blockchain technology into the mix would introduce different kinds of challenges. But to get to that sunshine, what better ways than to get yourself prepared by anticipating the upcoming obstacles?
Here are the 5 major obstacles your new blockchain business would face:
1. Incorporating Blockchain Technology
The very first obstacle is simply the decision whether to integrate blockchain into the business model.
There has been a common misconception that this digital world is free from regulation and legal processes. But that is not the case, because extensive and relevant knowledge of blockchain regulation is critical to avoid future legal issues. Regulatory issues is a widespread problem for blockchain adoption globally, because different countries have different frameworks to regulate its application.
Correct understanding about the terms and processes are also part of this obstacle. Since the market has been flooded by enthusiasts & incorrect information floating around, misinformation became the risk for interested parties. The most common mistake is people just diving into the market without familiarizing themselves with the intricacies of blockchain.
Any new blockchain company has to familiarize with the blockchain legalities & technicalities before incorporating blockchain technology. Thorough process of assessment is crucial for a sustainable growth of your start-up.
Due to these legalities and technicalities, new blockchain company should consult with an expert in the field when deliberating the decision.
Interested to incorporate blockchain? Find out where to start here.
2. Promoting Brand Awareness
Like any other businesses — or even more for blockchain businesses, market presence is key to success.
This obstacle may sound simple because great marketing skills may just do the trick, but there is more than just marketing that any blockchain startup needs to build a strong brand and sustainable user acquisition.
The current best way to build brand awareness is through thought leadership. Whether it is writing syndicated blog posts, contributing op-eds and quotes or participating in education and commercial conferences, businesses should aim to get themselves be seen in front of many eyes as possible. High traffic websites and engaging social media accounts are also a part of the digital marketing efforts that would need to be maintained throughout and strategically targeted to the correct audience. Hence, the need for not just any marketing team, but one with an understanding of blockchain, must be addressed.
3. Talent Sourcing
Finding the A-Team may not be as easy as putting up a job opening announcement in a shopfront.
As what the previous obstacle proves, the challenge for blockchain company is to reaffirm its legitimacy and market position to their community. This entails the need of establishing a high-performance team with real experience and strong technical skills. However, this becomes an issue as there is a scarcity of talent with good blockchain knowledge today.
Especially with the evolving nature of the blockchain technology, your blockchain-integrated business must stay relevant and informed with the latest crypto updates. A team with the hearts and mind for blockchain becomes key to grow your business.
Getting attached with a blockchain marketing consultant is the best solution to overcome these 2 obstacles.
4. Building Your Community
Community is the pillar of any blockchain companies throughout the business life cycle.
If you have been involved in the crypto community, you know that community is a solid success key for decentralized solutions. The community supports and unifies businesses by providing a strategic networking and communication channel throughout your business development.
Building a network of supporters will require time and energy and may not be successful without the right platform. Moreover, traditional marketing does not work when building a crypto community. What does work, however, is transparency. Your community would value regular updates and assurance by being on top of crypto news. Therefore, having a thorough understanding and expertise in the crypto-sphere is essential in building a strong community for your startup.
5. Gaining Funding
The last, but definitely not the least, is the financial fuel of your business to maintain operational functions.
Any startup would agree that gaining funds has been one of their major decision impacting their success. There are many elements to be considered, such as how much to raise and distribute and what types of investors to source from. However, as a blockchain-integrated startup, there are more funding challenges to overcome. For instance, getting ICO funding brings on additional legal challenges that makes funding from traditional investors impossible.
Moreover, there is a stark difference between traditional crowdfunding and ICO. Learn more to understand the difference. Due to structure and process differences, blockchain integration definitely calls for a different marketing approach to successfully reach and gain potential investors.
A specialized agency in the crypto field is your solution in performing well-targeted marketing campaigns for your startup.
Those five obstacles are only a few of the many challenges that lie ahead in the blockchain landscape. From deliberating the need of incorporating blockchain technology to building strong brand awareness and community, they all entail a substantial level of expertise both in the crypto and marketing field for your business to adopt blockchain technology and thrive in the market.
Contact us now to engage our expertise.
Obstacles are meant to be overcome.
Let Principal Strategic plan your next move!
At Principal Strategic, we talk, discuss, brainstorm and execute innovative ideas of marketing blockchain projects. Our extensive knowledge about blockchain and priority of your business growth allow us to provide tailored and innovative solutions for you to propel your business beyond these obstacles. We have worked exclusively with revolutionary enterprises such as Tokenize Xchange and World Trip Singapore. Check out our interesting blockchain projects we have worked with.
D’souza, V. (2018, April 5). Five Challenges Blockchain Companies Face While Working With Banks. Entrepreneur. Retrieved 11 January 2019, from https://www.entrepreneur.com/article/312489
Milosevic, V. (2018, August 13). 7 key challenges that all blockchain startups should know about. [Cofound.it Blog]. Retrieved 11 January 2019, from https://blog.cofound.it/7-key-challenges-that-all-blockchain-startups-should-know-about-4e40b0b208d6
Radocchia, S. (2018, February 16). 4 Challenges Facing New Blockchain Companies — Chronicled. [Chronicled Blog]. Retrieved 11 January 2019, from https://blog.chronicled.com/4-challenges-facing-new-blockchain-companies-f9cd8911d9d8