Blockchain is a technological concept in the computing world that enables secure business operations on the Internet and verification of business operations between different parties without the need for a central management entity. The management factor replaces encrypted “blocks” of information generated using P2P-based network sharing.
Blockchain business requires a deep technological understanding and a business understanding of how technology is applied in the business world. Investors who invest their money in the Blockchain projects usually know the field at least on the basic level, so in this case it is necessary to elaborate on the technology issue in the business plan.
In the business plan for a product in the Blockchain area, it is important to emphasize the following issues:
It’s important to present the problem your product solves and how it delivers real value to the user. It’s better to avoid using Blockchain technology when it’s not the core of the product and rather used to “impress” the investor.
In the recent years since Bitcoin made headlines, hundreds of projects have been viewed in the field offering various solutions. It is important to explain to the reader which technology is at the base of the product, how it differs from what exists in the market and how it can be applied in the market.
In the event that the uniqueness of the product is not the technology, but its method of implementation; that is, the application of the technology in the industry that has not yet been used, it is important to emphasize the value added to the industry and, more important, why it has not yet been used.
Market research is an important part of every business plan, but in the case of Blockchain, its importance is twofold for several reasons:
- This is a new technology, therefore it is necessary to show data on market growth and trends
- What the Future Predicts – Unlike other products, it is uncertain that the future will be based on Blockchain. While signs are pointing in this direction, in light of the high volatility in the field, there is concern among many investors and therefore should be violated.
Studies should be presented indicating the increase in long-term use, including future growth expectations. If the profitability of the venture is directly related to the rates of virtual currencies such as Bitcoin, it is important to show how the movement of the currency rate affects the profitability of the company.
What is the main use of the product? Where can the technology be applied? Who sells the product and how much? Blockchain technology is implemented in dozens of branches. It is important to show a focus on the niche in which the product has a competitive advantage and a clear value to the customer.
How TARGO can help
In our experience, the entrepreneur must understand the nature of technology and its use in the business world. We will assist you in refining the business model and understanding the market and the business need in depth by preparing a business plan that provides full coverage for the needs of the enterprise.