Are you thinking of launching a blockchain business? We don’t blame you- the blockchain sector is growing exponentially with boundless opportunities for savvy entrepreneurs. If you are ready to take the next step, here are seven things to consider before you do so!
Have you done your due diligence?
No, we don’t mean due diligence in the legal sense; we mean, have you done your research? When launching a blockchain business, you need to put in time and effort before starting the setup process. This means finding your niche, evaluating the market, and analysing your competitors. First and foremost, you need to ensure there is a demand for your product and that your offering is better or different from those already available.
You should also figure out how much money you have to get started, including staff, corporate costs, product, and of course, marketing. The planning stage should not be rushed, and it’s a good idea to bring on a professional consultant to make sure you don’t miss anything.
Does your idea require a license?
In many countries, blockchain is not a regulated industry. But this will depend on what your specific vertical is. For example, if you are launching a blockchain business in payments or gambling, you may need an additional license. Regulatory authorities grant these licenses in the jurisdiction where you are based and will regulate how you operate.
If so, where is the best jurisdiction?
If you do need a license before launching a blockchain business, find the optimum jurisdiction. Many locations offer different kinds of licenses in payments, gambling etc., but they all have pros and cons. Some may suit startups, while others may be more suitable for established companies. They all vary by cost, setup time, requirements, and ongoing obligations. Be sure to choose wisely for the best chance of starting your business without a hitch.
There are various factors to consider, including taxation, payments, structuring, and requirements. There are plenty to choose from, contact Fast Offshore, and we will be happy to assist you.
What kind of insurance do you need?
When launching a blockchain business, you need to think about insurance. You might need insurance for your offices and equipment, insurance for staff, and professional indemnity insurance. Some kinds of insurance are even requirements from local authorities, so make sure you are clear on obligations. Failure to get the right kind could end you up in trouble legally, financially, and compliance-wise!
What kind of ongoing obligations do you have?
With a company, you may have to file reports and statements periodically. You also need to consider taxes and fiscal obligations throughout the year. Asides from corporate matters thought should be given to expansion, including product development, staff, and physical locations. All of these matters require ongoing management, as well as expansion in the future.
What about compliance?
As mentioned, compliance is something you need to consider when launching a blockchain business. Precisely what this will entail will depend on the sector you operate in. For example, compliance for a blockchain app is likely to be limited. Whereas, if you are working with blockchain payments, you can expect more rules. To make things more challenging, compliance requirements change regularly to keep up with evolving threats.
Who will you partner with?
This is perhaps one of the most critical questions of all! Throughout your startup journey, you will need a professional by your side. Someone to take care of all the paperwork, liaise with authorities and provide valuable insight. Fast Offshore might not build you a blockchain, but we can take care of almost everything behind the scenes. To find out more about launching a blockchain business, why not schedule a chat?
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