Creating a startup company can be a daunting task, especially in newer industries like crypto. As more and more people buy Bitcoin, more innovation opportunities arise and many entrepreneurs seem ready to dip their toes into the upcoming potentials.
If you are interested in building a new company in the crypto industry, this article will help you get started. In the next few chapters we will show you what you need to do, step by step, to make sure that your endeavors lead to success. Let’s get started.
1st Step – Make sure your idea is original
CoinMarketCap now has more than 7000 cryptocurrencies listed on its platform. And yet, only a few of them seem to increase in popularity in neutral or negative market conditions – those with strong fundamentals. You want to make sure that your company is going to be able to survive crypto “winters” if you want to reach success, and that comes with originality and authenticity.
Take Bitcoin for example. Even since the project started “forking”, we observed more than 15 different Bitcoin spinoffs, all of which did not manage to live up to the original. Apart from that, when looking at longer timeframes, we can see them dying out since they have nothing new to offer. The only ideas that can succeed are the ones that bring something new to the table.
2nd Step – Find funding opportunities
Similar to normal startups, new crypto companies will most likely need to seek out investment opportunities as well. Without them, there will not be much time or flexibility to build out the ambitious project. Thankfully, over the past two years, we have seen several large organizations allocate funds towards cryptocurrency projects that aim to improve the space.
We recommend starting out by exploring Binance Accelerator and Angel.co’s blockchain investors. If this is not an option, you can also reach out to investors directly by cold emailing them or reaching out on LinkedIn. The goal, here, is to get enough capital to fund your first year of operations.
3rd Step – Build a great team
Once you manage to get enough funds to start your project on the right foot, it’s time to build an effective team. Obviously, blockchain developers will be more expensive due to their specific skills, so you need to make sure you have enough money to fund your undertaking.
Apart from developers, you will need to hire for the following roles as well:
- Marketing – Find a creative person with experience in the crypto industry and all the different medium that cryptocurrency companies use to connect with their audience. For this role, it is important to check out the candidates’ Twitter accounts to get a better understanding of their knowledge of the target audience.
- Customer success – Also known as customer support, this role will help with the onboarding process of new users. This process is instrumental for new startups, as it is the community that will eventually promote your product and help it grow in the open market.
- Director / Project manager – You, as the CEO and founder, will most likely keep busy building relationships, making sales, and traveling to conferences. But what happens with the team that stays behind? This is where a director comes in. This role will keep the team organized and help them maintain a goal-oriented approach.
4th Step – Generate Awareness
This is where the real challenge begins – it’s time to differentiate yourself from the competition through unique content that identifies with your target audience. To do this effectively, you will need to understand who your ideal customer is and where they mostly hang out (online). Then try to promote your product in a way that will make them notice it.
The biggest problem with cryptocurrency startups is that they use a tech/developer role to write blog posts. They fail to realize that most investors are only in it for the money. As such, it might be a good idea to spend a long amount of time and resources on the person you will hire to generate awareness for your company. Building a community is, in many ways, even more, important than building the product they will use.
5th Step – Sell your product/service
When you manage to build a streamlined process, you will be able to experiment and adjust along the way. This is where the actual selling of your product begins. As soon as you get started, make sure to ask your customers for feedback and try to understand how you can improve your offer.
All in all, building a crypto startup is very much similar to building a traditional company. It takes effort, money, and consistency, but the results will most likely be worth it. So wait no longer – use the opportunity for success!