The gig economy has become defined by the numerous startups that have appeared to appease the growing demands of modern users, with blockchain startups, in particular, having undergone explosive growth recently. As blockchain tech continues to make other modern marvels like cryptocurrencies possible, companies and curious individuals alike are going to be pouring as much cash into blockchain-based startups as they can for the foreseeable future. Many of these startups fail to ever achieve their goals, however, because they can’t overcome the common challenges that sink many new blockchain businesses.
Here are 5 challenges blockchain startups need to overcome if they want to make it in the big leagues, and why this technology isn’t going to fade from the market anytime soon.
1. Establishing A Successful Marketing Program
Perhaps the greatest challenge that any blockchain startup eventually faces is the establishment of a successful marketing program that will lure in interest customers without costing your startup company a fortune. Many blockchain projects have stellar ambitions and a fantastic team of talented individuals to help make those dreams a reality, yet they lack any marketability and grow incapable of generating any sort of lasting consumer demand.
Unless you want your blockchain project to fizzle out due to a lack of interest, it’s imperative that you understand the best practices for blockchain startups when it comes to modern marketing. If you don’t familiarize yourself with the marketing mishaps that have tanked the prospects of other blockchain businesses, you’re asking to make such errs yourself. Do your homework well ahead of time, and your blockchain startup is substantially less likely to fail.
2. Figure Out How You’ll Help Out Other Blockchain Businesses
The world of blockchain startups is deeply collaborative, meaning your company needs to determine some method of helping out other blockchain businesses if you really want to endure for long. If you review any list of the most prominent disruptors or newcomers to the blockchain startup scene, you’ll quickly encounter a constant theme; companies at the top are frequently oriented around helping other businesses tap into the power of blockchain technology. Sometimes, the best consumer for your business to target is another company, so don’t be afraid to ask yourself how you can cater to the commercial community with your blockchain service.
3. How Will You Deal With Forthcoming Regulation?
One of the most interesting questions surrounding the future of blockchain technology is how current startups plan to deal with forthcoming regulation, as this burgeoning technology has raced far ahead of our market standards and ethics. For years, regulators have been racing to catch up where blockchain is concerned, with cryptocurrencies, in particular, being a regulatory nightmare for most governments.
The disorderly state of federal policies and regulations holding blockchain technology back from growth isn’t likely to go away anytime soon and indeed could actually expand as blockchain becomes more prominent. Blockchain startups that are trying to keep their eyes on the long-game should be asking themselves how they intend to deal with additional regulatory hurdles as they surface.
4. There’s A Serious Blockchain Talent Shortage
One of the gravest challenges facing blockchain startups right now is a serious talent shortage. Around the world, businesses are racing to hire as many software developers as they can, with crypto-enthusiasts also finding that their once-niche hobby has now become an area of major economic activity. This has resulted in a global talent shortage as the demand for savvy blockchain workers quickly exceeded our ability to churn out talented IT specialists capable of wrapping their heads around this technology.
Knowing where to find blockchain developers in the midst of a gross talent shortage is going to become a crucially important aspect of remaining successful as a startup as time goes on. This is because hiring competition is going to keep heating up, and companies that retain the best workers will be those that endure the numerous shocks coming to this industry. Blockchain businesses should be keeping an eye on their competitors, but don’t forget to respect your employees and pay them what they’re worth if you’re trying to build a company that will last.
5. Corporate Competition Is Getting Tougher
Finally, blockchain startups no longer must contend with the fact that they’re one of many newcomers to the market trying to disrupt the status quo. This is because corporations that were once entirely disinterested in blockchain technology have since become deeply committed to pioneering this tech, which has made the corporate competition that the average startup must endure tougher than ever before.
You’re not only racing to get a new product to market before the other startups but now you must also contend with huge, transnational companies with the resources of thirty startups when it comes to scooping up customers. It’s already becoming clear that those startups which succeed are going to be those which can navigate the corporate realm the most ably.
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