Ethereum is an open platform that basically assists the development of next generation decentralized applications. It was created by Vitalik Buterin, a young programmer who decided to create a platform, similar to bitcoin, but for smart contracts. Ethereum brings a world of business possibilities and different project opportunities for new entrepreneurs and investors, but as it’s something that is just starting, it is essential to have a business plan to understand and organize the company.
Ethereum Business Plan
Ethereum is a decentralized platform that runs smart contracts without downtime, censorship, fraud or third party interference. This app was built on a blockchain platform and enables developers to create markets, store registries of debts or promises, move funds in accordance with a future contract and many other things that have not been invented yet, all without a middle man or counterparty risk. The business model section of the plan presents a guide on what this ethereum business model is all about along with its main characteristics.
Ether is the internal network currency of Ethereum and has experienced a surge in popularity unlike any other coin in the cryptocurrency market; Ethereum is not just another blockchain technology, it has found a whole new application for cryptocurrency. This section of the business plan explains the main strategies to use in order to bring your ethereum business into the marketplace and position itself above your competition.
There are many ways to begin an ethereum business idea, and there are also several opportunities to invest in the current ethereum industry. In this part of the business plan you will find a map to guide you in the process of operating and running the company as well as a guide to understand and organize the technologically complex processes of the business.
The business plan offers a solid marketing plan that clearly shows the way to get into the ethereum industry. It also presents what competitors are currently doing in the market and what their strategies are lacking in order to improve them. This section of the plan brings a sustainable and tactic path to the business marketing strategies in order to acquire new customers.
In this section of the business plan there is a thorough examination of the target market, which are those people and businesses that your ethereum business will sell its services to. It includes a description of the following potential areas: payments, exchanges, digital identity, documentation, smart contracts, banking sector,clearing and settlement, insurance sector, financial institutions among others.
This section of the plan brings different promotional strategies for the ethereum business model presented, in order to build a plan and specific tasks to position the company adequately in the industry. It explains the marketing strategies that will be used such as communications and advertising, in order to make the company grow. These strategies are usually related to digital marketing as this is the platform where the business attracts its customers the most.
The ethereum business financial plan include a projected balance sheet and a cash flow projection. This part of the plan estimates the main sources of revenues and major expenses of the company and how to keep them in balance to maintain the profitability of the business. It also includes how much money the company will need to borrow or obtain from equity issues to purchase the equipment required to run the business.
The financial revenue assumptions are definitely a key component of the ethereum business plans. In this section you will find a complete description of the main sources of revenue and important assumptions the business plan is considering to arrive at its calculations.
The major expenses are described in this section of the plan including the cost of building and maintaining the platform, marketing and business development, rent, utilities and depreciation of the assets that are also estimated. The majority of the expenses will go on professional salaries and benefits for experts in the ethereum business.