Five Approaches You Need to Know If You Are a Blockchain Startup
It has certainly had its ups and downs, but there is no denying that Bitcoin has been both successful and impactful. In addition to sending shockwaves through the finance industry, the world’s leading cryptocurrency has had another major effect — it has brought blockchain technology to the public’s eye. And once people started realizing just how much untapped potential there was in this technology, the idea of a blockchain startup became a hot topic.
Cryptocurrency aside, the distributed ledgers created by blockchains can add transparency and security to many industries.
This technology can also streamline many processes by removing unneeded intermediaries. Here we’ll take a look at a potential application in the fashion industry. Of course, there are countless other possible uses, which means that there is no shortage of startup ideas.
A Blockchain Startup in the World of Fashion
A growing number of companies nowadays are emphasizing sustainability and ethical practices. This is a direct response to the increased customer awareness of these issues. When it comes to verifying this, you may not actually have much choice other than to take the company’s word for it. But with blockchain, that could change.
You could use this technology to create chronological and tamper-proof records which could show how a company actually sources its materials and makes its clothes. Therefore, a blockchain startup which provides such a solution would allow people to make truly informed consumer decisions.
You could also use a very similar approach to deal with counterfeit clothes and accessories. Some knock-offs can be very hard to spot, and these records could help protect consumers. There are many other ways one could apply blockchain to this field, and it simply means a startup like that makes sense. But as always, it won’t be easy to make everything work.
Tips and Approaches to Know
There are many startups out there, and quite a few have become major successes. But for every Airbnb, there are many more flops. Naturally, a blockchain startup faces a similar risk.
In other words, simply slapping on blockchain onto a platform isn’t a guarantee for success. Of course, you need the technical know-how to make this technology work. But you also need to take many other things into account if you want to succeed. This starts with determining whether your business idea really is good enough, and it also concerns marketing and analysis of certain metrics.
Therefore, if you are a blockchain startup or are thinking about it, here are Five Tips and approaches that can help you on your way.
1. Evaluating Your Business Idea on Your Own
Perhaps you’ll be walking down the street, and the idea will just hit you. Maybe your professional experience will allow you to see a way to bring blockchain into an industry such as fashion. You can also deliberately work on finding ideas by brainstorming. Whatever the case, you have your startup idea.
But before you do anything else, you should take a structured approach to evaluating it. Start by considering whether your solution answers a well-known problem. Then, think about the size of the market and who your customers would be. Also, think about the pricing strategy and whether those customer types you’ve identified can support it.
Also, think about the competition and whether you have any connections which could help you.
2. External Confirmation
If the idea checks out for you, it’s time to ask others for confirmation. Start with your friends and family, and see what they think. After that, expand to people you don’t know personally. Online surveys are a great way to get in touch with potential customers. You can also use forums to ask people for their opinions.
Do this in person as well. You’ve identified your potential customers, so simply go where those people spend time and ask to pick their brains. Also, try and get in touch with investors — you don’t need to ask for their money, just their professional opinion about your idea.
3. Marketing with Gated Content
The first two steps dealt with the initial stages, now we’ll move on to those that take place once you’ve already established your blockchain startup. One of the best ways to promote it is through good content. Start with a comprehensive whitepaper. Don’t take any shortcuts here and look for external help if you need it. Also make blog posts, videos, and so on.
Keep most of it freely accessible, but gate some segments and ask for contact information. These will be excellent leads, and you should nourish them.
4. Authority and Influencer Marketing
Blockchain is a popular topic, but many people still don’t know much about it. This gives you a chance to establish yourself as an authority. In addition to your own website, look for opportunities to write guest posts wherever you can.
Also, see if you can get in touch with a social media influencer who is relevant to your startup idea and ask to cooperate. This can get you exposure and credibility.
5. Comparing the LTV and CAC Metrics
Once your startup has been up and running for a while, you need to determine its long term prospects. A good way to do this is to look at these two metrics.
CAC stands for Customer Acquisition Cost. This metric shows you how much money you have spent to attract consumers. To calculate it, take all your marketing (and related) costs over a period of time and divide that figure by the number of customers you’ve acquired in that time.
LTV (Life Time Value) is an estimate of how much revenue a customer will generate for your startup in total. Take the average time a consumer stays with your company and multiply it with the average monthly revenue you get from a single customer.
If your CAC is significantly (several times) lower than your LTV, you’re on the right track. Otherwise, it’s time to make serious changes.
Conclusion
A blockchain startup comes with both risks and potential. The road to success isn’t easy, but applying these approaches can help.
Primpy is a community-driven fashion market where end-users and businesses benefit from transparency and usability powered by the blockchain tech.
By bringing together technology, retailers, service providers and customers, Primpy becomes a go-to place for desirable fashion items, services, opportunities, tips and trends — tailored to users and businesses.
