If you are looking for a hot topic in cryptocurrency nowadays, you are definitely going to run into initial coin offerings (ICO). The idea to pre-sale a cryptocurrency has evolved into an insanely successful instrument to raise funds. ICOs can help you attract new investors who might be interested due to their potential future profitability as more established currencies such as Bitcoin or Ethereum have already started to mature and ROIs have started to decrease. There are dozens of ICOs being launched every month and in this business plan you will find all the necessary information to launch your very own!
ICO Business Plan
Cryptocurrencies have evolved to become a suitable substitute for conventional currencies. The purpose of an ICO is to fund the development of a decentralized application (DAPP). One of the easiest application is to create a simple token which can be traded between suppliers easily. It will make your ICO host so wide in scope that you can safely distribute it for crowdfunding and fundraising purposes. The business model presented in this plan includes all the specific information about how the business work and the characteristics of an ICO.
The increase in international trading activities has made the demand for new payment methods to surge. ICOs have been a profitable choice for investors. ETH, for example, was first sold at 0.0005 Bitcoin and is worth today 0,05 BTC, which means a 10,000% profit. Augur token (REP) were sold for around 0,005BTC each and are now traded at 0,01BTC. The increase in value of a successful ICO is commonly between 100 to 500%. In this section of the business plan, you will find the main strategies to position the company within the marketplace to become an attractive alternative for people seeking to invest their funds in successful ICO ventures.
There are several challenges that are unique to the ICO market, these include safety, transparency and exchangeability elements. This section of the business plan outlines the system’s requirements and all the logistics that must take place to successfully develop and deploy an initial coin offering, focusing on system’s architecture, operational concepts and security required.
This chapter of the ICO business plan includes a strategy to execute an extensive marketing campaign. It is a proof of how serious the customer/company is in meeting the competition head-on, with strategies and plans to increase the profit margin and attract new investors. Up until July, the total dollar amount raised by Initial Coin Offerings (ICO) was over a billion dollars. This amount of total market capitalization has made the cryptocurrency market a very attractive alternative for many. From traders wanting to make a quick buck to experts that are concerned with its lack of transparency. Here, you will find an overview of the marketing plan and objectives of the ICO.
The ICO industry can serve very unique segments depending on the nature of the currency being issued. Whether you aim to be a method of exchange for import/export transaction or a blockchain-based social media platform, choosing the right segment will help you in advertising your ICO adequately. This part of the ICO business plan includes all the information you need to know regarding the segment you picked, along with other segments and their correspondent description for you to understand the overall market.
Currently, there are a number of organizations that are pushing initiatives and informing the general public about the benefits OF ICOs. The business plan attempts to invest in these public relations campaigns because credibility is a major element to take into account when launching an ICO. In this section of the business plan, a list of all the potential marketing channels to be addressed will be drafted. Some of the strategies may include social media advertising and presence, featured articles and affiliate marketing.
This chapter of the business plan plays an important role in helping the ICO overcome the growing challenges in the industry. Here you will find the financial plan for the company behind the ICO, including all the capital expenditures required to launch the currency successfully and the expenses that will take place.
An ICO mainly generates its revenues from commissions charged on those who get their hands on the currency and through currencies being held by the issuer, which will generate an appreciation in value after the ICO is successfully launched. Later on, revenues will usually come from administering the platform where the currency may be exchanged, charging commissions on inbound and outbound money flows. In this section of the ICO business plan, you will find the main sources of revenue and the financial assumptions undertaken to reach such estimates.
The main expenses for an ICO will be staff salaries, hosting charges, registering and licensing fees, equipment maintenance and others. In this section, you will also find information on how to keep these in line to avoid reducing the business’ profitability due to overspending.