Startup cost
$50k–$500k
TRUiC Business Ideas
How to Start a Blockchain Services Business
Decision Snapshot
Blockchain Services
Idea Score
50
Profit margin
25%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Flexible
Part 1 - How to start a Blockchain Services business - Background
Blockchain services provide a public ledger for companies who want a better way to organize their projects, finances, and information. While it’s most commonly associated with cryptocurrency, the blockchain can be used for practically every type of business transaction there is.
Our guide is in 3 parts:
- Part 1 - How to start a Blockchain Services business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a blockchain services business?
Theoretically, you only need the cost of computers and internet to develop your initial prototype if starting on your own. You’ll need liability insurance as well, which will vary in costs based on your chosen limits and the services you offer. Finally, you should likely invest in advisors who can give you the right perspective on how the blockchain is changing, both in the legal space and public sphere.
What are the ongoing expenses for a blockchain services business?
Labor is generally going to be the biggest expense for blockchains because the business needs skilled people to design and sell the platform. You’ll also need to account for electricity, insurance costs, and the direct cost of the space you’re using.
Who is the target market?
Practically any industry can use the blockchain, even though it’s most commonly associated with cryptocurrency transactions. Essentially, the blockchain makes it nearly impossible to hack into a company’s information, which is increasingly necessary as virtual fraud continues to rise. But more than this, the blockchain also provides a way to communicate at a level we’ve never seen before through the use of smart contracts. These special if/then statements are so versatile that it can be applied to industry projects in ways we can’t yet imagine.
For example, the construction industry can use the blockchain to make it easier to work with multiple vendors. When all action can be seen in the ledger it virtually eliminates confusion about who’s responsible for what. The real estate industry is already using it to coordinate sales and even make investment easier. The blockchain can work with extremely small numbers, meaning a person could buy 2 mm of a property if they so chose!
How does a blockchain services business make money?
Blockchains will typically either set up a SaaS model or charge a one-time project fee. They may also charge to verify transactions across their network. One of the biggest advantages of blockchains is that they can successfully handle micropayments. These transaction fees are typically done via cryptocurrency such as Bitcoin or Ethereum.
How much can you charge customers?
The blockchain is new enough that owners are still puzzling out how to charge for their services. For example, transaction charges have ranged from less than $1 to over $50! If you have direct competitors, look to see what they’re charging to figure out your own pricing. If you’re doing something relatively new, consider calculating how much a blockchain can save a client over time in terms of labor and direct expenses, and then price your blockchain based on these numbers.
How much profit can a blockchain services business make?
Blockchains can be extremely profitable, so long as they can scale their technology to meet the public demand. If you charge $50,000 per project at a profit margin of 25%, you’d need to sell 8 projects to make $100,000 in profits a year.
How can you make your business more profitable?
Consider branching out to new industries to increase business. You can also potentially offer more programming services, such as back-end software to allow businesses to accept cryptocurrency.
Day-to-Day and Growth
What happens during a typical day at a blockchain services business?
The majority of the day will likely be spent programming and perfecting the blockchain. Owners will also spend time marketing, networking, and developing new ways to serve their customer base.
What are some skills and experiences that will help you build a successful blockchain services business?
Ideally, owners will either be programmers or business-savvy individuals who can manage programmers. It can also help to have some knowledge of project management. It can also help to have some background in sales. Blockchain businesses have to sell technical services to people who may not be very familiar with the overarching concepts.
What is the growth potential for a blockchain services business?
The blockchain is exploding, and it’s only likely to keep going. No matter how experts feel about cryptocurrency, the underlying technology is only getting more popular. As it becomes more universal, it’s not unlikely that we’ll start to see practically everyone switching over to this revolutionary platform!
What are some insider tips for jump starting a blockchain services business?
The blockchain is so hot right now that putting the word blockchain into your name can make sales soar. You can use this to your advantage so long as you have a viable product underneath the hype. One of the best things that you can do is identify your market immediately. Starting with just one industry can make it easier for you to narrow down your promotional tactics, but you also run the risk of getting pigeonholed.
You can also try thinking outside the box too. For example, the blockchain gives families a way to record their heritage in a logical and indelible way. Or you can look outside traditional business ventures to government ones. Cities such as Berkeley are now turning to cryptocurrency to fund city projects rather than relying on federal funding.
Consider launching a crowdfunding venture to get your business started. While ICOs are the clear choice for crowdfunding, you may be able to garner interest even if you’re not planning to start your own cryptocurrency to go with it. Just remember that your efforts will likely be affected by the state of the current market. When crypto is generally up, you’ll have a better time securing funding.
How and when to build a team
It’s possible to get started on your own, but you likely be able to do it alone for very long. Look for staff members with the technical prowess to build the platform from the ground-up. You should have marketers, legal help, and administrative employees who can tie up loose ends, find new clients, and keep your financial information organized.
Part 2 - Is a Blockchain Services business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Blockchain Services business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Blockchain Services Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Blockchain Services business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.