Important Definitions:
Blockchain Technology. When a person make a transaction from one person to another person, the transaction is recorded onto the ‘blockchain’. Blockchain technology (crypto) is just an accounting ledger. A ‘blockchain’ is a series of nodes that records every transaction that happens in the network. If you make one transaction, all the nodes must record the exact same transaction. If your transaction is not recorded in some nodes, the transaction did not happen, and the assets remain in your wallets. You have to pay a gas fee to the nodes to record your transaction. Because all the transaction can be seen by anyone and everyone, you can trust that one transaction is equal to one transaction.
NFTs, or Non-Fungible Tokens, are units of data that are ‘secured’ by the blockchain. You can link a piece of music, picture, video, or a contract, to the blockchain. For example, I can make a picture of my girlfriend and ‘mint’ them into the blockchain. That picture will permanently be in the blockchain ledger and this is equal to be a ‘contract’. I can send that picture to another person. Anyone can see this contract when they look at the open-source blockchain ledger and track it. There are an incredible number of use cases for NFTs. For example, you can create a contract, “This picture is 1 share of this company”. So if I own this picture, according to the blockchain ledger, I own 1 share of this company. The main point is that NFTs usher in a new way to raise money and create value.
Transparency & Trust. The problem with anonymity in crypto is that it gives rise to scams and irresponsibility. The more transparent something is, the more trust you can earn, and that is the main point of blockchain technology in the first place and why the original investors are in it. Trust.
Step-by-Step Guide on How to Build a Million Dollar Business with little Capital Risk
First Step I: Website (3-6 months)
The only capital you need is your time, and a website to explain about your project. The website must be elaborate and the project details must be transparent. A white paper must be created. A timeline must be in the website. Each member must be doxxed and members must be International (from different countries and attached to a specific role). Website must generate TRUST.
First Step II: Business Plan & Cost Analysis Research
At the same time that the website is being created, calculate how much money is needed to start the business plan. It is good to overestimate the price because there will always be added costs. The cost of the business plan will be updated and reflected in the website.
The Project Plan Must Be Unique
-> Something that people would not, in their daily life, even think that they could own and be part of such a project. Ask the question, what would people want to brag about to their colleagues or friends?
E.g.: Theme park in Russia. The ordinary human who invest in an NFT would LOVE to brag to other people and tell them, “Hey! I own a theme park ride in Russia. Every month, I receive money from owning this theme park ride.” “Hey! I own a paper factory in Kazakhstan!” That is what we have to aim for and target.
Second Step I: Social Media & Early Marketing. (2 months)
Marketing. This is probably the most important part of the project plan, but if you have a solid website that explains what the project is and the project is amazing, it will be a lot easier. Create a Discord channel that is active with updates and talk about the project. The main founders of the project should be active in the social media channels at this point. At a later time, the team can hire a Social Media Moderator to continue to chat with the fans/ investors on a daily basis. A Twitter account must also be created with updates about the project. There will be a lot of things going on after the website is launched, so updates should be easy to come by.
Second Step II: NFT Creation
At the same time, the NFT art collection should be created. This may take some time. Teasers of how the art will look like can be leaked as part of the social media updates. An artist can be hired or be part of the founding member. Artist needs to create 9000 generative NFT art surrounding the theme of the project.
Third Step: Early Soft Launch (1 month)
Create a Whitelist marketing campaign before the soft launch. Whitelist allows people to ‘book’ an NFT before the actual launch. People who are interested in buying an NFT and being part of the project can register their interest by a first-come-first-serve basis. A limited number of early NFTs can be released, e.g. 800 NFTs out of the total 9000 NFT collection = $140,000. rarity.io shows most of the new NFT launches. 0.05 ETH per NFT is the current market norm for a new project. This will help to raise early seed capital to continue with the project AND see if there is enough interest in the project. If there is a low demand, marketing needs to be tweaked, or project plan must be tweaked. Early money raised will be used to pay for the cost of creating the website, artist time and fee, and large item capital goods (See Step 4).
Fourth Step: Walk the Talk & Hype The Project (2 months)
Use the early money raised to start the business plan. Buy/ rent the Land in the name of a registered company. Buy the main things that is needed for the business. If business is about luxury hotel tents, use the money to buy one tent first. If business is a restaurant, build it and renovate it. Each time an item for the business is bought, social media team can update on the social media. “Hey! We just bought this ____!”. Maybe creating YouTube channel would be an interesting additional revenue to document this process. It is important to start generating hype. Try to contact news articles in respective international home countries. I will try with local news in Singapore. I am confident that there will be a lot of investors from Singapore. Grow social media presence.
Fifth Step: Big Launch (1 month)
Sell 8700 NFTs = $1,500,000, keeping 300 NFTs to the team which can be sold at any time to raise more funds. Pay ourselves first and foremost. I think $500,000 spread between 5 founding members for one year of work is worth our time and effort to come to this point, especially considering living costs in Russia.
(Remember that we will also earn income by other means. -> When people buy and re-sell these NFTs, we will charge them 5-7% royalty fees for each re-sale of NFTs. If a person sell one NFT for $300, we get $21. NFTs can change hands many times and increase in value if project is a success. E.g. 1 BAYC NFT that cost $100,000, 7% fee is $7000. This royalty fees will go directly to our pockets, and not to the business. I.e., this will be the only thing that is not transparent to the public. I think this is fair and is being done by majority of NFT projects.)
Sixth Step: Go Crazy (4 months)
Remaining $1,000,000 will be used to buy remaining capital items & operational cost to sustain business for another 12 months. (Interest in the project may go down after a while. An NFT drop can be released after 4 months. This will increase the capital for the project again, and even expand the business to other things. It will increase the number of NFTs in circulation, hence, more passive royalty fees for the team. For example, if we start with luxury hotel, then we can expand to restaurant. Hence, the new NFT drop (whoever owns the NFT, will receive income from the restaurant.)
Once project is fully operational, monthly profits can be accumulated and distributed (in terms of crypto) to each NFT holder according to the NFT they hold. Why paid in crypto? Easy to distribute. Will also avoid a lot of legal issues.
Seventh Step: NFT Drop, Business Expansion (2 month)
Create another new NFT collection, give to every person who owns the previous NFTs. The team will also receive 300 New NFTs because the team owns 300. NFT drops will generate more hype and resales in the market. Remember that our salary and money is in the number of resales.
Use the new money raised to start something new, example a new restaurant meal, or a boat, or a new theme park ride.
Start talking to venture capitalists.
Eight Step: Go Crazy (4 months)
Hopefully by this point, the resale volume is good enough for us to purchase the new proposed business expansion project.
If overall project & business model succeeds, more people will try to follow this new business model, and we will start to face a lot of competition especially in trying to raise more money and expand. If project succeeds, we will also usher in a new wave of crypto investments and possibly cause the next bull run for crypto, increasing the market adoption and market cap of crypto. If project succeeds, we will be the founding fathers of a new type of business model. NFTs will move away from useless artwork to actual businesses.
If project fails, at the very least, I suspect that we will build a reputation after project concludes. Technically, we can also run away with the $140,000 that we raise in Step 3 or the $1,500,000 after Step 5. But I think that we should do something great with our lives, and don’t be a bitch. The very fact that each one of you is in Russia now tells me that there is a risk and sneakiness in your nature. At the very least, in a few years, we can say, “Remember the time we started a million dollar business in Russia?”
