Tokenization: Business plan

Emirex Group | Dec 12, 2019 11:29:12 AM

In this final part, we will outline the work scope of the Business Plan Development and Executive Summary.


Business Plan

Let’s pretend that tokenization is like a new business. Different inner and outer conditions, various market circumstances and legal regulations. All of this makes an impact. So, what should one begin when starting with tokenization

Every owner needs a way to organize and present information about how to develop, grow, and manage a business. When well-crafted, a business plan will catch the attention of potential investors and customers while encouraging them to support the company itself. When seen this way, a business plan becomes the foundation for any successful development. It can be constructed by building upon four essential cornerstones:

  • SWOT Analysis
  • Market Analysis
  • Marketing Strategy
  • Financial Analysis

SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors and opportunities; threats are external factors. A SWOT diagram analyzes a tokenized model by focusing on each of these factors. SWOT diagrams can be especially useful when trying to decide whether or not to embark on a certain venture or strategy by visualizing the pros and cons.

Market Analysis

Before taking on the risks of a business, we need to know general market conditions of the particular industry in which the company intends to fit, as well as who its customers & competitors are. Sources for this information can be found through:

  • Local chambers of commerce
  • Networking contacts
  • Online resources
  • Universities
  • Businesses of competitors

Marketing Strategy

After market and industry information is obtained and customer and competitor profiles are developed, the marketing strategy needs to be written. A good strategy should include answers to these four questions:

  • What specific product or service does the business offer?
  • What pricing structure will be used?
  • Where your business will be located?
  • What will be done to promote the business?

A marketing strategy is about determining a proper balance between each of these elements. If the business will be more successful in a high traffic area, then the location has more importance. If the competition is high, better advertising and pricing could help.

Financial Analysis

The section of the business plan is reserved for exact numbers and business costs. If a business is selling a large amount of product but is still losing money in the long run, the business will fail, whether it’s tokenized or not. Based on the previous information collected, Emirex can provide an accurate estimate of the business’s costs and what will affect them. The following suggestions will also help:

  • Monthly Expenses – These are the ongoing costs. Also included in this section is a breakeven point analysis (what the business needs to make to cover costs and show a profit). These numbers can help determine financing options.
  • Financing Options – These are the possible sources for the capital to proceed with a tokenized business.
  • Sales Forecasts – This is an estimate on how much product the business will need to sell to cover expenses, and what can reasonably be sold based on the market research conducted earlier.


Executive Summary

Once the mission, background information, organization, marketing and financial plans are complete, an executive summary can then be prepared. Armed with the research results and information from the other sections, the business will come alive through this section.



Once all parts of the business plan have been written, you will have a document that will enable you to analyze your tokenization model. Changes on paper take time and effort but are not as expensive as changing business in real life only to find that the chosen method is not viable. In short, it is better to face challenges on paper, rather than with investment capital. Remember that a business plan for a tokenized model is a "road map" that will guide the future of th business. The is done best when this document is changing continually, reacting to the influences of the outside world on the business. Having the basis of a written plan will give you
the confidence to consider changes in the business that will allow you to remain competitive.

Once a plan is in place, the business will have a better chance of future success.

Digital Commodities Asset Exchange in the Middle East, focusing on tokenised commodities.
Licensed and Regulated. Tokenisation advisory.

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