Small Business Advantage: How Your Small Business Can Benefit From Blockchain Technology
A business is a good venture when effective strategies are applied to gain tangible results. Many times, businesses (especially small businesses), are often after more effective ways of serving their customers and providing them with improved services. Blockchain is a medium that can be utilized by these companies to raise capital and even serve their customers better. As small businesses seek efficiency and better ways of serving customers, blockchain can especially be useful for these companies in raising capital and conducting relevant transactions. There is a general misconception that exists, and this is that “blockchain technology might not be beneficial for small businesses; it can only be utilized by big businesses for advancement”. This is not necessarily valid; blockchain technology can be incorporated by small businesses for online and digital-first business transactions.
Let’s look at how this can be done.
What is Blockchain Technology?
Blockchain technology is a system that was developed to augment financial institutions over unregulated currency which was constantly found to be going upstream. Blockchain technology accounts for and authenticates performed transactions. It is a detailed process that deals with transaction creation, record, verification and enforcement that can take place in real-time but at diverse levels.
Blockchain technology can be utilized by small businesses like gyms, restaurants, collision centers and more to set financial structure for stability.
Here are the benefits.
- MONEY TRANSFERS
Blockchain technology is popularly recognized through its applications and platforms which aid money transfers and payment transactions. Through the advantage that blockchain technology provides, small businesses can utilize this to transfer funds (securely) its remote employees present in any part of the world without any form of stress or heavy additional costs. Through the non-existence of “irrelevant” intermediaries which are notorious for slowing down payment transactions for small businesses and adding other costs (exorbitant transaction fees). Cryptocurrency’s advantage of free transfer flow is the difference that small businesses can harness especially in a competitive market space. Interestingly, payments are also irreversible. This prevents the occurrence of an additional chargeback by traditional financial institutions when a customer requests a refund.
- CLOUD STORAGE
Individuals and businesses can spend over $12 billion every year on cloud storage. This can be put under control if blockchain is harnessed by small businesses. Blockchain storage application is useful in allowing users to store their data safely and securely. Although this comes with minimal cost implications, the problem of data security and overspending can be addressed this way.
- SMART CONTRACTS
Smart contracts deal with self-verifying and self-enforcing contracts and this is another benefit blockchain can provide to its users. Contracts can be drafted and stored in a blockchain ledger, in a way that permits no form of manipulation or change to it. These smart contracts can be an agreement between vendors and supplies. In addition to smart contracts, the need for middlemen (usually attorneys) to seal contact deals will be eliminated. This means more “structure to small businesses” and less costly to get this done.
- SUPPLY CHAIN & SHIPMENT TRACKING
Many small businesses do a lot of paperwork, which can stall urgent business transactions. for small businesses involved in the supply chain, dealing with logistics and shipping, a blockchain app can make things easier to keep track of delivery and provide excellence in service within the shortest possible time, thus avoiding paperwork delays of any sort. Modum is an example of a blockchain app.
- CAPITAL RAISING
Blockchain is an effective medium that provides a different approach to raising capital through the use of initial token offerings (ITOs). ITOs are tokens that are alternative to the use of traditional bank modalities, private equity firms, ledgers and crowdfunding. These tokens are often exchanged and traded freely.
How it works
Investors can buy the token offerings and get new blockchain-based tokens from the companies they buy from. The offering may represent a stake in the company’s project or represent a form of utility or product that the company offers. The tokens are purchased, traded and sold in market places based on the principles of demand and supply. In addition to being a new way of raising capital, it has proven to be a way of raising trust. The effectiveness of blockchain and cryptocurrency in privacy and security is valuable. Customers are more likely to be affiliated with businesses that incorporate blockchain technology.
Due to the Tokpie exchange data, an Initial Exchange Offering (IEO) is a useless way of capital raising nowadays. instead of IEO, many small businesses and stratus are now using a Fair Token Launch principle. It’s when a company just issue blockchain-based tokens and then sell part of them and part goes to people for free for useful activities and engagement.
A small business can grow its brand and product awareness by providing people with small reward nominated in cryptocurrency. In blockchain world, this procedure is also known as a bounty campaign.
How it works
A company issues blockchain-based tokens. Usually, each token has some utility value. It means that people could buy a company’s goods and services for these tokens in the future. Then, this company initiates a bounty program on a specialized forum or platform. As a result, any person could join this bounty, promote a company, and get paid with the company’s tokens for doing simple tasks online.
- NETWORKING AND IOT
The IoT networking market has been driving the increase, especially for tech companies. It has resulted in blockchain businesses entering into the IoT landscape. Blockchain enables smart devices to serve autonomously in conducting a variety of transactions through IoT.
A cryptocurrency exchange is a platform that allows clients to participate in trading cryptocurrency for other resources which can be other cryptocurrencies or other digital currencies. It also entails the exchange of FIAT into crypto among traders. it is also a route through which small businesses harness blockchain technology to scale their businesses on a larger scale.
Blockchain: The leverage for your small business.
Blockchain is a fast-moving train that has bitcoin as its backbone. Interestingly, many businesses have incorporated blockchain technology into their working scheme to record exponential growth. Ranging from secure tracking and management of contracts to signing of agreements through smart contracts, and digital exchange, blockchain has a lot to offer small businesses. The crux of incorporating blockchain technology into your business dealings (small to medium-sized business) is the savings of time and money that it can afford you.
Although there are numerous benefits to be obtained from incorporating blockchain technology into your business, it is expedient that you figure out which blockchain application best suits your business. The difference lies in knowing the best approach that works for your business.
Why don’t you try this out and give us feedback on how it worked for you.