Saving money while staying competitive is an aspiration for most business owners. However, some stopped building castles in the air and started looking for ways to reach a broader audience and catch consumers’ attention.
If you’re a business owner, you probably know the struggle of exerting yourself to end the month with no more than a few pennies in your bank account. Many entrepreneurs do so, especially when starting from scratch. And if you’ve failed and started again, knowing the business is in your blood, congratulations!
Now that you’ve gained experience and knowledge, you likely know how important it is to keep up with financial and social trends. Overall, businesses that appeal to consumers today must check the following characteristics in addition to providing high-quality products:
- Wide acceptance.
Blockchain may check some of them, as there are several ways businesses can contribute to long-term sustainability and stimulate growth by taking advantage of this technology and cryptocurrencies. Here are some tips for taking advantage of blockchain to improve your business and spark potential customers’ curiosity.
Understand the blockchain
Blockchain is a global network made up of blocks of data distributed to users worldwide. It’s a peer-to-peer network working on consensus algorithms, removing the need for third parties to validate the authenticity of the data or records. When intermediaries are no longer needed, business owners benefit from not having to pay another party for their service. End-users directly connect with each other and the network, lowering the time and money expenses of transactions for all parties involved.
Because this technology decentralises the database, no central point can be breached or hacked. Databases register and save entries that have been verified and finalised by most users, making modifications difficult.
Several applications are built on the blockchain and provide various solutions that may help improve your business. How can you use this technology to generate more money?
Make quicker and cheaper payments
Bitcoin pioneered blockchain technology, so it’s no surprise that some business owners flirt with the idea of paying their employees in Bitcoin or other cryptocurrencies. GMO Group, Bitwage, and SC5 are some companies that have taken on this less conventional practice.
Such practices are advantageous, especially for remote or foreign employees. These employees can receive funds within less than an hour while avoiding additional exorbitant transaction costs that remittance services or traditional banking systems take.
Using cryptocurrencies to pay staff may potentially help you save money in other ways. Recorded transactions on the blockchain make it simple to manage your cash flow and maintain track of all your payments, giving you the peace of mind that you’ll never overpay your taxes.
P.S.: Do your homework in advance!
One should check compliance issues and laws first because cryptocurrencies aren’t regulated. The same goes for incentivising employees, whether through part-payments of salaries or bonus payments.
However, as the world evolves, so should business practices. To avoid being taken aback by trends or by the moment that Bitcoin payments are the order of the day for most businesses, you should prepare for it in advance. How?
By getting informed and in touch with the process. For instance, you can register on the Binance platform, look at Bitcoin’s price chart and past performance, and buy some Bitcoin with your debit or credit card. The app uses safety tools, offers a user-friendly experience, and charges low fees, which are paramount benefits to look for in a crypto exchange.
However, remember that Bitcoin is volatile, so if you’re a newbie, only buy what you can afford to lose.
Hire better employees
They say a team is only as strong as its weakest member. Your company is no exception, so recruiting the right people is critical to keeping your firm afloat and thriving. This takes significant effort and investigation time, but blockchain technology can make some processes easier.
If you’ve ever thought of tweaking your CV to make it look more appealing to potential employers, know that some job candidates do the same. Because they know you can’t check every line from their resume, they’re stretching the truth.
But imagine being able to check the genuineness of the data on their CV in a blink. With access to easily verifiable records on an unmodifiable digital ledger, you can enjoy access to the following information about potential employees:
- Past employment records
- Extracurricular activities
- Academic records
Use smart contracts
Smart contracts are programs or self-executing contracts stored on a blockchain with the terms of a buyer and seller agreement written directly into the lines of code. They run only when predetermined conditions are met and automate an agreement’s execution, saving time and removing the need for any intermediary’s involvement.
Smart contracts guarantee that all parties to the agreement follow through on their obligations, allowing every participant to be certain of the outcome. So, how can a smart contract help you gain profits?
Well, they take government officials, lawyers, and other fee-charging intermediaries out of the equation, meaning you’re saving costs while stressing less with dummies, strangers, or people you don’t trust. How’s that possible?
Easy! You are paid once you’ve fulfilled your part of the deal. If the other party cancels on short notice, you are returned the goods.
Build a customer base
Blockchain technology helps identify differences between clients and employees by facilitating reliable identity management. Both have digital IDs that allow you to verify their identities. When such data is kept on a blockchain network, the following issues are reduced:
- Money laundering
- Cybersecurity issues
- Identity theft
People may take ownership of their data since it can’t be modified on the blockchain. This facilitates clear transaction records that allow both parties to see the relationship’s evolution over time. Consequently, blockchain technology makes it easier to identify loyal clients, understand their spending habits better, and progressively build a customer base.
It seems clear that blockchain technology will take over some conventional, everyday processes that firms undertake. It’s already a safe choice for several traditional sectors, like insurance and banking.
Even if you’re a budding entrepreneur, you may have an immediate advantage over your competitors by understanding and taking advantage of the blockchain’s power.