Blockchain is most popular for facilitating the rise of digital currencies. But do you know that this technology has far more applications? Many large corporations and government agencies use it to improve existing business processes. That doesn’t mean only established companies can incorporate blockchain technology into their operations. Even startups like you can benefit from it.
However, most small businesses are hesitant to embrace the opportunities in blockchain. One primary concern of startup owners is the corresponding cost. But it’s less than what you think. Are you wondering how your young business can utilize this blockchain technology? Learn how by reading below.
Speed up Payments and Money Transfers
As a startup, you need steady cash flow to continue operating smoothly. But conventional payment methods may delay the transfer of funds in your business. It could take several days for banks to verify the financial transactions.
The process can even take longer if the payment happens on weekends and holidays. Since most banks are not available during such times, they couldn’t attend to them immediately if you encounter any potential issues. These delays may affect your operations and productivity. Also, consider the extra fees and taxes that may come with international transactions.
Blockchain-based payment processing services, however, can accelerate payment and help reduce costs. Unlike traditional financial services, blockchain utilizes encrypted distributed ledgers, which provide trusted real-time verification of transactions. Because of this, you can bypass existing banking infrastructure and make prompt cross-border payments possible.
To avoid delays and high-transaction costs, you can leverage blockchain technology by accepting bitcoin and other cryptocurrency payments.
Operate Under DAO Structure
What is a DAO structure? A decentralized autonomous organization (DAO) is a business structure with no central leadership. Unlike traditional organizations, it doesn’t require human involvement in the governance process. Instead, it operates under smart contracts, a transparent set of agreements and rules executed on a blockchain.
Under the DAO structure, everyone in the organization has a voice by voting on proposals. Inappropriate projects, embezzlement, and manipulation of books won’t be authorized. The rules regarding spending are built into the DAO through its code. This eliminates the risk of human error and faulty decision-making from a company’s governance.
As a startup, operating under DAO can help you reach a large number of investors and generate a significant amount of funds to support your growth and expansion needs. To ensure business security, it’s also possible to design smart contracts with specific clauses for members.
Use in Marketing Campaigns
Marketing plays a massive role in every business, regardless of size. But this is important in startups as you have to introduce new products and services. The problem with most marketing campaigns is the stockpile of customer data, which is vulnerable to fraud and mismanagement. It also makes targeting the right audience difficult.
You can create a decentralized search engine that targets factors contributing to customer engagement using blockchain technology. Since blockchain is transparent, you can determine if the clicks derived from your marketing campaigns come from the right market. As a result, you can get more value for your money and prevent bombarding consumers with repetitive marketing materials.
Unlike large corporations, startups don’t usually have access to large markets. People could simply ignore your excellent product or service because they don’t know or cannot access it. But blockchain technology can make your startup appealing to the press and potential customers. They’re less likely to abandon online shopping carts if they can pay in cryptocurrencies.
Manage and Track Inventories
Traditional inventory management relies on a predictive or reactive approach. It focuses on estimating when inventory would run out or ordering stocks when they’re depleted. While this is helpful, the lack of visibility down the supply chain slows down the assessment of customer demand. But how can businesses ensure enough inventory to meet customer needs without creating too many products?
Blockchain technology makes it possible to view consumer-level demand in real-time. This allows companies to have accurate forecast demand and restocking plans. Blockchain technology can help your startup create proactive inventory management through its decentralized ledger.
Provide Quality Customer Support
Serving the customers the right way is necessary for the long-term success of your startup. But improving customer satisfaction and heightening trust isn’t easy. Luckily for you, blockchain technology can help you better meet customer expectations. Besides streamlining payments, you can secure the data of your customers.
Note that customer relationship management (CRM) technology users experience inaccurate or duplicated data. But incorporating blockchain into your processes can help prevent such issues. You can get better insights about your customers and find ways to support and engage them. Plus, since blockchain identities are irreversible, you can better protect customers from potential fraud.
Adopt Blockchain Technology
High visibility is vital for startups. Without it, you won’t be able to connect with your target market. But how can you do that when many competitors provide the same products and services as you? Adopting blockchain technology can give you a competitive advantage, from enhancing your business processes to improving customers’ experience at every touchpoint.