New start ups are difficult and not coincidentally expensive. According to research done by Startup Genome 70 percent of new start ups fail because of premature scaling. People are putting the proverbial cart before the horse. The companies who fail are the companies who attempt to grow without an adequate infrastructure, including a lack of capital when it comes to paying the bills. Here is how you can successfully incorporate blockchain technology in your new start-up.
Technology is changing that, in order to be successful we must adapt and change to the new ways in which business is done. The market is a global one and cryptocurrency changes the way we do business. If you are involved in business in 2020, you have dealt with or at least heard of cryptocurrency. For those that still have not heard of cryptocurrency, it is a digital currency which operates separately from a central bank, making global transactions easier and also safer. One of the main benefits of cryptocurrency is that a company that is stationed in one country, can easily exchange goods and money with a consumer in another country. Exchange rates and third party fees become non-existant. Currently when a business sells an item, a percentage (or fee) is taken out by a credit card company, using a cryptocurrency would negate those charges.
Blockchain and Cryptocurrencies
Block chain goes hand in hand with cryptocurrency. As the internet has evolved so have scammers, and every business that works on the web is at risk, including yours. Block chain technology offers a high level of encryption and makes it a safe way to transfer money. We are living during a time when major companies are often reporting hacks to their data systems. “Those are major corporations with plenty of expensive hardware to prevent such events. A new start-up has less room for error and loss of capital, if a small start up were hacked, that could break the bank . Block chain adds a layer of protection that is pertinent to your new business start-up, and does not charge the high fees associated with credit cards and other online financial payments,” says Ada Millson, a business writer at Draftbeyond and LastMinuteWriting. .
Now that we have discussed the importance of guarding your money with cyber security, let’s discuss the flexibility and appeal of raising funds with blockchain tech. The number one reason businesses fail is they spend more money than they have available. They try to grow too quick, too fast. Businesses who are pushing out a new start up plan must aggressively look for capital to become successful. This is where blockchain technology comes into play.
Online Crowd Source funding for Start-ups
Online crowd source funding has become a very important part of raising capital in the last ten years. So not only does cryptocurrency allow the payment to businesses from shoppers around the globe, it also allows investments from businesses and leaders across the globe. “Investors are always searching for companies to invest in, and many investors are specifically looking for companies that use blockchain technology in their business plan. Before blockchain technology many companies were out a large amount of the funding they raised, due to international exchange rates and other fees from credit card companies or lenders,” says Diana Zill, a tech blogger at Writinity and Researchpapersuk.
Adequate Record keeping for Start-ups
Any business must keep crisp, accurate records with high efficiency. Block chain technology does this automatically. It takes less manpower, and ultimately, less money to keep records with block chain technology. Many industries have begun using blockchain, and its secure encryption code to transfer high sensitive data and broker deals. If a document is altered in anyway, it adds another ‘block’ to the ‘blockchain’ and because that ledger is not centralized, it is distributed to all the companies and parties involved. Many financial institutions, such as a bank, have a centralized ledger.
Thinking of a new start up? It is risky, but with the advent of blockchain technology, there are many ways to make it less risky. Incorporating blockchain technology into your new start up can ensure a level of safety, record keeping and fundraising that cannot be offered in other forms. It opens the doors for regular business to compete with larger corporations, and allows a company to raise capital so they can focus on other details of a new start up.
Ashley Halsey is a professional writer, entrepreneur and mother of 2 children