If your eyes glaze over the moment you hear about blockchain technology, you might want to smarten up if you’re a small business owner. Blockchain technology is rapidly transforming hundreds of industries, including the small business sector. The more you understand about how blockchain technology will impact your market, the more you can adjust your brand-building efforts to take blockchain’s impact into effect. If you’re a small business owner wanting to prepare for the future, following are five facts about blockchain you ought to understand.
Blockchain technology will disrupt the traditional marketplace retail sector. Blockchain technology allows merchants to share inventory from other blockchain-enabled merchants. This transformation is already happening with companies like BeVite (bevite.co). If you’re a small business owner hoping to compete in the blockchain-enabled retail landscape, it is imperative you start understanding decentralized marketplaces.
Blockchain-enabled lending will disrupt today’s small business loan sector. Instead of depending on traditional banks and credit unions for funds for your small business, you’ll soon have the option of P2P (peer-to-peer) decentralized loans. Blockchain startups like Fintrux (fintrux.com) are already developing P2P lending tools to assist small companies just like yours with on-demand unsecured loans.
Small Business Accounting
Small business accounting will also be influenced by blockchain technology. Instead of processing all your business transactions via traditional accounting software, soon your data will be authenticated via blockchain technology. Even how you pay your taxes (summitto.com) will be impacted as more levels of government offer cryptocurrency payments and blockchain-based digital identity authentication (onekosmos.com).
Small Business Reviews
If your small business is already influenced by online reviews on sites like Yelp, you need to understand that blockchain technology will change how online reviews are verified. Instead of random strangers on the internet commenting on your business and influencing how others think about your company, business reviews in the future will be authenticated via blockchain technology. How you serve your customers and their level of satisfaction with your performance will be documented via blockchain technology, helping you build a solid reputation as an excellent company to do business with.
How you acquire inventory for your small business will also be influenced by blockchain technology. If you’re currently purchasing merchandise from wholesalers around the globe, your transactions will be tracked via blockchain technology in the future. From the moment you place an order with a wholesaler, each step of your transaction and shipment will be authenticated via decentralized data. Not only will you be able to verify the identify of offshore suppliers (and the conditions of their processing plants/warehouses), you’ll be able to track the logistics of your shipments via blockchain-enabled data processing.
This is the future that awaits small business owners thanks to blockchain technology. The sooner you wrap your head around the transformation coming to your business, the sooner you can develop a strategy to maximize the momentum blockchain can bring to your small company. Blockchain technology isn’t something to be feared; it can have an incredibly positive impact on your small business if you prepare for the future of retail.