Running a small business can be challenging. Between juggling rising costs, staying competitive and trying to keep customers happy, there’s barely time to breathe. In fact, according to some experts, almost four in ten (38%) struggle with insufficient capital challenges. Others suggest that 82% often fail because of poor cash flow management.
So, to get ahead of some of these challenges, technologies like crypto can actually help. Well, it’s true that headlines about the Bitcoin market price fluctuating can make crypto seem risky or speculative. But beyond the hype, there’s a practical side to digital currencies that’s often overlooked by many businesspeople.
This could vary from lower transaction fees and new funding models to attracting wider audiences and so on. So, to learn more about how crypto can help small business owners, keep reading.
The Appeal of Online Security
According to StrongDM, 46% of all cyber breaches are usually targeted at small-sized businesses. As if that’s not enough, 87% of these businesses have customer data that could be affected by cyberattacks, emphasizing why they should pay earnest attention to online security. We live in a time when customers have become more aware, such that by adopting secure infrastructures, companies can significantly improve their appeal.
You may be surprised to learn that about 85% of customers want to do more to improve their digital privacy. This is proof enough of the shift towards more secure interactions, given the increasing number of daily cyberattacks. So, you may want to implement more advanced infrastructures like blockchain to cater to this preference.
In the same vein, recovering from cyberattacks is not a walk in the park. IBM suggests that you may spend up to $4.88 million trying to resurface. For a small business whose yearly yield doesn’t even amount to this, it could mean closure of operations. Besides, attacks also injure brand reputation, which can result in losing customers.
Thankfully, crypto is made in such a way that it can help avoid some of these instances. For example, it is decentralized to ensure your business does not come to an end because of a single-point failure. Its advanced encryption makes it hard for attackers to access customer data due to the extensive computational resources required to decipher the codes.
The Need for Immediacy in Payments
PYMNTS.com did a study recently and noted that instant payments can significantly improve satisfaction for up to 78% of consumers. In another place, Federal Reserve Bank Services indicated that about 74% used these services recently. This is minus 86% of businesses that also confirmed using fast or instant payments.
With these numbers expected to increase, things might really be competitive for small business owners who ignore immediacy in payments. You don’t want customers to have a bad impression of you just because you did not align with contemporary trends.
By implementing crypto, you eliminate the need for intermediaries, which increases the speed at which transactions are processed. And as we have already noted, customers love it that way. This may lead to improved customer experience, which may even result in significant organic growth. Mark you: about 72% of shoppers will tell six or more of their friends about exciting experiences.
And now that operating small businesses is already challenging, you definitely want to take advantage of such statistics to save on some costs. Don’t forget that delayed payments are actually one of the common problems of small-sized businesses. Experts claim this is partly why 60% of these organizations grapple with cash flow management.
And besides just ensuring customers receive funds quickly, crypto is also cheap. It’s unlike other popular methods like credit cards, where processors can charge up to 3-4%. In fact, more scalable currencies like Solana can cost as low as $0.00025.
The Number of Crypto Users is Increasing
There has been a significant investor interest in the crypto industry in the past few months, especially after Bitcoin surpassed $100,000. Looking at the statistics, the number of crypto owners has already hit one billion. And if the crypto industry continues to make appealing moves, we may see even more people join.
Of course, many of them may want to use the currencies as payment methods. Surprisingly, a significant number of crypto owners prefer merchants that accept digital currencies, according to eMarketer. On top of that, regulatory changes, among other factors, could encourage crypto payment adoption to increase by 82.1% in the next few years.
As such, adopting crypto can help take advantage of these market shifts and set you ahead of those who don’t. Plus, aligning with customer preferences is just one way to make your brand more attractive. And the results can actually be mind-blowing. SuperOffice CRM notes that companies using this approach often witness up to 60% more profits than those without.
So, it’s actually true that crypto can benefit small businesses. At a time when many customers expect to receive funds immediately, crypto can help businesses meet this need cheaply. It eliminates third parties that often make traditional methods expensive and slow.
On top of that, crypto is also more secure and can’t succumb to single-point failure issues associated with classic payment methods. This is especially good if you don’t want to miss out on the security-conscious audience. And since the number of its users is expected to increase, adopting crypto could help widen your reach, which may lead to better business performance.
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