As a small business owner, you're constantly looking for ways to improve your business, and sometimes you can feel like you're just spinning your wheels. Even though you have to juggle a lot every day, you keep going because you believe in your business and what it can offer the world. 

In this digital age, many new technologies are emerging and claiming to solve your business problems. And your goal is to select and adopt technologies that will have a tangible impact on your business. 

Blockchain is a technology that is currently causing a stir in the business world. This technology is expected by many to change the business landscape for the better.

So what exactly is blockchain?

Blockchain

Simply put, a blockchain is a digital ledger that records transactions securely and is tamper-proof. Once something is recorded on the blockchain, it cannot be changed or deleted because it is stored in chained blocks, and each block contains a cryptographic hash of the previous block with a timestamp. Also, since it is a distributed database, each transaction is verified by multiple computers and no individual or organization has control over it. 

Although this technology is still relatively new in the corporate world, it has already been adopted by several small businesses because of its potential to solve many common small business problems. 

If you're still not convinced, read on to learn about the small business problems that blockchain technology will eventually solve.

Small business problems

1.     Difficulty in securing funds

Banks are often hesitant to lend money to small businesses, and traditional investors are naturally wary of investing in small businesses because of the perceived high risk. However, with blockchain technology, you can secure funding through tokenization. 

Tokenization is the process of converting your business assets into digital tokens that can be bought and sold on the blockchain. Doing so gives you access to a whole new pool of potential investors.

2.  High cost and slow business transaction process 

Blockchain technology can help your business save costs and speed up transactions. You can avoid high fees charged by intermediaries such as banks for wire transfers, currency exchanges, and international payments. 

Additionally, you can make payments quickly and don't have to wait long for your transaction to be processed because blockchain transactions are verified and completed almost instantly. This is in contrast to traditional transactions, which usually take days or weeks to complete.

3. Vulnerability to cybercrime 

Small businesses are particularly vulnerable to cybercrime because they often lack the resources to invest in data protection and cyber insurance. Cybercriminals are aware of this and exploit small businesses by stealing their data or holding it for ransom. 

With blockchain technology, this is not possible. Data stored on a blockchain is encrypted and spread across multiple computers, making it virtually impossible for cybercriminals to hack or tamper with the data.

4. Lack of payment security 

Payments from traditional transactions can fail for various reasons. Others include chargebacks or fraudulent activity. These activities can create major financial problems for small businesses as they struggle to keep up with their inventory and operational costs. Blockchain technology allows small businesses to accept payments quickly and securely without worrying about chargebacks or fraud. 

In addition to this, you can securely accept and exchange cryptocurrency payments via blockchain when dealing with international clients.

5. Counterfeit Products 

If you sell physical products, there is always a risk that your customers will end up with counterfeit products which can damage your reputation and hurt your bottom line, as you lose potential sales. 

Blockchain can help by providing a transparent and tamper-proof way to track your products from the manufacturing process to the end consumer. This way, you can be sure that you are selling only authentic products under your brand. 

You can also put codes on your products that customers can use to check their authenticity on the blockchain. If a product is found to be fake, you can take appropriate measures to remove it from circulation and protect your brand.

6. Decreased productivity 

Blockchain can help your business increase productivity by streamlining processes and automating tasks such as invoicing, payments, and product tracking. This will reduce the need for manual input and verification, free up time for employees to focus on more productive tasks, and reduce the potential for human error.

Also, small business productivity declines are often caused by a lack of ability to accurately track employee performance. With blockchain technology, you can create a secure and transparent system to monitor employee productivity, identify areas where employees are not meeting expectations, and take corrective action.

7.  Problems with scalability 

Small businesses, especially those based in developing countries, often find it difficult to expand their operations due to a lack of resources. Blockchain helps them by providing access to new markets and customers. 

For example, a small business owner in Africa can use blockchain to connect with customers in Europe or the United States without establishing a physical presence in those countries. 

This will allow small businesses to expand their customer base and reach new markets without physical infrastructure costs. Additionally, blockchain can help small businesses scale by providing access to new financing options as they can raise capital from a global pool of investors.

Conclusion

Blockchain technology is thus poised to solve some of the most pressing problems facing small businesses today. So, don't hesitate to incorporate blockchain into your business operations! This could be the key to taking your business to the next level.