Building a New Small Business Model Based on Crypto in 2022
There’s no arguing that the way you conduct business in 2022 is different from the way we did in the pre-COVID-19 Pandemic years. Today’s small businesses are not only trying to stay afloat amidst supply chain issues and skyrocketing inflation, they are adopting the hybrid model of part stay-at-home word, and part on-site work. Some companies are also finding new and improved methods for upping their employee retention at a time when The Great Resignation is all the trend.
Says a representative of Talentkeepers.com, an employee retention company, diagnosing workplace issues that can result in high employee turnover, especially in the 2022 post-pandemic era, is crucial. Employee retention and retention systems can serve as a basis for providing concrete solutions that will assist business owners with retaining their talent and therefore thriving in a difficult business environment.
But talent alone does not keep a business afloat. This is particularly true of startups. Emerging small businesses need to embrace new types of digitized financial transactions and assets such as those available in crypto and/or on the blockchain.
According to a new business report, cryptocurrencies such as Bitcoin (BTC) are gaining in value and trading upwards of $40,000 per coin. This is said to be creating the “perfect breeding ground” not only for mass crypto acceptance but also for its use in all sorts of different business models.
The experts attest that the massive growth of crypto is going to make a large impact on businesses, big and small, the world over. But for smaller startups, cryptos like BTC can offer a competitive edge.
Here are just a few of the ways crypto can affect your small business.
Maybe crypto is well known for its volatility, with price swings that can vary as much as 50 percent in a single day (or even hour), but both retail and institutional money has nonetheless been pouring into it. Widespread acceptance of crypto like BTC has occurred as a result. Even crypto ATMs have sprung up in both the U.S. and abroad.
Now that BTC has hit an all-time high in December of 2020, lots of businesses are looking to cash in on this fiat hedge. PayPal is said to have made it a lot easier for businesspeople to purchase and sell their crypto on its platform. This comes in the wake of the damage COVID-19 has caused the world’s financial systems—damage that today is only being exacerbated by what appears to be a possible World War III scenario.
Says the president and CEO of PayPal, Dan Schulman, the shift to digital currencies and BTC is creating “clear advantages in terms of financial inclusion and access.” It also provides economic resilience and speed. Individuals and businesses no longer have to rely on banks to store their own assets since they, in effect, become their own banks.
Crypto is Changing Businesses
When it comes to the subject of “peer-to-peer currency,” cryptocurrency is altering the way businesspeople conduct transactions and the way they bank. What this means is, business growth opportunities and cost-saving approaches can now enter the overall financial equation.
In other words, new businesses can take advantage of trading “seamlessly” between industries which can mitigate global trade risks. Middlemen are being cut right out of the picture which makes things faster and more secure. This alone represents an upheaval in the old business model.
It’s the decentralized aspect of BTC which operates on a fully transparent blockchain that records each and every transaction (this is why those who accuse BTC of being a means of laundering money are a major falsity). The blockchain does away with all the complications of banking across sovereign borders by eliminating the middlemen.
It also bypasses regulatory restrictions. Businesspeople can now interact with customers and suppliers not only with greater convenience but with “no-fee transactions.” A win-win for all.
How To Integrate Crypto with Your Small Business
According to the experts, the many cryptocurrency platforms already in existence make integrating them into your business a relatively simple procedure. However, make sure to study up on both the federal and local laws regarding crypto, including tax implications, so that you can take full advantage of its decentralized financial opportunities.
These five strategies are said to offer you a “baseline” for the effective integration of crypto with your small business.
- Study the tax laws in your state and make sure to keep records of your gains and losses during the year. There are apps and software programs that can do this for you.
- Make sure to leverage existing platforms that make crypto payments easy peasy, such as PayPal, BitPay, Coinbase, and more.
- Use a budget calculator for integrating crypto with your small business.
- When considering crypto integration, think on a global scale (you can now perform a transaction between Cleveland and a small town in besieged Ukraine seamlessly and in seconds).
- Always be seeking new opportunities for business transactions with crypto and investing for the long haul. On a personal level, it’s best to dollar cost average of your investments rather than trade an unpredictable market.