How an ICO can skyrocket your small biz

Initial Coin Offerings have been gaining momentum in the business world in recent years. Small businesses continue to adopt this new technology, and you would not want your company left behind.

The introduction of the Initial Coin Offerings as a means of capital raising was one of the most crucial aspects of cryptocurrencies in 2017. It not only made it easier to raise capital but also helped businesses adopt this method of payment.

 Businesses worldwide continue to adopt blockchain technology due to its proven advantages and benefits. As has been witnessed in recent times, small businesses have gained immensely from ICOs. This comes about due to the numerous advantages, which we will highlight in this article.

A good example of small businesses that have adopted this means of capital raising are Storj, The DAO, Bancor among others which have proven how successful this method can be within a few months.

As a business owner, you must always look for ways to raise your capital. ICOs present you with just that, and you won't have to hustle too much. Despite them being around for some time, ICOs have gained more publicity within the last year, and have been proven to be the best method to fundraise for your business capital.

Within the last year alone, over two hundred plus crowd sales have happened which has raised billions of dollars. All these were possible thanks to ICO technology. This trend is expected to improve within the next year suggesting that ICOs is the way to go for small and medium businesses.

What are the benefits of an ICO to your small biz?

ICOs shorten almost every process that you need to undergo to for your business. The successes they have had within the last year prove that ICOs are for the future and this is rightly so due to their advantages.

Time

The process of starting up an ICO is quite simple, regulations are minimal and it doesn't take a considerable amount of time to keep the ICO up and running.

Cost

Running an ICO does not cost too much. The lack of regulations suggests there are fewer if no fees required to get an ICO up and running.

Market reach

ICOs will increase your market reach in two important ways. Number one ICOs will help your business reach out to a huge pool of investors and other businesses that can easily help you raise your capital.

Number two, an important aspect of market reach is the fact that ICOs are international. An ICO will enable your business to get funding from an Investor in Japan, another in Brazil or any other part of the world.

Challenges facing ICOs

Despite the advantages which come with ICOs for small businesses, there are some challenges too that must be looked at.

Despite the growth and success of blockchain technology across the world, most countries have not fully accepted this revolutionary technology. This means that governments around the globe have had to put several regulatory checks in place.

The problem comes with raising capital on this platform, which most governments have continued to view with caution. This means raising money through ICOs may not be appropriate in some jurisdictions due to government regulations on the industry.

Conclusion

Blockchain technology has unprecedentedly grown within the global sphere in recent years. This has brought about massive opportunities especially for small and aspiring businesses. ICOs are one such opportunity, which businesses are exploiting all over the world.

SOURCES

https://www.entrepreneur.com/article/307147

https://smallbiztrends.com/2017/12/bitcoin-guide-for-small-business.html