Let's talk about 5 reasons why tokenization can drive continued business growth, especially online entrepreneurship and small and medium-sized businesses also called SMEs.
Business diversification
Business diversification is the process by which an organization begins to offer new products or enter new markets. It is the creation of new growth and expansion strategies. This enables companies to attract new customers and expand their market reach.
The creation of tokens per se is a business diversification strategy because it means that the company that owns it has reinvented its strategy for further expansion. Given the fact that we are approaching an era of digital domination, tokens can expand the possibilities of buying and selling, as well as offering services and products online in a more secure way.
Diversification through the creation of tokens in other words implies "opening" new stores in other territories or countries, with an audience with a different purchasing power. Easy adaptability of products to the needs of new customers and durability.
Risk and cost reduction
Parallel to diversification, another direct benefit of the creation of digital currencies is the exploitation of the technology that supports it. Many agree that blockchain is a technology that was created to solve the problem of trust in transactions. With blockchain technology everything is more visible and transparent, so that (although it is necessary to be careful at all times) the risks of theft, misappropriation of funds, risks of errors in the system, money that is lost or never reaches the intended account, are lower.
Blockchain technology offers many benefits, such as efficiency, and fraud prevention because it eliminates the need for third-party verification by banks or other institutions. It also reduces transaction fees because there are no intermediaries involved in transactions between individuals or companies, but rather there can be a more direct relationship between interested parties.
Leveraging resources
Of course, blockchain is one of the many resources and/or tools that remain involved in tokenization, but there are many more. Through the use of platforms such as MintMe it is possible to share information, updates, news, and more with followers and investors, also interact with a community with the help of comments, direct messages, and proposals or voting campaigns, as well as generate business relationships by allowing you to publish services and products that can be paid for with crypto.
Creating tokens in these times especially means staying connected to the digital business universe and being able to change strategies more easily to fit more accurately to succeed. Of course, the economic benefit is not the only reason behind tokenization. Companies may seek to improve their market presence or reputation, adapt to changes in consumption or meet certain needs of their target audience.
Overcoming market saturation
The market is highly competitive and some industry sectors are oversaturated, with many organizations offering the same products and services. When competition is high, there are also many reasons to stand out and be different from others.
We can consider a key example: Many people today cannot easily open a bank account or make purchases using their credit cards. If your company can offer a payment method that is different from others and is easier and more secure, then you can make a significant difference.
Likewise, while your competition sells products on a "give and take" basis without any additional benefits such as referral systems or reinvestment opportunities, through your token these options are available.
Greater control over your company
Finally, an important benefit of token creation is the opportunity to be self-sustaining. When your company needs a third party to generate business interactions with your customers not only the prices are higher but you also lose autonomy over what you do and depend on others to make your business work.
Through personalized tokens, an individual can choose to set up his own business and initiate buying and selling directly with interested parties. He can also choose how to do it, at what time, even under what terms he wants a transaction to take place. Tokenization means that anyone from home, just by using the internet, can start receiving payments, generate campaigns around their projects or ideas, and have the support of their community.
Mary Schwartz