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Blockchain. Bitcoin. Big Deal… or Just Big Hype for Small Business?

Blockchain itself has many types of uses beyond cryptocurrency.

“Two bitcoins, four bitcoins, six bitcoins, a dollar… all for blockchain, stand up and holler!”

It’s unlikely varsity cheerleaders are going to do that routine along sidelines anytime soon. However, there are a lot of people rooting for the increasingly popular blockchain and bitcoin, and headlines about these technological phenomenon now fill the news.

If you don’t know what either of these does, you’re rapidly becoming a minority. Both are sweeping the business world. First because each offers a revolutionary new way to conduct commerce, and second because they have become the “next big thing,” much like the dot.com bubble of nearly 20 years ago. Are blockchain and bitcoin appropriate for small business? And will this bubble, like all other bubbles before it, burst?

Let’s start with a few simplistic explanations. Blockchain began as technology that allowed digital information to be shared, but not copied. As far as the business world goes, blockchain serves as a ledger or spreadsheet of sorts, to record value. Unlike a paper ledger or an Excel spreadsheet, Blockchain resides on the Internet. As such, it can be used to verify and record endless transactions – initially monetary transactions, but eventually any type of transaction involving something of value. A key selling point is that by utilizing Blockchain, users never have to go through a bank, credit card, etc.

Blockchain is digital, however it is not housed in any single server or database. Rather it utilizes peer-to-peer network sharing (remember Napster, an early example of peer-to-peer?). This means, essentially, that blockchain is everywhere. It is truly public and transparent, and its files are continuously updated and reconciled. As for security, proponents say that its decentralized nature protects it from hacking and interference (blockchain also employs encryption). It is not controlled by a single entity that can be corrupted and it has no fixed location that can be compromised or fail.

Bitcoin is an outgrowth of blockchain. More accurately, bitcoin is, itself a blockchain. Bitcoin is what is more accurately known as a cryptocurrency – a digital currency in which encryption techniques are used to regulate and verify the transfer of funds, operating independently of a central bank. According to one source, bitcoin has been in existence since 2008. However, only in recent years has it grabbed the attention of the business world, and in particular, investors.

Trading in bitcoin has seen a rollercoaster of activity, with dazzling highs and terrifying falls. It is definitely not an investment for the faint hearted. At the moment, many respected observers claim the bitcoin market not only has all the trappings of a classic speculation bubble, but that the bubble may have already burst.

This article is not about bitcoin investing. However, with the incredible volatility surrounding bitcoin trading, many concerned national governments are considering cracking down on both Bitcoin and other cryptocurrencies. This could put its future in doubt. One of the touted benefits of bitcoin is that it is not regulated or controlled by any entity. If that were to change, who knows what could happen?

This article is more concerned with whether utilizing blockchain and bitcoin are a good idea for a small business. On those subjects, the results are mixed. Bitcoin is a cryptocurrency that is an outgrowth of blockchain. In other words, bitcoin is just one feature of Blockchain. Blockchain itself has many types of uses beyond cryptocurrency.

Blockchain, for example, can be employed to bring products and services to market cheaply and quickly. It can also help reduce data storage and security costs, easing the economies of scale problems that often hinder small businesses. Best of all, in terms of our discussion, it can help enforce contracts, particularly so-called smart contracts or cryptocontracts. These are computer programs stored on blockchain technology that directly control the transfer of digital currencies or assets between parties under certain conditions. Smart contracts can be of help in paying employees, paying bills, filling orders or invoicing.

Smart contracts can offer small businesses several advantages over regular legal contracts drawn up by a lawyer. For one, they are quicker and cheaper to execute as they cut out intermediaries and third parties. As they are stored electronically, there is backup, meaning the other party can’t claim to have lost it. Finally, they are encrypted to provide safety. Here is an example of how to set up a smart contract.

Of course, bear in mind that few, if any, systems are perfect. Such is the case with a blockchain smart contract. Obviously, with any type of computerized, electronic technology, bugs can impair programming. Human error can also occur during coding. Lastly, at the moment, there are almost no government regulations regarding smart contracts.

So, are blockchain and bitcoins an effective solution for your small business? That’s ultimately a question only you can answer. As with any business decision, it requires proper due diligence and careful consideration. There is a lot of hype and cheerleading going on about blockchain and how it’s the next “big thing” in business. Sometimes it can be deafening. We’ve presented some advantages and disadvantages to blockchain, bitcoins and smart contracts to get you started on making an informed decision.

March 2, 2018
Things Every Entrepreneur Needs to Know
The decision to embark on entrepreneurship is big. It means that you are creating your own future and taking control of your decisions. There are a few things every entrepreneur needs to know. The road to success isn’t easy, though. To help you overcome the barriers that come with being an entrepreneur.

What Few Things Every Entrepreneur Needs to Know :
1. Choose where you spend your time wisely. You don’t have the time, resources, or the energy to do everything. The places that you spend the most time will obviously flourish more than the areas in which you don’t. So, make the hard choices about what you will give your energy to and what you will have to refuse.
2. Don’t come up with ideas. The world is full of plenty of inventors and dreamers. The mark of a good entrepreneur is someone who sees a problem and comes up with a solution. If there is no need for your product, service, or business idea, it won’t be successful.
3. Take small steps. Successful, profitable business ventures don’t happen overnight. In fact, most founders will tell you that they take precise and calculated moves. Start by planning out what needs to happen to make your passion and dream a reality. Then, take small steps to make sure it happens. After each step, pause to evaluate your progress, lifestyle, motivation and reassess as needed.
4. Don’t worry about your weaknesses. Everyone has them. Instead, find out what your strengths are. Focus on them and don’t worry about the naysayers.
5. Don’t be a doormat. You’ll find that when you’re successful, people expect you to cut them breaks, make exceptions, and let things slide. In some instances, you might be able to. As a rule of thumb, though, never do what you’re good at for free. Instead, make sure that you collect on all of your accounts. Not only does this keep your successful business growing, but it establishes a relationship of respect with those who do business with you.
While you can embark on your business ventures on your own, eventually you will need help, so’ hire employees and build a great team. An invoice factoring company can help you send out billing notices and collect on your overdue accounts. Charter Capital is an asset to every small business. Not only does it eliminate the wait for payments, but it allows you to immediately receive the cash that you are owed to expand and grow your own business and entrepreneurial success. To find out how Charter Capital can help you further your business endeavors, visit www.charcap.com
October 17, 2016
Marketing in a Slow Economy

In tough economic times, it is important to think beyond the current downturn and start thinking of creative ways to attract more attention to your company’s products or services. There seems to be a little less to go around these days as business owners carefully choose where they are spending. This can be an opportunity rather than a problem. Simply do what others won’t. When everyone else in your market is cutting back and expressing their grief over the economy and lagging sales, you should increase your advertising.

Unfortunately, for some business owners, cutting back on advertising dollars is the first knee-jerk reaction that is employed. In difficult economic times, getting your product or service in front of prospective customers becomes increasingly important, if not vital.

Marketing

Here are just a few simple things that can have an impact:

Contact all your former customers – Make up any excuse to call them, but call them. They may not need you now, but they may know someone who does. Ask for referrals.

Network – Take advantage of any opportunity to get in front of a group of people to talk about what you do best. Give your business card to everyone you meet.

Offer specials or generous payment terms – There’s nothing like a discount or extended payment terms to entice customers. But don’t worry, if you use Charter Capital’s FactorLine, offering generous terms (as long as 60 days) will have little effect on your business cash flow.

Re-valuate your current advertising strategy – Make sure you’re reaching your customer base, and don’t underestimate the power of the Internet. Sometimes a shift from traditional advertising to online advertising can have a dramatic effect.

People have a lot of things on their minds these days and it’s possible that your product or service is not among their top concerns right now, whether it should be or not. You should recognize opportunities to place solutions in their paths that will capture their attention, impress them, and bring them to your door.

September 9, 2016
Trucking Industry Holds Great Promise and Poses Great Challenges for Smaller Operators

Trucking industry great promise for small operators: Back in the 1970s, there was an inescapable popular saying you could find plastered all over t-shirts, posters, bumper stickers, and even as part of a Billboard chart-topping song. “Keep on Truckin’!” The saying certainly reflected the times. Truckers were greatly admired. They were seen as a hard-working, independent breed ready for endless adventure on the wide-open highways of America. What little boy didn’t want to be like Burt Reynolds or Jerry Reed in one of the greatest all-time trucker movies, “Smoky and the Bandit”?

Fast-forward 40 years, and little has changed. Trucking remains as popular as ever in the public lore. For those who like the solitude and the call of the road, there’s no better time to drive a big rig. If you’re one of those people who has always dreamed of “putting the hammer down,” this may be a suitable time for you to fulfill that desire with your own small trucking firm. Or then again, it may not be, depending on which side of the wheel you sit.

The good? According to the American Trucking Associations (ATA), trucking is high-balling it towards the greatest era in its storied history. ATA president and CEO Bill Graves says he “see(s) no scenario, no outcome on the horizon that is anything but great for this industry.” The ATA is robustly predicting overall industry revenue will jump 72 percent by 2022 and tonnage moved will climb nearly 24 percent in that same timeframe. Truckload volume, meanwhile, will grow 3.5% a year through 2019.

The ATA reported an all-time high in trucking tonnage hauled in February 2016. Other market research studies have indicated that higher demand and ever-rising shipments could create a capacity crunch down the road. This crunch could pave the way for those wanting to enter the industry. Indeed, one report trumpeted that small independent trucking firms are among the nation’s fastest-growing small businesses.

Sounds great, right? Throttle down and take your foot off the accelerator for a second. Before you shift into high gear, lasso up some friends and start your own convoy down the Interstate in search of trucking riches, a few other important things need to be considered.

The Advantages of Small Trucking Companies

Small trucking companies and owner-operators are carving out their own path to success, armed with a deep understanding of the pros and cons of operating on a smaller scale. Despite facing challenges such as navigating supply chain issues and balancing start-up costs, these entities enjoy distinct advantages over their larger counterparts. The freedom to choose types of freight, coupled with the personal touch they can offer in the supply chain, sets them apart in a crowded market. For those dreaming of a career in the trucking industry, becoming an owner-operator within a smaller trucking company not only provides a more intimate driving experience but also opens doors to a variety of trucking jobs that might not be available in larger firms.

With an emphasis on quality over quantity, small trucking firms are adept at offering customized solutions to shippers, ensuring that even the most specialized freight requirements are met with precision and care. This flexibility extends to their operation model as well, where drivers and owner-operators often enjoy more leeway in choosing their routes, thereby improving job satisfaction and work-life balance. Additionally, smaller companies may offer more attractive packages for drivers, including competitive wages, vacation time, and even life insurance options, addressing one of the industry’s biggest hurdles: driver recruitment and retention.

However, the journey for small trucking companies is not without its bumps. The initial start-up costs, license fees, and the need for a safety team are significant considerations. Yet, for many, the advantages of running a smaller operation—such as closer relationships with clients and a greater sense of ownership and independence—outweigh these challenges. In an era where the impersonal nature of large corporations can be a turnoff for both employees and clients, the personalized service offered by smaller carriers becomes a compelling selling point.

As the trucking industry continues to evolve, the role of small trucking companies and owner-operators will be pivotal. Their ability to adapt quickly to changing market conditions, coupled with their commitment to providing personalized service, positions them well to navigate the highways of opportunity. For entrepreneurs and career seekers alike, the small trucking sector is great ground for growth, innovation, and success, proving that in the world of trucking, size does not always dictate capability.

Trucking Industry, a Few Other Important Things Need to Be Considered.

First off, the trucking industry is undergoing a number of regulatory changes. The new regulations may put a brake on trucking’s headlong rush towards a new golden age. These include stricter limits on the number of hours a driver may be behind the wheel per day and per week. A number of governmental entities are also considering more and stricter health exams for commercial drivers, who have to sit for long periods, making them more susceptible to health problems.

So not only can drivers be behind the wheel for a shorter time, reducing productivity and profits (both for the company and the driver), but there are fewer drivers than ever. A massive driver shortage has stymied practically all haulers, big and small, with rapid turnover rates common as drivers continually jump for more lucrative offers from the competition. Not enough new drivers are entering the industry and today’s drivers are rapidly aging, creating even more significant shortages. Industry watchers speculate that the trucking industry will have to hire 89,000 new drivers every year just to keep pace.

That means wages are rising to entice people into the cab. That’s great news for drivers but not so welcome for company owners trying to fulfill more and more orders.

Finally, new technology is having a big impact on trucking. Companies slow to embrace new technologies are finding they are increasingly less efficient and are becoming roadkill for faster, more nimble haulers who swallow them in a convoy of mergers and acquisitions.

So as you can see, the road ahead for the trucking industry has some great opportunities in terms of increasing demand for service, Still, there are also several potholes to dodge in terms of finding and keeping drivers. One effective solution for small trucking companies is freight bill factoring. By working with a freight bill factoring company, trucking businesses can convert their unpaid invoices into immediate cash, ensuring steady cash flow and the ability to meet operational needs without waiting for customer payments. If you’re a small business entrepreneur looking for a new challenge, trucking could be a lucrative path to prosperity, provided you have a firm grip on the wheel, gear your expectations accordingly and carefully map out your route.

June 7, 2016
Top 10 Reasons For Invoice Factoring
If you are looking for fast cash flow solutions for your business, factoring your accounts receivables (invoices) can provide you with the funding you need to succeed almost immediately. Invoice Factoring is a financial transaction and type of debtor finance in which a business sells its invoices to a third party (factoring company) at a discount. The factoring company will then collect on the unpaid invoices for you, and once all of your clients have paid, the factor will reimburse you the remaining balance (minus a small fee).

Many small companies enjoy the benefits of accounts receivable factoring, so we have compiled a list of the most important reasons to factor invoices.
1. It can turn your accounts receivable into immediate cash without giving up equity in your business.
2. The process is much faster than a conventional loan and is simpler.
3. Because your business receives funds up front, it enables you to offer better and more competitive credit terms to your customers.
4. By using the cash you receive from factoring your invoices, it enables your business to take advantage of early payment or volume discounts from your vendors.
5. It lets you concentrate on growing your own business instead of the Accounts Receivable and Collection process.
6. It helps you to begin to build and improve your credit because your business is able to pay its creditors within terms. You no longer need to wait on customer payments so that you can pay your bills. Partnering with the best factoring companies ensures you not only get fast cash flow but also the support needed to manage your business effectively and improve credit.
7. No new debt – Invoice Factoring is not a loan.
8. It helps to get invoices paid faster – Having a professional and experienced company assist you in managing your Accounts Receivable and collections usually shortens the days that invoices remain unpaid.
9. Monitoring and early detection of customer service issues – The factoring company can essentially be your outsourced A/R department and can alert you to any potential problems with your customers.
10. Receive invoice processing assistance, credit screening & monitoring, as well as professional collections.
If your cash flow is suffering and you are looking for a financing solution that will save you time and money while bringing about all of the above benefits, invoice factoring is for you.

Invoice Factoring for Business Growth: A Top Financial Strategy

Invoice factoring stands out as a top choice for business growth, offering a range of benefits that go beyond mere cash flow improvement. Invoice factoring empowers business owners to unlock the value of outstanding invoices, transforming them into a viable funding source that doesn’t require taking on new debt. Factoring for service providers, such as businesses in consulting, healthcare, and IT services, allows for a steady cash flow to manage business cash flow more effectively but also positions companies to grow their business by leveraging flexible funding solutions. For industries like staffing, where managing payroll is critical, staffing invoice factoring provides a reliable solution to ensure consistent cash flow and meet financial obligations without delays. Moreover, there are many advantages of invoice factoring, such as improved creditworthiness and access to working capital, that allow businesses to take advantage of early payment discounts and invest in business growth opportunities. This strategic move not only updates your choices for financing needs but also aids in maintaining a healthy cash flow, which is essential for new business ventures and established entities looking to scale. By choosing to factor your invoices, your company can navigate the complexities of traditional financing hurdles, update your financial strategy, and confidently secure a profitable future. To take the next step, request a free rate quote for your business.
April 3, 2013
Do You Have An Alternative If Your Lender Becomes Uncomfortable With Your Credit?

Read this Entrepreneur Magazine article first (click here).

Unfortunately, Tara Olson’s story is not unique. Banks will often drop your line of credit if it does not meet certain profitability requirements. This, of course, can leave your business scrambling for cash if you are dependant on bank financing or a line of credit to help buffer your cash flow.

The Importance of Cash Flow
As with most businesses, cash flow is critical to ensure funds are available to meet your operating needs. Without effective cash flow management, a business faces several problem areas, such as cash shortages, inability to pay bills, bankruptcy, or even business failure.

Cash flow is one of the most vital elements in the survival of a business, and it shows where a company may be headed. Instead of depending on traditional bank financing, you can more easily manage your business cash flow with a FactorLine from Charter Capital. When you can predict or even control your cash flow, you are in a much better position for continued business success.

The Difference Factoring Makes
An increasingly popular way to help manage cash flow is factoring. Factoring (also known as Accounts Receivable Financing) is the practice of selling your accounts receivable (invoices) at a discount to another company like Charter Capital. You immediately get the money from Charter Capital and we become responsible for collecting on the invoices.

With factoring, you are free from many of the restrictions placed upon your business by traditional bank financing. Most importantly, with factoring, you are free to grow without having to give up equity or control of your business. This is because factoring Accounts Receivable is technically the sale of an asset, and the funding you receive from us is not debt, but a cash asset.

In today’s competitive marketplace, getting debt-free funding in the form of factoring can give businesses the edge they need to succeed.

September 8, 2009