Starting a business is a daunting task and has a few risks associated with it. But, the higher the risk, the greater the return. However, only some entrepreneurs have the capital or the funding to launch on a large scale. They mostly begin with a small business and keep investing more to take it to a large scale eventually.
A small business, as the term suggests, is a business that operates on a small scale. It requires lesser capital than a large business and may be run by a person alone or by a handful of people. The goods and services produced by a small business are also produced on a small scale.
Small businesses thrive on online payment apps. Out of the various payment methods available to the consumer, digital payments are considered the easiest. The online payment market is vast, with multiple apps around us. Digital payment providers often offer considerable discounts to their customers, making shopping more profitable.
Before we delve into how online payment apps are a boon to small businesses, let’s figure out what a small business is.
Features of a Small Business
Earlier, small businesses had limited reach, as their client base existed in the local area or city they were set in. They used to work with readily available local resources, and a small business’s success largely depended on its established location. With the internet at our disposal, multiple cloud-based business accounting softwares, and the immense growth of technology, this scenario has changed dramatically.
A small business is now characterized by the business it generates. The figure varies from country to country. The essential features of a new-age small-scale business are as follows:
- It is owned by one person or a limited number of people;
- The owner(s) is responsible for the management activities; and
- It is carried out with the help of a limited workforce.
Advantages of Owning a Small Business
There are various perks of owning a small business. One gets complete control of management, operating schedules, and the money generated by the business. The advantages of owning a small business are as follows:
- Interest: People tend to prefer owning and managing a business in a field that interests them. They genuinely enjoy their work and do not dread Mondays like most working people.
- Control: The control over a small business lies entirely in the owner’s hands, as opposed to a large business where shareholders, board of directors, etc., come into play.
- Work-Life Balance: You get to decide the number of hours you put in, the time you want to work, and where you wish to operate. Owning a small business gives you much freedom in terms of your lifestyle, and you get complete control over your work pace.
- Monetary Compensation: All the hard work put in and carried out in small businesses benefits the owner directly. You directly benefit from your hard work when you own a small business. Also, there is no bar to your compensation as a small business owner. Taking significant risks might mean suffering a loss but also sky-high profits.
- Growth: Your business is directly affected by the amount of work you put in. The more you work, the more you grow. This gives the owner a sense of satisfaction rather than feeling stuck at a dead-end. Not to mention the peace of working on something that genuinely interests you and that you enjoy. The personal pleasure of working for yourself and watching your business succeed is unmatched.
Disadvantages of Owning a Small Business
While there exist many advantages to owning a small business, it is not always a bed of roses. The negative aspects of owning a small business are as follows:
- Monetary Risk: A small business is usually funded by the owner and confers the liability of paying up in case of losses or winding up on them. Being a full-time small business owner also entails the lack of a steady paycheck at the end of every month. When you are a small business owner, you enjoy the profits and bear the losses alone.
- Time Invested: While owning a business gives you the freedom of taking leaves, you rarely get to take them. The business has to be managed, you must keep the commitments, and the help is limited. A small business requires much effort to be established. This only leaves you with little time off from work.
- Lack of Expertise: Every business involves a learning curve, and it takes a while for the owner to get accustomed to the multiple risks associated with owning a business. You may only be able to anticipate problems if you have spent substantial time operating the business.
The internet has completely transformed the business game and vastly increased the reach of a small businesses. With the vast development in technology and courier services, multiple small businesses now offer worldwide delivery. All you have to do is shop online and get the products delivered home. While cash on delivery was the norm a few days ago, the world has swiftly moved on to online payment apps.
An online payment app is an application through which one can make payments via the internet. The amount gets charged to the buyer’s account, and the money is instantly electronically moved from their account to the business’s account. Online payment apps are a boon to small businesses. Here’s why:
Perks of Using Online Payment Apps in a Small Business
- Overall Convenience: The primary advantage of using online payment apps is their overall convenience. These apps store information about the user’s various payment cards and are very convenient.
- Instant Transfer of Funds: With the advancement of technology, it is now possible to instantly transfer funds from one account to another using online payment apps in just a few taps/clicks.
- Surety of Order: As noted above, online payment apps make instant payments. This, in turn, confirms the order and saves the small business from suffering losses if the buyer rejects the product when it reaches them.
- Ease of Tracking the Payment: Payments made through these apps are easy to track. They have a digital trail readily available to both parties involved in a transaction. Using online payment apps helps avoid the hassle of going to banks and figuring out what went wrong.
- Secure Payment: Online payment apps work by creating and utilizing safe payment gateways. This keeps the business from potential fraud because the apps and the users are legitimate.
- Flexibility in Payment Options: Online payment apps offer multiple payment options for their users. Some people like to pay through credit cards, some through debit cards, and some through installments. Using these apps offers flexibility to the users. This is great for small businesses that have only begun making money but still have bills to pay.
- Ease of Maintaining Records: It is easier to monitor cash flow and maintain records as the payments are made digitally and stored in the database of online payment apps. The business can thus save and retain these records electronically.
- Cuts Down Operational Costs: Any business, big or small, faces operational costs. Using online payment apps helps the business save and maintain a record of payments received and made electronically.
- Helps With Impulse Buyers: Online payment apps are a boon when impulse buyers browse your products. They see something they like, whip out their phones, and voila! They make a purchase. These apps help a great deal with digital wallets and credit card payments.
- Helpful With Referral Marketing: Social media significantly impacts what people buy, and getting influencers involved with referral marketing is one of the safest bets you can take in marketing. Buyers often end up purchasing what their influencers suggest. They offer affiliate codes, which buyers may use on the apps to get discounted products.
Online payment apps are essential for a small businesses. These apps are a real boon for a small business when used correctly. They offer stability and security to the business while maintaining flexibility in making and receiving payments. They are easy to work with, help cut operational costs, and offer credibility to the business as potential buyers trust a business more when using these apps.