Understanding the Benefits of 5G and What It Means For Your Business
A few weeks ago, KLC Financial attended 5G Expo North America, tech conference in Silicon Valley, California to educate people on the benefits of 5G. Hundreds of companies, 12,000 attendees, and 500 speakers gathered to learn, discuss and educate others about how 5G connectivity is changing the world. Though many Fortune 500 companies are preparing for the 5G revolution, the KLC team observed very few small businesses doing the same. If you own or work for a small business, don’t miss out on this great growth opportunity to capitalize on this truly game changing technology!
There are clearly risks that come with being an early adopter of new technology, but as the old adage goes, “with great risk comes great reward.” Being on the cutting edge of technology often requires more time and is more expensive due to demand. However, the benefits can be unmatched if timed properly. As mentioned before, large Fortune 500 companies have already been planning and investing in how they are going to utilize 5G for their business; small businesses must begin planning as well.
Benefits of 5G
What exactly is 5G? And how is it going to help my business? At the end of the day, 5G translates to really fast internet, at speeds that have only existed in Sci-Fi films. 5G stands for fifth generation wireless. 5G operates similarly to 4G, but is much faster because of its more efficient encoding.
How will lightning fast internet speed increase my bottom line?
Faster Data Speeds
Uploads and downloads will happen in the blink of an eye, upwards of 100x faster than 4G. In a world where time is money, 5G is going to save you a ton of time! This will positively impact your current systems and network setup, but will also make new software solutions more enticing.
Lower Latency
Latency refers to how much time it takes data to get from point A to point B. If latency is greatly reduced, you are transferring information almost instantaneously, which allows for faster and more informed decisions. Perhaps the biggest business impact with regards to latency is in logistics. Companies will have all of their data in real-time and can make proactive decisions rather than reactive moves. Inventory can be shipped and moved at the exact moment it needs to be, without requiring expensive overnight costs. It will also reduce waste and production costs of over producing or requiring rush orders for backlogged items.
Convenience for Remote Teams & Multiple Branches
As of last year, over 70% of the world’s workforce work remotely at least one day a week. Higher internet speeds and faster connectivity for remote teams and companies with multiple branches is essential now more than ever. Giving remote workers the ability to maintain productivity as if they were in the office boosts production, builds moral and employee engagement.
Security
5G is more secure than 4G. ID’s are encrypted on 5G, where as they aren’t on 4G and the overall encryption itself has a stronger security algorithm (128 bit with 4G versus 256 with 5G).
Coverage for Rural Areas
Rural businesses and farmers will see real benefits from 5G. Though speeds will not be what they are in urban areas, they will see increases in speed and decreases in latency.
KLC’s Conference Takeaways
1. As 5G becomes more widespread, companies will look to invest in new software and technology to help grow their business, but may not find the right financing options readily available.
Most software and technology companies are not offering finance options for their clients, and they should be! This kind of investment is very expensive and can be hard to finance through traditional lending options. And most companies aren’t in a position to pay cash for the upgrades and equipment.
If you are a software and technology vendor offering 5G upgrades, don’t turn these customers away! Instead, partner with KLC Financial, where we can offer leasing and financing solutions to your customers. We can structure a flexible payment deal that works for your end-customer, and comes at no cost to you, the vendor.
We service the lease or loan, the vendor gets paid up front and in full, and the end-customer gets the technology they need to stay relevant in a competitive market. It’s a win-win for everyone involved!
2. There is a misconception in the market that financing is only for companies that NEED money.
Many vendors we spoke with at the convention told us that “their customers have plenty of money, so they don’t need financing.” While they may be able to afford paying cash, that doesn’t mean they WANT to pay cash. Very large companies didn’t become as successful as they did by making poor financial decisions.
The fact is, often times spreading out the investment over several months or years, even with a modest interest rate, is a better long term strategy than paying a lump sum and draining their liquid assets. These companies are then able to invest that money into other areas of the business to earn revenue. This revenue is then used to pay off the loan. In the end, they have more flexibility and the equipment pays for itself over time. Many large companies with millions in working capital are still choosing to finance or lease their equipment and software for this very reason.
3. Robotics and automation are innovating every industry.
The increased speed and decreased latency of 5G is a total game changer for the automation and robotics fields. In a world where time is money, having accurate, real time data is a necessity to staying competitive.
4. 5G is bringing logistics capabilities to another level.
Lighting fast speeds and decreased latency means companies will be more efficient, predictable and predictive. Fewer mistakes and more detailed information for products and shipping is important to all customers. If you don’t bring it to them, the competition will.
5. As a business owner, don’t shy away from technology!
Business owners shouldn’t run away from technology. It may come with a hefty price tag, but if the benefits allow you to differentiate, or provide a new service at a cheaper cost, it is worth the investment. Ask questions like “What could we gain from this technology?” “How will our business run more smoothly by adopting this technology?” “Will it give a distinct advantage over our competition?” “Is the competition already using it?” and really contemplate the long term gains over the initial investment. Additionally, if you are going to invest in new tech, reach out to a capital equipment finance company to help spread your payments out over time and build a finance plan that works for your company to lessen the burden.
Customers want to work with businesses that provide the best service and products possible, and this usually includes adopting new technology. Having a fundamental knowledge around Blockchain, Cloud based storage, and the latest industry software can help you evolve and stay ahead of the curve.
Call KLC Financial today to find out how we can help you understand the benefits of 5G and join the 5G revolution! Whether you are a software or technology company looking to provide financing options to your customers, or your business is investing in technology upgrades but you don’t want to pay all in cash, get in touch today! We can build competitive customized solutions that meet your needs and help grow your business.
