The use of electronic signature can impart a number of benefits to the growing and grown businesses. But are there any benefits of electronic signature for startups? Let’s check out!
The zeal to start your own business is one of the strong driving forces for redefining your identity. You can explore a wide range of business opportunities alongside credible platforms to give your business idea the much-needed boost. However, startups also have to focus on one of the most critical concerns of getting started with their business idea i.e., money. Capital expenditures serve as the foremost burden on the shoulders of startups.
Therefore, cost-reduction becomes a mandatory priority for startups rather than being just an option. One of the recommended best practices for cost reduction is the adoption of electronic signature for startups. The drive for promoting paperless solutions in modern offices can be a vital opportunity for startups to extract more business benefits than just cost reduction. Let us reflect on the different ways in which electronic signatures can help startups.
Also Read: What is the Future of Electronic Signature?
What Are Electronic Signatures and How Do They Work?
Before reflecting on the benefits of electronic signature for startups, it is essential to understand their definition and how they work. Electronic signatures are data in the electronic form associated with other data in electronic form that signatories can use for signing. Electronic signatures are different from digital signatures, which are actually cryptography mechanisms for the implementation of electronic signatures. Here is an outline of the steps that can help you understand the working of digital signatures.
- A key generation algorithm develops a random pair of keys for the document signer. The job of the key generation algorithm is to ensure a unique ‘key pair’ for every document to ensure the security of the document.
- The next algorithm that supports the working of digital signatures is the document signing algorithm. The user can sign the document with an appropriate algorithm alongside ensuring that the user associates the document with a key before sending it to the recipient.
- The final step in the working of electronic signatures is the key verification algorithm. This step shows one of the major reasons to use the electronic signature for startups. The key verification algorithm helps in verification of the sender’s key at the recipient’s end.
Benefits of Electronic Signature for Startups
Therefore, you can clearly notice that electronic signatures present the benefits of security and data integrity. Now, it is important to dive deeper into the reasons that can answer your questions on why use electronic signature. Here is an outline of the different factors that can help you think about the potential benefits of using electronic signature for startups.
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Good Case for Businesses
The first and foremost thing to note about electronic signatures is that they present a good business case. Almost 80% of companies implementing electronic signatures achieved ROI within the first year. Interestingly, 25% of the firms witnessed ROI within three months. The example of Salesforce clearly showcases the potential of electronic signature for startups.
Salesforce was able to replace wet ink with electronic signatures and achieve a faster reduction of time required for completion of sales contracts. The faster turnaround can help businesses in improving their versatility for dealing with time-centric situations. Startups could use faster turnaround for finalizing agreements with supply chain partners and financiers with electronic signatures. As a result, startups could leverage electronic signatures as a vital measure for setting up their foundation.
Also Read: Cost Saving Benefits of E-Signature
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Simple User Interface
The ease of use is also another highlight in the importance of electronic signature for startups. Electronic signature software offers simple and intuitive user interfaces that you can navigate easily. Furthermore, users can easily sign documents with electronic signature and send it to recipients with high reliability and security.
So, electronic signatures take out a lot of man-hours that go into the processing of documents for a startup. Electronic signature for startups not only provides ease of document processing but also resource effectiveness. Rather than wasting precious efforts in identifying and arranging documents, human resources can focus on other critical business tasks.
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Better Security Posture for the Startup
The most prominent factor validating the response on, why use electronic signatures, is the security. Yes, it is one of the most important ones among so many uses of electronic signature for small or big businesses. Startups have to safeguard their intellectual property that establishes their competitive advantage in the market. Moreover, modern startups rely on e-business more than ever with considerable dependency on electronic media in comparison to conventional paper documents.
The electronic signatures provide the option of verifying the accountability of different parties to transactions involving electronic signatures. A comprehensive audit trail with each electronic signature can help in verifying the identity of the signatory and the time and date of signing. Therefore, startups can be able to ensure the accountability of their workforce for different document-related operations.
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Streamlining of the HR Process
The advantages of electronic signature for startups also become prominently evident in the streamlining of HR processes. Human resources involve a considerably massive volume of paperwork. Startups have to invest considerable time and effort in preparing documents and tracking and storing the applications of candidates.
Furthermore, the length of the recruitment process also leads to the generation of more paperwork. As compared to paper-based route, electronic signatures can reduce the cost of paperwork. Most important of all, electronic signatures can improve the accuracy, precision, and effectiveness of different HR operations.
For example, startups can send employment contracts to new recruits, irrespective of the location, and chart out the future course of action based on the responses. As a result, the startup won’t have to wait for all the applicants to respond to the hiring notice before moving towards the next step.
Also Read: Benefits of E-Signatures for HR Department
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Improve Customer Experience
Finally, startups should consider the use of electronic signatures for capitalizing on the benefit of better customer experience. Electronic signature for startups can spell a new era of innovation development in customer service. With the help of electronic signatures, customers can finalize transactions with the startup faster. As a result, customers can easily achieve quote approval and statement of work from the startup. When the customers get what they want, they couldn’t be happier with your startup!
Ready to Adopt Electronic Signatures for Your Startup?
Now, you can clearly find out that electronic signatures have considerable benefits for startups. The startups which recognize the importance of electronic signatures for the benefits in the long term for their growth can adopt new avenues. Most important of all, startups could also streamline the issues of various routine administrative tasks.
Electronic signatures support startups in the development of competitive offerings alongside the promotion of more efficient workspaces. In addition, the development of businesses with the use of digital instruments can help in driving new innovations. Subsequently, startup owners can also navigate the emerging changes in the modern business landscape.
So, capitalize on the positive points of electronic signature for startups and make e-signing a part of your business to reap promising benefits in the long run.
