Telecommunications: Managing the Costs

Telecommunications: managing the costs

Determining how to reduce business telephone costs is critical to Australian startups. Minimise communication expenses by taking your telephone system to the cloud.

Telecommunications are a necessary evil for all startups and new businesses. In order to capture new business and generate cash flow in the early stages of a startup launch, a new business needs to be able to maintain open lines of communication with potential customers, suppliers, manufacturers, and partners.

The high costs of business telephony solutions in Australia forces startups to direct capital that could be used for other revenue-generating activities toward expensive PBX equipment, which typically incurs costly setup fees and long repayment time frames.

In-office PBX solutions are difficult to scale — entrepreneurs and Australian startup founders must predict the future telephony needs of their business and are often obligated to purchase additional features such as call recording or automated voice menu systems.

An effective startup scaling strategy focuses on productivity and customer retention, so it’s essential that startups use the best technology available. The rise of cloud-based and VOIP telephony solutions offer startup entrepreneurs power communication options deliver efficiency without dramatically increasing operational costs.

How can your startup reduce tephony costs, though? The following steps will help you make the right decision when choosing a phone system for your business.

Consider Your Current Telephone Solution

The first step in minimizing your telecommunications costs is evaluating your current phone solution. Many startup founders choose to operate via a mobile phone in early launch stages, but establishing a dedicated landline is essential to the future success of any business.

ACMA consumer survey data indicates that 97 percent of Australian consumers consider a landline or 13/1300 number highly important when dealing with Australian businesses. Connecting a traditional landline may not be the best solution for your business, however — the high cost of interstate and international calls through traditional landline service providers can rapidly increase small business telephony expenses.

VOIP, or Voice over IP services, offer startups an inexpensive alternative to traditional landlines that offer the same functionality without the high price tag. Using VOIP, its possible to record calls or establish automated voice menu systems using scalable plug-and-play options via most Australian VOIP providers.

Is VOIP Right for Your Startup?

VOIP services are a highly effective method of reducing telecommunications expenses at your startup. Rather than connect a traditional landline number at your place of business, a VOIP service delivers calls over an internet connection.

The most important advantage delivered by VOIP solutions is the potential to establish an Australian Direct Inward Dialing (DID) number that directs calls directly to their VOIP connection. Using a DID via VOIP allows startups in Australia to present customers and clients with a local number for the region in which they are located at a fraction of the cost of a traditional landline.

It’s not necessary to purchase dedicated VOIP hardware, either. Modern VOIP solutions allow startups to make and receive calls via smartphone apps or software phones. Connecting a VOIP solution at your startup allows you to leverage the credibility offered by a landline number instead of a mobile.

Australian business VOIP solutions offer startups negligible connection and call costs, as well as providing extremely cheap international calls — a major advantage for startups that work with international clients, customers, or partners.

How Effective are Cloud-Based Telephony Solutions?

The cost reduction benefits of cloud-based telecommunications are impressive. Businesses typically see a cost reduction of 50 to 75 percent when switching to a VOIP telephony solution. An assessment of 30 businesses performed by PC World demonstrated that small to medium enterprises adopting VOIP telephony solutions were able to save an average of $1,200 per month on telephony costs.

Accessing VOIP services via softphones or VOIP smartphone apps can further increase savings, reducing telephony costs by up to $1,700 per month.

Cloud based telephony solutions don’t only reduce telephony costs — they also dramatically increase the efficiency of startups and small businesses. Establishing a cloud-based telephony system allows businesses to save up to 40 minutes a day in wasted employee time.

Cutting down on telephony costs at your startup is critical to developing an effective growth strategy. If you’re seeking guidance on how best to minimize expenses and increase cash flow at your business, reach out to Fullstack today.

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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech & online companies.

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