Making better use of capital in 2017: Is switching to VOIP right for your business?

If you are like many business owners, the end of the calendar year is the time to assess the overall state of your company. What areas were the most successful? Which areas could use improvement? What is on the horizon for the upcoming year? How can we most effectively facilitate growth going forward?

For many Owner/Operators out there, the list of “wants” exceeds the breadth of resources available to turn those wants into reality. At the end of the day, it’s a story as old as time itself. Many changes/upgrades/improvements have an associated capital cost. Whether that cost is in resources, currency, facilities or equipment, capital is often the main reason why business owners have to scale back their vision in order to make the best use of the resources they have available.

At that point, the question then becomes “How can I increase capital resources in an effort to try and make more of my vision feasible?” Here, business owners have myriad choices, from cutting personnel costs to scaling back budgets in areas that are more fungible, such as advertising, R&D and communications. Of course, these changes come with an associated cost all their own, and it is up to the decision makers the best way to make their vision a reality without hampering what they already have in place.

Sources indicate that telecommunications costs are the second highest “non-operating” expense for the majority of the companies listed in the Fortune 1000 (highest: employees). Previously, there was not much a business owner could do about these costs, other than make every effort ot make sure the resources they pay for are used most efficiently. Other than making small changes to save 3-5% on the total yearly communications budget, owners were essentially stuck between a rock and a hard place. Communications are the lifeblood of any business, and the lack of competition made telecomm providers hesitant to offer competitive pricing.

Luckily, there have been a few breakthroughs in the past 5-10 years that are giving small and medium sized businesses more options when it comes to handling communication, and many of these are at a considerably lower cost than the standard “land lines” from the telecomm giants in the industry. Voice over IP (VOIP) communication has evolved quite a bit since it hit the mainstream in 2005, and is quickly becoming the wave of the future for the cost conscious small to medium sized business.

How does VOIP work? And how can it save money?

With traditional communications system models, businesses are paying for two things: access and time. The largest chunk of communications costs comes in two ways: dedicated lines (or accounts) to use for communications and the amount of time a resource is used. Telecomm companies charge businesses simply for the privilege of having a dedicated phone line, and then charge them per minute usage fees for any calls made outside of a pre-determined area. Depending on the type of business, those “long distance” fees can be astronomical. For example, a business that relies on telemarketing to help generate new business could have a phone bill reaching into the tens of thousands of dollars per month, just to cover long distance changes. A big problem with that (other than the cost) is the fact that spending this money is in no way a guarantee of increased revenues. As a result, businesses can pour thousands of dollars into communications cost with no certainty that their investment will pay off.

VOIP communications work differently. A VoIP service breaks each employee's voice stream into packets, compresses them, and sends them over the Internet to their destination. The VoIP service then uncompresses them, puts them back into order, and reconverts them into voice for the other party to hear. This process is completely different from establishing a persistent connection between two parties, as happens with a normal phone conversation. As a result of this process, businesses pay for the amount of data they transfer, not the number of minutes they are on the phone.

By utilizing a VOIP setup, businesses pay each month for a certain amount of bandwidth, i.e. the available spectrum through which they can transfer data. As a result, VOIP providers charge businesses for this capacity, rather than the amount of time they are using it. In most cases, this cost is substantially lower than the traditional “land line” costs, simply because the distance the data travels (and the time it takes) are no longer part of the equation.

Star2 Star communications: cutting edge communications technology at affordable prices

Star2Star’s award-winning unified communications technology employs our unique Blended Architecture™ that overcomes the reliability and quality limitations of other Internet communications technologies. In fact, we’ve achieved 100% network uptime since 2011.Star2Star Internet communication systems are installed in thousands of businesses, including large national retail and restaurant chains. Some of the benefits of Star2Star (other than the immense cost savings) include:

• End to end integrated technologies all from a single vendor- Star2Star supplies everything for your communications network from the phones and related equipment to maintenance and 24 hour support. Everything works together seamlessly, because it was designed to.

• Multi location Operation- All of your company’s phones - at the main office, satellite offices, home office workers, and even mobile phones - appear and operate as a single, unified system. Everyone is reachable by dialing their extension number, no matter where they happen to be. Call transfers, ring groups, call queues, automated attendants, and shared operator features operate across all locations.

• Reduced Total cost of Ownership- Star2Star’s monthly rates include all the extras that our competitors charge for - like conferencing, voicemail, ring groups, automated attendants, and more.

• Low international rates- as low as 4 cents per minute!

At the end of the day, it’s about controlling what you can control

And this is exactly what Star2Star communications systems offer: the ability for business owners to have more input into their communications systems and their related costs. No longer are business owners held captive by large telecomm monoliths. No longer do they have to pay for services they don’t need. Star2Star communications systems give you the ability to create a uniquely personalized communications system, with the reliability of traditional land lines at a fraction of the cost.

RawTec Consulting is a licensed partner of Star2Star. Contact us today for a free analysis and let us show you how much money we can allow you to divert from your communications budget to other areas. The analysis is free and could save your company thousands of dollars each year.