VoIP Telephony a Holy Grail for the Start-Ups? – Case A – The Problem

In 2015, a Forbes article, brought up to limelight why most of the Start-ups fail with its self-explanatory title, “90% Of Startups Fail: Here’s What You Need to Know About The 10%”. There might be obvious reasons for the failure, but is this phenomenon industry specific? It may vary accordingly or applicable to all the industries? Well, experts opined that, yes it can be applicable to few industries (Exhibit 1) and vary with others. At this juncture, let us figure out one of the major & common problems facing by the Startups across the industries and try to address the same way it is plaguing the entrepreneurs despite exciting fortunes ahead.

Exhibit I – Industry Wise – Start-Ups’ Failure Rate
Industry Failure Rate in %
Finance Insurance & Real Estate 42
Education & Health 44
Agriculture 44
Services 45
Mining 49
Manufacturing 51
Construction 53
Information 63
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Major Setback Encountered by the Start-Ups

According to industry insider analysis, ‘scalability in communication’ is one of the major & common problems plaguing the Startups across the industries. As they are not being tied to long-term contracts, they tend chance upon conventional phone systems. Due to lack of planning, they are unable to match up in tandem with the growing prospects. Let’s figure out what are all the communication setbacks for startups

Communication Setbacks for Start-Ups

The Ruckus of Residential Phone Numbers:

Most of the start-ups start from their homes in the inception. With this, there is a huge chance of the business getting associated with the residential telephone numbers. The ruckus is heard louder when the business is ready to take off and move to a sprawling new premise. Most of the cases, the residential number cannot be transferred to a business line. Forget this scenario, in many more cases it’s difficult to transfer either a business or residential number, despite the same exchange supports the new line.

Entrapped in the Lock-in Contracts:

Chancing upon the conventional BT communication system, start-ups, to set the ball rolling, forget to visualize the big picture of other systems with varied options. As this systems come with huge long time contracts, provide the best cost-effective deals on board. Only to realize later that the start-ups are locked in this system which becomes difficult to adapt to changing trends in the businesses.

The curious case of Scalability:

As the prospects grow the business grow & it is directly proportional to the manpower. This implies various other offices are interlinked to the home office and further communication between the staff across the geographic locations incur huge costs. Features like call diversion & are also relatively expensive, as all outgoing calls irrespective of its nature are charged to the subscriber.

With the aforementioned data, it’s evident that most of the start-ups are vulnerable to the setbacks of conventional telephone systems. What if all the start-ups happen to get a holy grail? What if all their setbacks are cleared? What if they indulge in the Cloud-Based VoIP Business Telephone services?

Let’s figure out how VoIP hosted services make the start-ups to succeed 90% and fail to the 10% in the VoIP Telephony a Holy Grail for the Start-Ups? – Case B– The Solution


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