Business Idea

Start A Business Communications Software

About

Starting a business communications software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell business communications software, or selling business communications software online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a business communications software ➜

Key stats

market size
$9.88B
revenue (monthly)
$3.4M
starting costs
$17.9K
gross margin
80%
avg product price
$10
time to build
11 months
growth
SEO
time investment
Side project
work from home?
Yes

About

Starting a business communications software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell business communications software, or selling business communications software online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a business communications software ➜

Key stats

market size
$9.88B
revenue (monthly)
$3.4M
starting costs
$17.9K
gross margin
80%
avg product price
$10

 

time to build
11 months
growth
SEO
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $600 $4,700
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,986
Other Expenses $0 $800
Total Startup Costs $2,604 $33,347

Successful Businesses

Business URL Rank
Vonage vonage.com #7,284
Nextiva nextiva.com #16,420
Network World networkworld.com #22,734
Timetoast timetoast.com #36,338
Bandwidth bandwidth.com #37,165
Highfive highfive.com #41,060
Broadridge broadridge.com #49,244
Sangoma sangoma.com #80,945
Ciena ciena.com #99,428
Pro DBX prodbx.com #111,882
HUGHES hughes.com #129,981

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a business communications software. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your business communications software are typically around 80%, which is considerably high and allows you to grow your business and manage costs easily.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A business communications software can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the business communications software, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a business communications software, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.