Start A Business Communications Software - Business Ideas

Updated: September 15th, 2022
Start A Business Communications Software

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Picture a world of effortless business communication. That’s the premise behind starting a business in business communications software. Essentially, your enterprise would create cutting-edge tools that facilitate seamless communication within, and possibly even between, companies.

This business reaches deep into a company's workflow, streamlining processes, amplifying productivity, and thereby increasing profitability. With a well-developed product, you could help businesses bridge communication gaps, enhance collaboration, and foster a more engaging and efficient work environment.

Given the modern era's emphasis on technology and remote work, the market for reliable, user-friendly communication software is nothing short of massive. As this is a largely uncharted territory with countless untapped opportunities, it's an exciting field to navigate with your business idea. As the architect behind the communication tools of tomorrow, you'll not only shape how businesses interact, but could also break new ground in the realm of business software solutions.

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.

Key Stats

revenue (monthly)
$5.1M
starting costs
$13.9K
gross margin
80%
avg product price
$10
time to build
330 days
growth
Brand Authenticity
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$600

$4,700

Equipment & Supply Expenses

$63

$200

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$4,986

Total Startup Costs

$1,274

$27,547

Successful Businesses

Business URL Rank

Twilio

twilio.com

6,148

Vonage

vonage.com

7,284

Nextiva

nextiva.com

16,420

Network World

networkworld.com

22,734

Dubb

dubb.com

33,829

Timetoast

timetoast.com

36,338

Bandwidth

bandwidth.com

37,165

Highfive

highfive.com

41,060

MightyCall

mightycall.com

47,947

Broadridge

broadridge.com

49,244

Sangoma

sangoma.com

80,945

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

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.

    Learn more about affiliate program ➜

  • 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.

    Learn more about direct sales ➜

  • 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.

    Learn more about word of mouth ➜

Pat Walls,  Founder of Starter Story
Want to find more ideas that make money?

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