Why Online Businesses Should Invest in Prepaid Phone Services

Prepaid phones are popular with individuals, but have you considered using them for your online business? That may sound like a radical idea if you’ve always associated businesses with old-school post-paid phones.

But please relax and keep reading. There are some sound reasons why online businesses should invest in prepaid phone services.

What is a Prepaid Phone Service?

A prepaid phone service is an arrangement where you pay a set amount before you gain the right to use the phone service. In the early days, prepaid phone companies offered plans based on minutes of use.

However, once smartphones became standard, the plans changed. It’s far more common today to base prepaid plans on the amount of digital data you use.

You can typically purchase a plan for a month or multiple months. Year-long plans are also popular.

Paying upfront for phone service contrasts with traditional arrangements where you pay after using the service. Those arrangements operate similarly to utility bills.

For example, you’re billed for the amount of water or electricity you used over the past month. Post-paid phone services also bill you after a month for your previous use.

Why Online Businesses Should Invest in Prepaid Phone Services

There are many reasons why prepaid phones are great for online companies. Let’s look at three of the top reasons.

Can Stick to a Budget

A prepaid service makes it much easier to be budget-conscious. Knowing how much data you can use before incurring additional fees is a prime motivation for limiting unnecessary internet use.

On the other hand, when you know you won’t see a bill for a month with a traditional phone plan, you’ll experience a greater temptation to splurge on your computer data. Your optimism can convince you that your revenue will be enough to cover your expenses.

Can Avoid Contracts

Postpaid phone services generally require at least a six-month contract. And to get the best deal, you must agree to lengthier contracts, such as a year or two.

Signing the contract is easy, but getting out of it is another story. You may have to pay penalties, if you want to exit your deal early.

Why might you want to end the arrangement? Suppose the carrier’s network doesn’t offer quality coverage in some areas where you do business. It doesn’t make a good impression on a potential client if your phone drops the call in the middle of your sales pitch. But can you afford to continue paying your obligation to the existing contract, plus enter into a new deal with a different company?

Prepaid phone service doesn’t usually require a contract. You have more freedom to move quickly from company to company if you’re unhappy with your service.

Can Avoid Credit Checks

If you have poor credit or no credit, prepaid phones can be your answer to your problem. They generally don’t require a credit check. Almost anyone is eligible for a prepaid phone plan.

In contrast, traditional phone service relies heavily on credit checks. Be aware that the best-advertised rates are only for those with outstanding credit. So, if you’re accepted with poor credit, you’ll likely pay more than the average customer.

Other Business Tips for an All-Online Business

The abundance of material about starting an online business makes it sound like you can do it without much effort. But business is business. That means online businesses must follow some of the same proven steps to success as offline businesses.

Create a Business Plan

Some people mistakenly believe a business plan is unnecessary if you’re not starting a huge company. They think it’s a waste to create a plan for a business that you can start in days, not months or years.

However, regardless of how humble your business venture begins, a plan can prove invaluable. It helps you to recognize potential stumbling blocks. Being aware of the likely struggles you’ll face can help you to prepare for them.

A business plan also can establish a long-term objective. It can guide you in plotting future expansion. Not having a business plan is like the old saying– failing to plan is planning to fail.

Make Everything Legal

Starting an online business has fewer barriers than launching a brick-and-mortar establishment, but it still comes with legal requirements. Make sure you comply with all federal, state, and local laws.

For example, are you listing the business as a sole proprietorship, a corporation, or something else? Your decision will impact your tax obligations.

Will you operate the business from a building in an area zoned for commercial activities? Or will you begin your business from home? If you work from home, verify that you’re not violating local ordinances. You may need special permits or licenses.

Do you have any other business tips that you think we can add to this post? If there are any more ideas, please feel free to pen it down in the comments column so that we can come up with more blog post ideas.