Broadband Internet Can Save Startups $16K a Year: Report
Savings may also be greater for companies that tap into broadband for a host of other needs related to their business.When pursuing the American dream of starting a business, new entrepreneurs save $16,550.52 with high-speed broadband Internet, according to the report Start-Up Savings: Boosting Entrepreneurship Through Broadband Internet, released by the Internet Innovation Alliance (IIA) and the Small Business and Entrepreneurship Council (SBE Council). The analysis looks at the top 10 ways broadband creates significant savings for a solo entrepreneur, not only during the startup phase but also in yearly savings. The report found broadband is lowering the cost and barriers to entry for starting a new business, and access to this resource provides entrepreneurs innovative tools, new networks and business opportunities. The vast improvement in voice over IP service offers an alternative for startup businesses, as well as cost savings. A traditional business line costs on average $58 per month (excluding taxes and fees) or $696 on an annual basis for unlimited nationwide calling, according to the report.
The average monthly cost of the eight most popular VOIP providers in the United Statesall of which include unlimited nationwide calling (incoming and outgoing), most on a month-to-month contract basis, with several vendors providing free set-up and headsets, as well as a free second business lineis $22 ($264 annually). In addition, if an entrepreneur chooses a small-office/home-office (SOHO) VOIP option, the cost can be as low as $6.78 per month ($81.36 annually). Broadband Internet has made the home office a major advantage and cost-saving opportunity for startups. The report looks at the costs of Class B office space, which appeals to wide array of industries and is more affordable for small, young firms than more exclusive Class A space.