Are you about starting a VOIP company? If YES, here is a complete sample VOIP business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a VOIP business. We also took it further by analyzing and drafting a sample VOIP service marketing plan template backed up by actionable guerrilla marketing ideas for VOIP businesses. So let’s proceed to the business planning section.
Why Start a VOIP Company Business?
The advantage with the information age is that there are several business opportunities that come with it and one of them is to start the voice over internet protocol (VOIP) Industry. If you are IT inclined and have got the start – up capital and you are looking towards starting a business in the IT industry, one of your best bet is to start a voice over internet protocol (VOIP) company. There is indeed a large global market for the services offered by voice over internet protocol (VOIP) companies.
Some of the things you need to do to attract client and maximize profits as a newbie in this industry is to ensure that your business is well – publicized, you reduce downtime to the barest minimum and your fees are affordable. So also, you should be ready to work hard and smart, hire dedicated and competent employees and above all have a reliable server et al.
As an aspiring entrepreneur that is serious about starting a voice over internet protocol (VOIP) company, the best place to start is to draft a good business plan. A business plan is the blue print of your business; it is a business document that can aid you to successfully set up a business and also administer / manage the business. It is not enough to just write a business plan for the sake of writing one, your business plan should be able to pass reality check; you must put relevant facts, figures and statistics into consideration when writing your business plan.
The sample voice over internet protocol (VOIP) company business plan template below will guide you on how to draft yours with little or no stress.
A Sample VOIP Company Business Plan Template
1. Industry Overview
Players in this industry provide voice over internet protocol (VoIP) services to end users – individual clients, corporate organizations and government establishments. Basically, voice over internet protocol (VoIP) technology converts voice signals into digital data that is transmitted using the internet platform; system and group of technologies for the delivery of voice communications and multimedia sessions over Internet Protocol (IP) network. Some players in the business value chain of this industry include VoIP providers who bundle their services with internet facility, cable operated VoIP, and operators that resell VoIP services.
Generally, internet based services are experiencing tremendous growth over the years and voice over internet protocol (VoIP) services providers are not left out. One of the contributing factors is the fact that residential customers now prefer to cut down on home phone service entirely, shifting their preferences away from traditional wired phones to wireless phones. This is responsible for increasing revenue generated over the years in this industry.
Another contributing factor to the growth of this industry is that voice over internet protocol (VoIP) services is less expensive to implement than traditional switched-circuit telephony and it is the norm for businesses to gravitate toward the more cost-effective solution. No doubt, the increasingly robust nature of the internet will surely alleviate fears about VoIP quality and reliability, a hurdle to adoption by the business segment.
The Voice over Internet Protocol (VOIP) Industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the united states of America alone, there are about 757 registered and licensed VOIP companies, responsible for employing about 5,225 and the industry rakes in about $5 billion annually. Going forward, the industry is projected to grow at the rate of 12.0 percent annually. The company with the lion share of the available market in this industry is Vonage Holding Corporations.
Over and above, the voice over internet protocol (VoIP) industry is still very much open to any aspiring entrepreneur who has the required start – up capital and technical expertise to start his or her own voice over internet protocol (VoIP) company and of course make good money from the industry.
As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.
2. Executive Summary
John Smith VoIP Technologies®, Inc. is a U.S based and world class voice over internet protocol (VoIP) company. We have been able to secure a standard and well – positioned office facility in a central business district in Trenton – New Jersey. We are a voice over internet protocol (VoIP) company that is set to compete in the highly competitive voice over internet protocol (VoIP) industry not only in the United States market, but also in the global market.
John Smith VoIP Technologies®, Inc. will provide voice over internet protocol (VoIP) services that allow consumers to make domestic and international calls using VoIP technology from different locations, hence maximizing its value for travelling consumers or businesses.
Our workers are going to be selected from a pool of talented and highly creative IT experts in and around Trenton – New Jersey, Silicon Valley and also from any part of the world as the business grows. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading voice over internet protocol (VoIP) companies in the United States and throughout the globe. We have put plans in place to build a state of the art internet server in Trento – New Jersey. Our company will be well equipped and we will ensure that we follow the trend in the industry.
At John Smith VoIP Technologies®, Inc. our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
John Smith VoIP Technologies®, Inc. is private registered business that is owned and managed by Engr. John Smith and his immediate family members. Engr. John Smith has a B.Engr. in Communications Technology from University of California and MBA from The University of Harvard, Boston. Aside from training in Silicon Valley, he has well over 10 years of hands on experience working for some of the leading brand in the ICT industry.
3. Our Products and Services
John Smith VoIP Technologies®, Inc. is established with the aim of maximizing profits in the voice over internet (VoIP) industry. We want to compete favorably with leading voice over internet protocol (VoIP) companies in the United States which is why we have but in place a competent team and equipment that will ensure that meet and even surpass our customers’ expectations.
We will work hard to ensure that John Smith VoIP Technologies®, Inc. is not just accepted nationally in the United States of America, but also in other parts of the world. Our products and services are listed below;
- Nomadic VoIP
- Static VoIP
- VoIP over the PSTN
- Other voice over internet protocol (VoIP) related advisory and consultancy services
4. Our Mission and Vision Statement
- Our vision is to establish a standard and world class voice over internet protocol (VoIP) company whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
- Our mission is to provide professional and highly reliable voice over internet protocol (VoIP) services and other related services that will assist businesses, individuals and non-profit organizations in communication and reaching out to a wide range of potential customers all over the globe. We want to build a voice over internet protocol (VoIP) company that can favorably compete with other leading brands in the voice over internet protocol (VoIP) industry.
Our Business Structure
John Smith VoIP Technologies®, Inc. is a voice over internet protocol (VoIP) company that intend starting small in Trenton – New Jersey, but hope to grow big in order to compete favorably with leading voice over internet protocol (VoIP)companies in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.
At John Smith VoIP Technologies®, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Technical Manager
- Human Resources and Admin Manager
- Sales and Marketing Executive
- ICT Specialist (5)
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serves as project manager of the organization; works directly with employees
- Responsible for designing concepts and contracts
- Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and ICT experts
- Ensures that the organization work in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for John Smith VoIP Technologies®, Inc.
- Serves as internal auditor for John Smith VoIP Technologies®, Inc.
ICT Specialists (5)
- Liaises with clients to determine their requirement and budget
- Responsible for installing, maintaining and monitoring Nomadic VoIP, Static VoIP, and VoIP over the PSTN et al for the organization
- Handles other voice over internet protocol (VoIP) related advisory and consultancy services as instructed by the
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the general manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned by the human resources and admin manager.
6. SWOT Analysis
Because of our drive for excellence when it comes to running a standard and world – class voice over internet protocol (VoIP) company, we were able to engage some of the finest business consultants in the United States of America to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard and world – class voice over internet protocol (VoIP) company.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Trenton – New Jersey. Here is a of what we got from the critically conducted SWOT Analysis John Smith VoIP Technologies®, Inc.;
Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient ICT experts with bias in voice over internet protocol (VoIP) technology, a team with excellent qualifications and experience various niche areas in the voice over internet protocol (VoIP) industry. Aside from the synergy that exists in our carefully selected workforce, we have state of the art server that will guarantee minimal downtime and our services will be guided by best practices in the industry.
As a new voice over internet protocol (VoIP) company in Trenton – New Jersey, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive voice over internet protocol (VoIP) industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
No doubt, the opportunities in the voice over internet protocol (VoIP) industry is massive considering the number of individuals and corporate organizations who are shifting their preferences away from traditional wired phones to wireless phones and those whose businesses depends on the services of voice over internet protocol (VoIP) companies. As a website hosting services company, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new website hosting companies in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
Because of the minimal costs and less maintenance afforded by voice over internet protocol VoIP services providers, loads of organizations are now embracing the services they provide. It is indeed a good choice for organizations that are making the transition from traditional business lines to IP enabled technology. Small and medium enterprises have always favored externally managed and delivered cloud services.
Another major reason why VoIP seems to be overtaking the PSTN is that it is built on IP technology rather than circuit switching. It simply indicates that the former is more flexible and better suited to modern business workflows.
Another trend in this industry is that with the technological gains in videoconferencing technology, it is now easier for organizations to forgo physical meetings entirely and go for e – meeting even if participants are scattered across the 7 continents of the world.
The growth of hosted VoIP contact centers over internal infrastructure will continue to blossom. So also, the consolidation of VoIP service providers will also change the landscape of enterprise VoIP. There is still a long way to go before VoIP becomes as everywhere as the humble landline but it is well on the way there.
Lastly, with the integration between VoIP and the Internet, things are expected to only accelerate as telecommuting, remote working and shared office spaces become the norm in our society. It is now trendy to find employees and business owners that continually switch between working from home, on client sites and at the office, embracing voice over internet protocol (VoIP) technology.
8. Our Target Market
Before starting our voice over internet protocol (VoIP) company, we are certain that there is a wide range of both corporate and individual clients who may not successfully run their businesses without the services of voice over internet protocol (VoIP) companies.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual clients who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that our voice over internet protocol (VoIP) services is well accepted in the market place. Below is a list of the people and organizations that we have specifically market our products and services to;
- Website Designers and IT Specialists
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Celebrities, Politicians, Public Figures and Public Speakers
- Sport Organizations
- Religious Organizations
- Political Parties
- Television Stations
- Printing Press (Publishing Houses) and Authors
- Branding and Advertising agencies
- Entrepreneurs and Start – Ups
Our Competitive Advantage
Surviving in the business world as a voice over internet protocol (VoIP) company requires more than, your expertise, knowing how to deliver standard and reliable services but also how to network with key people that matters; decision makers that can decide who will get a voice over internet protocol contract.
Without a shadow of doubt, there are loads of big time investors, that have a stake in the voice over internet protocol (VoIP) industry; but one thing is certain, there is room big enough to accommodate both the big – time voice over internet protocol (VoIP) companies and the small voice over internet protocol (VoIP) companies. All smaller voice over internet protocol (VoIP) companies need to do to survive in the industry is to concentrate on providing voice over internet protocol (VoIP) services to small to medium scale businesses.
We are quite aware that to be highly competitive in the voice over internet protocol (VoIP) industry means that you are not only expected to be able to deliver consistent and highly reliable and pocket friendly voice over internet protocol (VoIP) services, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects and if your connections / services are not reliable.
Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient ICT experts with bias in voice over internet protocol (VoIP) technology, a team with excellent qualifications and experience various niche areas in the voice over internet protocol (VoIP) industry. Aside from the synergy that exists in our carefully selected workforce, we have state of the art server that will guarantee minimal downtime and our services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups voice over internet protocol (VoIP) businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
John Smith VoIP Technologies®, Inc. is established with the aim of maximizing profits in the voice over internet (VoIP) industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
John Smith VoIP Technologies®, Inc. will generate income by offering the following voice over the internet protocol (VoIP) related services;
- Nomadic VoIP
- Static VoIP
- VoIP over the PSTN
- Other voice over internet protocol (VoIP) related advisory and consultancy services
10. Sales Forecast
One thing is certain; there would always be corporate organization and individual who would need the services of voice over internet protocol (VoIP) companies.
We are well positioned to take on the available market in the voice over internet protocol (VoIP) industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our voice over internet protocol (VoIP) company to enviable heights.
We have been able to critically examine the voice over internet protocol (VoIP) market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Trenton – New Jersey.
Below is the sales projection for John Smith VoIP Technologies®, Inc., it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year-: $240,000
- Second Fiscal Year-: $550,000
- Third Fiscal Year-: $950,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same VoIP services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiffer competitions in the voice over internet protocol (VoIP) industry hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the voice over internet protocol (VoIP) industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of John Smith VoIP Technologies®, Inc.
Our corporate goal is to grow John Smith VoIP Technologies®, Inc. to become one of the top 10 website hosting services brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.
Golden Gates® Web Hosting Co. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our voice over internet protocol (VoIP) company by sending introductory letters alongside our brochure to individuals, website designers, corporate organizations, religious organizations and key stake holders.
- Promptness in bidding for voice over internet protocol (VoIP) from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent and reliable VoIP services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industries with the aim of marketing our VoIP services
11. Publicity and Advertising Strategy
We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our voice over internet protocol (VoIP) company.
Below are the platforms we intend to leverage on to promote and advertise John Smith VoIP Technologies®, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
- Install our Bill Boards on strategic locations all around Trenton – New Jersey
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact corporate organizations by calling them up and informing them of John Smith VoIP Technologies®, Inc. and the services we offer
- List our VoIP services company in local directories / yellow pages
- Advertise our VoIP services company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
12. Our Pricing Strategy
At John Smith VoIP Technologies®, Inc. we will keep the prices of our VoIP services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by John Smith VoIP Technologies®, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that John Smith VoIP Technologies®, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via POS
- Payment via mobile money platform
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our VoIP services.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a voice over internet protocol (VoIP) company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup John Smith VoIP Technologies®, Inc. in the United States of America;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $150,000.
- The total cost for facility remodeling – $50,000
- Other start-up expenses including stationery, business cards and signage et al – $2000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for purchase of standard and world – class reliable internet server- $100,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Projectors, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $15,000
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set – up a medium scale but standard voice over internet protocol (VoIP) company firm in the United States of America.
Generating Funds/Startup Capital for John Smith VoIP Technologies® Inc.
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as voice over internet protocol (VoIP) company. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
John Smith VoIP Technologies®, Inc. is a private – partnership business that is solely owned and financed by Engr. John Smith and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting John Smith VoIP Technologies®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our VoIP services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
John Smith VoIP Technologies®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility for our company: Completed
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Building a standard and world – class internet server: In Progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress