Scalability of a business, according to Investopedia.com is a “characteristic of a system, model or function that describes its capability to cope and perform under an increased or expanding workload.” Simply put, a business that is scalable has the ability to ramp up production of a product or service without impacting the contribution margin. One way to scale your business is to transfer your communications to the Cloud, which allows you to scale quickly while driving greater operational efficiency.
Scalability is an important need for some businesses because of the way the industry is set up or positioned in the marketplace. Seasonal businesses, such as florists, lawn care services, and tax preparation services, will have periods throughout the year where they need varying degrees of phone system support. After all, why would you want to pay for a service you only use part of the year? The flexibility of a cloud phone system helps solve this problem by allowing more lines to be easily added during peak season, and easily reduced during the off season. Seasonal scalability such as this facilitates the ability of businesses to better control their expenses, and ultimately improve their profit margin.
Growth and Decline of Business:
A phone system that is scalable may be essential to seasonal businesses, but any organization can benefit from the flexible nature of cloud phone systems. Whether dealing with growth or a decline in revenues, both can be equally unexpected and require an immediate response. Scalability allows a business to quickly adjust to fluctuating market conditions.
If you deploy a hosted phone system and you have 100 employees who need phones, then you pay for 100 users. Should your employee count drop to 75, you only pay for 75. When your business needs to scale up, it’s simple to add users and change your billing accordingly. Of course, there is an upfront cost associated with all types of phone systems, but using a cloud-based solution means you have flexibility and can free up your working capital through the immediate cost savings of a hosted PBX. Not to mention, with Switchvox Cloud, you can take advantage of the Digium IP phone rental program for additional cost savings and flexibility where the hardware is concerned.
The need for flexibility when your business expands doesn’t just apply to the number of employees (or users) that you may be adding. Cloud-based phone systems also help minimize the headaches that can come with expansion, when adding multiple locations. Whether you have multiple buildings across a campus setting that fall under one internal calling network, or you have several office locations across a certain geographic area, a hosted PBX can provide an economical answer to your communications needs. Not only do you save money by not having multiple phone systems at each physical location, you also have the added convenience of allowing those offices in different locations to call desk-to-desk, as if they were in the same building – and usually for free.
Choosing a cloud-based solution doesn’t mean you have to sacrifice the features and flexibility of a full-scale UC solution. With Switchvox Cloud hosted PBX, you get all the same features as an on premises system.
Join our Switchvox Weekly Demo to see how Switchvox can change your business in only 30 minutes.