How Virtual Numbers are Helping Start-ups to Compete with Larger Rivals

Any business at its initial stage has to undergo many unavoidable expenses, phone numbers being one of them.

learn more about Ankit Dudhwewala

By Ankit Dudhwewala

Attila Fodemesi | Shutterstock

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

In the quest to stay ahead of the competition, companies spend hours researching innovative methods and technology. For start-ups, though it is way more important and inevitable, it involves many hurdles and challenges. Start-ups are usually low on funds and must strive to survive and grow. Any business at its initial stage has to undergo many unavoidable expenses, phone numbers being one of them. The advent of virtual phone systems has paved the way for start-ups, giving them a cheaper and good phone service for their business.

With growing popularity and demand for virtual phone numbers, companies are combining several technologies to help small businesses better manage their inbound calls. These technologies include virtual phone numbers, audio transcriptions, automated reporting and analytics.

Virtual phone systems are much like a hosted website wherein calls are forwarded directly to the phone line of your choice. This does away with the need to put a complicated phone system. This is a great option for start-ups who work without a physical office space as they can route calls directly to their phones. Let's understand how virtual phone numbers are helping start-ups.

Major Cost Reductions

Saving capital and allocating it wisely is perhaps the key to a start-up's sustainability and growth. Taking unnecessary financial risks puts your business' future in the dark and you seldom gain a foothold in the industry. As a start-up, you might plan to set up offices at new locations globally, which is, of course, a costly and time-consuming affair.

Opting for a virtual phone system is substantially cheaper than setting up a new office and also does away with the need for paperwork and numerous other formalities involved in a new set up. This also gives an edge to start-ups as saving cost without compromising on the basic requirements and functions of a business, gives them confidence and also enables them to compete with larger players in the industry.

Build a Positive Brand Image

Crucial functionalities and features of virtual phone system like call routing, call forwarding, voicemail, call queuing and more helps improve customer experience and support; thus, helping businesses build a positive brand image. It is obvious that when your call handling is highly efficient, it builds a trustworthy image of your brand and results in consistent healthy relationships with customers, which is indispensable to a business', especially start-up's, success.

Vast Customer Reach

Some customers can't make long distance calls due to several reasons but mainly due to the economic barrier. This might be a key reason for a start-up losing its potential customers. This economic barrier is alleviated by the virtual phone system plus the same country code, and area code helps to build customer faith in the company. Assuming, you are based in the US and have a potential customer base in Australia. In this case, if you own an Australian virtual phone number, your customers would think of you as a local and never hesitate to connect with you.

Professional Appeal

If you are a start-up owner or an entrepreneur you might be travelling frequently to different locations, nationally and internationally. The need to make some important business calls for new business opportunities can arise anytime, no matter what your location is. Virtual phone systems come as a rescue in this scenario as you can make calls from local numbers, and contacts are more likely to respond to a local number rather than a foreign number.

Virtual phone systems offer several features, some of which are call forwarding, local and toll free numbers, call screening, conference calling, name directory and fax on demand, among others. Of course, not every new company needs a virtual phone setup from the first day of its operations but it does in the near future. A virtual phone system is a low-cost solution that would give professional appearance to your company while you are still starting up.

A virtual phone system is surely acting as a boon for start-ups, giving them a growth prospect at a very low cost. Technology is making things easier, thus giving increased scope to entrepreneurial minds to start businesses and compete with existing players.

Ankit Dudhwewala

Founder of CallHippo and

Ankit Dudhwewala is the Founder of CallHippo and

Related Topics

News and Trends

TapOnn Digital Raises INR 1.5 Crore In Seed Funding

The startup will utilize the fund raised to enhance the products and services offered in the networking sector and expand its peripherals to serve the corporate sector with its smart service


Invest in Yourself: 10 Things Every Working Woman Should Do This Year

When striving for success, it is easy to forget about your mental and physical health. But without health, you cannot fully succeed. Follow these ten lifestyle strategies for success in your personal and professional life.


The Greasy, Glamorous Rise of Mascara

You won't believe the grimy gunk people used to smear on their eyelashes -- and still do.


Improving Yourself Takes 9.6 Minutes of Work Each Day

Micro-habits are the antidote to a chaotic world, offering a pathway to sustainable change.

News and Trends

Seven Books To Get Your Hands On To Start Investing

'An investment in knowledge pays the best interest' once noted Benjamin Franklin, and it stands true even after two centuries. Here are seven books to help the novice in you get started on investing