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Why startups should invest in cloud based phone systems

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Seems these days that startups are popping up everywhere. Young entrepreneurs are taking the world by storm.  If you are running a startup, or thinking of starting one, here are six reasons you should invest in a phone system in the cloud.


  1. Scale - You may start small like M5 clients Ideeli and Foursquare, but you have ambitious growth plans.   The last thing you want is to outgrow your phone system as you are doing it.  You have infinite capacity from day one but only pay for what you use.

  2. What you can measure, improves - You have to measure everything in order to keep the investors happy and be able to build a business case when you need more.  Unless you are an ecommerce company, a lot of business happens on the phone.  You need to be able to measure marketing effectiveness, sales rep performance , and customer satisfaction.   All of this happens on the phone and M5 makes it easy to get this information and puts that information in your chosen CRM like Salesforce.com or NetSuite.

  3. Disaster Recovery - The phone has to work and busy signals can't happen.  With M5, your phone system is in a data center, not near the mop in the closet.   Companies with multiple locations can cover for each other in the event of a disaster and calls can be re-routed in real time

  4.  Cap-ex - You need to invest in technology, but you want the majority of your initial round to go to sales and marketing, not operations.  M5 hosts a critical technology piece with minimal investment and lets you focus on running the business.

  5. Limited IT Staff - You probably start off with a small IT staff or even outsource it.   IT staff needs to be focused on the core technology that runs the business, not the phone system.   But the phone drives most or all of your business.   The only answer is to invest in a managed service, from a company like M5.

  6. Image - Fake it until you make it!  You can't sound like a small company when you start out.   Little things like a professional sounding auto attendant, customized music on hold, and even the nice looking Cisco phones in your office are all part of the brand you are trying to build.