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A calling card is a small card used to pay for phone and cellular services. They can be pre paid or post paid. They can be purchased in physical form from the retailers or can be purchased online over the internet. There is a huge demand these days for various means of global communication. Instant messaging and internet communication, etc. are almost available for free as a means of communication globally. However, it is not always a convenient option for many people to communicate using a laptop and internet connection. This has given a boost to the calling card business. A lot of people believe that the cell phones have almost wiped out the use of calling cards. This is not actually true as calling cards are still considered as the most economical way to make international calls. Calling cards are used extensively by even those who own a cell phone. The business of calling cards can be a milking cow for most business owners if the business is competing well with the competitors in the market. Calling cards business is a very lucrative option and can be a gold mine for those entering into a business.
Getting started with calling cards business
It is believed that planning is the key to achieve success in almost all activities undertaken. The same is true for starting up a business activity. Detailed planning will help in achieving the desired goals in time and without much hindrance. To get started with the business of calling cards, it is important to sit back and make a step by step plan on how to achieve success in the said business. Below is a step by step guide to start with calling cards business:
• Do a thorough market research: Before getting started with the business of calling cards, it is very essential to do a thorough market research. This will include competition analysis, market surveys, consumer analysis, analysis of potential demand, etc. Without a methodical and meticulous market research, it is difficult to understand the basics of the business that one is planning to enter into.
• Choose your role wisely: In the business of calling cards, one can choose different roles. For choosing the most suitable role, it is important to understand the business model of the business of calling cards. Traditionally, there were service provider who would sell the calling cards to the distributors who would in turn sell to the retailer and then the calling cards will reach the end user. At each stage the intermediary would keep a margin for himself. The business model has changed over time. Now, the service provider has removed various intermediaries in between. This has helped the service provider to earn a larger share of profits and has also lowered down the cost for the end user.
• Develop a business plan: Once you are done with the detailed market survey and you have decided to start with the business of calling cards, the next step is to develop a business plan. A business plan shall include the potential suppliers, details of the technical aspects of the business, projected fund requirements, estimated profit and loss projections, potential market size, detailed plan of market penetration, advertizing budget and method, etc.
• Arrange for funds: Once you have the detailed business plan of getting started with the business of calling cards, it is necessary to arrange for funds required in the same. Money is the bloodline of the business and without adequate funds it will not be feasible for you to enter into any business. You can use your personal funds, ask for loan from friends and relatives, approach a bank for cash credit, overdraft or tear loan, seek financial help from a venture capitalist or an angel investor, hypothecate gold or property for getting funds, etc.
• Complete the necessary paper work: It is very important to complete the necessary legal, accounting and banking paper work. This might include business registration, registering trademark, logo designing, getting business license, applying for tax ID, opening bank accounts, etc. You can do the necessary paper work yourself but in most cases it is better to take professional help on these matters from a chartered accountant, lawyer or a company secretary. There will be tax implications which you need to keep in mind.
• Make the necessary arrangements: Which arrangement you need to make will depend upon the role that you choose in the hierarchy of the business of calling cards. Depending upon the role, you would be required to arrange server hosting, choose or develop a software solution for your telecommunications system, purchase airtime, contact a printer, make tie ups for advertising, building and hosting the website to sell online, etc.
• Start product promotion: Once you are through with the necessary arrangements, the next step is to advertise and market the product.
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