Are you putting up a small business soon? Then one of the areas you need to cover is your internet connection.
The speed of your internet directly affects your business. There are at least three ways slow internet speed can derail the growth of your business. First, it can frustrate your employees since they cannot complete their tasks on time.
Secondly, it reduces your productivity. Lastly, it will affect your bottom line profits. Thus, you need to find an internet service provider (ISP) that can meet your requirements.
But the bigger question is how much should your average business internet cost you?
Check out our comprehensive guide regarding this very important business investment.
Your Available Options
First, let us start with the options available out there. There are four main types of internet connection that businesses use. There is the Digital Subscriber Line (DSL); the cable internet, the satellite, and the fiber connection.
It is important to understand what these options offer to determine if you’re investing in something that matches your company’s requirements.
A DSL connection requires a phone line to transmit signals. Providers may give you an option to bundle the phone and DSL connection to lower the cost.
Moreover, going for DSL allows you to secure a dedicated connection for your business alone. This means you can have a separate connection for your family’s use.
The downside of a DSL connection lies on your phone. If your phone line goes down, you will lose your internet connection. Furthermore, the speed of your connection depends on your proximity to the ISP.
The farther you are from the ISP, the slower your connection will be.
If you want something faster than a DSL connection, the cable is the way to go. However, you need to pay a little bit more for the service. Also, some providers offer fiber-coax networks, which add more speed.
The problem with cable internet is congestion. This usually happens during peak times when too many subscribers share on the cable connections. Additionally, you can also expect a slower connection if you are far from the ISP.
If your location is in the areas, there is a chance that some connections are not yet available. If ever that’s the case, a satellite connection is the answer. It is also one of the most affordable options available.
On the flip side, it comes with some downsides. Since a satellite is outside your building, the wind and other forms of obstructions can affect its performance. You may encounter your connection and uptime slowing down.
If you want to enjoy fast internet connection, then fiber is the way to go. This option uses light pulses where the signal travels. The medium is either plastic or fiberglass strands.
Because of these features, distance from the provider or problems with the power lines will not affect the connection’s speed. But there is still a letdown: fiber is not available in some areas.
Business Internet Cost: Why Is It So High?
In determining how much you should pay for a dependable internet connection, you must first understand the reasons why the internet on average costs high. First, internet providers spend a lot on equipment and installation. They spend millions to expand and open new service areas.
Satellites don’t come cheap. The same thing goes for fiber-optic cables that bring topnotch performance. If you choose any of these two, expect to pay higher.
Furthermore, you need to shoulder those miscellaneous fees. These include your installation fees, rental charges, and data overcharges. Sometimes, you have to shell out more to cover those surprise charges and hidden costs.
How Much Should You Pay?
So the question now is how much should a small business internet cost amount to? Well, there is no definitive answer. This is because several factors cause prices to fluctuate.
But if we’re going to talk about averages, a cable connection will cost you between $20 to $50 a month. This will give you a speed of 10 to 200 Mbps.
Meanwhile, a DSL connection will cost you pretty much the same. The speed, however, is slower at 80 Mbps max. As we mentioned earlier, a satellite will cost you a lot.
Prices start at $50, which gives you somewhere around 12 to 25 Mbps.
If you decide to go the fiber-optic route, prepare to spend around the $30 to $65 a month. As for its speed, you can experience at least 30 Mbps and reach a max of 100 Mbps. Companies like Shentel Business Fiber offer flexible options to match the needs of different businesses.
Again, these are averages that you should use as guides when managing your budget.
Tips to Avoid Overpaying
Since the prices of business internet vary, your goal is to avoid overpaying. Here are some tips that will keep you from paying beyond what you ought to:
Determine the Purpose
Establish why and how you want to use the internet. This involves identifying how many of your staff are going to use it.
Does your business require HD streaming? Do you wish to put up a computer shop that caters to gamers? Do you plan to connect to different devices?
Consider the Bundles
When talking to providers, ask them if they are offering bundles. These can be packages covering both your phone and the internet. They can also be bundles that feature the internet and special TV services.
Also, some ISPs waive installation fees depending on the plan that you choose. Additionally, always compute in the long run. Opting for a faster connection with higher fees may be more practical long-term.
Go for a High Data Cap
Pick a plan that comes with a high data cap. Or better yet, select one that doesn’t come with any data caps. Data caps vary from provider to provider. However, you must opt for a plan with at least 1 TB data cap per month.
Maximize Your Connection
Paying the average small business internet cost is important, especially for start-ups. You want to get the most of your investment as you build the foundations of your business.
But you shouldn’t stop there. You must learn to maximize your internet connection. Check out our other articles and learn how to boost your connection further.