Since the rise of VoIP phone service in the mid ’90s, government at the state and federal level has struggled with how to regulate it.

Although it looks and acts an awful like traditional phone service, the federal government is hesitant to impose traditional telecom rules on the industry out of concern for quashing innovation.

However, at the state level, lawmakers are concerned about their ability to protect consumer rights and ensure access.

Nationwide regulation of VoIP has been slow to catch on as the regulating body at the federal level — the FCC — and state governments have been in a power struggle.

The United States isn’t alone when it comes to the murky definitions of VoIP. Governments around the globe are struggling with how best to regulate this exploding industry.

Current VoIP regulations
The FCC needs to decide whether to treat VoIP as an “information service,” which would make it essentially regulation free or a “telecommunications service,” which would hold it to the same scrutiny as regular telephone companies.

Currently, the FCC classifies the broadband cable modem service through which VoIP operates as an “information service,” which means that VoIP should remain unregulated, according to an article on TelephonyYourWay.com.

Despite this classification, the FCC has attempted to apply certain regulations to VoIP using “ancillary jurisdiction,” according to an article on commlawblog.com. These include:

• Privacy requirements: Providers must offer safeguards for “customer proprietary network information.”
• Discontinuation of service: Providers must get a certificate from the FCC before discontinuing service; this is especially important to areas where the service provider is the only carrier.
• Disability Access Requirements: Providers must makes services readily available to people with disabilities (ie: making sure the sight and/or hearing-impaired have access to “speech-to-speech,” captioned phone service, and 711 abbreviated dialing.
• Local Number and Portability Requirements: Customers must be allowed to port their telephone number from carrier to carrier.
• Emergency Dialing Requirements: Providers of interconnected VoIP service must provide customers with enhanced 911 capabilities.

While beneficial to consumers, these regulations have faced increased legal scrutiny after the ruling in Comcast v. FCC, which found that the FCC did not provide adequate evidence of its authority to regulate Comcast’s internet traffic management practices, according to CommLawBlog.com.

Additional FCC Requirements
The FCC also requires that VoIP providers contribute to the Universal Service Fund, a federal program which helps pay for phone service for low-income households in rural areas — as well as internet access to schools, libraries and rural health care — and comply with the Communications Assistance for Law Enforcement Act (CALEA) of 1994.

State Regulation of VoIP
While the FCC and Congress have favored a more hands-off approach to VoIP, at the state level, officials favor more regulation  because they would like some legal jurisdiction over broadband transmission.

Local governments are concerned about under-regulated VoIP  as it relates to law enforcement, emergency services and wire-tapping.

States have taken different approaches to VoIP regulation. As of 2007, 23 states had taxed or regulated VoIP service and several more were considering legislation to expand oversight of the industry, according to a presentation at the Internet and Telephony Conference and Expo. However, it should be noted that Congress and the FCC have preempted substantial state regulation with support from the courts — so state-level regulation doesn’t always survive.

Pros and Cons of Deregulation
In the coming weeks, the New York state legislature will vote on whether to give up the ability to regulate VoIP service under pressure from Verizon Fios and other cable companies, according to the HuffingtonPost.com, a decision that will not doubt be scrutinized by other state legislators.

As with all contentious issues, there are positive and negative aspects to decreased regulation of the service.

Cons of Deregulation

• Consumers would no longer be able to bring service complaints to the Public Service Commission.
• The state would not be able to set standards for service in underserved regions, leaving consumers in these areas with enormously high rates or no service at all.
• Deregulation of traditional land lines has resulted in increased rates for most consumers.
• VoIP providers do not have to pay into funds that support lifeline access to the elderly and disabled the same way traditional phone companies have to.

Pros of Deregulation

• Since VoIP is still such a new technology, reducing the number of regulations on it would potentially allow for more innovation.
• Less regulation makes it easier for VoIP start-ups and service providers to launch, making for increased competition — a benefit to consumers when it comes to prices.

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These days, companies have a multitude of platforms they can use to reach potential clients: Everything from billboards to websites to social media to direct mailing. But phones continue to have a crucial role in not only attracting new customers, but also retaining them.

So, when it’s time to implement Customer Relationship Management (CRM) at your company, its imperative to include your telephone system in the process.

First, consider the purpose of CRM: To locate and keep clients. Companies that use CRM maintain healthy relationships with customers by carefully gathering information about them and tracking company interactions with them, creating a valuable record that can be accessed by anyone within the company who needs it — from sales people to customer service representatives.

And, despite the growth of online communication, phones continue to be a major source of interaction between a company and its customers.

Improve Intercompany Communication

Integrating your business phone system with CRM can benefit multiple departments, including:

• Sales: CRM allows representatives to make contacts and track interactions more efficiently through the duration of the sales process. Especially in telemarketing and call centers, features like being able to click a contact rather than dialing saves time and, ultimately, money, and managers can easily see how many contacts a rep has made and when.
• Marketing: CRM adds greater efficiency to the process the marketing team uses to identify and target potential clients. They can generate leads by tracking and measuring data from various sources, including phone, e-mail, social media, search and direct mail.
• Customer Service: CRM allows a business to create, assign and manage customer requests on various platforms. One of the best tools to help customers get the help that they need as efficiently as possible is call center software that quickly directs calls to the most appropriate agent while also providing that agent with vital information about the customer.

Improve Customer Relationships

From a client’s perspective, a company with CRM-focused phone systems makes for a better sales experience. Why?

• Company representatives can easily view a client’s record, making it easier for the rep to troubleshoot and provide consistent quality.
• Calls can be efficiently routed to the company representative most suited to addressing the client’s concerns.
• Calls can be routed so that when a client dials one number, it rings on multiple phones, meaning they’re more likely to reach a person instead of a voicemail.

Other Advantages and Useful Features

Different types of businesses will receive different advantages from synching their phone systems with CRM. Here’s a roundup of more reasons to integrate:

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VoIP is quickly gaining ground on legacy phone systems (one report sited 114 percent growth in the second half of 2011) — and for good reason. Not only is the cost of switching to to web-based telephony unbeatable, but service providers and other software creators are continuously developing new features that are revolutionizing the way companies manage calls.

Here are 10 really cool features you can add on to your VoIP phone service to make your business run more efficiently and effectively.

1. Video Conferencing - Connecting remotely has become increasingly important to businesses as they strive to make global connections, so versatile video conferencing software is key. These days, there are numerous services that offer dynamic video conferencing that includes features like HD video, video recording, file sharing and annotation, and more for multiple users. You’ll never need that conference room again.

2. Call Recording - There are plenty of reasons an organization might have for wanting to record a call – whether its to provide customer service coaching, resolve disputes or simply to store information. Many companies now offer software that allows you to not only record calls, but also monitor live calls and provide coaching to the employee that can’t be heard by the customer.

3. Voice Recognition – Dialing numbers is so last century. Now there are services that use voice recognition to allow users to simply state the name of the person they want to call and voila they’re connected.

4. Call Encryption – One of the major concerns among individuals and businesses about VoIP is call security (because calls are Web-based, they’re vulnerable to hackers). Now there are providers that offer call encryption, which is especially appealing to businesses that regularly share sensitive information.

5. Integrated Voicemail –  There are several ways different services are improving the voicemail experience, including allowing you to listen to your voicemail through your e-mail so you never have to leave your inbox, voice to e-mail, live call screening, and telemarketing blocking.

6. Integrated Messaging – Many service providers allow you to access any type of message — whether its voicemail, e-mail, fax or instant message — from one interface.

7. VoIP to Mobile Apps – Several companies offer a mobile application that allows you to make VoIP calls using your mobile device’s data plan, rather than costly voice minutes from your cell carrier.

8. Private Phone Numbers – Say you’re selling an item on CraigsList or eBay and you don’t want potential buyers to know your real phone number. Now there are now several services that can create an anonymous phone number for you to use to preserve your privacy.

9. Automated Messaging – Remember those trusty old phone trees your son’s T-ball team used to let parents know when a game was canceled? Now there are services that automate this process for organizations. All the group has to do is create a contact list and any time they need to share information, a message can be sent out automatically to all members of the group via voice, e-mail or text.

10. Auto Attend – Your business can save money on a receptionist and get some added cache making use of an auto attend feature, which gives all customers a list of menu options to better direct their call. Many providers offer this service with options to change how calls are routed after hours, on weekends and holidays.

Learn more about VoIP and find a the right service provider for your business on Business.com.

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In everyday life, the words “business” and “company” seem interchangeable. But when it comes to starting a business or a company, the technical differences actually become quite obvious. While I’m simplifying the interpretation of the words, to start a business is to be focused on building a product for a market – product development, technology, sales, marketing, etc… To start a company is to consider the larger picture – HR policies, company culture, investor input, potential acquisitions and growth, etc.

Daniel Tenner of swombat.com breaks down the difference between a business and a company:

A business is a set of people, processes and tools that have been structured around a product to enable it to make money. Ideally, a business is profitable, but it may not be. Ideally, a business doesn’t depend on any one specific person being a part of it (including the founders), but it may rely on some exceptional people.

A company is an organization of people that’s designed to run one or more businesses successfully, and to create new businesses to respond to opportunities in the marketplace. This must be, ultimately, independent of any specific employee, since companies, unlike products and businesses, are (or should be) built to last for decades.

If you have a great idea for something that has the potential to make a lot of money, which should you shoot for? Consider the pros and cons of starting a business vs. starting a company:

Starting a Business

When you start a business, you’re concerned with addressing customer pain points, product development, feedback and marketing and selling your offerings. Generally the intention is to start small and remain nimble, and grow through trial and error. You can grow a business into a company as your processes evolve and improve and you hire more staff.

Though there are a number of benefits to starting a business, there are two in particular that stand out as significant reasons you may want to grow a business first:

Satisfaction. Particularly for someone who is starting his or her first business, it’s incredibly rewarding to be at the helm of a new business that grows and is successful. This product or service is possibly built on your vision alone, and positive reactions by customers might be the best validation for taking on such a risk.

Being your own boss. When you start a business, you control everything, from your time to your income. Having the flexibility to say what happens when and where can be freeing and oftentimes promotes increased productivity and a greater focus on work/life balance.

There are also a number of drawbacks when it comes to starting a business:

You’re bootstrapped. You may have secured some money through small business loans or lines of credit, or even self-funded if you had the means. But to be a small business owner is to be obsessed with your bottom line. This may hinder your progress if you find you don’t have the resources to grow in the form of staff, technological developments, or fine tuning your own skills.

Responsibility. Okay, responsibility in and of itself isn’t a negative thing, but if you’re working on your own to start a business, you’re responsible for its success. This means your interpretation of the marketplace could be way off, or you may have grossly underestimated your start-up costs. There are many variables to consider when starting a business, and if not assessed properly, your own strengths and weaknesses may not be the winning combination to support a successful business.

Starting a Company

If you’re sure of your idea and the market conversations you’ve had with potential customers and investors seem promising or, better yet, indicate momentous demand, you could consider bypassing the “build a business” phase and going straight to building a company. This would include securing funding from venture capitalists, working with a partner (or partners), staff and a board of directors to build on the direction of the company, and develop products and business structures that support long-term and lucrative growth.

There are a ton of benefits to growing your smaller business into a large, sustaining company including:

Resources. With the right combination of both technical and personnel resources, you can do almost anything to scale your business into a full-fledged company. This means you can execute on multiple products and businesses, helping you move quickly in the right direction and grow your reach. You likely have access to a broader range of market feedback too, which you can use to expand your footprint or create new products when you sense a trend. This also means you can be selective with customers — dropping dead customer weight and executing for the right market will help you reach those profit levels we dream about.

Creating a culture. By hiring a full staff – the right employees to fill the right roles at the right time – you’re also able to chart the culture of your company, and can build success based on the strengths of your workers. It may seem “corporate” to start writing down mission statements, values, and policies, but it doesn’t mean your company has to become boring. Many companies, from Zappos to Hubspot, are well known for their employee-centric approach toward building their company. When you invest in your people firsthand, you’re often rewarded in more ways than when you invest in your customers.

As with businesses, the drawback of starting a company can be cruel:

You need a lot of money. Friends and family likely won’t be your backbone here (unless you’re friends with investors and your family is generous with their wealth). Getting a company off the ground requires staff, technology, and systems. Scaling a company from there requires sales and marketing (and more staff, technology, and systems). All of these things require money. Getting funding through VCs isn’t impossible, but it’s certainly competitive. Securing capital means having a clear vision for how you plan to put it to use; there are a lot of challenging conversations that will happen on the road to getting funding.

Failure’s ripple effect. By delving into a market with one offering or one core business, you may find that your company is not nimble enough to build new businesses or adapt to the market, particularly if you raise enough money to gather a large staff right out of the gate. Companies often need time to develop processes for product development, deployment, customer acquisition, and plans for growth, and inefficiencies could be the downfall for any company that isn’t quick to adapt. Any failures (small or large) are under a microscope for investors, media, staff, and the public to see.

Only you know what the right move is for you. If you’re 98% sure of your business and its potential for growth, then its potential to be a company in the future should play a part in some of the decisions you make now. On the other hand, some folks might find it’s a better decision to “go big or go home” and emerge with a company right out of the gate.

How will you start out?

Photo credit: theatlantic.com, taprootfoundation.org

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Social media has given companies unprecedented access to their target audience. Not only are they able to provide a way for customers to see what is going on with their business but they can catch negative or positive feedback through live monitoring of sites like Twitter.

This also presents an issue – stories that they were once able to quietly take care of (or ignore) can now take on a life of their own. Through the Internet, an incident either large or small can escalate until it threatens the reputation of a company that is left scrambling to fix things.

Below are four examples of how different major franchises tried to put out the flames that were sparked through social media during times of crisis.

1. Nestle

Back in 2010, a video was launched by nonprofit Greenpeace about Nestle’s sourcing of a company known as Sinar Mas. For those that don’t know, Sinar Mas is the largest palm oil producer in Indonesia. It has been alleged to be responsible for mass deforestation that resulted in both the endangerment of natural species and the destruction of a number of communities.

The video targeted Nestle for its financial support of this company, which is also known to use cheap labor to create its product. Not taking into account the open and viral nature of social media, it did not launch an effort to deal with the problem in a constructive way. Nestle didn’t speak to their customers or Greenpeace or even pretend to consider the issue. Instead, it contacted Google and asked the Internet giant to remove the video from search results and the original YouTube clip.

Much to the public’s outrage, the web giant did – but not before the video was backed up on Vimeo, other YouTube accounts and personal websites. This led to a massive uproar over Nestle’s apparent attempt to cover up the knowledge and censor Greenpeace. As thousands of people took to Facebook and Twitter to make it clear they were boycotting the company, a statement was released that said Nestle promised to move all purchases of palm oil to “certified” providers in the future. But it did not directly address the issue nor remove the stain on the company for the way it handled the crisis.

2. Center for Disease Control (CDC)

When the swine flu epidemic began back in 2009, everyone was a little on edge. The media fanned the flames of panic by providing constant worst-case scenarios, and hospitals began to fill up with people. A few had genuine cases, but most had a cold. Almost everyone knew someone who had swine flu and a very small portion of them died while others suffered the symptoms for a week or two and bounced back.

The World Health Organization is widely considered to have dropped the ball, but the CDC provided a surprisingly effective social media campaign that is held up as an example of proper coordination in a time when crisis was not isolated to a company but to a global concern.

The CDC used social networking sites, mobile apps, games, ecards, email lists and more to get the message out. It was even a calming message about how to prevent swine flu, how to know when you have it and when to be concerned – not to mention how to treat symptoms when they do arise. The way the CDC provided so many tools to allow the community at large to work for it in a time when social media could have so easily made things worse is inspiring.

3. Papa John’s Pizza

In January, a New York woman named Minhee Cho posted a picture of a receipt from Papa John’s Pizza from an order she had placed that evening. Under “name,” where the cashier is meant to post the name of the person ordering, was “Lady Chinky Eyes.”

Angrily showing it on Twitter, she wrote “Hey @PapaJohns just FYI my name isn’t ‘lady chinky eyes.’” While originally just meant as a post to her friends and perhaps to show the business what went on in its stores, it sparked a massive media fury that was furthered through social media sites where it was reposted, saved as a screencap and shown on Facebook and Google+ as well as picked up by local, national and online news sources all over the country.

Papa John’s was quick to offer a public apology and contacted Cho personally to apologize. It also fired the 16-year-old girl who had made the comments and made it clear that it in no way tolerates the use of racist terms from employees. What made this such a surprising story, however, was how much was heard from the employees of the store in question, who took to social media to comment on the event and how they disapproved of the teenager being fired. Whatever your opinion on the story, it was handled almost entirely through social networking channels, making it a unique example of the response from a major chain.

4. Domino’s Pizza

Another case of a pizza brand being burned by social media, Domino’s Pizza learned the hard way that news travels fast online. In 2009, two employees at a store in North Carolina filmed one of them putting ingredients up their nose and then putting them on sandwiches as well as mentioning other times they had sneezed on food. They then posted the video on YouTube.

Within hours it had more than a million hits, and it was being sent all over the web. Even though Domino’s managed to hear about it the same day it was posted, it was too late to keep it from spreading since the video had long since gone viral. The two employees were fired immediately, and the brand began working hard to counter the damage by using an aggressive new social media campaign. It was the push Domino’s needed to begin using the web to its advantage, and it has since created a massive online presence that surpasses almost any other food service business.

Conclusion

Some companies flourish in a time of social media crisis, and some crash and burn. But each of these examples can teach us something about the nature of an online social networking presence and the importance of properly handling problems when they arise.

About the Author: Tom Chu is the SEO manager at PsPrint, Chicago commercial printing company specializing in business card and poster printing among other popular services. Find me in Google+

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Sometimes the best way to save money is to pick up and move.

Many businesses are not successful because they are not located in the right area. It’s important that your business has room to grow and isn’t bombarded with competition. Moving could allow your business to have more market opportunities and could very well save you money in the long run.

After all, if another area has a higher availability of a product or a great economy, moving will make a huge difference in your financial situation. Although it seems like a very down economy right now, there are little areas of the country (and out of the country) that are booming and not bombing.

However, many business owners are hesitant to move because it can be such a financial risk. Moving is expensive, and if things don’t go right you could be in a lot of trouble. Not only that, but moving is a big deal if you have a family who will need to move with you.  Is it really worth the risk?

The trick is to minimize your risks as much as possible by analyzing everything about the move. Some business owners see an opportunity and don’t realize that there are a lot of things to take into consideration before relocating. Consider some of the ways you can minimize your financial risk before moving:

Top 4 Ways to Make Sure You Don’t Lose Money in a Move

The first thing a company owner needs to do is look online for an area that they think will help their company succeed. Look at the number of community members, the growth, the school districts, etc. Once you really do your research, it’s time to actually go to the city and do some on-site research.

1. Talk with those living in the area you’re hoping to move

See if you can talk to local business owners in the area. Be honest with them and tell them that you’re hoping to relocate your business. They will likely understand the economy and the needs of the people in the community better than anyone, and will surely give you an honest answer (if you’re not a threat to their business!). Talk with them about the need for a business like yours, and see how they like living in the area.

2. Check out the competition

An area could have a great economy, but if there is a lot of competition for your type of business it’s probably not the best move. People in the community are probably already working with one of your competitors, and it can be very difficult to sway someone once they’ve made a decision. However, if the area is really growing then you may be able to nab some of the new members of the community.

3. Make sure you aren’t stuck in a lease in your current location

Many business owners are so excited about the possibility of relocation that they do not consider their current location. Even if you have decided that it’s worth the risk to move, you do not want to be paying rent in two different locations. This is one of the worst things you could do financially. Don’t get too excited and sign for a place assuming that they will let you out of a lease. In fact, in most cases they won’t.

4. Don’t forget about your current customers

It’s never a good idea to start your business completely from scratch if you don’t have to. You remember how tough it was to grab those first few customers, and it will be difficult even in a booming economy. It’s never easy to start a business, so ask your current customers and clients how they would feel about a relocation. Would they still work with your company? Do you have the ability to still work with those customers?

The biggest thing to remember about moving a business is that you’re doing it for the success of the business.

The town may be great, but it won’t matter if there is no room for your business to succeed.

It’s important to look at your finances and see if you have the luxury of taking a risk. Then, make sure you pick the right place by considering some of the tips listed above.

Photo credit: leticiahixson.com

About the author: Lawrence Murphy is a writer for CreditCardCompare.au/. The Web site gives financial advice to small business and entrepreneurs including how to reduce your credit card bills and succeed with business credit cards. You can visit the company blog The Credit Letter for more information.

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Choosing the right business structure when starting a new business can be a confusing process. There are so many structures to choose from. There are S corporations, C corporations, LLC, sole proprietorship, etc.

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