Why a Sim-Only Plan Is a Great Option for Your Home-Based Business

*This is a collaborative post

In a hyper-connected world, communication is vital. In the past, businesses relied on landlines but, with everyone owning a mobile device, home-based business owners are ditching the landline and using their mobile devices for business purposes.

Before you designate a mobile phone as a business phone, you have to think about the type of plan you will get. Typically, you have to choose between a phone-based plan or a SIM-only plan.

Phone-Based Vs Sim-Only Plan

A phone-based plan, also called a mobile contract plan, is a plan where you pay a fixed monthly fee for both the phone and the plan that it comes with. These plans usually last for 24 months. Because your monthly bill will include the cost of the device divided over your contract period plus the cost of the tariff you will be on, mobile contracts can be very expensive.

A SIM-only plan only covers the mobile service you get with the SIM card. This means you can purchase any phone you like and then insert the SIM card and begin a plan right away. The initial cost of a SIM-only plan is often substantial because you have to purchase the device before you get the SIM card. However, this cost can be offset if you own a capable device.

However, this can be an advantage because most mobile contract plans are offered on the latest mobile devices whose prices have been increasing over the past few years. This means you might not have any option but to pay £1000-£1500 over two years for a high-end device that you might not necessarily need. With a SIM-only plan, you can purchase an older, cheaper but still capable device for your business as long as it can call, send emails and has a decent camera if you ever need to make a video call. So, why is a SIM-only plan a better option for your business?

Flexibility

For business owners looking to save money by ensuring they are always on the cheapest plan, a SIM-only plan is a great option. SIM-only plans are often short term, with some SIM-only plan providers offering you 30-day rolling plans so you can change your plan or cancel it anytime you wish. This means you are not locked into a plan with them or any other SIM-only plan provider, which means you have the flexibility to always choose a plan that works best for you.

There is also a lot of flexibility in pricing even within a single SIM-only plan provider; there are different plans, with different amounts of data, minutes and texts, to choose from. To get the best plan for your business needs, you can compare SIM only deals from providers like Lebara. In addition to different plans, there is no contract required with Lebara, no credit check when you sign up and, with no out-of-bundle charges, you never have to worry about extra costs if you ever deplete your
data, texts or minutes.

Cost Savings

When you factor in the cost of the device as well as the tariff you will be on, mobile contract plans are usually a lot more expensive than SIM-only plans over the period of the mobile contract plan. This is because the device is deemed a loan by the provider and in addition to the cost of the device, you have to pay interest on it, even though most people are not aware of this cost which is often not disclosed.

As discussed above, you can use any device with a SIM-only plan as long as the device meets the minimum requirements for your business. If you already own a device, you do not have to think about factoring in the cost of a new device like you would with a phone-based plan as you can just use the one you already have.

Easier Phone Upgrades

If you decide to use the phone you already have with a SIM-only plan, you get the ability to upgrade your phone whenever you want. This can be in cases such as when you need to travel around more so you need a better internet connection for video calls or need an overall better device.

When you are on a phone-based plan, you are stuck with the phone that came with the plan for the duration of the plan. In that time, dozens of new smartphones might have been released and you could be missing out on great features on these devices that you might need but not have access to, especially when you are nearing the end of your plan.

Ability to Shop Around

A huge advantage SIM-only plans have over phone-based plans is the ability to shop around as well as switch tariffs whenever you need. You can switch to a higher or lower plan depending on your needs for the coming month. You can also cancel your plan and move to a cheaper provider, or one that ticks all the boxes according to what you need. This way, you get to be on the best plan – the one that suits your needs best – every single month compared to only having the ability to change your tariff or move to a new provider when a phone-based plan comes to an end.

Unlocked Devices

The phone you get with a phone-based plan is often tied to the specific provider you signed up with. Many providers do not let you leave their network even after the expiry of your plan, making it as difficult as possible to get out of their network to increase revenue. For some providers, you have to pay a fee to get out of their network and to have your phone unlocked from the “parent” network.

You do not have to deal with any of this when you are on a SIM-based plan. You are not obligated to remain with any one provider and do not have to pay anything when you would like to switch providers. In many cases, all it takes is a simple phone call to the provider asking them to stop billing a SIM card that you would like to stop using. Having an unlocked device also gives you the flexibility to sell the device if you would like to upgrade to a better one depending on your needs.

Multi-purpose Phone

If you would like to have separate business and personal phones, you have to get and pay for two phones when you go with a phone-based plan. This is because a plan is tied to the phone and there is no way to use an additional plan on the same phone. If you do not like the inconvenience of carrying or owning two mobile phones, you can always go with a SIM-only plan where you can purchase a dual-sim phone and have both of your business and personal numbers on one phone.

Mobile phone plans have become much more consumer-friendly over the years, but there are serious restrictions that come with a mobile plan that make it a less desirable option, especially for business owners. SIM-only plans, on the other hand, give you all the flexibility and freedom you need to choose the device you like, the plans you like and to opt-out of a plan if you do not like it, or it does not meet your needs any more.