Public Pay Phone Service

Start-up cost: $5,000–$10,000

Potential earnings: $20,000–$30,000

Typical fees: $50 a day for each telephone installed in high-traffic areas; $25–$30 per day in low-traffic areas

Advertising: Flyers, bulletin boards, visible installation locations

Qualifications: Communications technical skills, marketing ability

Equipment needed: Pay phones, installation equipment

Staff required: No

Hidden costs: Insurance, repairs

What You Do

In many locations across the United States, it is extremely difficult to find a pay phone that actually works. Small businesses are finding this niche in the huge telecommunications market. If you have telephone-industry experience, you may be able to ride this trend and create a viable business enterprise as a means of supplemental income. An extremely refined marketing sense and skill at linking your callers to the network of major phone company services will define your ability to make a go of this. Some franchises are available. To set up a public pay phone service, you need to first contact manufacturers of the phones to secure inventory. Equally important is your contact with the public utilities commission in your state. There may be regulations with which you will have to comply, so do your homework ahead of time. Prepaid phone cards, which can be imprinted with an advertiser’s information, are a related method of building business with a service like this one. For instance, many retail shops offer prepaid calling cards with their logo printed on the card; it’s a good way for many companies to keep their name in front of their customers. You can market the same capability to companies, and then contract with a specialized card production house to finish the work.

What You Need

Costs may be relatively high for a small business, depending on the type and configuration of services you plan to offer. Plan to invest at least $5,000 in this start-up; and, if you decide to buy into a franchise, expect to pay an up-front fee of $10,000 or more. Earnings are dependent upon phone location and usage; prepaid phone cards generally retail for $5 and up.

Keys to Success

This business will allow you to express your marketing agility to the utmost extent. It can be a real high to play the game that most people think is available only to telecommunications giants. The risks are

significant, though, and there are a large group of businesses out there offering alternative types of communication services, from pager services to online bulletin boards.