What is the difference between residential and business-class internet?

A reliable internet connection is likely near the top of your list of small business must-haves. Although this may seem as simple as firing up your computer or switching on a mobile device, the truth is that the type of internet service you use can have a big impact — so knowing the difference is key.

You have two basic options when it comes to the internet — residential and business-class — and only one is the best fit for small businesses.

Residential internet service
According to the Federal Communications Commission, many residential users consume more data downloading than uploading. Based on this habit, residential internet service is primarily designed for — you guessed it — downloading. It's great for watching videos, reading the news or connecting with friends — but, although it's more affordable, it's not a good choice for businesses.

Here are some traits of residential internet service that may be good for home use, but will make things tricky for your small business:

• Simplified plans: Because residential users typically need only basic internet connections, plans are rarely personalized and don't come with a lot of flexibility. This simplification may make it easy to mark "internet service" off your to-do list, but you'll lose out on a lot of the specialized elements that give businesses an edge.
• Lower speeds: Residential internet service has acceptable speeds for home use, but it often can't compete with the fast-paced business world. If you settle for lower speeds, you're settling for losses in time and, ultimately, money.
• So-so service: As a small business, you're likely to have questions, concerns, unique goals and a whole lot riding on your internet connection. Residential internet service doesn't tend to cater to these needs because the biggest catastrophe for most customers would be an interrupted video or a lagging video game.

Business-class internet service
Business-class internet service, on the other hand, is designed with business owners in mind, according to Business.org. This means you can confidently upload and download data at business-class speeds — for example, during video chats or when working on shared documents.

The most significant downside of business-class internet service is the cost. Just remember, you're paying more for higher speeds and reliable service, two things a small business can't do without. According to Forbes, high-speed internet is one of the best ways to beat business pains, from security to communication to digital marketing — so it's well worth the bill.

The verdict
Although residential internet service may look like great news for your small business's budget, that "good enough" connection will only get you so far. If you're video conferencing, collaborating on files, dodging cybersecurity risks, and updating backups to protect data, business-class is your best bet.

Slow internet is a pain — but it may not be the only one your small business runs into. For help protecting your company from other risks, contact the Law Offices of Donald W Hudspeth, P.C.

Categorised in: Starting a Business in Arizona

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