Voice communication remains the dominant form of communication for businesses, despite the proliferation of Slack, email, or chatbots. As such, there’s greater access to better phone systems for small businesses than ever before. Whether you’re looking for a cloud-based VoIP or a hybrid phone system or need to know how to select the most suitable system for your business, we’ll help you decide on an option that is right for your needs.
Let’s explore the types of phone systems available such as self-hosted VoIP, mobile networks, and landline-provided services like virtual phones and traditional landlines.
We’ll also share insights into the features you should look for when selecting a system tailored to your business..
Different Types of Phone Systems Available for Small Businesses
As a small business owner, you have a wide range of options when it comes to phone systems, including:
Cell Phone
If you are a small business just starting out, your least expensive option is to use your cell phone for your business. While your cell phone may be a good start to keep things simple and costs down, it should not be a long-term solution. If you plan to grow beyond a home-based business, you need to eventually invest in a professional phone system.
Landline Phone Systems
Landline phone systems for businesses are still popular for companies looking to leverage traditional communication technology.
Unlike their cloud-based counterparts, these systems require hardware installation and maintenance to operate appropriately. Landlines offer businesses reliability as they don’t need an internet connection. These phone systems can function during power outages or other natural disasters.
Furthermore, landlines come with features such as:
- Call forwarding/routing capabilities
- Voicemail boxes that allow you to save messages for future reference
- Conference calling between multiple locations
- Unlimited long-distance calling at no additional cost
If your business relies heavily on customer service interactions or you need a dependable communication line in all weather conditions, a landline may be your best option.
Landlines are offered by your local phone carrier which varies based on your location. The most popular carriers are: AT&T, Comcast, Spectrum, Cox, Frontier, Verizon, and others.
Most modern landline systems also offer advanced features such as caller ID. You can easily identify incoming calls from specific numbers without answering them first. Furthermore, some providers also integrate services with other business applications like CRM software. This integration allows greater visibility into your system so you can make improvements if necessary.
Mobile Networks
Mobile networks provide flexible, reliable coverage that allows employees to stay connected even when they’re away from the office.
With mobile VoIP solutions, you can access phone features while on the go. You don’t have to worry about dropped calls or unreliable service due to weak signal strength.
Mobile networks also offer cost savings compared to traditional landline services. They eliminate long-distance calling fees and reduce reliance on costly hardware installations.
Mobile networks will ensure you stay connected with customers and colleagues. It’s beneficial if you have remote workers or a large sales team that is always traveling.
You can sign up for plans with major carriers like AT& T or Verizon that offer bundle data packages with voice minutes. Your team will have unlimited access to phones regardless of their location.
Most modern smartphones also come with Wi-Fi hotspots. They allow high-speed internet connection access even if cellular network coverage isn’t available.
Virtual Phone Services
Virtual phone services allow you to make and receive calls over the internet using VoIP (Voice over Internet Protocol). These systems eliminate the need for costly hardware installations. They also allow greater flexibility when it comes to available features.
VoIP phone systems give you access to additional features such as:
- Voicemail boxes
- Conference calling or bridging services
- Internet faxing capabilities
- Virtual phone lines for smartphones
- Voice-to-text transcription
Virtual phone services can also replace or supplement existing landline solutions. They have lower costs for long-distance calling fees and free you from the limitations of your physical location.
One of the most significant advantages of virtual phone systems for businesses is scalability. You can adjust your system based on changing needs.
Many providers offer flexible plans that allow you to adjust things like:
- Number of lines
- Minutes per month
- Call forwarding or routing capabilities
- Voicemail integration and more
You don’t have to purchase extra equipment or software licenses to enjoy these benefits. For instance, Grasshopper office phone systems for small businesses are perfect if you already have the hardware.
You only need to download the Grasshopper app to your smartphone or computer, and your device will serve as a softphone.
You’ll have access to all features, including:
- Automatic voicemail
- Call forwarding
- Online faxing
- Video conferencing
- Business texting and more
It’s easy to communicate with customers and colleagues. You can also provide a personalized customer service experience regardless of geographical barriers. Furthermore, most virtual phone solutions integrate with other applications, such as CRM software. RingCentral, for example, is compatible with services such as:
- Oracle
- Zendesk
- Zoho
- Microsoft 365
- Salesforce
RingCentral also boasts high-quality technology. It ensures exquisite HD sound and video quality, with HD screen sharing and audio conferencing features.
Self-hosted VoIP
Self-hosted Vo IP office phone systems for small businesses offer reliable, secure communication. These solutions typically require an upfront cost for installation, but long-term savings often offset this cost.
Self-hosted VoIP solutions allow you to customize your system according to your specific needs. You don’t need to purchase additional physical equipment or software licenses to access the extra features.
Self-hosted Vo IP solutions also provide real-time advanced reports & analytics on usage.
Cloud-based VoIP
Cloud-based VoIP office phone systems for businesses provide an efficient and cost-effective way to communicate with customers, colleagues, and partners. By leveraging the cloud for voice communication, you can eliminate the need for costly hardware installations. You can take advantage of features such as:
- Automatic call routing
- Voicemail to email integration
- Unlimited long-distance calling at no additional cost
Cloud-based VoIP solutions are highly scalable. They come with advanced features such as HD audio/video conferencing capabilities. These features break down geographical barriers. Users worldwide can collaborate in real time, regardless of location.
For instance, Nextiva ranks among the phone systems for businesses, thanks to the feature-rich VoIP services that include:
- Unlimited video and voice calling across all plans
- Call forwarding and queuing
- An auto-attendant tool to welcome callers and direct them to the correct departments
- Online fax features
- Voicemail notifications
Furthermore, Nextiva integrates with popular apps and CRM software such as Hubspot and Salesforce. You’ll have better visibility into customer interactions. You can access different channels, including web chat support and social media platforms.
Hybrid Phone Systems
Hybrid phone systems provide the best of both worlds. They enable you to take advantage of the cost savings of cloud-based services. You’ll also maintain access to reliable landlines where internet connectivity is unavailable.
With hybrid solutions, you can route calls over your existing PSTN line. Depending on the call’s original location, you can also use a hosted VoIP provider’s network. This flexibility allows for seamless switching between different service providers when needed. It also increases reliability by allowing your team to remain connected even when one connection fails.
Hybrid phone systems for businesses typically require an upfront investment in hardware to enable communication between networks, such as:
- IP phones
- Routers
- Gateways
- Switches
However, the long-term savings of hybrid solutions and increased flexibility of available features often offset this one-time expense.
Most hybrid phone system providers also offer features such as:
- Auto attendant
- Call forwarding/routing/recording capability
- Unified messaging integration with email and text messages sent directly to user voice mailboxes
- Real-time reports and analytics on usage
Why Voice Communication is Still So Important
In today’s highly competitive market, where every second counts to maintain a competitive edge, voice communication is increasingly vital for businesses looking to stay ahead of the curve.
Voice communication facilitates collaboration between multiple locations around the globe on one platform. It provides customers with faster response times due to improved routing capabilities.
Voice communication also provides unparalleled convenience for businesses that rely heavily on customer interactions or require dependable line contact. It provides a way for teams to connect and collaborate in real-time. It’s easy to work with colleagues in different parts of the world and customers or clients who need assistance quickly.
You can reduce communication costs by utilizing voice technology, such as VoIP services while providing a reliable contact line between all parties. Voice communication services also offer features such as call forwarding/routing capabilities, allowing you to manage customer inquiries better. You can route them to the appropriate personnel.
Automated attendant services enable customers to reach out quickly, while integration with other business applications ensures greater visibility into your system. Furthermore, modern cloud-hosted solutions have advanced features that break down geographical barriers.
How Do You Decide Which System is Right for Your Business
The best way to determine the right phone system for your business is to assess your needs based on budget constraints. It would be best if you also considered any future plans for your business regarding growth or expansion.
Once you identify the type of system that will work best for your business, you can research available providers to narrow down the field. Currently, the market overflows with many different phone systems and providers to choose from.
Some of the best company phone systems today include:
- Vo IP solutions such as Ring Central and 8×8
- Cloud-based private bank exchanges (PBXs) like Grasshopper and Nextiva. A PBX is a hosted service that routes calls to the intended recipient and allows users to forward calls from desk phones, cell phones or even computers.
- Traditional landline systems from Panasonic, Avaya, and Nortel
Each has features that make it ideal for certain types of businesses. However, some common characteristics shared across all these top-tier providers are:
- Scalability options with pay-as-you-grow pricing models
- Visual voicemail services that transcribe, record, and send voicemails via text or email
- Multiple lines that allow switching between calls to handle high call volume
- Call forwarding to route calls to other numbers or email addresses
- Conference call feature to schedule meetings with multiple callers via the phone
What Features Should You Look For In A Phone System
When determining which communication system is right for your business, there are a few key factors to consider.
First, it’s essential to consider your business’s needs, such as how many users will use the system. You should also assess whether or not you need extra features such as:
- Call forwarding/routing/recording capabilities
- Automated attendant services
- Conference calling or bridging service between multiple locations
- Faxing functionality (if you need it)
- Real-time reports and analytics on usage
It would help if you also considered any budgetary constraints that you may have when selecting a solution. Some solutions come with hefty upfront costs due to hardware installation fees.
Another factor to take into account is overall reliability. Landline systems offer dependability during power outages or other natural disasters. They don’t require an internet connection to operate correctly.
However, cloud-based solutions may be better if you look for more advanced features.
Furthermore, modern office phone systems integrate with other popular business applications, making them ideal for prioritizing customer interactions.
Ultimately, the best company phone systems for your business depend on the service level agreement (SLA) you need. It also relies on the specific features that would benefit your business the most.
How Much Does a Phone System Cost, and What Are the Installation Fees?
The cost of a phone system is an essential factor to consider when selecting the right communication solution for your business.
Generally, the monthly costs for most phone systems in the market range from $12 to $20 for every user. For instance, 8×8’s monthly service plan is $15 per user, while Ooma Office’s monthly plan costs $19.95 per user.
However, various factors can drive up these costs. The most significant factor that affects the price of phone systems is the number of phone lines. For small businesses, every additional phone line increases the monthly fee.
Landline systems are often more affordable upfront. However, they lack some features and capabilities you need to facilitate modern collaboration.
Cloud-based virtual phone solutions, on the other hand, require some setup fee or monthly subscription fee. The total cost depends on the services you need. However, these solutions provide advanced features such as automated attendant services and conferencing.
When it comes to installation fees, the cost will vary depending on the type of phone system. Landlines typically require an upfront payment for hardware installation or ongoing support costs. In contrast, cloud-based solutions usually involve one-time setup fees and/or monthly subscription costs based on usage levels.
There may be additional charges if you decide to add extra features such as Vo IP (Voice Over Internet Protocol) technology. Ultimately it all comes down to how much money you are willing to invest in communication infrastructure.
Is It Worth Getting a Professional to Install the System for You?
Professional phone system installation for your business offers numerous advantages. For one, having an experienced technician install your phone system guarantees that all aspects of the setup process are handled correctly.
You don’t have to worry about compatibility issues or configuration errors that could lead to costly downtime in the future. A professional installer will advise on how best to utilize your new hardware and software. You can get the most out of your communication infrastructure while ensuring optimal performance at all times.
A professional installation also eliminates any guesswork in maintenance or repairs. The experienced technicians are familiar with each type of device, saving you time and money.
Professional installation eliminates unnecessary troubleshooting steps when something goes wrong. Plus, if there is an issue, a technician has probably already seen this problem before. They know what needs doing right away without needing additional help from other sources.
Having a reliable support staff available means you can rest easy knowing your communication solution is always up-to-date and running smoothly, regardless of the unexpected challenges that come your way.
How Do You Set Up Voicemail and Other Features on Your New Phone System
Setting up voicemail and other features on your new phone system can be relatively simple or more complex, depending on the type of system you have. You need to contact your service provider for landline systems to activate additional services, such as voicemail and automated attendant menus.
Once that is complete, follow the instructions provided by your service provider for setting up each feature.
Cloud-based virtual phone solutions typically offer an easy-to-use self-service portal. You can configure your desired settings without needing assistance from customer support staff.
The portal includes options for creating customized call routing rules based on the time of day. You can also set different greetings depending on who is calling.
However, it’s crucial to ensure you test all settings before going live with the system so there are no surprises when customers begin using it. Some cloud providers may also include training tutorials or access to a customer success team if necessary. They ensure you get the most out of your new communication solution.
Empower Your Business with a Robust Phone System
It is clear that there are various viable solutions in today’s market. When selecting the right phone system for your business, you must evaluate the features you need alongside practical considerations such as budget. Remember that professional installation will ensure ease of setup and implementation with no surprises along the way.