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Small Business Tips

Small business phone systems: Find the perfect tool

Manasa Reddigari

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Having a business phone system means you never have to miss a call or a business opportunity. Not sure which phone systems and services are worth the investment?

Click through to learn about your options for small business phone services.

Do I need a business phone system?

Modern-day smartphones are so powerful that it may seem like you can communicate day-to-day without a business phone system. But business phone systems offer many benefits:

  • Real-time communication with customers: Getting a business phone system allows you to establish a direct link through which customers can reach you without delay.
  • Customer service optimization: Business phone systems let you track your use of business phone lines. This way, you can identify and eliminate customer pain points like long hold times.
  • Employee communication: Business phone systems serve as a centralized internal communication tool for one-on-one phone calls, conference calls and more.
  • Lower international phone bills: If you run a geographically dispersed business, using small business phone services with international plans will usually be cheaper than making these calls over a mobile network.
  • Increased communication channels: Business phone systems give you the ability to add many more phone lines as your business grows and your internal and external communication needs increase.
  • Advanced features: Business phone systems offer many helpful features, such as allowing small business phone services to remain operational during an outage.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

What types of business phone systems and services should I consider?

Landline, VoIP, hybrid and virtual phone systems are your main options. Let's take a look at how each system works and some popular small business phone services on the market for each type.

  • Landline: Traditional analog phone systems route calls over a copper-wired or fiber-optic Public-Switched Telephone Network (PSTN). Your landline system can make use of numerous individual lines, or it can use a PBX (Private Branch Exchange) system to direct calls placed to a single external phone line to multiple extensions. Landline systems are gradually going out of favor for VoIP phone systems. Service option: Call a local or regional telephone company.
  • VoIP: Voice-over-IP-based phone systems route calls travel over the internet, so a quality internet connection is a must. If you have a good service provider, VoIP typically costs less. In most cases, the price of routing calls over the internet is lower than routing them over a PSTN.
  • Hybrid: Typically viewed as a hybrid of a traditional analog and VoIP phone system, these systems allow you to make both landline and VoIP calls. They often serve as a step before migrating to a VoIP phone system.
  • Virtual: These systems work like call forwarding, transferring calls placed to a central business phone number to other mobile numbers.

What's the difference between VoIP and PBX?

In addition to routing calls to extensions, a landline-based PBX system provides features and functions such as call forwarding and a phone directory. But it requires more costly and complex infrastructure, including a server for call switching, a switchboard, external and internal phone lines and standard phones.

VoIP systems offer similar benefits as a PBX but at a lower cost and with less equipment. Typically, it's an internet connection and either an IP phone or a computer installed with the phone software. Configuring VoIP systems are also more straightforward and requires less of a learning curve than PBX systems. But bandwidth is a limitation of VoIP systems that you don't have to worry about with PBX systems.

MileIQ: Mileage Tracker & Log

MileIQ Inc.

GET — On the App Store

Having a business phone system means you never have to miss a call or a business opportunity. Not sure which phone systems and services are worth the investment?

Click through to learn about your options for small business phone services.

Do I need a business phone system?

Modern-day smartphones are so powerful that it may seem like you can communicate day-to-day without a business phone system. But business phone systems offer many benefits:

  • Real-time communication with customers: Getting a business phone system allows you to establish a direct link through which customers can reach you without delay.
  • Customer service optimization: Business phone systems let you track your use of business phone lines. This way, you can identify and eliminate customer pain points like long hold times.
  • Employee communication: Business phone systems serve as a centralized internal communication tool for one-on-one phone calls, conference calls and more.
  • Lower international phone bills: If you run a geographically dispersed business, using small business phone services with international plans will usually be cheaper than making these calls over a mobile network.
  • Increased communication channels: Business phone systems give you the ability to add many more phone lines as your business grows and your internal and external communication needs increase.
  • Advanced features: Business phone systems offer many helpful features, such as allowing small business phone services to remain operational during an outage.

What types of business phone systems and services should I consider?

Landline, VoIP, hybrid and virtual phone systems are your main options. Let's take a look at how each system works and some popular small business phone services on the market for each type.

  • Landline: Traditional analog phone systems route calls over a copper-wired or fiber-optic Public-Switched Telephone Network (PSTN). Your landline system can make use of numerous individual lines, or it can use a PBX (Private Branch Exchange) system to direct calls placed to a single external phone line to multiple extensions. Landline systems are gradually going out of favor for VoIP phone systems. Service option: Call a local or regional telephone company.
  • VoIP: Voice-over-IP-based phone systems route calls travel over the internet, so a quality internet connection is a must. If you have a good service provider, VoIP typically costs less. In most cases, the price of routing calls over the internet is lower than routing them over a PSTN.
  • Hybrid: Typically viewed as a hybrid of a traditional analog and VoIP phone system, these systems allow you to make both landline and VoIP calls. They often serve as a step before migrating to a VoIP phone system.
  • Virtual: These systems work like call forwarding, transferring calls placed to a central business phone number to other mobile numbers.

What's the difference between VoIP and PBX?

In addition to routing calls to extensions, a landline-based PBX system provides features and functions such as call forwarding and a phone directory. But it requires more costly and complex infrastructure, including a server for call switching, a switchboard, external and internal phone lines and standard phones.

VoIP systems offer similar benefits as a PBX but at a lower cost and with less equipment. Typically, it's an internet connection and either an IP phone or a computer installed with the phone software. Configuring VoIP systems are also more straightforward and requires less of a learning curve than PBX systems. But bandwidth is a limitation of VoIP systems that you don't have to worry about with PBX systems.