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Phone System Options for Your Small Business

Phone System Options for Your Small Business

Is your business facing communication difficulties and still using the old traditional phone system? Then, it is time to switch to a new cloud-based telephony system and take your business to a new level.

Using a functional phone system can benefit your business as it allows it to connect with its customers, enhance business communication, and streamline workflow.

So, let's learn more about various phone systems you can use for your business. Read the full article to learn more about different types of phone systems and choose the right phone system for your business.

So let's get started!

Traditional Landline Systems

Traditional Landline Phone Options

A traditional landline is a communication system through which audio data is transmitted via a wire or a fibre optic cable. It is also known as a fixed service phone. The landline system is connected to a physical wiring to work. Different landline service providers use other methods, such as cables or relay towers, to transmit the data from one place to another.

About 53.2% of businesses around the globe use traditional landline systems as their communication method. Conventional landline systems can still be beneficial for companies located in remote places as there is no access to a stable internet connection. 

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Traditional landline systems can be very beneficial for so many reasons. The following are some of the reasons how and why it can be helpful:

  • No Internet required: Traditional landline systems don't need any internet. They run entirely on a wire. The landlines can function even when there is an electricity and Internet outage. 
  • Ideal for emergencies: A landline can work under any circumstance with a physical connection. This can be very useful during emergencies as it is easy to use and requires no additional knowledge.
  • Easy to use: Only the setup part for a landline system is complicated. After the setup, it is straightforward to use. This can be very useful for those with little to no server knowledge. 
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Along with the many benefits of having a traditional landline system for your business, there are some cons, and they are:

  • Lack of mobility: Traditional landline systems need more mobility as they require a whole setup. This way, businesses aren't able to be mobile. Lack of mobility can affect the growth of the company.
  • High cost: A traditional landline system can cost significantly more than a VoIP system. The setup and maintenance costs can make it less affordable than VoIP.
  • Prone to spam calls: There is no call monitoring in traditional landline systems, so there is a considerable risk of spam and fraud calls. This can result in frustration, decreased productivity, and wasted time.

Voice over Internet Protocol (VoIP) Systems  

Voip Phone Options

voice-over-internet protocol (VoIP) is a cloud-based phone system that allows users to call online. VoIP doesn't require any additional hardware or devices and can be worked from any remote place.

Businesses can easily communicate with their customers via Voice-over-Internet Protocol. VoIP is far cheaper than the traditional landline system and can even integrate with existing technology. 

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Switching over to a VoIP system for your small business has countless advantages. The following is a small portion of reasons why switching to a Voice-over-Internet Protocol (VoIP) might be beneficial:

  • Cost saving: Voice over Internet Protocol is much cheaper than a traditional landline system. It doesn't require any heavy physical infrastructure, as it can be done remotely. It also doesn't require any maintenance, unlike conventional landline systems.
  • Portable: VoIP is done via a cloud, so it doesn't require a physical place. It can be done from anywhere with a good internet connection. You can work from anywhere rather than working from a specific location daily.
  • Reliable: Switching to a reliable VoIP is very dependable. Even in case of an electricity or internet outage, your call can be easily transferred to your cellular device. 


Although switching over to a Voice-over-Internet Protocol (VoIP) might be one of the best choices for your small business. It does come with its own set of cons. The following are some of the reasons why switching over to a VoIP might cause some issues:

  • Security: As VoIP uses the public Internet, it can create security breaches. It can be more vulnerable to cyber threats. 
  • Use of the Internet: Voice over Internet Protocol relies on the Internet to function. Disturbance to the Internet might create a problem during a call. These problems can be avoided with a secondary phone line.
  • Server issue: If a problem arises from the server itself, a user can do nothing unless the provider solves it. Although uncommon, there is a slight chance of it happening once in a blue moon. 

Features and benefits for small businesses

Its features are the main reason for switching to a Voice-over-Internet Protocol (VoIP). Not only does it make your work less complicated, but it comes with countless other benefits as well:

  • Call recording: Call recording is usually done by a supervisor to monitor the call interaction with the customer. Call quality is checked and ensured by call recording. This way, the supervisor can monitor calls and maintain the quality.
  • Auto call forwarding: VoIP provides an auto call-forwarding feature; that way, a call can be automatically transferred to another line if the original line is busy or unable to attend. This way, no calls are left unattended. 
  • Automatic call distributionAutomatic call distribution is a process through which calls are distributed to different people with a specific skill or knowledge. This feature comes in handy while handling a large volume of calls.
  •  Call screening: Call screening is essential for businesses as it can help them avoid spam calls. There can be many spam calls, so call screening is done to save time. This helps to both save time and increase productivity
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Importance of an efficient phone system for small businesses

Communicate Clients Phone

An efficient phone system for your small business is essential, especially if you are starting or looking to expand. Selecting the correct type of phone system is the key to communicating effectively with employees, suppliers, and customers for any business. 

The following are reasons why your small business needs a phone system:

Affordable: A phone system is comparatively cheaper than a traditional landline system. It can reduce your cost by up to 40% on local calls and 90% on international calls than having a traditional landline system. It does not require additional equipment since everything can be done via phone or laptop, and there is no extra charge. 

Flexibility: A phone system can be very flexible as it doesn't require you to sit at a desk to answer different calls. This flexibility makes you more present in your business as you can answer the call anywhere without the hassle of carrying additional equipment. This can increase both the employee and customer satisfaction

Visual voicemail: Visual voicemail is the feature that converts your voicemail to text. This way, you can look/listen to your voicemail even when busy. By having this feature, you can save time and reply to the person within a short period. 

No maintenance required: As everything is done electronically, there is no need for any maintenance. Besides an update from time to time, there is no need for maintenance. You can upgrade your phone system if you want extra features according to your liking.

Suitability for small businesses

Using a Virtual phone system is the best fit for your small business. It caters to the needs of your small business. It improves the productivity of your workspace by connecting it all with no hassle through a single click. It also ensures the mobility safety of the employee. Working remotely can also be possible through a phone system. Additionally, it provides transparent communication between any two parties.

 Considerations for implementation

Thus, selecting a reliable Voice over Internet Protocol for your small business is an excellent idea for companies to communicate better and expand their reach. However, it would help if you looked into what the server provides and what you require for your business. From looking into prices to the features it offers, you should only choose a specific server if it fits your business's niches.

Every VoIP server provides unique features that make it stand out in the market, and with proper and deep research, you should be able to find one within your budget and niches.

Critical Considerations for Small Businesses  

Clients Successful Designers

Budget considerations

When choosing a phone system for your small business, budget is essential. A good VoIP server can range from $10 to $80 monthly. These services vary in price depending on the facilities you need. 

Scalability and growth potential

VoIP services can positively influence your business. It can help manage your business growth. VoIP servers can help you grow your business because they are cost-effective and require less workforce.

Integration with existing technology

Integrating with the existing technology is what makes Voice-over Internet Protocol so cost-effective. It works with the old communication setup and requires no additional hardware. This makes it very easy and sustainable to use. 

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Customer support and maintenance

Voice-over Internet Protocol requires no additional maintenance besides some updates every once in a blue moon. VoIP is one of the most effective ways to improve a business's customer support. Customers are provided with excellent backing through any medium they choose, which increases their satisfaction.


To sum up, VoIP is one of the best and most effective ways to increase business growth and customer satisfaction. Besides being easy to set up, it is also very cost-effective. Remote working is one of the significant benefits of VoIP. 

Choosing a VoIP over a traditional landline is one of the best decisions you could ever make for your business, as it reduces your communication cost and workload by 50%. Switching from a traditional landline system to a VoIP can be an excellent start for a successful business. 

Phone System Options FAQs

What are the main types of phone systems for small businesses?

The main types are traditional landlines, Voice over Internet Protocol (VoIP), virtual, and mobile phone systems. Each has its pros and cons regarding cost, features, and flexibility.

What is VoIP, and what are its benefits?

VoIP stands for Voice over Internet Protocol. It allows phone calls over the Internet rather than traditional phone lines. Benefits include lower costs, advanced features, scalability, and mobility.

How does a virtual phone system work?

A virtual phone system operates in the cloud, so nothing needs to be physically installed on your business premises. All your phones connect to and are managed via an online interface. It's scaled to fit your needs.

What factors should I consider when choosing a phone system?

Key factors include number of users, existing infrastructure vs starting fresh, types of phones/devices needed, budget, ease of use, implementation timeline, disaster recovery needs, and future scaling plans.

How much does installing a new phone system cost?

Costs vary widely based on your specific setup and needs, but ballpark estimates range from $20-$50 per user per month for cloud-based systems and $100-$300 per handset plus installation fees for VoIP or landline systems.

Is it better to use my existing phones or buy new ones?

If your existing phones are still functional, using them can save costs. However, they may lack compatibility or features for newer phone tech. Many providers incentivise customers to upgrade equipment.

How difficult is it to manage phone systems on my own?

Cloud-based systems aimed at small businesses are typically user-friendly with self-service management, reducing reliance on IT personnel. However, consider outsourcing major setup tasks and recruiter ongoing support as needed. Training will ease the transition.

Last update on 2024-07-22 / Affiliate links / Images from Amazon Product Advertising API

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Stuart Crawford

Stuart Crawford is an award-winning creative director and brand strategist with over 15 years of experience building memorable and influential brands. As Creative Director at Inkbot Design, a leading branding agency, Stuart oversees all creative projects and ensures each client receives a customised brand strategy and visual identity.

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