16 Best Small Business Phone Systems [With Pros & Cons]

Gone are the days when businesses relied on traditional landlines. Companies have shifted to more advanced and sophisticated business phone systems. These systems offer a range of features and functionalities that enable seamless communication and collaboration. Besides, they help reduce phone bills significantly, even when you make frequent long-distance calls.

In fact, switching to a virtual phone system can reduce phone bills by 30% to 50%.

So whether you’re starting a business or looking for a robust phone system provider, this blog is for you. We’ll talk about business phone systems’ meaning, their different types, and how they can improve business communications. We’ll also look at the best small business phone systems. So, without any further ado, let’s get started.

What Is Business Phone System?

According to Wikipedia, a business phone system is a multiline system commonly used in business environments. It includes devices ranging in technology from the small business telephone system to the private branch exchange.

Modern business phone systems allow you to communicate with customers and clients via audio, video, and text. They also have advanced features such as call recording, call barging, voicemail transcription, automated attendants, ring groups, and analytics. Such systems project a professional image for your business, adhere to privacy guidelines, and help you stay connected to the entire world irrespective of your location.

They also allow you to connect with hundreds and thousands of customers simultaneously over the phone at pocket-friendly prices. However, there are multiple types of business phone systems, such as:

• Virtual phone systems
• Private branch exchange (PBX)
• Multi-line phone systems

This makes it imperative to choose the right one. And that brings us to the next section.

Top 16 Business Phone System Providers

Below we have shared a comprehensive list of the 16 best phone systems that you can compare based on their features, pros and cons, and pricing.

1. CallHippo

CallHippo, one of the best phone systems for businesses, caters to the communication requirements of startups, businesses of all sizes, and enterprises. Using CallHippo, you can choose from two business phone systems: an office phone system and a call center solution.

Also, CallHippo’s office phone system can streamline your calls with IVR and ring groups, but call recording and other valuable features are extra.

Features

• Unlimited calling within the United States and Canada
• Auto-attendant (IVR) and Ring groups
• Business app integrations (includes Slack, Zapier, Zoho CRM, and more)
• On-hold Music

Pros

• CallHippo provides top-notch customer support, ensuring all customer queries are promptly resolved.
• CallHippo offers advanced features like Power Dialer and Automatic call distribution that can enhance productivity and streamline the calling process.
• Its user-friendly interface makes it easy for businesses to manage their calling activities.
• It integrates with 85+ third-party tools, enabling seamless workflow and efficiency.

Cons

• Setting up some of its features can be challenging, requiring technical expertise or assistance.
• You may occasionally experience connectivity issues, resulting in dropped calls or poor quality.
• CallHippo’s mobile app needs improvement.
• CallHippo charges on a per-minute basis, which can result in higher bills for heavy users.

Pricing

• Basic Plan: $0 per user per month
• Bronze Plan: $16 per user per month
• Silver Plan: $24 per user per month
• Platinum Plan: $40 per user per month

 

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2. Zoom

Zoom is best known for its simplified video calling, which is useful for remote teams. Still, you can also use its mobile app or desktop platform to manage business communications.

With Zoo Pro Global Select, you can unlock calls to 40 other countries, including unlimited calls to the United States and Canada. In addition, users can select from several authentication methods to secure their accounts, including high-level encryption for calls and video meetings.

Features

• Unlimited outbound calling
• HD call quality
• Voicemail transcription
• Automatic call distribution groups (ACD) with call queueing

Pros

• It can support large audiences, making it suitable for webinars and conferences.
• Zoom Phone is scalable and can be used by small, medium, and large businesses.
• The platform is user-friendly and easy to use, even for first-time users.
• It offers flexible pricing plans that cater to the needs of businesses of different sizes and requirements, making it a versatile choice for businesses.

Cons

• Zoom Phone has too many subscriptions and add-ons, making it confusing and expensive for businesses.
• The call quality can sometimes be poor, especially in areas with weak internet connectivity.
• The platform has limited integration options with other business tools, which may not be suitable for businesses with specific requirements.
• Zoombombing, or the unauthorized intrusion of uninvited guests during a Zoom call, has been a concern for security and privacy.

Pricing

• US & CANADA METERED – Pay As You Go – $120.00/year/user
• US & CANADA UNLIMITED – Unlimited Regional Calling – $180.00/year/user
• PRO GLOBAL SELECT – Choose from 40+ Countries and Territory – $240.00/year/user

3. Vonage

Vonage is one of the best small business phone solutions, providing numerous features, including caller ID, hold music, and unlimited team messaging. In addition, Vonage customers enjoy 99.999% uptime with mobile apps and over 96 global numbers for local inbound calls. Vonage can help boost your team’s productivity by integrating your business tools.

Features

• AI virtual assistant
• High-definition call quality
• Unlimited calling and text messaging on all plans
• Free video conferencing

Pros

• Vonage offers unlimited calling and messaging plans, making it an affordable choice for businesses with high calling and messaging requirements.
• The platform has a user-friendly interface that makes navigating and managing call activities easy.
• Vonage offers advanced features like a virtual receptionist, call analytics, and voicemail transcription that can enhance productivity and streamline the calling process.
• The voice quality of Vonage is superior and offers clear and uninterrupted communication.

Cons

• Vonage has a poor reputation for customer service quality, with customers often reporting long wait times and unhelpful support.
• Some of Vonage’s feature add-ons can be expensive, resulting in higher business costs.
• The platform has limited video call features, which may not be suitable for businesses with video conferencing requirements.
• Vonage has limited integration options, which may not be suitable for businesses with specific requirements.

Pricing

• Mobile: $14.99 per line per month
• Premium: $24.99 per line per month
• Advanced: $34.99 per line per month

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4. RingCentral

An excellent cloud-based phone system provider is RingCentral MVP, which offers a variety of features. With crystal-clear reception, increased reliability, and an advertised uptime of 99.999%, it covers messaging, video calls, and phones (MVP).

In addition, with features like those that turn any space into a virtual conference room, RingCentral is great for hybrid teams and remote workers.

Features

• Powerful Call Routing
• Intuitive Interface
• Desktop and mobile apps
• Video conferencing with up to 200 participants

Pros

• RingCentral offers a free trial, allowing businesses to test the platform before committing to a subscription.
• The platform is easy to use and allows for the seamless transfer of calls between devices and team members.
• RingCentral provides integration with various CRM and productivity applications, making it a versatile option for businesses.
• The web meetings feature of RingCentral is consistently stable and reliable, offering a smooth experience for participants.

Cons

• The call quality of RingCentral is not the greatest and can be affected by weak internet connectivity or other technical issues.
• The cheapest plan offered by RingCentral includes only 100 toll-free minutes, which may not be enough for businesses with high calling requirements.
• Call drops can occur during RingCentral calls, which can be frustrating for businesses and their customers.
• The platform can be expensive compared to other VoIP providers, which may not be suitable for businesses on a tight budget.

Pricing

• Essential Plan: $19.99 per user per month
• Standard Plan: $27.99 per user per month
• Premium Plan: $34.99 per user per month
• Ultimate Plan: $49.99 per user per month

5. Grasshopper

Grasshopper, a top-rated business phone system provider, is famous among small businesses and solo entrepreneurs due to its no-fuss product offerings, accessible features, and budget-friendly prices.

Grasshopper allows you to separate personal and professional calls, so you can start marketing your business professionally as soon as possible.

Features

• Unlimited free calls and texts in Canada and the US
• Offers toll-free numbers, vanity numbers, and local numbers
• Custom greetings
• Call forwarding

Pros

• Grasshopper allows businesses to easily add extensions and voicemails to their phone system, making it easy to manage calls and messages.
• It supports VoIP and Wi-Fi calling, offering flexibility for businesses on the go or with remote teams.
• Grasshopper has an easy setup process, allowing businesses to quickly get started with their phone system without needing technical expertise.
• Grasshopper’s mobile and desktop apps offer a seamless experience for businesses to manage their calls and messages on the go.

Cons

• Grasshopper has limited features compared to other VoIP providers, which may not be suitable for businesses with specific requirements.
• It does not support call recording, which may be a drawback for businesses that need to record calls for training or quality assurance purposes.
• It lacks some advanced call features like call analytics and IVR systems, which may not be suitable for businesses with high call volumes.
• The plans can be expensive compared to other VoIP providers, which may not be suitable for businesses on a tight budget.

Pricing

• Solo: $26 per month
• Partner: $44 per month
• Small Business: $80 per month

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6. Nextiva

Nextiva offers the best small business phone systems for SMBs and large call centers. Nextiva’s phone service is highly reliable and efficient; you get more than just voice calls. As one of the most versatile VoIP service providers, Nextiva offers sales, service, and remote workforce management platforms. With so many plans available, it’s an ideal choice for most companies.

Features

• Free unlimited video & voice calls in the US and Canada
• Auto-attendant
• Virtual fax
• 24/7 technical support

Pros

• Nextiva provides knowledgeable customer support to help businesses with their phone system setup and management.
• The call quality of Nextiva is good.
• It offers advanced call management features like call recording, voicemail-to-email transcription, and more.
• Nextiva has built-in CRM software that integrates with the phone system, offering a unified experience for businesses to manage their customer communications.

Cons

• The mobile apps of Nextiva can be buggy at times, causing issues with call quality and overall performance.
• The interface of Nextiva can be confusing, especially for businesses that are new to VoIP phone systems.
• Nextiva’s mobile app support isn’t robust compared to the desktop version.
• The pricing plans offered by Nextiva are expensive compared to other VoIP providers.

Pricing

• Essential Plan: $23.95 per user per month
• Professional Plan: $27.95 per user per month
• Enterprise Plan: $37.95 per user per month

7. Dialpad

Dialpad is one of the business phone system providers. You won’t miss any details with this fully automated communication system or have to spend a fortune on more information, as it provides businesses with a straightforward and effective business communications tool. It stands out, among other things, because of its Voice Intelligence (Vi) technology, which analyzes and transcribes live calls.

Features

• Voice Intelligence (Vi)
• Web Conferencing
• Interactive Voice Response
• Power Dialer

Pros

• Dialpad offers excellent customer support to assist businesses with their phone system setup and management.
• It has AI-based voice intelligence on every plan, allowing businesses to analyze and optimize communication patterns.
• Dialpad provides local number support in over 50 countries, offering businesses a global presence.
• It includes unlimited video recordings, making it easy for businesses to record and share virtual meetings.

Cons

• Dialpad is unavailable worldwide, which may limit its usefulness for businesses requiring global coverage.
• It has limited integration options, which may be a drawback for businesses that require specific integrations.
• The basic plan of Dialpad does not include 24/7 customer support, which may not be suitable for businesses with around-the-clock operations.
• Call quality issues are quite common with Dialpad.

Pricing

• Standard Plan: $15 per user per month
• Pro Plan: $25 per user per month
• Enterprise Plan: Custom pricing

8. Exotel

Exotel offers cloud communication, SMS, remote contact centers, and even conversational AI capabilities with one communication platform. Businesses can embed multiple channels with their associated data through customizable APIs and seamlessly and intelligently engage their customers.

Customers can now be kept up to date even when they change channels during their interactions, such as a support ticket lifecycle. Businesses can also reduce wait times by automating FAQ-level responses and responding to customer queries with conversational intelligence.

Features

• Reports and analytics
• Real-time notifications
• Automated calls & SMS
• Call recording and Dynamic call flow

Pros

• Exotel doesn’t charge any setup fee, making it a cost-effective option for businesses looking for a reliable phone system.
• It offers an intuitive interface for creating call flows and managing phone calls, making it easy for businesses to use.
• The user-friendly dashboard provides businesses with real-time call data and analytics, enabling them to track their communication metrics effectively.
• It includes useful features like SMS campaigns, allowing businesses to contact their customers via text.

Cons

• It can be expensive compared to other phone system providers.
• It doesn’t offer conference options, which may limit its usefulness for businesses that require frequent team meetings or customer conference calls.
• Some users have reported call delays when using Exotel.
• It doesn’t offer as many advanced features as other phone system providers, which may limit its appeal to businesses looking for a comprehensive communication solution.

Pricing

• Dabbler – USD 200 – 5 Months Validity
• Believer – USD 500 – 11 Months Validity
• Influencer – USD 1000 – 11 Months Validity
• Custom Solution for Enterprises

9. GoTo Connect

The GoToConnect solution combines Jive’s cloud-based VoIP phone system with GoToMeeting’s web, audio, and video capabilities into one simple, reliable, and flexible solution.

Video conferencing and screen sharing, virtual voicemail, and call forwarding make it easy for users to meet, talk, and collaborate using web browsers, desktop applications, or desk phones.

Features

• Existing number porting
• Call forwarding and smart call routing
• Auto Attendant Recorded Greetings
• Unlimited Extensions

Pros

• GoTo Connect offers hundreds of different features, making it a comprehensive phone system solution for businesses.
• All plans include video conferencing, which can be useful for remote teams and virtual meetings.
• The Advanced Dial Plan Editor allows businesses to customize their call routing and management according to their needs.
• Free calls to over 50 countries are included in the plans, which can benefit businesses with international clients or remote teams.

Cons

• GoTo Connect can be expensive compared to other phone system providers, which may be a drawback for small businesses or those on a tight budget.
• Call connectivity and notification issues are quite common.
• It doesn’t offer cloud data storage, limiting its usefulness for businesses that require secure data backup and storage options.
• The setup and configuration process can be complex and require additional time and effort to get the system running smoothly.

Pricing

• Basic – $27.00 /user/month
• Standard – $32.00 /user /month
• Premium – $43.00 /user /month

10. 8×8

8×8 is one of the best cloud-based phone systems that help businesses from various industries provide better customer service through a cloud-hosted communications platform. 8×8 has many features, including call forwarding, recording, hosted PBX, extension dialing, directory assistance, ring groups, and more. In addition, 8×8 is compatible with a wide range of business applications and systems.

Features

• 3-Way Calling
• Auto-Dialer
• Multi-Channel Communication
• Real-Time Reporting

Pros

• 8×8 offers free calling to 14 countries with its cheapest plan.
• It works seamlessly across both mobile and desktop devices.
• 8×8 offers competitive pricing compared to other providers.
• The sound and call quality are excellent.

Cons

• While the pricing is competitive, some features competitors offer are missing from 8×8’s plans.
• Customers using 8×8 won’t be able to call certain countries, including Japan, Italy, Poland, and others.
• There have been reports of voice delays during calls, which can be frustrating and impact the quality of communication.
• Some users have reported that customer service response times can be slow, which can be a concern for businesses that rely heavily on their communication systems.

Pricing

• Express – $15 per user/month
• X2 – $24 per user/month
• X4 – $44 per user/month

11. Ooma

Ooma Office is a simple-to-use, cloud-based voice, and video business phone system. With Ooma Office, you can collaborate and work from anywhere, with video meetings and desktop and mobile apps.

With the Ooma Office mobile app, businesses can offer their employees the ability to address business calls from their smartphones. In addition, the virtual receptionist capabilities within Ooma Office automate the routing and management of incoming calls.

Features

• 24/7 customer service
• Offers more than 35 calling features
• On-hold music
• Call recording

Pros

• Ooma Office is an affordable VoIP service provider for small businesses.
• The service is user-friendly and easy to set up, even for those with limited technical experience.
• Ooma Office offers a virtual receptionist feature to route incoming calls to the appropriate person or department.
• The Ooma Office device has a built-in speaker and control buttons, allowing users to make and receive calls without using a computer.

Cons

• To access most standard features, such as call recording and virtual fax, users must have a Premier account, which comes at an additional cost.
• Toll-free service is available for an extra fee, which can add to the overall cost of using Ooma Office.
• Ooma Office does not offer a softphone feature, which means users cannot make calls directly from a computer or mobile device.
• The service does not have as many advanced features as other VoIP providers, such as advanced call routing options.

Pricing

• Essentials Plan: $19.95 per user per month
• Pro Plan: $24.95 per user per month
• Pro Plus Plan: $29.95 per user per month

12. Phone.com

Phone.com provides a virtual system for managing greetings, menus, routing, extensions, voicemail, conferencing, fax, SMS, MMS, and forwarding. The leading cloud-based phone provider for small businesses and entrepreneurs, Phone.com offers a wide range of innovative, customizable, cost-effective communication solutions. Phone.com also provides award-winning customer support to our customers throughout the U.S.

Features

• Dial-by-Name Directory
• Click-to-call and Call Forwarding
• On-hold music
• IVR menus

Pros

• Phone.com provides international phone numbers in 31 countries, making it easy for businesses to expand globally.
• All Phone.com subscriptions come with unlimited extensions, allowing businesses to set up as many extensions as they need.
• The browser-based video conferencing feature enables teams to have face-to-face meetings from anywhere.
• The mobile app is well-designed and user-friendly, providing businesses with easy access to their phone system on the go.

Cons

• Phone.com does not include inbound toll-free minutes in their plans, which may be a dealbreaker for businesses that rely heavily on toll-free calls.
• Team messaging is not available on Phone.com, which means businesses will need to use a separate app or platform to communicate via chat.
• Phone.com does not offer a free trial, making it difficult for businesses to test the platform before committing to a subscription.
• The pricing can be confusing, with additional charges for certain features and add-ons that may not be immediately clear.

Pricing

• Basic Plan: $12.99 per user per month
• Plus Plan: $19.99 per month per user
• Pro Plan: $29.99 a month

13. Aircall

Aircall is the best business phone system for modern brands. By integrating seamlessly with CRM and helpdesk tools, we make it easier for sales and support teams to communicate. In addition, Aircall’s powerful real-time analytics also enables administrators to gain deep insight into their groups and better manage seasonality. Available on desktop and mobile apps, Aircall is trusted by more than 14,000 companies worldwide.

Features

• Unlimited outbound calls
• 50+ Integrations and API access
• Access to API developer support
• Call recording and monitoring

Pros

• Aircall offers a cost-effective solution for businesses of all sizes.
• The platform offers seamless integration with HubSpot, making it easy to streamline workflows and processes.
• Aircall has a user-friendly interface that is easy to navigate, making it simple for even non-technical users to operate.
• The platform is super intuitive, allowing users to make calls quickly and manage their communications.

Cons

• Customer support can be poor at times, with long wait times and unhelpful responses.
• Aircall has been known to experience constant bugs and glitches, which can be frustrating for users.
• Some users have reported frequent jitters and poor call quality, which can negatively impact communication with clients and customers.
• Aircall’s reporting and analytics features could be more robust, as some users have found the current options lacking in detail and insights.

Pricing

• Essentials- $30/user per month, billed annually
• Professional – $50/user per month, billed annually
• Custom Plan

14. Verizon VoIP

The Verizon VoIP (Voice over Internet Protocol) service helps small, medium, and large companies route and manage calls. One to 10 VoIP lines are available for $35 per month. Features include call forwarding, voice mail, monitoring, on-hold music, and mobile capabilities. In addition, customers can get discounts if they bundle services.

Features

• Call Park/Retrieve
• Auto Attendant
• Seamlessly transfer phone calls between your IP and mobile phones
• Shared call appearance

Pros

• Verizon offers excellent mobile apps for easy access to your phone system on the go.
• Bundling with Fios gets you a two-year free line, making it a cost-effective option.
• Verizon offers many features, including call forwarding, auto attendant, and voicemail transcription.
• The service supports voicemail transcription, which allows you to read your voicemails instead of listening to them.

Cons

• You cannot use your own phone hardware with Verizon, which may be a deal breaker for some businesses.
• Third-party integrations are not available with Verizon, which can limit the flexibility and functionality of the system.
• Sound quality may not be up to the mark compared to other phone systems.
• Limited availability in certain areas may not be suitable for users in certain regions.

Pricing

• $35/month for 1-10 VoIP line
• $30/month for 11-20 VoIP line
• $25/month for 20+ VoIP line

15. Avoxi

The AVOXI cloud-based voice and contact center solution streamlines customer service processes and provides virtual numbers for companies. The interactive voice response (IVR) module enables managers to customize the user interface and automatically route incoming calls to specific agents. Additionally, it allows for the transcription of recorded voicemails to be emailed.

Features

• Unlimited Storage for Call Recording and Platform Analytics
• Live Monitoring
• Real-Time Dashboards
• Automatic Virtual Attendant

Pros

• Avoxi offers powerful call controls that allow users to manage their calls effectively.
• The company provides reliable 24/7 support to its users.
• Avoxi’s user interface is intuitive and user-friendly, making it easy to navigate and use.
• The call quality on Avoxi is great, with clear and crisp audio.

Cons

• Avoxi may have software compatibility issues with certain systems, making it difficult for some users to use.
• Avoxi may not integrate with all the software and tools a business uses, limiting its usefulness for some organizations.
• While Avoxi offers some level of customization for its services, there may be limits to what can be customized.
• While Avoxi offers customer support, it may not always be readily available, and some users have reported slow response times or difficulty resolving their issues.

Pricing

• Launch – $0 Per User
• Contact – $19.99 Per User
• Engaged Enterprise – $39.99 Per User

16. Bitrix24

The Bitrix24 platform provides organizations with marketing, sales, and customer service tools, including lead generation, call center support, campaign management, and marketing automation.

For companies with less advanced needs or a smaller budget, the Bitrix24 phone system comes with a free edition. In addition, the system can be deployed both on-premise or in the cloud, making it suitable for small businesses and large enterprises.

Features

• HD Video calls
• High-end security
• 100+ third-party integrations
• LDAP and Active Directory support

Pros

• Bitrix24 is a feature-rich platform that offers a wide range of tools for collaboration, communication, project management, and more.
• Bitrix24 has a user-friendly interface that is easy to navigate and makes it simple for users to find the necessary tools and features.
• It is accessible from any device with an internet connection, making it convenient for users to access their work from anywhere.
• Bitrix24 integrates with various third-party applications, such as CRM tools, social media platforms, and email clients.

Cons

• Some users have reported issues with Bitrix24’s customer service, such as slow response times or unhelpful support staff.
• Bitrix24 can be expensive, especially for larger teams or organizations requiring access to more advanced features or storage space.
• Due to its many features and functionalities, Bitrix24 may have a steep learning curve.
• While Bitrix24 has a mobile app, it has limitations in terms of its functionality and features.

Pricing

• Free – Unlimited users
• Basic – USD 61/month for all users
• Standard – USD 124/month for all users
• Professional – USD 249/month for all users

 

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What Are the Different Types of Business Phone Systems?

As mentioned above, there are different types of phone systems: multi-line, PBX, and VoIP. And business phone system installation will depend on what kind you choose. So let’s understand this in detail.

1- Multi-Line Phone System

As the name implies, multi-line phones have multiple lines that run through the same unit, allowing each caller to answer the phone separately or send calls to voicemail. These phone systems are ideal for small businesses and are very simple.

Two independent telephone units comprise a two-line small business phone system in a Multi-line Phone System. This allows several people to be on the phone simultaneously, such as a receptionist and a manager. You can conveniently handle local and toll-free numbers with these phone systems and keep in touch with your customers 24X7.

When you decide to install a multi-line phone system for your office, you need to choose between

• Two-Line Phone Systems: If you are looking for a new phone system that is simple and affordable, then the two-line system is good to go. There will be one line for the receptionist and one for you. Or you can use it as one home phone number and another for business. A two-line system allows small businesses to simultaneously call and use a fax machine.
• Four-Line Phone System: If you plan to expand your support team, you can choose a four-line phone system. Your company should be one where you receive regular calls and have many employees. This system lets the employees use the lines without worrying about disturbing incoming calls from outside callers or business associates.
• Six or 8-Line Phone System: When you have a large business and receive many calls daily, you may require a 6 or 8-line phone system to handle the load. Of course, these systems will be more complex and expensive than the other ones. However, this system will allow multiple phone lines to operate simultaneously.

Strengths

1. This is a great economical option for a new and budding business.
2. They allow multiple users to be on the phone simultaneously, increasing productivity and efficiency in the workplace.
3. Multi-line phone systems can also provide features such as voicemail and caller ID, which can help manage incoming calls and ensure that messages are received in a timely manner.
4. They can be easily integrated with other communication technologies, such as email or instant messaging, to provide a more comprehensive communication solution.

Weaknesses

1. Compared to other commercial phone systems, it is less flexible and scalable.
2. It could be quite expensive for small and mid-sized businesses.
3. Multi-line phone systems can be more complex to set up and maintain than others, which may require additional IT support.
4. In some cases, multi-line phone systems may be more susceptible to downtime or outages, disrupting business operations and resulting in lost productivity.

2- PBX Phone System

A Private Branch Exchange system (PBX) refers to a private telephone network used by a company or organization. However, you must install telephone lines and purchase hardware to facilitate business communication. However, PBX helps you have more phone numbers than actual physical phone lines and make unlimited free calls.

Call switching, and routing are centralized in a PBX phone system rather than via the phone unit. As a result, PBX is potentially more scalable and cost-effective than a conventional phone system.

Strengths

1. It might be complex, but it is more reliable than VoIP
2. It doesn’t depend on internet connectivity
3. PBX has the capability of incorporating medium to large organization requirements.
4. PBX systems can handle a large volume of calls simultaneously, making them ideal for businesses that receive a high volume of calls.

Weaknesses

1. PBX is not dependent on the internet but entirely works on electricity. That means your phone system won’t work if there is no backup power backup.
2. PBX systems can be expensive to purchase and maintain, making them less cost-effective than VoIP systems.
3. Installation and configuration can be complicated and might require additional IT support, resulting in longer downtime during the setup process.
4. Upgrading or adding new connections to a PBX system can be expensive and time-consuming.

3- VoIP Phone System

Voice over Internet Protocol (VoIP) is a technology that allows people to communicate via calls over the Internet. VoIP business phone software eliminates the need for the analog phone system for small businesses as it is more cost-effective and scalable.

VoIP phone systems allow you to buy virtual phone numbers of any city. This empowers you to strengthen your local presence in new markets. Besides, it lets you use your smartphone for business communications without affecting your privacy.

Strengths

• It is more affordable than other business phone systems
• It offers various advanced features that help businesses provide memorable customer support.
• VoIP systems are more flexible and scalable
• You can use it from anywhere as long as you have a good internet connection.

Weaknesses

• VoIP systems are reliant on the internet, which can be unpredictable and subject to outages.
• If the network is congested or there are other bandwidth issues, VoIP calls may experience delays, jitter, or packet loss, leading to poor call quality.
• They can be vulnerable to security breaches.
• VoIP systems may be unable to provide accurate location information to emergency services, making it difficult for them to respond in an emergency.

Key Features of VoIP

• Hosted Services
• Instant messaging
• Virtual Fax
• Voicemail
• Conferencing
• Automatic call distribution
• Interactive voice response
• Auto dialer
• Advanced analytics

How Does a Business Telephone System Work?

Unlike traditional PBX systems, a Business telephone system does not require copper wire connections. They operate on VOIP – Voice Over Internet Protocol – a technology where systems exist virtually over the cloud. VoIP phone systems convert analog voice calls into data packets in the cloud and can be routed to any location/ smart device with a decent internet connection.

In simpler terms, a business phone for small businesses helps connect with their customers like the PBX systems, but with superior cloud-based technology, it opens a room full of opportunities for businesses to scale.

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Advantages of a Business Phone System

Choosing the best business phone system for your company depends on understanding its benefits and advantages. Below are five reasons why you should consider having an online phone system for small businesses:

1. Scalability

Small businesses can also benefit from a business telephone system’s scalability. Your business grows when you combine good customer service with successful business strategies. The number of calls, inquiries, and messages will increase.

While it is possible to assign an entire department to handle these aspects of business operations, employing a scalable enterprise solution would be more appropriate. In addition, businesses can benefit from cloud phone systems as they can expand programs as needed.

2. Exemplary Customer Service

A business phone system is the most popular choice for businesses of all sizes because it increases the standard of service that customers receive. In addition, these platforms give companies a competitive advantage because they offer inherently consumer-centric strategies, likely to result in a competitive advantage.

Small businesses benefit from this, as creating connections with sponsors and investors often requires travel to meet with them. Phone systems allow users to answer calls and contact people wherever they are.

3. Assist Your Employees

In addition to handling call routing and allowing employees to answer calls whenever and wherever they choose, small business phone systems also reduce pressure on office employees. The first reason is that a business telephone system, whether on-premise or cloud-based, comes with support and help from a vendor.

For your employees and you, this means you don’t have to train them beyond basic troubleshooting, and you don’t have to stress about locating a trusted IT technician.

4. Streamlines workflow

It is also important to note that small business phone systems simplify adding new contact information, new users, and new branches for collaboration, leading to greater productivity. In addition, you and your employees will not have to deal with the unnecessary hassle of implementing changes, reducing stress and pressure.

5. Reduces costs

A business phone system reduces costs in various aspects, which is the most important reason for having one. First, small business online phone systems do not require any on-premises installations unless you have a server to handle your input data.

Another benefit of cloud-based business phone systems is that they allow access to all the data they are permitted to access, eliminating the need for new hardware for each new employee.

6- More Reliable

VoIP lets users choose where, when, and how their calls are forwarded. It offers advanced call-forwarding features that enable businesses to enhance their customer reach. You can connect with customers via various devices, including desk phones, cell phones, laptops, or any other mobile device, making it a versatile communication solution.

Essential Features of Business Phone Systems To Look for

Here are nine of small business online phone systems’ most valuable and essential features.

1. Call Forwarding

Call forwarding is the top feature you’ll need if you’re not always at your desk and usually take calls on your mobile devices.

It’s an excellent way to ensure that calls that would otherwise go to absent workers are still taken. Just adjust the routing settings, and the system will forward those calls to someone available.

2. Call Transfer (and Call Routing)

Small business owners are probably very busy and stretched thin, so they can only answer some of the calls they get.

You want to ensure you get all critical client calls, which is why a call forwarding or transferring option comes in handy, and if you don’t pick up your calls, the system will forward them to your office manager, your secretary, or even your sales team.

3. Visual Voicemail

Visual voicemail is an excellent feature if you’re busy and miss phone calls or can only sometimes listen to all of your voicemails. You can read your voicemails at any time rather than listening to voicemails out loud with Visual Voicemail.

The feature transcribes your voicemails to text, allowing you to read them at any time (for example, during a meeting).

4. Call Recording

Some small businesses benefit from call recording. Of course, only some people will use it or use it often, but if you close deals or do lots of pitches over the phone, having recordings allows you to review the calls in the future.

5. SMS and Internal Team Messaging

Today, everyone texts, and some even prefer texting to calling. You can’t blame them—it’s so convenient, and if you work with clients or prospects who prefer texting (or texting yourself), you should find a business phone provider with SMS messaging capabilities.

6. Cloud-based Capabilities

The advantage of cloud phone systems is that they aren’t tied to a particular office or location. In addition, they usually come with a mobile and desktop app; you won’t need your IT team to update the software.

7. In-call Security and Encryption

Your provider should give you a list of their security features if you discuss sensitive data or information on your calls. Ideally, it would help if you used enterprise-level security levels on your calls.

8- Call Analytics

Track your support team’s performance and gain key insights on where improvements are required. Identify your team’s strengths and weaknesses, measure the percentage of missed calls and call load of each teammate, and stay ahead of competitors with call analytics.

9- Global Connect

Improve your chances of success by knowing the best time to call your global customers. Know the exact time zone, country, date, time, and validity of the numbers before you dial through global connect. This will enable you to customize your approach before every call for a better impact.

How To Choose the Right Business Phone System?

Choosing small business phone solutions is not a short-term decision, so your company must ensure you get the best one available. Here are some things you need to consider when choosing a phone system.

1- Define Your Needs

It is essential to define your expectations from the business phone system. For instance, if you want remote working capabilities, flexibility, scalability, more control over your phone system, etc.

2- Decide On the Features

As discussed above, all small business phone systems come with different features, with VoIP being the most advanced. Therefore, deciding what features are essential for your business and choosing accordingly is vital.

3- Define Your Budget

You’d not want to go over budget with your phone system. Make sure to analyze the costs before deciding. Installing phone lines in your office could take your setup fees to the roof. VoIP systems don’t require any setup fees. But the monthly recurring costs can add up in the long run.

4- Compare the Vendors

Once you decide between the business phone systems, it’s time to compare the vendors. For instance, if you choose VoIP business phone software, analyze the leading VoIP providers and compare how they stand against each other.

You can even search for tools based on the features you need. For example, if you feel an auto-attendant is necessary, search for the best phone system.

How To Set Up a Small Business Phone System?

With the advent of VoIP business phone systems, chunky phones, tangled wires, and astronomical phone bills have become a thing of the past. All you need is a stable internet connection and an internet-enabled device, and you’re all set to start calling!

Here is a stepwise guide to setting it up:

1- Select the Right Business Phone System

First things first, choose the right business phone service provider. CallHippo is a trusted business phone solutions provider to several companies in over 50 countries worldwide. With industry-specific solutions such as healthcare phone solutions, retail VoIP business phone systems, school VoIP business phone systems, and restaurant-specific small business phone systems. Sign up with us and complete a few easy steps to have your contact center up and running in under 3 minutes.

2- Choose Your Business Number

Once you have signed up with CallHippo, you need to choose a business phone number & create a local market identity in the country of your choice, or choose a toll-free number so that your customers can call you freely without worrying about pesky call carrier charges. Surveys have found that almost 97% of customers recognize ‘800′ numbers as toll-free and do not hesitate to call them.

3- Identify Your Preferred Devices to Host the System

As you already know, you do not need additional hardware or equipment (like a desk phone) to use the business phone system. You only need an active internet connection and any smart device such as your phone, laptop, or tablet.

There are, however, some headsets that are designed and sold exclusively for cloud-based phone systems. These devices improve the call quality significantly and lend a more professional look & feel.

4- Add Extensions for Your Employees

Set up individual extensions for various employees and executives at no extra cost. You can also create department extensions for larger offices. This means your business will have a central phone number and extensions for specific agents and departments.

5- Select and Pay For Only The Features You Need

Every business has its own unique needs. There is no point in paying for features you will never use. VoIP business phone systems offer many features to integrate with your business telephone system.

Wrapping Up

Any business wanting to project a professional image should invest in a phone system. Even small companies can benefit from features like call waiting, call forwarding, and hold music because they enable customers to have a better experience.

A modern business phone system reduces the cost of phone communication by using off-site exchanges and VoIP, providing exciting features such as rule-based call screening, advanced call notifications, and intelligent call routing, all at a meager price. And as your business grows, you can expand your phone system quickly and inexpensively.

FAQ

1. How much do business phone systems cost?

The cost of business phone systems can range from $0 to $100 per month. It depends on the business phone service provider you choose and the features you need.

2. Can you use a cell phone as a business phone?

The answer is yes. However, there are some disadvantages you should consider, including mixing your professional and personal lives if you choose to use your phone for work purposes.

Since softphones allow you to take calls from anywhere, they are perfect for remote and distributed workforces. If you have a cell phone and internet connection, the softphone will function, and you can take your business calls at home, work, or the store.

3. What are the different types of business phone systems?

Business phone systems come in three different types, including VoIP (Voice over Internet Protocol), KSU (Key System Unit), and PBX (Private Branch Exchange).

4. How does a business phone system work?

Packet switching or packetization is the method by which data is transmitted in IP-based telephone systems. An ATA (Analog Telephone Adapter) or IP phone converts analog signals into digital signals, which are then sent over the internet and converted back into analog signals as soon as they arrive.

Following this, the computer records the audio and compresses it into tiny samples, which are grouped and put into data packets, which are then transferred over the network.

5. When is the best time to invest in a good phone system for your business?

There is never a wrong time to invest in an online business phone system in today’s highly competitive market. However, you should invest now if you want to streamline your business communication.

6. How do you set up a small business phone system?

The advantage of today’s business phone systems is that they are easy to set up. Additionally, companies can manage VoIP systems entirely online. Using this online portal, users can manage their business phone numbers, add and delete users, and turn on or off features with an internet connection from any computer.