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A Business Phone System refers to a multiline telephone system, typically used in business environments that allow for an amalgamation of features like call handling and transferring, conference calling, call metering and accounting, private and shared voice message boxes, etc. 

Business phone system

It can range from a microcosm of just a few telephones in a small business to a fully-fledged complex Private Branch Exchange (PBX) system utilized by large businesses. 

Business Phone Systems can function over the Public Switched Telephone Network (PSTN) and/over the internet (internet telephony or VoIP). 

Business Phone Systems can also be delivered as a hosted service, typically known as a centrex, which can free companies from having to invest in costly hardware/equipment.

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Nowadays Business Phone Systems offer much more than just a way to make and receive phone calls. Hence many modern solutions are referred to as unified communications systems.

Unified Communications Systems integrate a plethora of communication methods which are inclusive of not only traditional phone calls, but also audio conferencing, video conferencing, instant messaging, online faxing, and text messaging.

In the technologically advanced work environment, business phone systems are the best options for furthering the growth of companies, particularly small businesses. Here are 5 reasons why you need a business phone system in your company:

Unparalleled customer service:

With a barrage of inherently customer-centered features and strategies, businesses of any size are poised to benefit from using business phone systems.

They offer the ability to answer calls and contact people wherever the user is. The unmatched flexibility and mobility offered by such systems inevitably translate into higher levels of customer satisfaction.

Grows with your customers:

Another reason why small businesses benefit from using a business phone system is because of its inbuilt options for scalability. Good customer service combined with proper business strategies and a host of other factors contributing to success ensures that your business will grow. The incoming call volume, inquiries, and text messages will increase proportionately.

Instead of demarcating an entire department to handle the demands of a growing business, a more viable solution would be to employ a scalable enterprise solution instead. A cloud phone system, for instance, can help businesses through its ability to expand programs as needed.

Decreases pressure on you and your employees:

Business phone systems reduce unwarranted pressure on business owners and employees by handling call routing and providing the ability to answer calls anytime, anywhere.

A business phone system, either on-premise or cloud version, comes with the help and support of a vendor. This feature eliminates the need to train your employees beyond basic troubleshooting and not having to arrange for a trusted IT technician.

The system also provides the ability to employ the help of an auto attendant or a queue which eliminates the incidences of human error and fosters a more productive workforce.

Streamline workflow:

A business phone system streamlines the workflow by adding new contacts and new users to the platform as well as a new branch for collaboration.

Streamlined workflow, in turn, translates into a productive and efficient workforce. By spending less time on things such as queuing and routing phone calls, one can spend precious time and energy on other business processes that deserve one’s attention.

Reduces costs:

Last but not least, the USP of owning a Business Phone System is an undeniable cost reduction in various business aspects. Wondering how that happens?
Well first, VoIP-based Business Phone Systems requires no on-premises installation unless you choose to have your own server to handle the data that you input. Second, business phone systems are particularly useful in eliminating the need to acquire new hardware for each new employee. Third, business phone systems have been found to reduce communications costs.

Business Phone System Features

Power Dialer

Power Dialer

Deliver your daily calling commitments like a pro with CallHippo’s super-efficient Power Dialer function.

Smart Switch

Smart Switch

Multiple telephony providers before placing a call. You can now safely bid adieu to all your call connectivity issues.

Global Connect

Global Connect

Global Connect helps you know the right time to call your international clients.

Smart Call Forwarding

Smart Call Forwarding

Each user can choose to have calls forwarded to several phones, to remain reachable even on-the-go.

Call Transfer

Call Transfer

The Call Transfer feature allows you to redirect a connected call from your phone number to a team member.

Call Conference

Call Conference

It’s a feature that will enable you to add a third person to your two-way call and turn it into a 3-way conference.

Call Queuing

Call Queuing

A Call Queue places incoming call in a line when the agent is busy attending other customers.

Call Barging

Call Barging

Call Barging is when a supervisor who is silently monitoring the call decides to enter the conference bridge.

Call Recording

Call Recording

Record every call on each of your numbers to better monitor your performance as a team.

Voice Mail

Voice Mail

Receive voicemails by email in your inbox. Play them directly from your email.

Call Analytics

Call Analytics

Track your phone support performance. Measure the % of missed calls, call load of each teammate, etc.

On Hold Music

On Hold Music

On Hold Music from CallHippo is a great way to keep your callers happy and engaged while on hold or upload your own custom music.


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1. Low cost per call:

A VoIP telephone system utilizes Internet Protocol to make calls. 

Placing calls over traditional phone lines means that a line is taken up by the two callers using it to communicate. Since there are only so many lines that can be installed, calls placed over landlines, especially if they are long-distance, are expensive. But using the Internet to relay call data circumvents this problem, making domestic and long-distance calls cheaper overall.

2. Service mobility: 

If your business is on-the-go, VoIP services can be a tremendous benefit to you because they will follow you wherever you go.

With a VoIP business phone system all the hassles associated with a traditional phone system are eliminated. 

Since there are no physical limitations, you have the freedom to move as your business demands without any added stress.

3. The versatility of features:

.Using VoIP phone systems allow you to multi-task with the most tech-savvy devices, allowing you to be the most productive you can be.

Suppose you are on a call within a queue. While you are waiting, you can strategize your approach to client calls you have missed as you read voicemail-to-text transcriptions that are sent directly to your email inbox.

In other cases, you can forward messages and voicemails easily. If you receive an important message in a voicemail, you can forward that voicemail to three other people at the click of a mouse.

In short, VoIP telephone systems grow with your business.

4. Simple conference calls:

It’s possible to take part in conference calls if your business uses a traditional phone system, but what you will find is that you will have to pay for an additional service to host multiple callers for a conference. These services are native to many VoIP phone systems. Instead of paying for something extra, you can take advantage of the ability to make conference calls as an added benefit to the service you already pay for.

Not only that, but VoIP services make video conferences much easier as well

5. Efficient client Interaction:

With a VoIP phone system, you can choose where your calls ring and how. For instance, you might select the first few rings to be forwarded to your office. If you don’t answer the call, it will then be transmitted to a second or third device, say, mobile phone, or laptop. Quite simply, calls don’t need to be missed anymore if they are urgent.

Important documents that need to be forwarded no longer have to wait for either way. Using VoIP, business associates can e-fax their documents instead of waiting for a day (or several) to get to a fax machine.

6. Reliable:

A common worry that surfaces about VoIP are the fact that if the internet stops working, so does the ability to make calls. This doesn’t have to occur under the right circumstances. The truth is that call-forwarding, like other features in VoIP phone systems, is incredibly flexible.

The capability to choose where your calls are forwarded, and how, means that you also don’t have to lose productivity because of local power outages or weather-related events. If the office phone can’t be answered, your mobile device or laptop can.


Any entrepreneur or business holder is probably on the lookout for the perfect alternative to the traditional PSTN based communication systems. The era of chunky phones, tangled wires, and unwarranted hassles is now set to become a thing of the past with the advent of VoIP-based business phone systems. All you need is a cellular phone or a landline and you are good to go!

Sign up with us on CallHippo and follow the step by step guide given below:

1. Select the right phone system:

The first step before you get involved with the setup is to choose your perfect phone system. As a startup or small business, one dropped call could make the difference between viability and entrepreneurial failure.

CallHippo is a trusted service provider to several companies in over 50+ countries of the world. Want an affordable phone solution for your business? Get in touch with us now!

2. Sign up & Choose your Business Number:

Once you have signed up with your preferred provider, you need to choose a business phone number. Here is the lowdown on the number of choices available to you.

  • Local phone number – As the name suggests, a local phone number is one that is tied to a specific area. One can get local numbers of various regions to cut down on international and roaming call charges. 
  • Toll-free phone number – This refers to a professional 800 business phone number. A toll-free number is widely used for commercial purposes. Customers can call this number without incurring any call charges. Surveys have shown that almost 97% of customers recognize 800 to be a toll-free number and are less hesitant to call it.

3. Demarcate the device on which you wish to host your business phone system: 

After picking out a business phone number, all you need to do is select an IP-based device through which you want to access your virtual phone system.

Here’s the fun part. You do not need to purchase any special hardware to access your virtual phone system. You can use any device that you are comfortable with – phone, laptop, PC, or tablet.

The only criteria are that your device should have an active internet connection.

However, there are some headsets that are designed and sold exclusively for cloud-based phone systems. These devices not only amp up the quality by a couple of notches but also give a professional look and feel.

Get in touch with us to learn more about purchasing and leasing these customized hardware sets!

4. Add extensions for all your employees: 

Extensions allow you to set up individual extensions for employees and executives at no extra cost. You can also add department extensions for larger offices. When a customer calls, they will be given the option to call a specific extension to reach a specific person/department or search by name.

This means that your business will have a central business phone number. Each agent or department will then have a different extension to that number.

5. Select and pay only for the features you need:

A cloud-based business phone number comes with a lot of perks. Virtual phone systems offer a wide collection of features that you can integrate with your business phone number. 

However, some features will prove to be more useful to your business than others. You need to analyze the needs of business and choose the features that will prove beneficial for your company.

6. Start receiving & making calls:

Once you have selected a phone number, set up a custom message, and assign extensions, you are ready to receive calls, voicemails, and faxes. You can manage your phone calls and voicemails online or directly from your phone


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Last updated: October 14, 2020

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