In today’s global economy, small businesses are forced to compete with huge companies from all around the world. This means that small business owners must cut costs and improve productivity in every facet of their business. Advances in Voice over Internet Protocol (VoIP) technologies have lowered the price of a phone solution only previously available to large businesses, making it a viable solution for small businesses. VoIP is the perfect phone system for small businesses since it is cheaper, more flexible, highly scalable, and much more feature rich than traditional phone systems.
What is VoIP?
Instead of transferring voice data over traditional analog phone lines, VoIP uses several different technologies to take voice data and transfer it over a broadband internet connection. There are several VoIP options, the most widely used include IP PBX, Hosted PBX, Virtual PBX, SIP Trunking, and Mobile VoIP. Each of these options come with benefits and drawbacks depending on the size of the business, existing hardware, and the needs of the customer.
Which Type of VoIP is Best for a Small Business?
Every small business is different, and that means every small business should have a communication solution that fits their needs. The three most common small business phone solutions include IP-PBX, Hosted PBX, and Virtual PBX.
- IP-PBX – An IP PBX system is essentially just a VoIP upgrade of existing PBX systems. This option is only a good option for small businesses that would like to lower the costs of their existing PBX system.
- Hosted PBX – The most popular option for small businesses is the Hosted PBX option. This provides small businesses with all of the advanced features of a IP PBX system but none of the equipment costs or maintenance hassles. Hosted PBX is the best option for small businesses that need an advanced phone system to improve their productivity and customer satisfaction at a very low price. Hosted PBX systems usually work best for businesses with around 20 phones or less, but can support more users.
- Virtual PBX – A Virtual PBX system is very similar to a Hosted PBX option. It is referred to as a cloud based system, or Cloud PBX. This is often the absolute cheapest option for business phone systems. For a business looking for minimal phone services for a very low price, Virtual PBX is often the best option.
Any of these phone systems can save small businesses 50% or more on their monthly phone costs.
How VoIP Transforms Small Businesses
There are three thing that almost every small business is looking to do: increase productivity, reduce costs, and grow. A VoIP phone system is designed to help a small business do all three. The high quality features that often come free with VoIP phone systems allow a small businesses to communicate with customers better than ever before. With a much more customizable and flexible phone system, small businesses can get more done with one phone system. The reduced costs are very easy for any business, large or small, to appreciate. The reduced equipment costs and less expensive monthly plans make it easy for small businesses reduce their phone solution costs. When a small business grows, VoIP phone service grows along with it. VoIP phone solutions are highly scalable and can be expanded affordably. Many traditional systems need to be increased with a bundled set of new phone lines, but VoIP phone systems can grow one line at a time, or 50 lines at a time. It all depends on the needs of the particular small business.
Small businesses have an advantage over big businesses because they can focus on the little things that large businesses can’t. That is why small businesses deserve a phone system that will provide for the specific needs of each individual, so they can be successful and grow.
Matt Paulson is a technical writer and editor based out of Southern California. He covers the latest news about VoIP innovations and how they can be applied in business communities.