If you’re running a business in 2022, then chances are, you have already heard of and might even use some form of VoIP or internet phone service through your business phone line. If you’ve ever used Skype or Facebook Messenger—or any kind of internet service to make a call—you’re experiencing the power of Voice Over IP (VoIP).

Finding the Best VoIP Phones for Your Small Business

When it comes to integrating VoIP into your business, there are some factors to consider before you choose a provider. The top VoIP providers can help you lower costs, reach more customers, and even enhance your mobility and productivity. For example, what you need to take into consideration when looking at VoIP for small businesses is very different to a VoIP service for your home.

The most important features to look for when searching for a VoIP solution are:

• Ease of operation and setup
• Reliability and customer service
• Features and customizability
• Mobile options
• Video conferencing and screen sharing

Switching to a VoIP system entails some initial costs, which are quickly offset by the savings. VoIP services can also increase the efficiency, convenience, and flexibility of your communications and help you incorporate the business tools of a larger company. Before you choose your VoIP provider, try to determine how easy it will be to adopt the system and operate it, and also if it has any specific features you need. For example if you want your business to present a professional and polished impression, such as that of a law firm, then you’ll want to make sure you have the necessary features. 

Types of VoIP Systems

The biggest difference in cost is going to depend on the type of VoIP service you choose for your business. There are 3 main systems available:

Hosted System

Similar to a website hosting plan, this means that the vendor owns the hardware, and your business leases or buys the phones. Maintenance will be handled by the vendor, too. Companies will usually charge a subscription to use the internet business phone system.

Best for: Smaller businesses

On-Premise System

In this scenario, your business owns the hardware, which means you are responsible for any upgrades or maintenance work. This sort of setup can be prohibitive for a smaller business because of the higher initial costs of purchasing the hardware. In addition, the upkeep may require the manpower that a small company doesn’t have. On the other hand, these systems can provide better options for customization and a higher level of security.

Best for: Larger businesses

Managed System

With this system, the business still owns the equipment, but the vendor is in charge of set up and maintenance. This is a great “best of both worlds” option, in that it allows the customer to use their own equipment—like with the on-premise system—while still being able to enjoy the assistance provided by a hosted system.

Does Switching to VoIP Save Money?

Not only can a managed VoIP service do wonders for your business’s productivity, but it generally costs less than a traditional landline system. For medium-to-large businesses with hundreds or thousands of employees and complex software-integration needs, VoIP can have a significant impact on the bottom line.

Here are 4 ways that VoIP can save your business money:

1. Cordless Costs Less to Setup and Maintain

Whether you’re sticking with cable TV over Netflix or Hulu at home or a traditional landline over VoIP in the office, the same principle applies: cords and wires are hardware, and hardware costs extra. With a landline system, a medium or large business could easily pay tens of thousands of dollars on installing, setup, and licensing of a private branch exchange (PBX), thousands per month on line rental, and a great deal more on maintenance. With a managed VoIP there are no hardware requirements, so you can get by with only paying a simple monthly fee per user.

2. Remote Workforce = Reduced Overheads

One of the greatest benefits of having a VoIP for business is that it allows your employees to communicate through mobile phones—which makes it easier to orchestrate a remote workforce. The more employees you have working outside the office, the lower your overheads. Having fewer employees in the office on a full-time basis means you can cut back on furniture and equipment costs, air conditioning, office parties, rent, everything.

3. No Paying Through the Roof to Move or Expand

Using a traditional phone network—as opposed to VoIP—requires businesses to set up and maintain a PBX system at each office. Each time that those businesses upgrade their PBX, replace an aging system, move offices, or open a new location requires a significant capital investment. With VoIP, on the other hand, businesses can take their audio communications with them wherever they go. Whether it’s one employee working from home or an entire company moving office, being mobile pays dividends.

4. One Communications Bill Instead of Many

The terms VoIP and unified communications (UC) go hand in hand, and that’s because VoIP lets you integrate all types of forms of communication–such as voice, text, fax, video, and conferencing–into one system. With unified communications, businesses don’t end up purchasing fax services, video conferencing, etc. from separate providers. With UC, it all falls under the one bill.

Calculating the Cost Savings of VoIP

How a VoIP phone system impacts your company’s bottom line depends on your needs. Variables include: number of users; features and third-party integrations; and optional equipment, such as hardphones. Choosing a hosted or managed VoIP solution is generally cheaper than having an on-premise VoIP, unless you prefer your IT team manage the system.

The following example is intended only as a general guide and not as a substitute for your own calculations. It is based on the RingCentral Office plan for 100-999 people, when compared to a cross-section of traditional landline plans for businesses of a similar size. Obviously, it doesn’t take into account how VoIP can enhance productivity and efficiency, further boosting the bottom line.