A business phone system should empower your small business whether you have a traditional brick-and-mortar store, or work from your home office. You also need a system that can scale as your business grows. To set up a business phone system that does this, you need to know some basics. If you’re looking to set up a business phone system that meets your needs without breaking the bank, you’ve come to the right place.

1.  Choosing the Right Business Phone System

The first step in setting up your business phone system is determining which type best meets your company’s requirements. With options ranging from traditional landlines to cloud-based phone systems, recognizing the advantages and disadvantages of each is critical.

Traditional Landline

For decades, traditional landlines served as the backbone of company communication. They are noted for their dependability and clear call quality, owing to their use of copper wiring and the need for on-site PBX gear to link internal and external lines. Landlines are a great option for businesses in locations with inadequate internet connection or those who need a dedicated line for safe transactions. However, they lack a lot of the features that companies are looking for like mobile integration and more.

VoIP (Voice over Internet Protocol)

VoIP technology uses the internet to make and receive calls, providing a more flexible and cost-effective alternative to traditional landlines. This solution includes a variety of sophisticated capabilities, including video calls, instant messaging, and smartphone integration, allowing employees to stay connected from anywhere. You don’t need to have a landline or specific phone for the system to work. VoIP can also work across multiple devices.

Just remember, a minimum of 90 kbps to 156 kbps internet speed is necessary for VoIP calls. You’ll want to be well above that to handle multiple lines.

Virtual PBX

A Virtual PBX (Private Branch Exchange) is a cloud-based phone system that provides many of the advantages of a standard PBX while eliminating the requirement for on-site hardware. Traditional PBXs can also be converted to virtual with the right provider. This technology sends calls via the internet to whatever device you choose, such as a standard phone handset, a mobile phone, or a computer. Virtual PBX systems are extremely adaptable and expandable, making them ideal for enterprises of any size, particularly those with remote or mobile personnel.

You should find a provider that will give you the most features for your money without sacrificing quality.

Cost Category	Traditional Landline	VoIP	Virtual PBX
Initial Setup Costs	High: Several hundred to thousands of dollars for physical wiring and installation. Must be performed by a professional.	Moderate: Need to purchase IP phones ($50-$400 each) and possibly upgrade network. Can cost here and just use mobile devices.	Low to Moderate: Minimal physical setup; costs mainly for compatible handsets if not using existing devices.
Monthly Operating Costs	Moderate to High: $20-$50 per line, plus call charges.	Low: $15-$40 per user, with multiple features.	Low to Moderate: $10-$50 per user, often includes set minutes or unlimited calling.
Maintenance Costs	High: This can be costly due to physical infrastructure maintenance.	Low: Can be updated over the internet.	Low: Primarily software updates and minimal hardware maintenance.
Features and Add-Ons	Varies: Additional features may significantly increase costs.	Varies: Many features included, but premium features add to costs.	Varies: Depends on the features you need.
Scalability	High: Expanding the system can be costly due to physical infrastructure.	Low: You can add users with a couple of clicks and adding a phone number.	Low: Easily scalable with minimal cost impact for adding users/features.
Training and Support	Varies: May require staff training and ongoing support contracts. Oftentimes, workers are familiar with traditional phones.	Varies: Some training may be needed; support costs depend on the provider.	Varies: May need help if you are converting a traditional PBX.

2.  What Features Do You Need?

Before setting up your business phone system, you’ll want to consider the features you need for this system. Consider options like:

• Auto-attendant
• Mobile application to not only make calls but text with clients/employees
• Voicemail to text/email
• Call forwarding
• Video conferencing
• Call recording
• Third-party integration
• And more!

Also, consider the number of lines you will need with these features. Most companies will give you a base number of features and price per line.

3.  Plan Your System Configuration

Planning your system configuration is dependent on the type of business you run and how many employees you have. For instance, an office desk phone may be perfect for a small car dealership, but it may not be perfect for a mom-and-pop electrician business. Here are some questions to help you determine the configuration you need:

• What is our call volume, and how does it fluctuate?
• How many employees need direct phone access?
• Which features are essential for our business operations?
• Do we need to integrate our phone system with other business tools like CRM? If so, is there a combo package we should consider?
• How scalable does our phone system need to be?
• How tech-savvy is our team, and what level of training will they need?
• What kind of customer support and maintenance does the service provider offer?

4.  Order Equipment and Service

You may need to buy new equipment to set up your business phone system. This can could be new office phones, headsets, or even a new mobile device. You may also want to upgrade your internet plan if you choose a totally digital system.

5.  Installation and Setup

Install and configure your phone system according to the instructions provided by your service provider or with the assistance of their professionals. This procedure will differ based on the sort of system you have chosen. For physical systems, this might include laying phone lines and configuring gear (this is usually handled by the provider if it is very technical). For cloud-based solutions, setup may be as simple as configuring software and accessing an online dashboard to configure your settings.

6.  Train Your Team

A phone system is only as effective as its users. Take the time to teach your staff how to use the new system, focusing on the features and functions that will be most beneficial in their everyday activities. Provide training sessions, written manuals, or video tutorials to ensure that everyone is comfortable and competent in utilizing the new system. Providers can also help with this process as well. May providers offer training and support.

7.  Test Your System

Like any other tool or system, you’ll want to test before fully launching. This can be done during the training portion as employees can be walked through the process. During this time, consider any adjustments that may need to be made.

Want to Set Up a Business Phone System with the Right Provider?

360Connect can help you find that provider. Just fill out our 1–2-minute form and we’ll contact you to verify your information and needs. From there, sit back and relax as up to 5 suppliers will reach out to you with quotes. This service is free!