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Small Business Phone Systems & VoIP

Small businesses can now use existing computer networks and the Internet to support voice communications, saving on long distance calls while improving work flow. Functionality can be added to existing systems, installed in stages as needed, or as a totally new system.

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Why Care?

A phone system is one of the most important tools in any size business. It is the primary way that your customers, clients, investors, suppliers and others can reach you as well as how you reach them. With the right voice communication system, you can be assured that calls will be correctly routed, won't be disconnected and won't be lost in an endless menu loop or other confusing automated options.

What is VoIP?

Voice Over Internet Protocol or VoIP, refers to the process of converting conventional voice telephone calls into data that can be sent over the Internet and your internal office computer network instead of traditional voice lines.

What's in it for me?

If your small business uses some level of internal computer network (router, LAN, WAN, VPN, etc.), VoIP could be saving you money. VoIP works over internal computer networks and the Internet providing opportunities for savings in a variety of areas including:

  • Maintaining one system instead of both internal computer networks and telephone systems
  • Free and lower cost long distance charges where network usage is free or lower cost
  • Increased productivity with increased built-in VoIP communication features; e.g.,
    • Auto-attendant versus employing a person to answer and channel incoming calls
    • Call-forwarding versus having customers to hang up and redial a new number to reach you
    • Conference-bridges versus having to pay for an outside service to support conference calling
    • Music on Hold or other recorded message to optimize your exchange with the caller
    • Dial by name, dial by extension or dial from directory services to facilitate matching the call to the right person
    • Phones with screen displays to show caller information; speaker phone features to facilitate interoffice meetings; and voicemail services

Phone System Basics

There are three basic business phone systems to choose from:

Basic System Traditional Systems Networked Systems
  • 10 or fewer employees Technology
  • KSU-less Features
  • Several telephone lines
  • Voice mail
  • Answering machine
  • Typically not scalable
  • 5 to 40 or more employees Technology
  • Key Systems (5-40 employees)
  • PBX (40 employees and up) Features
  • Several telephone lines
  • Desk-to-desk transferring
  • View lines in use
  • Conferencing
  • Music on hold
  • Voice prompts to direct calls
  • Scalable
  • 2 or more office locations Technology
  • Voice Over Internet Protocol (VoIP) Features
  • Integrated voice and data system
  • Includes Traditional System features
  • Supports multiple devices; desk telephone, cell telephone and PCs
  • Provides remote access to email, voice calls, voice mail and calendars

VoIP and Business

VoIP can impact small business in two ways.

  1. For home based businesses, VoiP Service is a subscription-based service that routes outgoing calls over the Internet as a replacement for home-based telephone service.
  2. Hosted VoIP solutions provide the more robust business calling features without having to purchase the traditional telephone hardware that serves as the feature management center.
Saving on hardware, system maintenance, support costs and long-distance calling are reasons why VoIP is becoming more attractive as a solution for business communications.

To VoIP or Not To VoIP

If your business has multiple locations - - anywhere in the world - - that are connected by a Local Area Network (LAN), Wide Area Network (WAN) or Virtual Private Network (VPN), VoIP can allow your business to...

  • Share all phone system features across all locations
  • Offer "zero cost" phone charges between locations via extension dialing feature
  • Set up a new office or move desks without having to run separate cabling for phone systems

A Scalable VoIP Approach

VoIP can be installed in a staged fashion where existing phone systems, such as key systems or PBXs, can be IP-enabled with software upgrades and minor hardware additions allowing the business main office to continue using existing phone lines and remote offices to use VoIP. Benefits to this approach include:

Needs Assessment

Your BUZGate™ educational sponsor, Avaya, has compiled the following questions to help you to determine what level of Telephone Communication System will best serve your business needs:

  1. How many locations does your business have? Where?
  2. How many employees?
  3. Do employees work from home or other remote locations?
  4. How many telephone lines are needed?
  5. How do you receive fax communications?
  6. Are multiple calls addressed simultaneously?
  7. What features do you currently use?
  8. What features, if any, would you like added?
  9. How many calls are received daily?
  10. What department receives most of the calls?
  11. Are calls accommodated after hours?

VoIP Features

There are a wide range of applications that connect your computers to your phone systems, which is referred to as Computer Telephony Integration (CTI). CTI applications are usually sold separately from the phone system itself and can bring about significant improvements in worker productivity as well as cost savings. Some of the features possible include:

  • One-click dialing for an outbound call center
  • Integration with Contact Management software where calls are placed without manual dialing, reducing errors and time per call
  • Caller Identification (Caller ID)
  • Call Routing to the correct representative before being answered
  • Automatic display of caller account information when call is answered
  • For businesses with high call volumes, ACD (Automatic Call Distribution) manages incoming calls to maximize efficiency, reduce call answer time and track per-call and per-employee statistics

VoIP ROI Benefits

A combination or new VoIP system delivers a return on investment (ROI) by offering the following robust capabilities that support improved customer service, better time management and increased profitability:

10 Great Reasons for VoIP

  1. My business is growing and I need to support other locations
  2. I am spending too much on long distance calls
  3. More of my employees are working remotely and I need a way to keep them connected
  4. I need a way to improve sales by providing my employees with better and faster access to customer information
  5. Combining my voice and data communication system will save me time and money
  6. Tracking telephone calls and cost factors is important to my business
  7. Having experienced, reliable support for my communication equipment is essential
  8. I need a way to identify telephone numbers when callers leave a message but forget to provide their telephone number
  9. Having a secure interoffice communication system for both voice and data is important to me
  10. Improving my customer communications will significantly contribute to my bottom line

Case Studies

Below are examples of how different industry sector businesses benefited by implementing an IP Telephony communication system solution:

  • Natural Gas Distributor, AGL Resources in Atlanta, GA, achieved increased collaboration, more rapid decision-making and sustained industry growth.
  • Finance and Insurance Service Provider, Allianz, cut costs, improved security and accommodated future expansion.
  • Metal Processing Manufacturer, Amada Co., Ltd., leveraged existing Customer Relations Management (CRM) system while boosting field service precision and customer satisfaction.
  • Law Firm, Aird & Berlis LLP, supported business continuity as well as remote and secure access by lawyers of the firm.
  • Trucking Business Service, American Truck Business Services, successfully joined forces with another entity while increasing overall communication security and reliability.

Purchasing FAQs

When purchasing or upgrading your voice communication system, you are likely to work with a dealer who not only handles the sale, but also the installation and system programming. Because of this, finding the right dealer is very important and below are a variety of helpful questions to ask:

  1. How many installations has the dealer performed with the system you are considering
  2. Is the brand that you are considering well represented by the dealer
  3. Can the dealer provide you with references
  4. What is the relationship between the dealer and the installation technicians and how are technicians trained
  5. In addition to vendor warranties, what are the terms and conditions offered in the dealer's' SLA (Service Level Agreement); e.g., 24x7x365 coverage, average response times, costs included, costs non included, etc.
  6. How will you be trained on the system and what does it include
  7. How is backup addressed in the event of power failures
  8. How is system maintenance addressed; e.g., on-site, remotely, a combination of both, etc.
  9. What system updates or changes can be made internally to avoid service charges

Where to Begin

Learn about ways to improve your bottom line by following the following 3 easy steps:

  1. Use quick, online tool to calculate potential savings using VoIP
  2. Call 1-800-247-7000, select option 2 to...
    1. To speak with an experienced communication systems representative
    2. To review solutions specific to your short and long-term needs
    3. To request a Guide to VoIP for the Small to Medium Business
    4. To request a Guide for Small Office Communications
  3. Receive a complementary Communication System Proposal including ROI projections

About Your Educational Champion

"Avaya is a global leader in communication systems, applications, and services offering small business, nonprofits, corporations and government agencies secure, enterprise-wide managed network solutions for voice and data."

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Note: This information is presented to provide a general overview of small business options and related services. It is not intended to be an exhaustive representation. Data has been compiled by the Knowledge Institute for informational purposes only. Content is provided on an "as is" basis and is not intended to, nor does it, provide advice or create a customer relationship between the Knowledge Institute, BUZGate™ and/or any other organization named herein, and any reader.

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page updated: May 01 2008
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