5 Reasons To Use A Virtual Phone System With Your Small Business

So you have a small business or you’re in the process of creating one – which type of phone system do you want? The traditional landline or a virtual phone system, which is often referred to as a virtual PBX (Private Branch Exchange) system. There are advantages and disadvantages to using each one, so here is a detailed look at your options.

First, perhaps an exact description of these relatively new virtual phones is needed in order to make a sound business decision, especially when it comes to your business office communications – the heart of any company. Virtual means everything is handled online or over the Internet. These are VOIP or voice over IP systems, such as the popular Skype program which now has roughly 300 million users according to Microsoft which acquired Skype for $8.5 billion in 2011.

Many skeptics still balk at using the web for phone communications but these technologies are becoming much improved and may be the norm in the not too distant future. In the same light, many households are now dishing the traditional phone landline and going with a completely mobile option. Increasingly, most of our daily communications are going wireless/mobile, and many are connected via the Internet. Like it or not, most of today’s business communications are done through computers, cell phones and the web.

It is in this current framework which any business owner has to at least consider the “virtual option” when it comes to setting up their communication system. So here are 5 reasons to use a virtual phone system, followed by some reasons why you shouldn’t use it.

1. Cost – It is definitely cheaper to run a virtual phone system not only because the operating costs will be lower, but the initial startup or setup expenses will be much less than going with a traditional system. Actually, if you’re using your current cell phones, the costs will be very minimal compared to installing and maintaining a landline system.

2. Setup Time – One of the best advantages of going with a virtual web-based system, setup is almost instant. If you’re ordering virtual phones, these will take a week or a few days to arrive, but for the most part your phone system can be up and running within minutes. You can even “port” your current business phone number over to this online service or provider.

3. Mobility – Using a virtual system can give your employees and your business complete mobility. They and your company can be reached 24/7 from anywhere on the planet. If your operation has an active traveling salesforce, having your data and communications in the “cloud” may prove very beneficial.

4. Efficiency – Having all your business communications readily accessible by all parties can make for a very efficient operation. All faxes, sales stats, memos… can be easily send/received by all your workers. The use of voice mail, message forwarding, Internet faxing… even a virtual 24/7 receptionist can make for a smoothly run business.

5. Interconnectability – Needless to say, computers run most modern day businesses and having all your company’s phone and office communications neatly connected with the web and your computers will synchronize /digitize your whole operation. Files, calls, sales orders… can all be in digital form where they can be easily accessed by all your workers. Having all your office communications directly plugged in to your email, fax and phone calls via a virtual PBX system does connect the whole show.

Now, these are all valid reasons to use a virtual phone system but there are a few drawbacks. Mainly, the issue of privacy and security has to be considered when it comes to the Internet. We have all heard horror stories of private data being stolen or hacked and any information stored on a computer connected to the web can be compromised. While we are slowly improving security and many in the general public now use the web for such things as banking, shopping, faxing and phone communications – the general overall distrust is still there and has to be considered.

While encryption and increased security measures do make most communications secure, small businesses should still make sure any sensitive data stored online is completely secure. The same goes for your business phone communications, check with the provider to see exactly what security measures are in place and how your private data is stored online. In a similar vein, you should thoroughly check out the “quality” of the provider and make sure they have a reliable service with good support.

Another issue simply has to do with your customer or client base, if you have a traditional client list who prefer using landlines (especially when it comes to sensitive data or information) you might want to stick with a traditional system. However, if your client base is completely comfortable with virtual phones and communicating via the web, then a virtual PBX system may be a more suitable option for your business. Even though most of your customers won’t notice the difference, the old adage, the customer is always right does come into play here and should be followed.

Lastly, maybe it’s a little redundant to say, but all your business communications are vital to the success of your company or operation. Just keep in mind, in this era of cell phones, VOIP services and cloud providers of all sorts – going with a cheaper and more efficient virtual phone system is a definite option, but like always it’s your call.

Pros and Cons of Having a Small Business Voicemail System

In any business, application of advanced technologies can contribute towards ensuring success. Your office may require a better telephone system and voice mail system to carry out effective business transactions. The success of any business depends mainly on client satisfaction. In order to maintain steady contact with clients, small business owners can make good use of the voice mail system which functions as an answering machine.

The pros and cons of having a small business voicemail system are many. The main point in support of having this system is that, it is featured with a personalized answering facility which allows you to brief your client in situations when you are unable to answer their calls. The voicemail system is provided with caller identification facility which enables you to respond to your client at a later stage when the client might have forgotten to provide his contact information. It is also provided with date and time stamps which give a clear idea about the date and time when the message was actually obtained.

Most of the voicemail systems are provided with alerts which inform you about the arrival of new voicemail, and with this facility you can respond to your client without delay. There is also the interactive voicemail system which is feature rich and can help to make your small business venture a success. Through these systems small business establishments are able to reduce the time and space limitations. They help a lot in decision making; moreover, it can also bring a steady decrease in your telephone expenditure.

Even though there are many advantages in having a small business voice mail system there are some negative aspects also. Voicemail systems are capable of managing only a restricted number of voice mailboxes. As far as security features are concerned, it is possible for hackers to crack the passwords and read the messages, which can have a negative effect on your business goals.

Small Telephone Systems Verses Multi-line Business Phones

Choosing the right telephone system from start is always the best path, but not always the most economical. Before you head down to your local electronic store and pick up the cheapest multi-line business phone you can find, here are few pointers you should keep in mind.

Many multi-line business phones have a pretty decent feature set such as voicemail, caller ID, call waiting ID, 3 way calling and intercom (in multi phone setups). These phones integrate the Key System Unit (or KSU) into the phone itself, which means each individual telephone functions as its own “mini phone system.” The term KSU, (Key System Unit, Key Signaling Unit or Key Service Unit) dates back to the early day’s phone systems, it’s basically “the Brain” of the phone system. All call processing data and telephone line interfacing is carried out by the KSU. For many small offices with less than 4 phones (extensions) and 4 telephone lines, these multi-line phones are adequate and economical. However, as a business grows, the many disadvantages of these phones begin to show their merits.

By comparison, multi-line business phones are sold with the marketing term, “KSU-less design,” which translates (in buyers minds) to lower overall costs. Small telephone systems on the other hand include a separate KSU unit or “Brain” in addition to each telephone. A major disadvantage comes to play when you are interfacing your phones with the telephone company lines. The KSU acts as the “line interface,” for a phone system, all major system connections terminate at the KSU. Now with each multi-line phone acting as its own “mini phone system,” each phone now needs direct connections to each telephone line.

A single telephone line consists of 1 pair of wires. Almost all multi-line phones support up to 4 lines, meaning each multi-line phone needs up to 4 pairs of wires or the equivalent of a standard Cat5e cable. As you begin to add more KSU-less phones to your office you must factor in the cost to install another drop of cat5e (or cat5) cable. You must also account for the additional termination blocks in your telephone closet where all these phones must be “Bridged” (or shared) to the 4 phone lines. As you can imagine, for installations with more than say 4 or 5 phones the wiring aspect can get pretty complex. Anything over 6 or 7 phones will be a wiring mess, if done unprofessionally, which adds to the cost of these low budget systems. However, this bridged connection is how multi-line phones “intercom” one another. By sending a signal over each bridged line, each extension can communicate without actually tying up any of the 4 phone lines. As long as every multi-line phone is connected to all 4 lines (or matching number of lines if less than 4), each phone can intercom each other internally while keeping the phone lines free for external calls.

Small Telephones Systems on the other hand, which come equipped with a separate, dedicated KSU unit, are at a distinct advantage in both areas. Having a single KSU unit means a single interface point for the telephone line connections. Many small telephone systems need only a single pair of wire to connect each extension telephone. What this means is if you are deploying a number of phones in one particular area, you can save dramatically on cabling costs by having your contractor “split” the single Cat5e cable into, at most, 4 single telephone jacks! – This becomes very cost effective as you deploy additional phones. (However, many pros will only split single Cat5 cable once for 2 telephone jacks leaving the remaining wires as spare pairs). Cable management becomes much easier (and neater) as you need not worry about bridging 10 phones to 4 telephone lines. One single pair of wires (to connect to a telephone) of the 3 or 4 pairs in a standard telephone cable is enough for as many lines as the small telephone system can handle since the actual line connections are at the dedicated KSU unit and not at the individual telephone.

Another plus for the small telephone system is the ease of transitioning to a larger phone system. The wiring scheme for the most part will remain the same albeit installing more cable drops to new areas. Not so much the same for the multi-line business phones. Depending on how each phone was “bridged” to interface to those 4 telephone lines, this entire wiring scheme may need to be undone as most small (and large) telephone systems require individual (not bridged or shared) connections to the KSU.

Programming wise there is one disadvantage when comparing small business telephone systems to multi-line business phones, which can be viewed as multiple disadvantages. Since each individual telephone functions as its own KSU it also functions as its own Voicemail unit (if equipped). Which means if you want to enable an Auto Attendant feature (where your callers are greeted by a company recording instructing them to press 1 for Joe Boss, 2 for Sales Manager etc…) you will have to record this greeting for as many times as you have voicemail enabled phones (up to 4). Here’s why, with most multi-line business phones, the voicemail feature includes a personal voicemail box for the extension and an optional auto attendant feature. The auto attendant feature can only handle one call at a time; ergo if you want the system to answer up to 4 incoming calls simultaneously you need at least 4 auto attendant enabled phones. So technically speaking you must record the same auto attendant greeting 4 times, 1 on each phone. You must also enable the system mailbox for each of the 4 phones to accept general messages. You now have 4 different phones/voicemail boxes in your office where you must check for general messages. This is known as a general mailbox, which is a default destination for callers who do not press a menu option or dial an extension. This scenario is not efficient for larger setups but may work for smaller ones.

With a small business telephone system, there is just one central voicemail unit which can handle multiple calls at once. Storage times are much greater and there is just one mailbox for general messages. You can also take advantage of advanced features (if equipped) such as voicemail to email (where the system sends the voicemail in a standard wav format to your email address), which in this fast paced world can be a BIG time saver and added convenience.

One last point on this topic to cover quickly; with the advent of the Voice over Internet Protocol (VoIP) continually proving its cost effective existence, many businesses find themselves wanting to take advantage of these savings. Many small business telephone systems on the market today are equipped to handle VoIP telephone lines through either a simple hardware or software upgrade. An upgrade may include adding an Ethernet (or media) port to the system or if already equipped, simply enabling this port through software activation. Simply plugging this unit into your company LAN and perhaps minor firewall configuration you can now start saving on land line costs by calling out over less expensive VoIP lines.

Multi-line business telephone can benefit as well but through a 3rd party VoIP gateway. This gateway converts a VoIP line (sometimes called a “Trunk”) to a standard telephone port. You will need as many gateways as you want lines, (or opt for a multi-port unit). However you may have to plan on spending some time configuring and adjusting the settings of the unit to obtain the proper volume levels while minimizing echo and other artifacts that may be induced when converting the signal from a standard Analog telephone line to SIP or other VoIP protocol. Many high end units come with built in (hardware or software) echo cancellers and noise suppressors which minimize these adjustments (and work very well) but increase the cost of the gateway dramatically.

To conclude, although it may seem like great savings early in your start up phase, for needs of 4 or less external lines and extension phones, the multi-line business phone can actually prove to be a cost effective solution. In my humble opinion these multi-line phones are better suited for a home office (or SOHO) situation. If you have big plans to expand exponentially (and don’t we all!) I recommend you at least consider a small business telephone system. Although a bit more initial investment is required, the benefits far out way the cost disadvantage if not cancel it out completely.

Copyright © 2009 Damian Parkins for PBX Interactive, LLC. All Rights Reserved.