Your Guide to Small Business Phone System Types

Small business phone system.

Small business phone system.

Having reliable communication is a very important part of running a business. Customers and business partners need to be able to contact you.

So what’s the best type of phone to get to make sure you’re always reachable? This will depend on the specific needs of your business.

Keep reading to check out the pros and cons of the best small business phone systems.

Types of Phone Systems

There are several phone systems to choose from, depending on the needs of your business. We will discuss all the advantages and drawbacks of a few different options to find out what the best small business phone system is for your company.

  • Traditional Landlines
  • On-Premise Voice Over Internet
  • Cloud-based Voice Over Internet

Traditional Landline Systems

This is a traditional small phone system that is supported by a regional or local company. Landlines are physical copper wires that connect to public switched telephone network (PSTN).

To use the service, users need PBX (private branch exchange) hardware and physical desk phones. The PBX supports multiple extensions and features like call transfer and call directories.


Having been around for years, landlines have been tried and tested.


Traditional phone systems are expensive to install and maintain. They are not designed for mobile workforces or multiple locations. Expansion is expensive and time-consuming.  Finally, you need someone in your office who understands the system well enough to handle routine tasks like moves, adds, and changes.

On-Premises VoIP Systems


On-premises VoIP systems use traditional PBX hardware, but instead of connecting to the telephone network via old-fashioned copper lines, they utilize the internet for connectivity via a technology called SIP trunking.


It’s convenient as you’re in control of the system. You can configure it the way you want to. In most cases, SIP trunking is less expensive than traditional lines.


Just like with the traditional system, you need to buy PBX hardware. There is also an additional cost of IT staff for maintenance.

Cloud-Based VoIP Phone Systems

Instead of copper wires that traditional landlines use, VoIP systems only need an internet connection.

VoIP system comes with a set of features that previously only large organizations using costly PBX hardware could access. They include call queues, automated attendants, and computer integration. They allow voice mails to be sent to computer and email inboxes to be turned into softphones.

VoIP systems give workers to access the small business phone system from their mobile devices when out of the office.

For the cloud-based system, businesses are charged monthly, depending on the usage. Virtual phone systems thrive well in today’s digital world.


VoIP systems come as a complete set with bells and whistles. You can easily set up and configure the system. Also they’re also very affordable, with minimal setup costs. They enable remote work and can grow with your company as your needs change.

The vendor is responsible for all maintenance and updates.


You do need a stable internet connection. There are also many different providers in the market with varying degrees of product and service quality. Therefore, vendor selection is a critical process.

Do You Want to Know More on Small Business Phone?

Communication is crucial for every business that’s looking to be successful. Therefore, you have to be careful with the small business phone system that you use in your company.

Think about your company’s needs and what will suit your customers best to help make a decision. If you’re interested in setting up a virtual phone system for your business, contact us today for a quote.


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