What You Need To Know About Virtual Phone System For Startups

January 22, 2022
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According to a poll, approximately 60% of businesses say that a phone system was their top investment priority. Three-quarters of consumers feel that phone calls help them obtain a faster response, and the vast majority prefer to speak with a live person rather than going through an online form to have their questions answered. Based on these responses, businesses must prioritize effective communication and choose the most cost-effective business phone plan available.

The majority of small companies rapidly discover that standard phone systems are prohibitively costly and do not provide the functions needed by a startup or a contemporary small company.

Furthermore, according to Techradar, “PBX systems may cost more than ten times as much as traditional telephone systems.”Purchasing PBX-ready phones and wiring accounts for the majority of this expense. When fully operational, a PBX system costs around $50 per line per month”.


What Is A Virtual Phone System?

You can think of a virtual phone system in the same way that you think about a hosted website. The site is hosted by a third party, which makes life easier for you. 

To save time and money, virtual phone systems redirect calls to the phone line of your choosing, eliminating the need to set up a sophisticated phone system on your premises. 

Entrepreneurs, for example, might want to have calls routed straight to their mobile phones. This is an excellent option for folks who are always on the go or who do not have access to a regular office place.

As with your website, virtual phone systems are distant servers for your incoming calls that are hosted by a service business in the same way that your website is hosted. 

Visitors to your system will be guided through a phone tree, that includes messages you record and transmit to the service provider, before being connected. 

The most basic systems will send a professional-sounding toll-free number to your mobile phone while also providing you with the opportunity to set up extensions for workers and departments within your organization.

Further reading: How To Set Up A Customer Service Process Flow That Delights Your Ideal Customers 


How Do I Set Up A Virtual Phone System?

1. Identify The Requirements Of Your Team.

Start by making a list of all of the things your company and team need from a Voice over Internet Protocol (VoIP) system. Because each system is unique, the features you need may be featured in the basic or lower-priced plan of a single provider vs those offered by other providers. 

If your company merely needs a basic system with calling and texting capabilities, or if you want a service that includes additional collaboration features such as video conferencing, team messaging, and file sharing, you should consider your alternatives carefully.

Another item to think about is the number of people who will be using your VoIP system at the same time. Is it necessary for each member of the team to have their own phone line, or will lines be shared by a few workers who each have a separate extension? 

Since VoIP companies charge per user, this is an important factor, particularly if you are searching for a reduced cost of service alternative.

2. Make Sure Your Network Is Dependable.

As you might suspect, since VoIP technology splits voice data into packets that are delivered over an internet connection, high internet speeds are required for a successful VoIP setup. To meet this need, you want a connection that can manage both incoming and outgoing calls, in addition to any internet traffic produced by UC capabilities like video conferencing and team messaging.

Not only is it vital to have a fast internet connection to guarantee there is no degradation in quality when several calls are in progress, but it is also necessary to have a steady internet connection. 

If, for example, an internet service provider provides patchy service, the likelihood of interrupted conversations increases, resulting in unpleasant caller experiences, a negative effect on prospecting efforts, and a likely loss of customers.

Fortunately, determining whether or not your internet provider will enable VoIP is a simple process. A variety of speed tests are available to determine the strength, dependability, and speed of your connection, among other things.

3. Decide Between A Cloud PBX And An On-Premise PBX.

Consider if you want a cloud-hosted PBX or an on-premises PBX before installing VoIP. Modern VoIP is built on PBX technology (PBX).

With a traditional PBX system that uses the internet, you may make calls, listen to voicemails, and transfer calls to colleagues. An on-premises server manages the system and handles calls.  If you have an in-house IT department, you may easily increase your calling capabilities and add-on services to boost your business communications.

This also means you will not have to pay a monthly fee to someone else to handle your on-site PBX server. Many firms find this option quite cost-effective when paired with their existing IT personnel.

Cloud PBX, also known as hosted PBX, is often viewed as the better VoIP choice for organizations without in-house IT staff. The provider manages your service via a global network of remote (cloud) PBX servers.

All you have to do is pay a monthly subscription fee to keep your cloud PBX operational. It is easy to upgrade to a higher plan level when your firm needs more features and capabilities.

Consider subscribing to a basic cloud-hosted solution that covers standard US and Canadian calls while your firm is still small. As your business grows, you can add services like international calling, unified communications, and a contact center as a service (CCaaS) by upgrading with the same provider or transferring to a new provider.

It is important to remember that any calls made or received by your firm will be lost if your on-premises PBX goes down.

For cloud PBX providers, having several server groups dispersed across the world ensures that if one server or a whole server building goes down, backups are carefully positioned to fill the void. 

Read up on the parts of call flow here!

4. Determine The Available Budget For VoIP.

How much money does your company have to invest in a new VoIP system? Price is an important aspect in every organization, so keep your budget in mind when beginning your search for VoIP providers and services. 

Remember that most providers charge per user, per month, and that add-ons are an additional fee. When you know how much money you have to spend, you can choose which plan and provider will work best for you without exceeding your financial limits.

5. Select The Hardware And Features That You Want.

Because different kinds of businesses need distinct features and hardware, VoIP is all about choices and flexibility. For example, a company with several agents that spend the majority of their time on the phone may need a choice of VoIP headsets and call monitoring services if it is to maintain a particular degree of quality. 

The number of available alternatives is enormous, which is why one of the most crucial things you can do is to establish a list of the features and hardware that you absolutely must have as well as those that are great to have.

This foundation will assist you in identifying the most beneficial system for your company. For example, do you already have a collection of IP phones that your agents use when speaking with one another? 

Since it concentrates on computer-based softphones and smartphone applications, a virtual phone system such as Grasshopper may not be the ideal choice for your company in this scenario, according to the company.

Identifying the features that are essential to your VoIP system against those that are optional may need some study and due diligence. However, it is vitally necessary that you complete these procedures in order to guarantee that your system is equipped with all of the communications tools you need for your organization.

Learn more about how VoLTE works here!

6. Select A VoIP Service Provider

When it comes to hosted VoIP services, a plethora of choices is available.  Finding the ideal choice may be a difficult task. Fortunately, we have compiled a list of some of the top business VoIP systems for small enterprises to make your selection a little bit less complicated.

Once you have narrowed your alternatives, call the sales staff of your preferred provider and go through your company’s defined requirements as well as must-have feature lists to ensure the provider is a suitable match.

7. Port Your Numbers.

Your clients should not be inconvenienced because you migrated from a PSTN analog phone system to a VoIP phone system. Keep your current numbers so you can be easily reached.

Here comes number porting! When you transfer your numbers, you keep easy access to your clients.  Almost every VoIP provider has a system built to make this process simple.

It is crucial that you avoid discontinuing your current phone service before the porting procedure is complete. This might take anywhere from a few minutes to a week. The time needed to install the system varies depending on the VoIP service.  Most can swiftly transfer numbers provided the landline carrier is prompt.

A transfer request normally initiates the procedure. The information you supply must match that of your existing carrier. After completing the request, your new VoIP provider will submit it to your current carrier. Most providers will give you an email when the procedure is complete.

8. Setup Your New Voip System

Installing a new VoIP system on-premises might be difficult without an IT staff. Installing an IP PBX server in your business requires project managers, system designers, and even electricians.

Instead of on-premise PBX, use cloud PBX to save money while setting up your VoIP system. This saves space and technical staff.

In many situations, all you need to do is download the provider’s app and connect any VoIP-enabled desk phone.

After installation, you must customize your system’s functions to complete your business VoIP setup. Create calling schedules, give extensions if needed, and customize voicemail for your company. Many providers provide a setup wizard to help you correctly establish your VoIP system.

See the reasons why call flow is important here.


What Do You Need To Know About Virtual Phone Systems For Startups?

If you are just starting a company, having a phone number is essential.

Some clients may contact you using your website’s contact form, email, or chat, but the vast majority will wish to speak with a live person at some point. You already have a personal mobile phone, but you do not want to mix your professional and personal lives in that way. Is this a sign that you will need another phone to divide your calls?

In no way, shape, or form. Premium virtual phone service providers allow you to pick a new phone number, which may be either local or toll-free. Because you can route incoming calls to your current phone number using the internet, you will not need to purchase a second phone line.

Take into consideration that a virtual phone system serves as a barrier between you and your clients. For either number, you have the option of accepting or rejecting incoming calls and can choose which number to use when making a call – without having to switch devices.

Businesses have relied on business phone systems for decades to provide more than just a phone on every desk. Modern phone systems include voicemail, call routing, call forwarding, and conference calling.  They have completely altered the way organizations interact with their customers and partners.

On the other hand, many small firms find the cost of an in-house phone system to be too expensive. Aside from the expense for equipment (including phones), the costs of administering, troubleshooting, and maintaining a system are prohibitive.

Virtual phone services, available since the late 1990s, were once considered a revolutionary new option. These services, which are similar to online programs you use in the cloud, allow small firms to gain more features for less money by shouldering all of the hardware, administrative, and maintenance expenses and distributing them over several organizations. 

Additionally, organizations that utilize virtual phone services may continue to use their current phone equipment, whether they are hardwired to the wall or mobile phones on their desks.

As a result, small businesses suddenly have access to feature-rich business phone services at a far cheaper cost than in the past.

Check out how to connect the phone to ethernet here!


How Do You Make A Virtual Phone Call?

A virtual phone call is any phone call that is made by using a virtual phone number as the dialing method (sometimes called direct inward dialing or DID for short).

Unlike traditional phone systems and their geographically-based phone numbers, which were meant to operate over a single physically connected phone line in a single physical place, virtual lines are not tied to particular landline phones or devices. Instead, they are tied to the Internet.

A virtual phone number may be routed and diverted between a variety of devices and Internet Protocol (IP) addresses. Your virtual telephone number is simply an online number that may be used in conjunction with personal phone numbers on any device, including your phone.

It does not matter if you are using the desktop program, an iOS or Android smartphone, or any other internet-enabled device to make and receive phone calls from your virtual phone line. That is what makes virtual phone conversations so easy for entrepreneurs, workers, and geographically distributed teams that are always on the go.

Virtual telephone lines combine voice over internet protocol (VoIP) technology with cloud PBX (private branch exchange) technology to give you and your company flexible business calling alternatives.

Virtual calls are often used to route calls to other destination numbers inside a company (e.g., business landlines and VoIP phone systems) following established call routing policies.

You may use your virtual system to route calls to any active phone on your network. It makes no difference what carrier you use or what kind of phone you have. If you wish, you may even solely operate the phone system via your mobile phones if you so choose. 

A growing number of firms are beginning to do precisely that. Small company owners concerned about saving money prefer to do away with all of their desk phones and landlines.  Instead, they choose to operate their businesses solely from their mobile phones.

Discover the Automated Answering Services: How Do They Work?


How Do I Start A VoIP Phone System?

It is essential that you do extensive research and become an expert in the VoIP market before venturing into this area. Learning all there is to know about the VoIP business, how VoIP works, and the best-in-class technology will be essential in building confidence with new consumers. 

You cannot successfully set up the infrastructure of your VoIP firm – including the software and hardware – unless you have gained a thorough grasp of VoIP technology and its applications. Here are some fundamental VoIP ideas to familiarize yourself with when getting started:

  • Protocol for the Initiation of a Session (SIP)
  • Network of Public Switched Telephones (PSTN) (PSTN)
  • Service of High Quality (QoS)
  • Private Branch Exchange (PBX)
  • VoIP Unified Communication Systems: Hosted vs. Cloud-Based
  • Bandwidth and latency of a Softswitch

It is also a good idea to develop a sales and marketing strategy at this stage of the procedure. What marketing strategy would you use to promote your VoIP business? What are the most effective marketing tactics for VoIP firms to use?

Find out more about Automatic Call Distribution (ACD): What is it? How Does it Work?


How Do I Set Up A Small Business Phone System?

Take into account your geographical location and whether you operate digitally or in an office. Consider your budget, the number of workers you have, how they will use the system, your company’s plans for future expansion, and the services available in your local region. 

As soon as you have determined your requirements, you can start narrowing your alternatives for business phone systems.

Deciding Which Phone Technology To Use

KSU-Less Systems

This approach is suited for companies with less than ten workers. Advanced capabilities like call transferring, conference calls, and many extensions are available without the need for a KSU (or KSU). 

The biggest disadvantage of KSU-less phones is customer maintenance. However, most major telephone vendors do not support these systems. Getting help with your phone service might be difficult. But if you know phone systems, you should be alright.

KSU Systems

Key systems handle many phone lines through a central control device (KSU). KSU’s are ideal for organizations employing five to 75 workers. Costs for installation and upkeep make these systems more costly than KSU-less phones. Major telecom suppliers support KSUs, which allow for future growth.

PBX Systems

Private branch exchanges (PBX) are often used by companies employing over 75 individuals. But the initial costs for the setup and installation of PBX systems might be prohibitive. 

While these sophisticated capabilities may save you money in the long run, PBX systems are normally advised for medium to large organizations with complicated phone system requirements.

VoIP Systems

VoIP (Voice over Internet Protocol) enables companies to make phone calls over the internet. Although VoIP is useful for connection, you should use a hosted VoIP solution to avoid any issues. 

A standard system may be used to handle the equipment, but not everyone is tech-savvy. You must pay a monthly charge to a telecom firm in return for the use of their equipment and assistance, but this price is worth it if it fulfills your requirements.

Discover the 5 Reasons Why So Many Businesses Use IP Phones.


Key Takeaways

As your company expands, you will need to consider spreading it to various regions of the nation and possibly the globe. You might need to extend the functionality of the present system by adding additional features and users. 

Remember that upgrading a company’s conventional system to include new users and features is both costly and time-consuming. Virtual phone systems, on the other hand, are readily sufficient for the requirements of a firm and need no financial commitment.

When it comes to running your company more effectively and affordably, a virtual phone system may be beneficial. Working from home or exploring overseas markets without needing to invest much money in infrastructure is another advantage.

The benefits of switching to VoIP are many and compelling. Although most VoIP service providers make the move simple, some businesses are still hesitant to make the switch because they believe the VoIP setup procedure would be difficult. 

This article demonstrates how straightforward the process of configuring a VoIP system may be. Because there are so many providers offering highly enticing plans, narrowing your alternatives may prove to be the most challenging step of all.

If you want scalability, flexibility, and a low-cost solution for your organization, you should consider getting a virtual phone number for it.

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