As a business, you may be wondering whether you should be using a VoIP phone service instead of traditional phone lines. For those that don’t know, VoIP means “Voice over Internet Protocol” and is the method of sending communications, including calls and video conferencing, over the Internet. Perhaps you have heard about the cost reductions, flexibility or some of the other possibilities that a transition to VoIP can entail. Here are three things to consider when determining whether or not you should be using VoIP.



Location

Depending on your office location, VoIP may or may not be the way to go. Rural areas may benefit more from having a traditional phone system. If you have offices spread out geographically that depend heavily one another, VoIP can easily connect your businesses. Consider your location as well as that of your employees to determine if VoIP is the best fit.

• Some VoIP carriers allow for 911 call routing; however, you may have to activate this feature before it will work. If you run out of call credits, VoIP systems will not allow any calls to be made, even in an emergency.

• If you lose power frequently in your area or afraid of not having a phone connections in the event a rare power outage occurs, keep in mind that VoIP will not work. However, traditional phone lines work during power outages.

• Do the people in your office travel frequently? If you want to be able to easily forward calls to employees, regardless of location, VoIP can help you do just that. Many providers offer call forwarding so you can easily connect with staff both on- and offsite. 

• Voicemail messages from incoming callers can be forwarded as an email or as a text message to the person who is best fit to respond. If your staff is constantly busy with other responsibilities, forwarded voicemails can alert them to an issue and they are able to determine the appropriate response. 

Budget

Overall, VoIP tends to be more cost-efficient for most businesses in the long run. Whether you’re calling locally or internationally, there are a number of VoIP plans to meet your needs. Many consider and utilize VoIP because it is a low-cost way to connect and keep in touch. However, there are some things to keep in mind in terms of budget.

• In order to have the best quality VoIP calls, you’ll need high-speed Internet. If your Internet fails, so does your VoIP call or conference. In some cases, traditional phone systems have a better quality transmission. With VoIP, you’ll need to invest in a high-speed and high-quality internet provider. 

• In 2011, the average monthly cost of business-class VoIP phone service was around $30 per month. Some VoIP companies might provide a lower cost if your business also subscribes to a second service, such as VoIP Internet. Cost also depends on the features you choose to use. 

• Your business should also consider the cost of VoIP equipment necessary to run the service. A company may be able to get free equipment from its VoIP provider, purchase used equipment, or buy new equipment.

Business Size 

If you run a small business and need to spend time on other tasks rather than answering the phone, VoIP is a good idea for you. Most customers cannot tell the difference between a call via VoIP and a call over a traditional phone system. VoIP is great for businesses that have more calls coming in than they currently manage.

• If you have only a few phone lines available and a large number of phone calls coming in, VoIP can help your business manage and field calls more efficiently. A professional-sounding hold and the ability to filter voicemails can make a company more productive.
• If you have a larger business and a number of phone lines where you constantly need to transfer callers, VoIP can help you do that with just one button. If you have a secretary or call center where a large number of transferrable comes arrive, VoIP can help with the management of the calls.
• Small- and mid-sized businesses should look to a VoIP service that is hosted, called either a VoIP PBX or virtual PBX, for their needs. In doing so, your business won’t have to maintain the hardware and switches but will need to provide your own Internet service provider and IP phones.

Depending on the vendor you choose, you can save money and boost your business’s efficiency. VoIP is great for small businesses and in the long run, tends to save money for most businesses. Some believe VoIP phone systems may replace call centers. Though VoIP may not be for everyone in every circumstance, many people are considering the switch and perhaps your business should too.

Author Bio: 
Erica Bell is a small business writer who focuses on topics such as phone services and social media trends. She is a web content writer for Business.com.

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