In years gone by, IT and telephony has stayed relatively separate. This was until 1995 when the term VoIP was coined and a new system to communicate was introduced. For many businesses nowadays, it would be difficult to imagine working without VoIP. In this blog, we will go over all you need to know about VoIP phone systems for small businesses, including the pros and cons.

 

What Does VoIP Mean?

The term VoIP means Voice over Internet Protocol. As it sounds, VoIP works by sending data packets of your voice over an internet connection rather than by copper cables like the Public Switched Telephone Network (PSTN). In terms of VoIP phone systems for small businesses, which you choose may depend on factors such as business size. Therefore, it is worth considering the pros and cons mentioned in this blog to truly understand how and where your business may fit.

How does VoIP work?

We are all familiar with seeing the large copper cable infrastructure and boxes used for traditional PSTN systems. As of December 2025, the PSTN switch-off will occur and consequently, this will be made redundant. This makes adopting VoIP a must for many businesses.

As mentioned above, VoIP works by transmitting voice data packets over an internet connection. In a step-by-step format, communicating over a VoIP phone system for a small business would look like this. Person 1 speaks into a headset which is linked to the chosen VoIP software on the PC. This then gets converted into data packets and they travel down the shortest pathway to Person 2. These are then put back into order and Person 2 would hear what Person 1 had said, just like a traditional phone.

The Benefits of VoIP Phone Systems for Small Businesses

Although switching to VoIP looks inevitable, understanding the benefits of VoIP phone systems for small businesses is important. These have been broken down and explained below to aid your understanding of each benefit.

Cost Savings:

VoIP systems typically operate at a much lower cost compared to the older PSTN line. Users only need headsets and the chosen VoIP software rather than needing a physical phone handset. Not only does this reduce hardware costs, but the monthly cost for VoIP is typically also lower and calls between computers are typically free. This makes VoIP phone systems for small businesses extremely attractive due to the possible cost savings.

Scalability:

With many small businesses having growth in mind, this must be made as easy as possible to achieve rather than difficult. This means ensuring any potential bottlenecks like expensive costs to grow are reduced. In case of business growth, all you will have to do is ensure there is a headset and the correct software installed on the device they plan to use.

Flexibility:

Hybrid work policies are typically the norm now, and most companies allow working from home in some form. By using a VoIP phone system for your small business, the process of employees taking calls away from the office is simplified. As long as the software is installed on their device which is connected to the internet and they have a headset, the phone system will work. This means that employees will have a greater home working experience.

The Disadvantages of VoIP Phone Systems for Small Businesses

Although the benefits greatly outweigh the disadvantages of VoIP phone systems for small businesses, it’s worth understanding the possible areas which may affect you.

Internet Connection Stability:

The main issue with VoIP is that due to it being reliant on an internet connection if your business suffers from poor signal in areas or slow speeds, the experience can be greatly reduced. This means that it is important to conduct a network audit beforehand to see if there may be any underlying issues which could hinder performance. Some businesses may opt to use alternative connections such as Starlink if they have poor internet connectivity in their area.

Internet Connection Reliance: 

With VoIP solely relying on the internet connection, in the case of internet outages during power cuts or emergencies, there will be no phones available to use. This means some businesses that need access to a phone 24/7 may opt to install a power backup to ensure all systems keep running during unforeseen events. This comes at a cost compared to a PSTN line which receives power through its cabling. This may be seen as a big disadvantage when it comes to VoIP phone systems for small businesses due to the extra required costs.

 

VoIP Phone Systems for Small Businesses: Three Cherries

If you have any questions regarding VoIP phone systems for small businesses and how they may best fit you, don’t hesitate to contact the experts at Three Cherries for more information.