Action Steps for Acquiring a Business Phone System
The best contacts and resources to help you get it done

Consider KSU-less small business phone systems

KSU-less business phone systems are often the choice of small business owners with less than 10 employees. The technology is in the actual phones, which makes installation and relocating easy. The average cost of a KSU-less phone system is anywhere from $30 to over $400 per phone.

I recommend: E System Sales offers individual and sets of KSU-less phones ranging from $30 to over $350. Tele Technology has AT&T, Panasonic and RCA phone systems with an assortment of features and prices.

Get your business phone service with a Key phone system

Key business telephone systems are ideal for small businesses with up to 40 employees. The key systems have a central unit, called a key system unit (KSU), which allows users to have functionality above and beyond a regular phone. The cost of these systems range from $300 to over $1,000 per extension.

I recommend: Find Norstar KSU phone systems at INeedTelephones.com. Choose from key phone systems at Legacy Phones, starting at around $650.

Look into a PBX business phone system

PBX phone systems are a step above the Key systems, and are geared toward businesses with over 40 employees. These systems also have a central unit into which all the phone lines are tied, but have more advanced features than a Key system. The cost of this type of phone system averages around $1,000 per extension, but can go up or down from there depending on the advanced features requested and the number of employees.

I recommend: Fonality offers PBX phone system packages starting at around $1,000 and allows you to get a customized quote. Find affordable PBX phone systems at Neobits starting under $1,000.

Think about VoIP office phone systems

VoIP (voice over IP) systems uses a high-speed Internet connection to send data and then completes the message through a standard telephone line. This type of system works well for both small and large companies. The price for VoIP phone systems averages around $175 to $200, but when combined with a PBX system, can cost anywhere from under $1,000 to over $4,000.

I recommend: Telephone Magic has a supply of quality VoIP telephone systems for small business use. Visit VoIP Supply to purchase voice over IP telephone systems and products.

Helpful advice for making the most of this Guide

• •  Keep in mind when purchasing phone systems for small businesses that the cost will go up with the more advanced features and phones you choose. Also, factor in the cost of installation, especially for Key and PBX systems, which require professional installation.

Guide to Choosing the Right Phone System

Connect to your clients and vendors without breaking the bank

By Greg Brown

1. Consider what capabilities your business needs now
2. Consider what size your company might be in a few years' time.
3. Shop, shop and shop some more before you write the check

Action Steps
The best contacts and resources to help you get it done

Count every business phone line you'll need - then double it

Wiring is a big issue. If you are leasing pre-wired space, this is done, but you might need to add lines - which means construction cost. An upgradeable business phone system might be for you. Also, everything hooked to a phone is a line, including modems and credit-card terminals. Don't undercount!

I recommend: HelloDirect.com, a great business telephone systems and equipment vendor for small business, has a tutorial on basic office wiring do's and don'ts.

Attack of the acronyms: PBX and KSU

The 'right' phone system isn't that easy to identify, but some initial definitions help sort out where you should be headed.

I recommend: In order of cost-per-user, high to low: PBX is Private Branch Exchange, the phone systems you are used to encountering in the corporate world. Tons of detail on this at Wikipedia. KSU is Key System Unit, a cheaper version of PBX technology (the breaking point is 60 employees or less), says vendor Phone-guys.com. Why would you buy (or avoid) a KSU system? They're cheaper, but vendor PanasonicTel explains the limitations blow-by-blow. A third variety, known as KSU-less systems, gets you by without a big hardware box, and experts recommend this option for 10 or less employees.

Make the call from your data lines

Voice over Internet Protocol (VoIP), making calls via Internet, is an interesting path if you have high-speed Web. Internet-enabled phones have come a long way from clunky PC-based systems. Now, you can have a nice handset on your desk and still make cheap calls over the Net using your existing Internet. Most integrate with your e-mail and mobile services, too.

I recommend: Cisco has a handy calculator that helps you figure out if the move from a standard PBX to an Internet-based business telephone system is worth it when you renew. Other major vendors include Lucent, Nortel and Avaya, although if you have less than 100 "seats," in IT parlance, you'll probably be buying through a local reseller.

Chuck it all and go virtual

Thanks to ubiquitous broadband, small businesses can now choose to do away with the hardware and software of commercial telephone systems and simply rent the service through online vendors.

I recommend: RingCentral, VirtualPBX, GotVmail, Freedom800, and VoiceNation offer plans ranging from $10 a month and up, depending on how many minutes you will use and how many services you add, like voicemail and forwarding, for instance.

Helpful advice for making the most of this Guide

• •  The upside of VoIP is that long-distance is dirt cheap (your New Delhi office can call using Atlanta rates, for instance), but you will need much more bandwidth to handle peak call volumes, especially if your employees do things like instant messaging or downloading video or music via the Web.
• •  Modern office phones, like cellular phones, are fabulously complicated but little used beyond talking. Buy the handsets that sound best and provide easy access to the features you will use most.
• •  The move to monthly, fee-based virtual phone systems is very tempting, but do the math: Multiply the number of users by the final per-station quote (including all add-on services like voice-mail, employee directory and call forwarding) and then multiply that by at least 60 months. Saving thousands in the first year might not be a savings if you can finance cheaply, plus you can depreciate the hardware cost.

Action Steps
The best contacts and resources to help you get it done

Find the best telephone systems for small business needs

Phone systems for small businesses vary from single line systems with updated features to systems that can accommodate many employees and remote locations. It is important to research the different phone system options available and choose the one that fits your specific business.

I recommend: Comcast offers a downloadable product and price comparison of providers of business phone systems. Read the phone systems guide on Resource Nation and get free price quotes for the type of business phone system that best suits your needs.

Use business phone system suppliers that will accommodate a growing business

Every small business owner is looking to expand their business, and the flexibility of the phone system supplier is important to that expansion. You need to have the ability to add phone lines or remote locations, as well as easily upgrade your package altogether, if necessary.

I recommend: Packet8 offers different packages for all levels of small businesses. AltiGen Communications can add on to your existing package to accommodate growing businesses.

Combine office phone systems with Internet service

In this day and age, Internet service is as important as phone service to small businesses. Some companies offer combined high-speed Internet and phone services that may prove to a be a better deal than purchasing them separately.

I recommend: Telovations offers small business phone systems packages that include high-speed Internet and 24-hour technical support. AT&T Intellectual Property offers several different office phone systems bundle packages that offer unlimited long distance and DSL Internet services.

Helpful advice for making the most of this Guide

• •  If you own a small business, look for business telephone systems that include technical support in case of problems. If your phone or Internet service shuts down, it is important to you, your employees and your customers that you get back up and running as quickly as possible.

Guide to Business Phone Systems Key Terms

Study business phone systems key terms to learn about your options

By Kristan Hart

Action Steps
The best contacts and resources to help you get it done

PBX, Private Branch Exchange

A Private Branch Exchange (PBX) is a telephone switch installed at the business so you can receive phone service. It's recommended for businesses that require a minimum of 100 phone lines.

I recommend: Read about Private Branch Exchange at the Washington State Department of Information Services website.

KSU, Key System Unit

KSU, or Key System Unit, is a central control unit for the phones in your business. It's recommended for businesses that need approximately 60 lines.

I recommend: Read up on Key System Unit and the other types of business phone service at the PhoneGuys website.

KSU-less systems

For businesses with 10 lines or less, a KSU-less systems is the best option. It's an affordable system and it's easy to move from office to office if needed.

I recommend: The Phone Systems Business page contains a lot of good information about KSU-less systems.

IP phones, Internet Protocol phones

To take your business phone system to the next level, consider IP phones. This technology incorporates the benefits of the Internet into your business phone system.

I recommend: The Nortel website details IP phones features for businesses small and large.

Call routing

Call routing is a system necessary for many large business phone systems. Call routing allows the customer direct access to the office closest to his/her geographical area, and it ensures that you'll never miss a customer's call just because a line is unattended or busy.

I recommend: The call routing page on the AT&T website details this feature and why it's a great addition to business phone systems.

Hosted PBX

Hosted PBX is a business phone system package that uses the Internet. Hosted PBX allows employees in all locations access to the same system. These plans frequently offer free inter-office phone calls and unlimited local and long distance.

I recommend: Read about Hosted PBX at the Packet8 Business Services website. You can also see how the technology works at VirtualPBX.com.