PBX stands for private branch exchange and it is the standard telephone network used by companies all over the world. It is a telephone switching system that allows calls to be transferred from one connected phone set to another and it provides incoming and outgoing phone lines. A PBX system saves companies money by allowing them to purchase one dedicated line from their phone service provider instead of multiple lines to accommodate each user.

A PBX telephone system is a separate service from the telephone company. You will need to hire a service provider to set up an intercompany network and purchase the accompanying PBX phone equipment to make it all work. There are several things that you should consider before investing in a system:

1. How much extra PBX equipment will you need, such as headsets and cordless phones?

2. Will you need a large number of phones to be connected to your PBX telephone system?

3. Is your company better suited for a small business PBX or a larger service?

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

Order extra PBX phones

The most essential of all supplies for PBX phones is of course the physical telephone. Most PBX phone systems will work on up to 40 phones, so you can purchase all the extra sets you need for the office. A representative from the company that hosts your PBX network can come out to hook them up for you if you are uncertain on how it must be done.

I recommend: Find the phones you need from PBX or Startel Technologies' eValueZone.

Obtain cordless phones for PBX telephone systems

Cordless phones are a major convenience in the business world. They provide the same clarity and quality as other phones and allow people to move freely about the office while on a call. The phones will have to be kept fully charged, but, as long as they are plugged in at the end of each day, they will be fresh and ready for use the following morning.

I recommend: Find a cordless phone at TWAcomm or Phones-N-Such.

Buy wireless headsets for use with PBX systems

With a wireless headset, your employees have the ability to talk in a hands-free manner. This means they will be able to look up files or operate a computer while on the phone. Employees will become much more efficient and productive if they are not holding a phone handset all day.

I recommend: Purchase headsets from Telephone Magic or Voiplink.

Locate additional PBX supplies

Once you have the network and phones in place, there are additional supplies for PBX phones you may wish to invest in. These include key modules that provide extra memory buttons for each phone, surge protectors, equipment that allows multiple line conference calls and technology to record and play back conversations held on any phone in the company.

I recommend: Order an extended key lamp module with extra memory buttons from Startel Technologies. Neobits provides surge protectors, ID logging and call recording technology and conference call systems.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  PBX phone systems have traditionally been analog, but they have recently upgraded to digital lines. Pick the type that suits your company's needs the most.
• •  Purchase used PBX phone equipment for a better price.

First impressions count, and they're often formed when customers place a call to your business. Do they get a busy signal? Does the phone ring and ring without being picked up? If so, you could be losing their business before you even have a chance to pitch your products or services.

To avoid such phone faux pas, consider investing in a critical business communications tool — a PBX phone system. A PBX phone system is like having your own phone network inside your office. It routes all internal calls and sends external calls out via lines called "trunks" that connect to the phone company's network. A PBX system allows you to:

1. Eliminate busy signals.
2. Ensure the phone will be answered every time it rings.
3. Guide customers to the appropriate person within the company.
4. Communicate internally with other employees for free.
5. Provide voicemail to each employee.
6. Assign an individual extension or number to each department or employee.

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

Determine how many trunks you need

In order to make external calls from your PBX system, you need trunks (lines) to connect to your phone company's network. However, you don't necessarily need a trunk for each employee or each phone number you have. For instance, if you have 20 people in your office, chances are they won't all be on the phone at the same time so you probably don't need a trunk for every employee. Your calling patterns and the number of employees who will need extensions determines the number of trunks required.

I recommend: Order PBX trunk lines from a phone service provider, such as Sprint.

Get the basics

Look for a PBX system that includes call forwarding, hold, call waiting, conference calling, intercoms, transferring, call pick-up groups, voice mail and the ability to control which external phone numbers can and can't be dialed.

I recommend: Take an online quiz from PBXInfo.com to help you narrow down the type of PBX system that's right for you.

Get extra features

Depending on your communication needs, consider an auto/attendant/receptionist feature, interactive voice response (IVR), caller ID, music on hold or call detail records (CDR).

I recommend: Review the many features available from TalkSwitch.com.

Get the latest technology

PBX systems once used telephone cables exclusively, but today's systems combine old-fashioned telephony with Internet data capabilities. The latest breed of PBX systems also use VoIP (Voiceover Internet Protocol).

I recommend: PBXtra phone systems offer unlimited extensions and voicemail and are integrated to work with VoIP.

Find a system that fits your size

PBX systems designed for very small businesses and home offices often cost less than $1,000. Systems that support up to 100 people are called 'key systems' and can range from $1,000 to $20,000.

I recommend: Several companies specialize in providing PBX systems to small businesses, including Freedom800.com and TalkSwitch, which specializes in phone systems with one to 32 users and integrates standard analog telephones, fax machines, cellular and offsite phones with the traditional telephone network and the Internet.

Fake it

If you don't have the budget to set up a PBX phone system or your business involves telecommuters who don't share the same office space, forgo the traditional PBX and get the same services without the hardware.

I recommend: Sign up online for GotVMail.com's VirtualOne Phone System, which can be customized for one to 30 employees and requires no equipment. Office Depot's Wireless Office Service allows you to offer all of the features of a PBX system such as voicemail, dial by name and an auto-attendant while using cell phones or multiple office phones. Virtual PBX is a virtual system that uses the equipment you already have and allows you to connect telecommuting employees without any extra hardware to buy.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When purchasing a PBX phone system, ask the supplier if they offer maintenance contracts and a support hotline. If you have a PBX problem, the phone company will not come to fix the system. They will only fix problems with outside lines.
• •  Consider purchasing refurbished equipment from a PBX dealer to save up to 30 percent off of your initial setup fees, but make sure the equipment has been checked out and guaranteed by the supplier.
• •  Provide training to all employees who will use the phone system.
• •  Ask your PBX provider about fees associated with your system, such as 411 calls. They often offer such services at a discounted rate on an a la carte basis.

PBX, or private branch exchange is the type of of telephone system that is used by businesses all over the world. It involves a group of phones that are connected together, which is also known as a telephone trunk, and a switching system that allows an incoming call to be transferred to any of these phones. This system allows each phone to make outgoing calls on multiple phone lines. A PBX system also includes an interface module, or switchboard, that is controlled by one employee.

A PBX telephone system is a separate service than what the telephone company provides. It is a network that provides connectivity to your phone lines, and to each telephone set. These networks save companies money by allowing them to purchase one dedicated line from their phone service provider instead of multiple lines to accommodate each user. When investing in a new system, there are several PBX phones basics that you should consider:

1. How many telephones will need to be connected to your telephone switching system?

2. What type of system will work best for your company?

3. Will you invest in digital or analog phone lines?

4. Do you prefer standard or Internet Protocol (IP) PBX phone systems?

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

Investigate the different PBX telephone systems

When checking into PBX phones basics, you will find several different systems are available. The most common is the analog system that has been around for decades. Voice Over Internet Protocol (VOIP) systems are becoming more popular as business owners choose to have their phone service operate via the Internet. Integrated Services Digital Network (ISDN) systems were the first to transmit signals digitally, and are still commonly used. Centrex is a type of PBX system that is controlled by the telephone company. This allows customers to purchase phone lines and a networking system from the same provider.

I recommend: Order VOIP PBX systems through Cisco Systems. Purchase an ISDN system at Monitor Ltd. Check into a Centrex platform with ATN.

Compare standard and IP PBX phone systems

Standard phone systems, or POTS (plain old telephone service) have been around for many years. They are reliable and inexpensive. Calls made on these systems go through the telephone lines that can be seen stretching across the country. IP phone systems allow users to send and receive calls through the Internet. A provider with a powerful broadband connection can offer crystal clear calls and the ability to use the phone system from a remote location. Larger companies may actually save money by converting to an IP phone system that can accommodate an unlimited number of users.

I recommend: Order a standard used PBX system from Neobits. Have Centrepoint Technologies set up an IP phone system for your business

Choose digital or analog PBX integration

The two types of phone lines for PBX telephone systems are digital and analog. Analog has been the standard for many years and it works by receiving an audio signal and converting it into an electronic pulse, then translating the pulse back into audio on the other end. These systems are less expensive and may be better suited as a small business PBX solution. Digital converts an audio signal into binary form and then reconfigures it back to audio on the receiving end. It provides a stronger phone connection with less static or background noise and more extra features. In exchange, digital PBX equipment is more expensive.

I recommend: Purchase analog systems from Telephone Magic. Order digital systems from Fonality.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The PBX phones basics you need for your business may be purchased from a variety of service providers. Shop around to find the one that is the best fit for your company.
• •  Invest in an expandable phone system if you expect your company to have a major growth spurt.
• •  Save money by purchasing used PBX phone equipment.

Since many medium and large businesses use PBX or Private Branch Exchange telephone networks, it's vital to know and understand the key terms related to these types of phone systems. PBX phones provide outside lines without the cost of having an external telephone line hooked up to every phone system in a business. Users can transfer incoming calls throughout a company or make outgoing calls to more than one phone line at a time. There are many key terms used to describe and explain the various functions and types of PBX phones, so take the time to learn them so that you can provide your employees with information about PBX phones and maintain an efficient business.

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

Integrated services digital network (ISDN) systems

Integrated services digital network systems or ISDN are the global communications standard for sending voice, data and video over telephone lines. ISDN is one of the services that users of PBX phones can select when creating their business phone system.

I recommend: Read the information about ISDN systems at Protocols.com.

Voice over Internet protocol (VOIP)

Voice over Internet protocol or VOIP is a type of PBX phone system that uses the Internet to transfer calls. Using VOIP services allows users to make phone calls without additional charges beyond their monthly Internet access billing.

I recommend: Learn about VOIP systems at VoIP Supply.

Centrex or central office exchange

Centrex is a type of PBX phone system that switches calls from a local or centralized phone system instead of through a telephone company. Centrex users can select the services they want including call transfer and three-way calling for their PBX phones.

I recommend: Learn about Centrex phone systems by reading the information at ATN.

Interface module

An interface module is a terminal connector or switchboard that connects components to a central system so that businesses that use voice mail, fax machines and modems to integrate services and promote productivity.

I recommend: Gather information about interface modules by reading the material at Cisco.

Digital

A digital phone system uses digital transmission technology to convert audio files into digital or binary codes. Digital technology offers PBX users clearer sound than analog systems.

I recommend: Find information about digital PBX systems at JK Audio.

Analog

Analog transmissions are the original method for transferring voice and data. It uses one continuous signal to transfer information. Transmissions are generally not as clear as with digital transmission. Many PBX phones have the ability to use both digital and analog methods.

I recommend: Read about analog PBX systems at Telephone Magic.