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The Benefits of Hosted VoIP for Small Businesses

Congratulations! You finally managed to start your own business. The office looks great, and you already have a list of clients waiting for you to get in touch with them to talk about the services you offer. You have probably bought all the office supplies and equipment to ensure the first day goes smoothly. However, you may have missed one thing ― your business phone line.

Sign thanking you for supporting small business

“Why can’t I make do with a simple phone line?”

When you combine cloud, business communications, and mobility, something wonderful happens: barriers collapse, borders disappear, productivity rises, and costs drop. Today, businesses in the world are using cloud communications to make sure their projects run smoothly, and they are connected to their clients 24/7. How amazing it would be if you never missed a call from your client? People praise businesses based on their prompt service. If you can deliver your services within the given time frame, you have cracked the code to success. You need cloud-powered technologies because they can make your business fly virtually anywhere and establish strong networks and connections. 

So, it’s time you upgraded your phone system from a standard PBX line to hosted VoIP. 

Before we list down the benefits of hosted VoIP for your small business, let’s take a look at the what and whys of this phone system:

What Is Hosted VoIP?

VoIP, also known as Voice over Internet Protocol, changes phone calls into data packets and then transmits the calls to a telephone network. Unlike VoIP servers located at business premises, a hosted VoIP provides you with complete phone service over the internet from a reputable VoIP provider.

Instead of dealing with the hassle of buying and maintaining on-site servers, a hosted VoIP system allows you to stay connected with the data centers. This way, you reduce the hardware needed in the office without cutting back on any connectivity features with zero maintenance. How cool is that?

The best part is that these are just some of the general benefits of a hosted VoIP system. 

Who Uses VoIP?

To understand VoIP, you have to understand how the cloud works. In simple terms, the cloud is a system of servers, each one assigned a specific function(s). When you use social media or email, you are using the cloud. When information is not stored on a physical device, like a phone or a PC, it is stored in the cloud.

What Can VoIP Do?

A hosted VoIP system provides online services. A cloud-based phone system allows you to conduct your daily business communications. The process through which communication travels from one line to another is handled remotely where the servers are stored. 

How Does VoIP Work?

In short, like a dream! Imagine a phone system that offers full-range scalability, no maintenance, and advanced capabilities. Wouldn’t you rely on it to keep your business running? Add in the low monthly cost, and you have hit the jackpot.

  • Conference calls (video and web conferencing)

  • Auto-attendant

  • Mobile app

  • Advanced call analytics

  • CRM integration

  • HD call quality

  • Local phone numbers

  • Toll-free phone numbers

  • Voicemail-to-email

  • Music on Hold

  • Fax to Email

  • Follow Me

  • Softphone

VoIP works by changing analog voice signals into digital packets that allow voice traffic to run on a similar high-speed network to your internet traffic and existing data. Since current cloud servers are incredibly fast and use innovative encryption, data and voice traffic are secure, reliable, and crystal clear.

Now that you what a hosted VoIP system is and how it works, let’s move on to how it helps small businesses:

How VoIP Benefits a Small Business

A misconception that most entrepreneurs have today is that they think VoIP is for big businesses mostly. We have already mentioned the features of a hosted VoIP system above. For a small business to compete in the big leagues, it needs to take advantage of these features to stay ahead in the game. 

Instead of relying on an analog phone line, you get to use a broadband internet connection that allows you to receive and make calls easily. Similar to how an email is delivered to you through the internet, the sound is converted into digital packets and allows you to communicate.

Below are eight benefits of VoIP for small businesses:

  1. Lower Costs

The first and most important benefit of a hosted VoIP system is that it’s costly. For small businesses, this is a big deal because they are just establishing their brand. Depending on how many employees you have, the cost of adding multiple phone lines can quickly add up, especially if you have foreign clients.

Since VoIP eliminates the issue of using a single phone line with just two callers having a chat, almost everyone in your office can pick the receiver any time and make a call. The IP network established in this system can either be connected to your existing internet connection or directly to your phone. It can also be a combination of both.

In traditional phone lines, you are charged for every minute, whereas the charge is monthly with VoIP. Many providers offer extremely cheap rates when it comes to making calls within your country.

  1. It Can Be Expanded

As your business will expand, so will its needs. Depending on the number of departments you will add to the office, the number of phone lines needed will increase. As mentioned earlier, this can increase your expenses substantially. With VoIP, you will not have to pay a dime for extra lines. As soon as someone new is recruited, you can give them access to their dedicated phone line easily. In case an employee is transferred or leaves, you can reassign the line to someone else. 

  1. You Can Compete With Bigger and International Companies

Suppose you are a wholesaler of cosmetics. They are plenty of national companies that offer the same cosmetics. So, you decide to target international customers. However, this decision to expand outside your base means you will have to compete with international wholesalers, who might have a more diverse range of cosmetics. To talk with retailers, you need a more cost-effective and efficient way to communicate.

This is where VoIP is useful. It allows you to make internal as well as external calls in a practical way. You can talk to prospective clients at very little cost, conduct meetings with partners online, and make long-distance calls.

  1. It Increases Staff Productivity

If your small business has employees that work from home or freelancers that seldom come to the office, VoIP can help you remain connected to them and motivate them. VoIP provides the ability to conduct phone conferences, host virtual meetings, attach company documents during video conference sessions, and more.

In recent years, there have been significant advancements made in VoIP. The biggest drawback of a traditional phone line is a bad connection. It often happens that mid-conversation, either the call drops or you can’t hear the other person. With VoIP, you will always get a clear connection and no lagging transmissions.

  1. It’s Portable

Who would have thought that you can stay connected to your business anytime, anywhere? VoIP gives a whole new meaning to bringing work home! You could be expecting an important call from an international client. However, the office will be closed tomorrow. The client hasn’t called yet, and you are worried that the call might come after you leave. Talking with this client is vital because he is a huge investor and can help you take your business to new heights. You wait an hour more and still no call. As expected, when you come back to the office on Monday, you see you have a message waiting for you from the client. The client sounds a bit upset that he called you multiple times, and you weren’t there to receive it. 

If your business had VoIP, you wouldn’t have faced this problem. With VoIP, you can receive business calls on your smartphone, ensuring a direct connection with colleagues and customers no matter where you are. If the call is for one of your partners, you can also transfer it to him without the hassle of rattling out their number. Moreover, you can also set your call status to “busy” or “away” in case you are busy so that your colleagues can call you at a later time.

  1. Simplified Conferencing

In traditional phone lines, you have to specifically ask the provider to give you the conferencing feature. This feature costs extra and you can only invite a set number of callers to the conference. With VoIP, these features are always part of the package, and the cost does not depend on the number of conference calls you make.

  1. Better Bandwidth Use

One benefit of VoIP that most people don’t know about is that it allows you to use most of your bandwidth. Since most voice calls include 30 minutes of silence on a 1-hour chat, VoIP continuously fills the gap with data from multiple bandwidth consumers so that the resources can be used more efficiently. Moreover, VoIP allows for the elimination and compression of speech redundancies, which further improve efficiencies.

  1. Extensive Additional Features

Businesses have yet to understand the full extent of benefits provided by VoIP. The additional features provided by this cloud-based phone system can not only increase the productivity of your business but also make sure you never miss an opportunity, whether national or international.

Most VoIP features that people know of are caller ID, contact lists, virtual numbers, voicemail, etc. These features can be used in a sophisticated manner to increase operational efficiency; messages and voicemails can be forwarded with one click to multiple colleagues, and you can send text transcriptions of voicemails directly to your inbox for reviewing later.

These features and more are offered in a package, and you can even make additions to it based on your business needs.

A VoIP system is highly reliable. If your phone lines go down, you can direct the calls to your smartphone and ensure business operations keep running. If there’s a storm coming or you experience any power outages, your clients will still be able to connect to you. Moreover, when expanding your business, you may add more devices and technologies. At no extra cost, you will be able to connect them to your VoIP system easily.

Is a Hosted VoIP System Right for My Business?

In conclusion, a hosted VoIP system is way better than a PBX system. It’s also better than having the hardware in your office and making sure your servers are maintained properly.

Since VoIP is a proven solution delivering tangible benefits, the answer is a resounding YES! You need to choose the right provider so you get the most from it when your phone system is upgraded.

As the top voice solutions provider, Motion VOIP offers its services to restaurants, resorts, and different businesses. Our staff includes experts who are great at providing quality solutions according to your needs so you can use the latest technology to make your business grow. Visit our website now to know more about our VoIP systems.