Do I Need a Phone System for My Business? [5 Signs That You Do]

Submitted by Chris Gaines on Fri, 03/ 26/ 21 - 12: 00 PM

How Do I Know if I Need a Phone System for My Business


When your company is just starting out, using a few business phones to manage incoming and outbound calls is likely the right decision. However, when your business begins to grow, it can become difficult to know at which point you may need to upgrade to an integrated phone system. Keep reading to learn how your business can tell if a phone system is a right fit, and if so, how to find the right type.

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Do I Need a Phone System for My Business?

What Type of Phone System Should I Choose?

Questions to Ask When Buying a Phone System

Do I Need a Phone System for My Business?

Tips on Choosing a Phone System

Here are 5 signs that it may be time to upgrade to a business phone system or get a new phone system:

Your Call Volume Has Increased

If your business has enough call volume that it's becoming difficult to manage them from one or two individual phones, or customers are frequently getting busy signals, then that's a sign that it may be time to upgrade to a phone system.

When callers are frequently receiving a busy signal or can't be placed on hold, that can negatively impact the customer experience, which can potentially harm your brand's reputation, seeing as unhappy customers are unlikely to return.

While in some cases, simply adding additional lines to your phones can solve these issues, sometimes an entire overhaul of your current phones is necessary to keep up with call volume and streamline business operations.

Your Phones Aren't Supported

While your current phones may be functional, the fast-paced world of technology means that your phones could soon be outdated or no longer manufactured as newer phones are released.

In this scenario, it can be costly and frustrating to find technological support for your phones or upgrade your system. Even if you decide to keep your phones, running a business off of un-supported phones is a dangerous game.

All it takes is a power outage or technological glitch and your hardware can fail, making it extremely difficult to restore your phones to full functionality once again.

If you're suddenly forced to upgrade your phones simply to maintain business operations, you likely will be forced to make quick buying decisions, which can force you to pay more money up-front for new phones or be cornered into a poor contract versus if you had had a fully functional and supported phone system with built-in upgrades. 

You Need More Phone Features 

While having a simple set of phones can be enough to function when your business is just starting out, as it grows, you may begin desiring more from your phones.

For instance, just the simple action of being able to place a caller on hold or have an automated attendant to route incoming calls to the appropriate person can go a long way in making calling more efficient and improving the customer experience.

Business phone systems come with a variety of advanced features that can streamline the calling experience for both employees and callers. 

You Need Business Integrations

As your business grows, you may begin to want more out of your phones. You may wish to integrate your phones with additional platforms to make business processes more efficient.

As opposed to a basic set of business phones, the right phone system can come with software integrations which empower your business to streamline operations. For instance, CRM integrations enable your sales team to work more efficiently through faster call routing, contact searching, and more. 

Some phone systems even integrate with your email so that every time a voicemail is left on your phone, a voicemail transcript is automatically emailed to you. 

If your business is desiring integrations such as these, a phone system may be the right fit.

You're Expanding to Another Location

If your business is opening an additional location, having a siloed set of phones at each location could mean that your business operations aren't as streamlined as they could be

Specifically upgrading to a VoIP business phone system is a low-cost solution that can give businesses the flexibility to scale the system up or down as needed while implementing a Unified Communications approach to business operations.

RELATED: What is VoIP? (Definition, Benefits, and More)

What Type of Phone System Should I Choose?

Do Businesses Need Phone Systems



On-premise business phone systems involve having all equipment necessary for system operations, such as servers, physically on-site at your office. The end user is responsible for any upgrades, maintenance and system expansions.


Better ROI

If you are a larger company, you might find a better ROI with an on-premise phone system. Though the up-front costs to purchase all the necessary hardware for your system can be substantial, it can last you a long time, which will make the investment worthwhile.

Suits Those Who Want a Hands-On Approach

On-premise systems are also beneficial to those who want a hands-on approach to managing their phone system's upgrades and maintenance. Companies who wish to keep their data physically close by may like the idea of keeping data in an onsite server.


Limited Extensions

Unlike cloud and hosted phone systems, on-premise systems have a finite number of available lines, which can hamper business operations if a company plans on expanding in the years to come.

Susceptible to Natural Disasters

Since your phone system's infrastructure is mainly housed physically in your office, this means that your phone service could be affected by natural disasters such as fires and floods.


Business phone systems are no longer limited to traditional landlines. Today, business phone system providers can outfit your entire office for a reasonable price that are all connected through your office network.

A hosted business phone system is typically based in a data center as opposed to on-premise systems where servers and other main systems are based physically in your office.


Remote Support

Most phone issues can be fixed remotely through a managed services provider or a company capable of servicing phone systems via this method.


Since the system infrastructure isn't completely housed in your office, the up-front investment required to set up a hosted phone system is minimal.


Since hosted phones are based on the Internet, the amount of lines you can add is virtually unlimited. This is great for companies who are remote or plan on experiencing rapid growth in the future. 

Suits Those Who Want a Hands-Off Approach

Hosted phone systems are typically managed off-site by another entity. This is great if you don't have an internal network administrator at your company and are overwhelmed at the thought of managing your phone system yourself.



Since your calls are ran through the Internet, if your Internet is down, so are your phone lines. However, the Auto Attendant, call handling, mobile applications, voicemail forwarding, and conferencing calling will all still work.

Call Quality

If your call volume is heavy and servers become overwhelmed, call quality can begin to drop.

RELATED: How Much Do Business Phone Systems Cost? [2019]

Questions to Ask When Buying a Phone System

Do I Need a Phone System for My Business

Ask yourself or your provider the following questions to better determine which type of provider and phone system are the right fit for your business. 

Ask Yourself:

How many phones do I need?

When buying a business phone system, a key point to figure out is how many phones your office needs. Determine whether or not every employee needs a phone. While certain employees such as those in your sales department need a business phone to conduct business, other employees may not need one.

Consider the future of your business phone system as well. If your company plans on expanding or moving offices, your needs in a phone system may change as well. Ensure that your business phone provider can accommodate any such needs.

What features do I need and want?

Product features are one of the most important aspects of a buying decision. When it comes to business phone systems, the market is flooded with so many products with such a wide variety of features that it can be hard to determine which offering is better than the other.

The following features, which comprise the product comparison in the next section of this article, are essential business phone features that companies should consider when evaluating a provider's offering. 

  • Call Continuity: Call Continuity is a feature that minimizes downtime in the event of phone connectivity loss by automatically re-routing calls to specified backup numbers. Once your power or Internet is restored, normal call routing automatically resumes. 
  • Auto Attendant: As a business, you cannot afford to have calls go unanswered. Auto attendants serve as virtual receptionists and can come with a variety of customization tools, such as the ability to offer callers touch-tone options that route to specific people or extensions (through an automated directory).
  • SIP Trunking: SIP trunking routes your phone calls over the Internet instead of through the phone company's lines. You can use it with most business VoIP phones or even older analog or digital phones. This feature lowers your phone bills and improves reliability without changing your existing numbers or buying a new phone system.
  • Distinctive Ring: Distinctive ring lets you establish additional telephone numbers on the same line as an existing number, allowing each number to have a unique ringing pattern. Employees can quickly know who the call is for without having to ask the caller.
  • Video Conferencing: Some phone systems extend beyond audio-only calls to let you hold high-quality video conferences. Screen-sharing is sometimes included in a package, which can power your video conferences to greater heights.                                                         
  • Call Recording: Call recording allows you to play back a call to ensure that no information was missed. This is a useful feature because it saves time spent note-taking during important calls and allows managers to replay calls to for quality assurance and sales rep performance reviews.         
  • Contact Center: With customizable call flows and features to ensure more efficient interactions, contact centers combine voice, chat, and email queues into a single experience. Some contact centers even give you real-time customer insights and historical reporting to help improve future interactions. 

Ask Your Potential Provider:

Which of my systems are these phones compatible with?

It can be expensive and time-consuming to upgrade all of your office's technology at one time, which is why it is quite rare for other systems to be upgraded at the same time as your business phones.

Devices and systems such as alarms, fax machines, and other shared resources may run on digital or POTS lines, which can present problems when your phone system is upgraded.

Check with your business phone provider to smooth out any wrinkles regarding the phone installation. For instance, some new phone systems may require additional network cabling.

Can you provide a few testimonials?

Testimonials offer an additional layer of insight that you may not get just from speaking directly with a provider or reading their offering online.

Additionally, testimonials can give you insight into the size and industry of businesses that your potential provider has experience with, which can help determine how much they'll be able to understand your business' unique needs and wants.

What does your support system look like?

There are some companies who sell quality phone systems, but can't properly assist you when something goes wrong. There are other companies who outsource their service, which means that the company you thought you hired isn't the company who will be helping you.

Some companies have their own in-house Network Operations Centerwhich typically points to a company who can handle most any situation, in-house.

How can you guarantee quality of service?

How can you measure the quality of your business phone provider's service? Since service can vary significantly from one provider to another, check with your provider to see if a Service Level Agreement (SLA) can be built to ensure that your provider delivers on their promises. 

For instance, you can set specific goals for factors such as jitter, latency, and response times in the event of outages. Your SLA should also set expectations for how you can get out of your contract if you are unsatisfied with your provider's service.

However, keep in mind that many providers will include contract stipulations that state that you must give them a specified period of time to remedy your complaints before you're allowed to break your contract.


By upgrading to a business phone system, growing organizations become empowered to streamline operations and improve the end user experience. 

We hope this article answered your questions. For more business phone content, follow our blog!

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Posted by Chris Gaines


business phone systems