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Switching to VoIP can be a smart decision for many small businesses. Not only will a VoIP phone system help you save on your monthly phone bills, it will also allow you to streamline office communications- most offices that switch to a VoIP system report improvements in office-wide communication and overall gains in employee productivity. When it comes to business VoIP, you've got options: Hosted systems, on-site IP-PBX systems, and a range of virtual products and services are available. How do you figure out which system is best for your business? Here are a few things to consider before you begin shopping for a VoIP system:

Call Volume: Businesses with high outgoing call volume- especially those that make many long-distance and international calls- can usually benefit the most from a switch to a VoIP system. Because VoIP uses the internet to route calls, a call to a client across the country will have the same charges associated with it as a call to a client across the street. Your call volume also impacts the type of VoIP system you should choose and the type of connection you will need (a dedicated line or an open internet connection can both be used with a VoIP system).

Company Size: Keep in mind your future plans for expansion, relocation, or changes in company structure. Some VoIP systems are more scalable than others, and some are more portable. For example, using a hosted system (a phone system where equipment is housed at the VoIP provider's location instead of at your office) is convenient for companies who plan to upgrade to a larger office location since there is no equipment to transport.

Office Location: VoIP service depends on a reliable and speedy internet connection. Some businesses, such as those in rural locations or certain parts of the country, aren't able to use the "open" internet to route calls because of geographic service interferences. Always ask providers if they serve businesses in your city or neighborhood, and ask for local references before purchasing a service package, software, or equipment.

Internet Connection: Some VoIP providers will only configure a system using a dedicated connection or a specific method of internet connectivity. You pay for connection costs in addition to the VoIP service itself- make sure your connection is compatible with the requirements for the system you hope to install.

Budget: VoIP services range in cost from $20 a month to several thousand, depending on the services you require, your connection costs, the features you need, and other factors. Services like voicemail and call waiting aren't always included in a standard service offering- you may need to pay extra for these "basics." You should also consider the costs of any equipment- phones, routers, and other VoIP hardware can add to the total cost of your system.

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