8 benefits of a virtual phone service for small businesses

The world is constantly changing, and small businesses need every possible advantage to keep up. Enter virtual phone systems, a powerful, flexible and cost-effective way to streamline communication and boost your team's productivity. They come with a robust suite of features and are intuitive with easy-to-use dashboards. Even better, you won't need any bulky or expensive hardware. From scaling with ease to being able to take phone calls from anywhere, virtual phone systems for business provide the flexibility you need. However, they might not be the best option for every business, so let's take a look at eight reasons to go virtual-and four pitfalls to watch out for.

Benefits of virtual phone systems for small business

From getting a virtual number you can use anywhere to a customized solution perfect for your small business, virtual phone systems have a host of benefits. Here's what you need to know.

1. Pay only for what you need

With a virtual phone system, you're in the driver's seat. Many VoIP providers offer packages that are customizable or-like Ooma-finely crafted for your business. This means you won't get stuck paying for features you don't need. You can select an entry level package with all the basics, and then move up to higher level plans to get features for specific business needs, like Overhead Paging for a retail location. Think of it as the difference between a cable plan and a streaming plan. With cable, you pay for hundreds of channels you're never going to watch. With streaming, you payless and get more shows you can watch on your own time.

2. No expensive hardware required

Landline-based phone systems require up-front hardware investments. In contrast, with a virtual phone system you can use existing IP phones, smartphones, tablets and both desktop and laptop computers you already have in your small business. Plus, VoIP-enabled business phones tend to be more affordable than traditional office phones.

3. Quick and painless setup

Getting started with a virtual phone system is simple. Whether you choose to use existing equipment or opt for some fancy new VoIP phones, bringing your service online is a plug-and-play experience. You don't even need to be an IT professional to manage it, you can do it yourself. If you want some help, a good technology partner can walk you through the steps and make it even easier.

4. A system that scales with your growth

Virtual phone systems are designed to expand to meet your changing needs as your business grows and adds new team members. There are no costly expenses to update your phone system's hardware infrastructure, even if your team is distributed across the country. Adding new users is quick, easy and inexpensive.

5. Add phone lines when you need them

Access to phone lines is especially beneficial for small businesses with remote workers who spend most of their time out in the field or working from home. If you've got teams all over the country and want them to come across as part of your organization, adding a level of professionalism, it can be easy to add phone numbers, phone lines and extensions.

6. Mobility whenever, wherever and on any device

Traditional landline phone systems only work in the office. A VoIP system makes it possible to take and make calls from anywhere on a range of different devices. At your desk? On the go with your smartphone? Got a laptop in a coffee shop? No matter, you can tap into your phone system and communicate like a pro.

7. Actionable insights at your fingertips

Knowledge is power. Virtual phone system providers like Ooma offer small business leadership teams actionable insights to enhance customer service and improve their teams' performance. Easy-to-read reports will make it clear which are the busiest days and periods for customer call-ins and customer hold times. Use this data to better staff your business. Fine-grained data on individual employees is great for coaching and performance reviews.

8. Built-in tools for seamless collaboration

Traditional phone systems are pretty much built around voice, but with a modern virtual phone system you get so many more options. Not only do you get videoconferencing with tools that let you collaborate with colleagues across the country, but you also get instant communication with features like messaging. These built-in tools can help take your collaboration to the next level and make sure everyone is in the loop. A connected company is prepared to stay connected with customers, after all.

Keep these pitfalls in mind

There's no such thing as a perfect business phone service, and virtual solutions come with a few downsides. Here are the four potential issues you may encounter and how to avoid them.

1. Internet dependence

One of the most frequently-cited weaknesses of VoIP systems is their reliance on the internet. While a reliable internet connection is essential, some VoIP companies (including Ooma) offer backup internet connectivity in the event your internet service provider experiences an outage. The backup service engages automatically to keep your phone system operating smoothly, even if your primary internet provider isn't always reliable.

2. Security vulnerabilities

Anything connected to the internet is vulnerable at some level to malicious intrusions. That's why choosing a reputable system provider is essential. High-quality VoIP providers like Ooma offer multiple layers of security to ensure privacy. And even with a partner that takes security seriously, phishing attempts can get around most security procedures.

3. Fixed-length contracts

Some virtual providers attempt to lock customers in with fixed-length contracts. The good news is that others don't. The best VoIP service companies offer contract-free, flexible monthly plans. (And you guessed it-you're not forced into a contract with Ooma!)

4. Upcharges for essential add-ons

Look for a provider with simple, easy-to-understand service tiers that include all the features you're looking for at a set price.

Choosing the right phone system for your small business is a big decision. Making the wrong choice can be frustrating, time-consuming and expensive to reverse. Although no phone system is 100 percent perfect, a virtual phone system can open up a variety of opportunities for small businesses. They have plenty to offer at an affordable cost. They're easy to use and customize as your business grows.

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