How much should a small business phone system cost?

This is one of the common questions small businesses ask when it comes to updating their phone systems.

Every business telephone system is different. The fact that there are so many options makes it tempting for business owners to order the wrong package based on price. Some of the features that you want to look for in a phone system are VOIP, call recording, SMS messaging, wireless headsets, and an easy-to-use web portal.

A business phone system or phone service can be one of the most important business purchases you make. Whether you are in need of one phone line or dozens, the cost of phone systems can vary widely. If you are searching for a new system.

A business phone system, like any major purchase for your company, needs to be carefully considered. This post will help you consider the costs associated with purchasing a phone system and what you’ll be getting for your money.

What Goes Into the Cost of a Phone System?

The cost of a business phone system can vary widely, depending on the features you choose. Many businesses start by purchasing an inexpensive phone system. The low price may be attractive, but it also means that the system will only have the basic features for your business. Below are some factors that affect the cost of any business phone system.

The number of users

The cost of a phone system for your business is largely dependent on the number of users who’ll need the system. Business phone systems include all the hardware and software installation needed to handle your customers’ incoming and outgoing calls, as well as other business communications needs, such as voicemail, conference calling, and external call routing.

The number of locations

One of the biggest factors that go into the price of a phone system is how many physical sites, or locations, need to be supported. This includes all potential extensions and their corresponding phones and other devices which send and receive voice and data (such as fax machines and mobile devices).

 A layer of redundancy

Even with the best technology, sometimes things can go wrong. When that occurs, it is critical that you are able to maintain your business systems for your phone system so your business will stay open no matter what. With a virtual PBX, the amount of redundancy in the system is greatly increased.

By pairing multiple servers together, a network administrator can deploy fully redundant systems with just a fraction of the initial investment required for traditional solutions. This additional layer of redundancy ensures that callers will never experience an outage or disruption in service. This in turn plays a part in the overall cost of the phone system.

 Selected system type

There are several different types of phone systems that businesses can select from to use in their operations. These include the following: Key system, Private branch exchange (PBX) and Centrex. The type of system selected will determine how much it costs for a business to make and receive phone calls.

Required training

While it is possible to get a phone system up and running using your personal computer, it is much easier if you have someone to help you. Most companies will provide this initial training for you, but the exact amount of training required will vary between systems.

You will need to know how to use the phone system application, how to load new extensions, what codes are available for different features, and how to transfer calls appropriately.

This can be learned through an online video tutorial or printable manual that will be provided with the system. All of this takes time, often an entire day or more depending on your understanding of technology.

Annual maintenance requirements

All phone business systems require an annual maintenance contract. The majority of them do not require a long-term contract, and those that do typically have either a low or no penalty for discontinuing their service.

Annual maintenance helps to ensure that your equipment continues to work at its best. Many businesses find it useful to include the maintenance fees as a line item on their budget, which helps prevent any surprises should they decide to switch brands or vendors.

Features and functionality you need

The cost of a VoIP phone system will vary depending on the number of features you require, the number of extensions needed and any optional add-ons such as music on hold or system security. Therefore, there is no set price for such a package. The cost to install a VoIP business phone system will also vary. Some of the features may include the following:

  • Unified messaging
  • Voicemail-to-email
  • Queues for phone calls
  • Company directories and extension dialling
  • One-button transfer
  • Recording of phone calls

All VoIP systems do not require an engineer to visit the site and can be configured remotely once purchased. However, the costs will vary because an engineer may be required to configure individual devices like IP phones and routers if internet connectivity is not available at the site and to test and activate the VoIP system after installation.

What Kinds of Businesses Benefit Most From a Good Phone System?

For most businesses, the combination of reliable phone service and a good phone system can be invaluable. A good phone system has many advantages: it helps with organizing and managing employees, increases the efficiency of day-to-day operations by allowing you to better direct your staff and handle customer interactions in an easier manner, and much more.

Any business that has telephone benefits from investing in the right phone system. No matter how large or small your business is, you can expand without adding staff or spending more on phones.

What is the Average Phone Bill for a Small Business?

There are many factors that affect the average monthly phone bill. The first is the type of business. For example, businesses with many employees or call centre employees will have higher expenses than a company with only one employee. Additionally, call volume has a high impact on the monthly bill. This includes long-distance telephone calls, data transfer fees, and voice telephone traffic.

When is the Best Time to Invest in a Good Phone System for Your Business?

If you are having trouble finding the time to juggle your regular day-to-day activities while keeping your finger on the pulse of business, then an advanced phone system is the solution. Your business will have direct access to your customers, without losing valuable hours of productivity.

The phone system is the foundation of your business. Many professionals often wonder if they’re spending too much money on a regular phone line. After all, smartphones and mobile

Devices have made it easy to conduct business no matter where we are or what we’re doing.

But there’s no replacing the direct connection you’ll have with your callers when you use a hosted voice service. And as technology continues to move forward, you’ll still want a reliable business telephone option as part of your overall communication strategy.

What is the Best Business Phone System for 2021?

For small businesses looking to grow, complete business phone systems might be the right way to go. Instead of jumping from one product to another and eventually not having integrated and properly configured solutions, buying a complete business phone system might be the way to go.

Answering machines are a thing of the past. Fortunately, the 21st century will provide you with many options for an affordable electronic solution. The best phone system for 2021 should have the highest number of features, be easy to set up and manage, and have eco-friendly features.

It is also one that can be changed over time to meet the ever-changing needs of your company. From small businesses to large enterprises, proper communication is an essential part of keeping your business running smoothly.


There’s no question that your phone system plays a big part in the way you run your business. When you’re looking to replace or upgrade. The fact is, the price of a phone system can vary greatly, depending on factors like how many extensions you need, what features are included, whether the system is VoIP or traditional, and so on.

The first and perhaps the most important part of setting up a small business phone system is to identify your individual needs. You can then narrow your focus and select a phone system that will match those needs and work within your budget.



Scroll to Top