VoIP: Its Benefits to Small Business Owners

VoIP: Its Benefits to Small Business Owners

Voice over Internet Protocol (VoIP) is the technology that uses the broadband Internet connection for voice communications and multimedia sessions instead of the traditional analog phone systems. Prior to the introduction of the VoIP phone system in 1995, businesses were generally spending too much for business phone services through their local phone companies. The advent of the Internet brought in the email and instant messaging options to the forefront.

However, many companies thought that these options lacked the ability to communicate in real time. Moreover, there was that need to maintain a more personal connection that can usually be achieved by hearing another person’s voice. Alongside these requirements, the search for an alternative to expensive international telephone charges brought in the development of the VoIP system.

One of the biggest misconceptions over the VoIP system is that it is ideal only for large corporations. On the contrary, a simple browse through Lingo’s offerings will show that VoIP has many features that even small business owners can benefit from.

Affordability and Accessibility

One of the biggest advantages of using VoIP for small businesses is its affordability. Costs related to its installation, maintenance, and operations are 40% to 80% lower than that of traditional phone services. Small businesses can use these cost savings to grow their business further instead.

VoIP was originally developed for long-distance and international telephone charges. Since VoIP is not connected to a physical landline, domestic and international calls are charged with the local rate. The system has successfully eliminated the high costs associated with long-distance calls. Nowadays, VoIP has achieved more than cutting down telephone charges. It has also lead to a significant reduction in travel costs. Teleconferencing and video conferencing eliminate the need for employees to travel from the field to the office to discuss important concerns with colleagues.


For small businesses, scalability is always a priority. For any company looking for scalability, VoIP is the best option. This cloud-based phone system allows businesses to capitalize on opportunities to grow due to its wireless nature. Rather than putting a dent on operation costs while waiting for new phone installations or construction of bigger centers, VoIP allows business owners to expand the business to their heart’s content. Adding a new phone number to a VoIP phone doesn’t require much more than a few clicks of the mouse button. Expansion and contraction for any business could not have been made easier without this system.

Increased Functionality

benefits of VoIP

Beyond the typical call waiting and call forwarding features, the VoIP system offers a plethora of other functionalities essential to any business. Some are meant to streamline the call management process, while others are designed to improve customer experience.

The find me/follow me call routing feature, for instance, allows a business owner to create a list of numbers where they can be reached before pushing the call to voicemail. This feature in itself offers many advantages. For one, missing out on calls from important clients and business opportunities are greatly reduced. Improved productivity, enhanced customer service, reduced telecommunication expenses are also some of the many advantages of this call routing feature.

Many small businesses are still on the fence about switching over to a VoIP system. Some of the main concerns include savings, stability, and convenience. Going through the advantages given above should help business owners better understand the advantages that come with this new communication technology.