benefits of voip for small businesses
  • admin
  • Last Updated: 27 Sep 22
  • 8 min read

Benefits of VoIP for Small Businesses & Start-ups

  • admin
  • Last Updated: 27 Sep 22
  • 8 min read

If you own a small business, you’ll probably find it difficult to expand and operate your business in a competitive market. Small businesses have to maintain a steady flow of capital to manage business costs while trying to acquire and retain customers.

Effective communication is crucial when it comes to acquiring and retaining customers. It is equally important to manage the team and streamline its workflow.

Without proper communication between employees and clients, businesses go downhill in no time. Businesses suffer low productivity, unsatisfied customers, financial losses, etc. before facing their ultimate demise.

So, to keep your business profitable, you need to rely on a solid communication strategy. But maintaining smooth communication is a costly affair. And that’s more so if you incorporate conventional systems for your business communications.

Voice over Internet Protocol (VoIP) is a superior alternative for business communication for small-scale companies. VoIP makes communication economical for small businesses while simultaneously improving business metrics. Small businesses can use advanced features of the VoIP system to improve customer satisfaction and employee productivity.

So how exactly does a VoIP system meet the needs of small businesses? Why VoIP is right for start-up businesses? And what are the benefits of VoIP for small businesses? Let’s find out.

What are the benefits of VoIP for small businesses?

One of the major concerns for small businesses is the cost of maintaining effective communication. Small-scale companies also face challenges in working with a limited workforce and budget while expanding their consumer base. And here are the most notable advantages of VoIP for small businesses.

1. VoIP system has a low upfront cost

The most notable benefit of VoIP for small businesses is its affordable pricing. Small businesses work on tighter budgets. So managing a high capital investment can be challenging. And sometimes, it can also be unsafe to invest a huge part of the capital in the communication system alone.

But things are different with the VoIP system.

VoIP system operates over the internet. And it requires minimal infrastructure for the setup and is cost-effective as well. This can help small and mid-size businesses (SMBs) minimize initial investment and optimize their infrastructural costs.

Businesses can utilize existing internet lines and opt for softphones instead of phone box boxes. Utilizing the resources you already have helps you save time and money. According to Finances Online, startup costs for small businesses using VoIP are reduced by 90%. Such a reduction in costs can give small businesses a head start in the market.

2. VoIP systems are easier to maintain

Maintaining traditional phone systems can sometimes be a pain in the neck. It involves the commissioning of phone lines, timely upgrades, replacement of phones, etc. In addition to financial expenses, it can take away some productive time from office employees.

During repair, maintenance, and replacement, it can disrupt regular service. Such outages can affect business cash flow; spoil the brand image, and cause a bad customer experience. Small businesses may not always cope with such challenges.

Since VoIP systems are easier to maintain, they can help small businesses run smoothly. VoIP providers offer services at a minimal charge ranging from $20-$30 monthly per user. So you can stop worrying about maintenance and invest in technicians.

3. VoIP optimizes employee productivity

Maintaining an efficient workforce is a big challenge in small businesses. They cannot afford to hire a large number of employees because of their limited budget. So it is crucial to optimize employees’ workflow and boost their productivity. And VoIP helps you achieve exactly that.

Unlike regular or traditional telephony services, VoIP services come with an abounding set of features. One of such feature is the sequential calling feature, where calls can be directed to idle employees promptly. Also, intelligent features such as interactive voice response can help small businesses automate mundane tasks and free employee time for more important tasks.

4. VoIP systems are highly scalable

Scaling a small business is complicated. If small companies have to incur additional expenses for scaling a communication system, it can be problematic. Thankfully, VoIP systems are easily scalable.

You May Also Like: How to make money with VoIP?

Adding or removing phone lines in VoIP systems is just a matter of minutes. It does not cost much or require additional infrastructure. And the best part is, everyone can do it without much effort. This gives seasonal businesses remarkable flexibility in upscaling during the peak seasons and downscaling during the off-peak seasons.

5. VoIP systems are portable

Another important benefit of VoIP for small businesses is its number portability feature. You can easily migrate your plain old telephony system without a hassle.

With internet access, VoIP systems can enable employees to work from anywhere. Most small businesses that cannot afford to rent office spaces can operate remotely. VoIP system ensures smooth remote operations as employees can access the company’s communication systems even outside of its physical location.

Employees can use their mobile phones, laptops, etc., to make and receive calls. Employees can connect to the system in real time and promptly communicate with their customers.

Even in the pandemic situation, businesses have been able to be in touch with the team and clients and maintain a proper workflow. Due to this portability, VoIP has been a lucrative communication platform amongst small businesses.

6. VoIP makes calling cheap

For small businesses, international calling is a luxury. To reach potential clients in the international market, you need to establish proper communication channels. Making international phone calls traditionally means steep costs and expensive phone bills.

But SMBs can benefit from the international calling features of VoIP. Most VoIP providers offer very cheap rates for international calling, including toll-free numbers and local numbers.

You can also purchase local numbers for different countries to call potential clients at standard rates while avoiding call blockages. Small businesses that switched to VoIP phone service made savings of 40% on local calls and about 90% on international calls, according to a study.

7. VoIP enables small businesses to test new ideas

Small-scale enterprises have uncertain cash flow, which can lead them to forgo new opportunities. Marketing and sales teams cannot afford to test new ideas without strong evidence. VoIP enables businesses to test new ideas by helping them make data-centric decisions.

VoIP converts audio into data packets. Calling data can be stored, manipulated, and integrated to gain insights into customer needs.

Most VoIP solutions offer third-party CRM integration. Using call analytics with CRM, sales and marketing teams can have a better view of the clients to experiment with product offerings and campaigns.

You can even transcribe customer calls and relate them with client information in CRM to provide niche services. By reducing uncertainty, VoIP empowers small businesses to test new ideas using data-centric information.

8. VoIP makes customers happier

Acquiring a new customer is a costly task. It involves lead generation and conversion, campaigns, outreach, etc. So customer retention is very important for small businesses. And retaining a customer depends on overall customer satisfaction.

VoIP helps to improve customer service. For small businesses, a limited workforce and resources can hamper customer service. But VoIP helps employees to cater to clients efficiently and promptly. Advanced calling features such as interactive voice response (IVR), sequential calling, etc., help customers reach employees easily and get support promptly.

Using features such as voicemails, SMS, and texting, clients can reach out to the company at their convenience. VoIP reduces call handling and processing time. It also directly connects clients to the concerned people, which makes customer experiences better. These help small companies establish their brand as customer-friendly company and retain clients.

The Bottom Line

Clearly, VoIP offers multiple benefits to small businesses. Companies can overcome budgetary challenges in setting up communication systems by switching to VoIP.  If you are a business owner, you might as well choose VoIP solutions for your business and reap all its benefits. And for that, KrispCall would be the most noteworthy option.

KrispCall is the latest offering in the VoIP market for small businesses. KrispCall understands the budgetary limitations of small businesses and offers the best-priced subscription plans for companies.

You can use KrispCall’s cloud telephony system to purchase international numbers at the lowest of prices. So it is great for carrying out outreach processes. Using the options of SMS and campaign calls, you can connect with your clients using different communication channels at a standard cost.

So what are you waiting for? Drive up your revenues with minimal investment with KrispCall’s VoIP phone.


Head of Content @ KrispCall (or, in plain English, I'm the guy responsible for ensuring that every blog post we publish is EPIC).

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