5 Best office phone systems for small businesses & startups in the UK

Efficient communication is crucial for small businesses and startups alike. Discover the best office phone systems in the UK that can enhance productivity and streamline customer interactions.

Explore the benefits and requirements associated with installing on-premise analogue PBX systems, hybrid IP PBX systems, cloud hosted phone systems, virtual landlines and SIP trunks for small businesses.

Read on to find out more!

What is an office phone system?

An office phone system integrates various features and functionalities for streamlining internal and external communications.

Office phone systems can vary from analogue on-premise PBX systems that rely on copper lines and types of VoIP systems including hybrid IP PBX systems that rely on copper lines and your IP network, cloud-hosted PBX systems, virtual landlines and SIP trunks.

In the UK, business phone systems that rely on VoIP are a necessity as the PTSN switch off deadline approaches and copper landlines are phased out completely.

5 Business phone system options for small businesses and startups

Small businesses and startups have a few options to choose from to help them meet their communication needs.

Small on-premise PBX phone systems, Hybrid IP PBX phone systems, Cloud Hosted PBX systems, Virtual Landlines and SIP trunks offer different features and advantages. These systems are particularly suitable for small businesses and startups as they are cost-effective, highly scalable and feature-rich.

In the next section, we’ll take a closer look at each of these small business phone systems to unpack how each one can help your business.

On-premise analogue PBX systems

An analogue PBX system is a traditional business phone system that relies on copper landlines and the PSTN and circuit switching technology to facilitate voice communications.

As the PSTN switch data is set for 2025, and some regions in the United Kingdom have already phased out PSTN already, installing a new analogue PBX is not recommended. Customers that do have an analogue PBX will need to contact a specialist about integrating with VoIP to ensure their communications are future-proof.

1. Small on-premise traditional PBX phone systems for 2-5 users

Small on-premise traditional PBX phone systems cater to the needs of small businesses with compact teams. These systems operate using analogue technology and rely on copper landlines. They are typically located on-site and consist of various components, including a central control unit, cabling, desk phones and other handsets, and your business landline.

While these on-premise traditional PBX systems have served businesses well over the years, it’s important to note that the telecommunications landscape is evolving. The upcoming PSTN switch-off means that traditional copper landlines will no longer be supported in the near future.

To adapt to this changing landscape, small businesses may consider transitioning to IP-based solutions like VoIP or cloud-hosted PBX systems.

These alternatives offer advanced features, scalability, and cost savings while leveraging the power of the internet for communication. Consulting with a specialist can help determine the best solution for your small business’s communication needs in light of the PSTN switch-off.

Benefits & key features of a small on-premise analogue PBX phone system

A small on-premise analogue business telephone system offers reliability, customisation, and cost-effectiveness for small businesses.

With dedicated connectivity and customizable features, businesses have greater control over their communication infrastructure. These systems also provide privacy and data security by keeping communication data within the company’s premises.

Requirements for a business setting up a small on-premise analogue PBX phone system

Setting up a small on-premise analogue PBX phone system requires adequate space and infrastructure, access to traditional copper phone lines, installation of the central control unit and cabling, provision of suitable handsets for users, and ongoing maintenance and support.

VoIP Phone systems tailored for small businesses

A VoIP (Voice over Internet Protocol) phone system facilitates voice communications by relying on a reliable, high speed internet connection.

There are many types of phone systems that use VoIP that are suitable for small businesses in the United Kingdom. These include hybrid IP PBX systems, hosted PBX solutions, virtual landlines and SIP trunks.

Let’s explore different VoIP enabled PBX solutions, their benefits for small businesses and their installation requirements.

2. Hybrid IP PBX phone systems for small businesses

Hybrid IP PBX systems utilise VoIP (Voice over Internet Protocol) technology, offering a flexible solution differing from traditional phone systems. They transmit calls over the internet, previously alongside the option of utilising traditional PSTN phone lines (often copper-based).

Hybrid IP PBX systems have provided a smooth transition for businesses looking to modernise their communication systems without entirely abandoning their existing infrastructure. However, with the impending PSTN switch-off, the hybrid systems will need to operate solely on VoIP to facilitate communication. This adaptability showcases the system’s versatility in the face of changing telecom landscapes.

We suggest implementing a reliable hybrid PBX systems designed to accommodate small to medium sized teams, such as Yeastar S20 or S50 VoIP PBX systems. The features offered by your VoIP PBX will also need to align and help you streamline your communication workflow.

Your VoIP or phone system provider can help you determine the best fit for your business needs. You can also contact us to get advice from a specialist.

Benefits & key features VoIP/IP PBX phone systems for small businesses

Hybrid IP PBX systems, utilizing VoIP technology, offer significant benefits for small businesses.

They cut communication costs due to lower VoIP call rates, provide easy scalability to adapt to business needs, and integrate with existing IT infrastructure.

Key features of these systems include advanced call routing, auto-attendant, call conferencing, call recording, call transfer, call queuing and more. Plus, they enable integrations with softphone extensions, CRM system, audio devices and other supporting customer service efforts.

In essence, VoIP/IP PBX phone systems offer cost savings, customer experience enhancement, and advanced communication features, making them an optimal choice for small business owners looking to streamline their company communication structure.

Requirements for setting up an IP PBX phone system as a small business

To set up an IP PBX system for a small business, certain prerequisites are necessary. A robust internet connection is vital for clear voice calls. Suitable hardware like IP-compatible handsets, or software solutions like softphones, are required.

With the upcoming PSTN switch-off, ensuring that your network and telephone system infrastructure can handle solely IP-based communications is crucial.

By meeting these installation requirements, small businesses can take advantage cost savings and fleet of features associated with IP PBX systems.

3. Cloud hosted phone systems for small businesses

Cloud Hosted PBX systems offer small businesses a reliable and cost-effective VoIP phone system solution.

With a Hosted/Cloud PBX system, a business phone system is hosted and managed in an offsite data centre, eliminating the need for on-premise hardware. However, cloud hosted PBX systems can also be paired with IP phones and headsets to suit your preferences.

A cloud hosted PBX system operates using a reliable internet connection, utilising VoIP technology for seamless voice communications. Cloud hosted business phone systems are usually accessed using website app portals, mobile apps or desktop apps (or a combination).

Cloud hosted PBX systems are also packed with features and provide numerous benefits. It’s a smart choice for small businesses seeking a modern and efficient telephone system.

Benefits & key features of cloud-hosted phones for small businesses

Cloud-hosted phone systems provide small businesses with a range of benefits and key features.

Enjoy reduced installation and maintenance costs, quick and easy setup, flexibility to scale up or decrease the number of phone lines you require in a few clicks, cheap call rates, the ability to keep your existing number and more.

Cloud hosted PBX systems also offer a wide variety of standard and advanced features. These include features you’d expect from business phone system such as call routing, recording, forwarding, autoattendant and much more.

However, cloud PBX systems also unify communications using softphone extensions which unlock instant messaging, conference calls and video calls, seamless CRM integrations and other advanced features.

A cloud hosted PBX system offers a modern, reliable, cost-effective and accessible communication solution for small businesses across verticals.

Requirements for small businesses installing a cloud phone system

When installing a cloud phone system for your small business, ensure you have a stable and high-speed internet connection to support VoIP calls and other communication features.

You also need to consider the compatibility of your existing hardware and devices with the cloud phone system. Additionally, its important to consider whether your employees will cloud softphone extensions on their devices to manage communications or if they will also rely on compatible IP headsets and handsets.

By meeting these installation requirements for cloud PBX, you can seamlessly integrate a cloud phone system into your business operations and enjoy efficient and effective communication.

We also recommend speaking to a specialist to discuss your unique requirements.

4. Virtual landlines for small businesses

While similar to hosted PBX systems in their use an internet connection to facilitate communications, virtual landlines distinguish themselves focus on delivering a reliable, dedicated business number across multiple devices.

Unlike hosted PBX systems, which offer an extensive range of cloud telephony features, virtual landlines specialise in providing straightforward call forwarding and mobile rerouting services.

They excel in environments where simplicity and affordability are key priorities, carving out their own niche within the VoIP landscape. Virtual landlines are an excellent choice for small businesses that require a streamlined, dedicated phone presence without the need for extensive cloud telephony features.

Benefits & key features of Virtual Landlines

Virtual Landlines provide numerous benefits and key features for small businesses

One of their main features is the ability to deliver a consistent business phone number across multiple devices, ensuring your business maintains a professional appearance.

As a primarily online solution, they reduce the need for physical maintenance, offering businesses a hassle-free communication option.

Virtual Landlines are also flexible with the ability to accommodate a high number of users, depending on the phone system provider.

Furthermore, virtual landlines excel in forwarding calls to the appropriate destination, be it another landline, mobile phone, or even a VoIP service.

While they may not have the full feature set of a complete cloud PBX system, they integrate well with IP handsets and can be used on iOS and Android smartphones, offering businesses a simple, cost-effective solution for maintaining a stable, professional phone presence.

Requirements for setting up a virtual landline for a small business

Setting up a virtual landline for a small business is a straightforward process.

All you need is a reliable internet connection and a device capable of running the necessary software, such as a smartphone or a computer with softphone software. You may also pair this softphone extension with headsets and IP handsets.

Then, choose a phone system provider that offers virtual landlines, select a plan that suits your needs, and obtain a geographic or non-geographic number.

With these requirements in place, you can enjoy the benefits of a professional business landline, enhanced customer communication, and the flexibility to manage your calls from anywhere.

5. SIP Trunks for small business phone systems

Setting up a virtual landline for a small business is a straightforward process.

All you need is a reliable internet connection and a device capable of running the necessary software, such as a smartphone or a computer with softphone software. You may also pair this softphone extension with headsets and IP handsets.

Then, choose a phone system provider that offers virtual landlines, select a plan that suits your needs, and obtain a geographic or non-geographic number.

With these requirements in place, you can enjoy the benefits of a professional business landline, enhanced customer communication, and the flexibility to manage your calls from anywhere.

A Session Initiation Protocol (SIP) trunk is a virtual communication channel that enables the transmission of voice, video, and data communications over an internet connection.

SIP Trunks offer a unique hybrid voice solution for businesses seeking to integrate IP technology and reap the benefits without replacing their existing PBX equipment.

By utilizing SIP protocols, businesses can replace traditional fixed telephone lines with flexible and scalable IP-based communication channels. A SIP trunk connects a private branch exchange (PBX) or Unified Communications (UC) system to the public switched telephone network (PSTN).

With a setup like HV.Select SIP, SIP and hosted seats can be integrated in the same business, allowing free on-net calls and simplifying the transition to a cloud hosted solution in the future.

Benefits & key features of SIP trunks small businesses

SIP trunks provide numerous benefits to small businesses. With reduced call rates, especially on international calls, and elimination of physical line rental costs, businesses can realise significant cost savings. The system is highly scalable, allowing businesses to add or remove lines based on their needs, ensuring you only pay for the lines in operation.

Key features of SIP trunks include the ability to keep existing numbers, high call quality, and disaster recovery capabilities (automatic failover, rerouting and more). They can also support unified communications, facilitating not just voice calls, but also video conferencing, instant messaging, and more, when integrated with the right PBX system.

Requirements for a setting up a SIP trunk as a small business

SIP trunks provide numerous benefits to small businesses. With reduced call rates, especially on international calls, and elimination of physical line rental costs, businesses can realise significant cost savings. The system is highly scalable, allowing businesses to add or remove lines based on their needs, ensuring you only pay for the lines in operation.

Key features of SIP trunks include the ability to keep existing numbers, high call quality, and disaster recovery capabilities (automatic failover, rerouting and more). They can also support unified communications, facilitating not just voice calls, but also video conferencing, instant messaging, and more, when integrated with the right PBX system.

Setting up SIP trunks for a small business requires a reliable, high-speed internet connection to handle the VoIP calls. You will also need a compatible IP PBX system to work alongside the SIP trunks, converting the SIP signalling into a format suitable for users.

IP-compatible handsets or softphones are needed for calls, and the implementation might also involve some configuration changes to your PBX system.

Consider contacting a specialist to help you assess your specific requirements and to ensure a smooth transition to a SIP trunk solution.

Final thoughts on best business phone systems for small businesses & startups

Small businesses and startups have a range of business phone system options to choose from to meet their communication needs.

Small on-premise analogue PBX telephone systems offer reliability, customization, and cost-effectiveness. However, with the upcoming PSTN switch-off, transitioning to IP-based solutions like VoIP or cloud-hosted PBX systems is recommended.

Hybrid IP PBX phone systems provide significant benefits such as cost savings, scalability, and integration with existing IT infrastructure.

Cloud hosted PBX systems offer a reliable and cost-effective solution, eliminating the need for on-premise hardware.

Virtual landlines focus on delivering a dedicated business number across multiple devices, while SIP trunks provide flexibility, reduced call rates, and disaster recovery capabilities.

Contact a specialist to help you determine the best small business phone system to suit your needs. We also recommend reading our other related blogs on all you need to know about the PSTN switch off, how to port landline numbers to VoIP in the UK and 5 ways to know if you are ready for a hosted PBX solution