Sole traders and small-to-medium enterprises (SME’s) must work hard to succeed in the UK’s highly competitive economy. One of the best tactics for succeeding in this environment is to harness new technologies that reduce overheads and improve business efficiency.

Many sole traders and SME’s are turning to VoIP (also called voice over IP, VoIP or IP telephony) to improve their bottom line and productivity levels. VoIP is an innovative technology that allows businesses to make voice calls using a broadband Internet connection instead of a phone line. This article will explain how VoIP works and share a few of advantages gained by switching to this technology.

What is VoIP?

When using a VoIP enabled device, the call will be converted into a series of digital files (called data packets). These data packets can then be transferred electronically via the Internet or any private network using Internet Protocol (IP).

VoIP services can make calls between landlines, cell phones and computer. You can also make VoIP calls to analogue phones that have a VoIP converter installed. This allows businesses to easily upgrade existing assets to handle VoIP calls.

The benefits of using VoIP telephone systems

VoIP can save your business money

Most sole traders and SME’s are running their business on very tight margins. They often have to look for cost-saving opportunities in an effort to improve their bottom line.

VoIP telephone systems help by dramatically reducing the cost of a business’s outgoing phone calls. The cost of using VoIP is a tiny fraction of the cost of calls on traditional phone networks. VoIP is more affordable because the price for data transfer via the Internet is negligible.

Many ISPs provide plans that allow for unlimited data use, so the cost of long phone calls is extremely low. Calls that are between two VoIP devices are often free, while calls to mobile phones and landlines on traditional phone network sometimes incur a small fee. The savings for your business can be substantial, particularly if you often call international customers or make dozens of phone calls each day.

Having VoIP infrastructure can also eliminate the need for traditional telephonic infrastructure like multiple ISDN lines. Your business can make phone calls using a single data connection and avoid the overheads associated with having many phone lines installed.

VoIP makes it easier for your business to grow

VoIP telephone systems can be very useful for businesses experiencing rapid growth. Instead of having to connect additional ISDN phone lines at your premises as the more employees join the business, you will be able to simply connect a wireless VoIP device or new computer terminal to your local wireless network. The entire VoIP system will continue to use a single data connection for all incoming and outgoing calls.

VoIP is compatible with many types of existing IT infrastructure

One of the key benefits of using VoIP telephone systems is that they typically do not require a significant overhaul of a business’ IT infrastructure. An Internet connection with a sufficient amount of bandwidth for the number of simultaneous VoIP connections that will be in use is the only requirement. Calls can be made on any VoIP-enable telephone, mobile phone, desktop computer, or tablet.

VoIP can be a part of a unified communication solution

VoIP is often integrated with business software packages like Client Relationship Management (CRM) programs, support desk software, and sales management tools. This means your employees can use a single piece of software for making VoIP calls, recording client details, making sales, and performing other tasks useful for your business.

Many software tools are unified communications solutions that also have email, Web conferencing, video chat, help desk functionality, and instant messaging. They will significantly boost the productivity of your staff and ensure a high level of customer service.

VoIP technologies easily can be used with mobile phones. Your team will be able to use their mobile phone remotely and have the calls be diverted through your VoIP system, where they can be tracked and integrated with any software solutions you use.