Essential guide to setting up telecoms for your business

A sole trader talks to a customer on the phone

Modern business telephone and communications systems use technology to create connections. The traditional phone network will be switched off in 2025, so businesses must introduce new systems to stay in touch with colleagues, clients and customers now.

The right business telephone system will give you the capabilities you want at a price you can afford.

Meetings at a distance

1. The right number

The majority of sole traders and small businesses may find a mobile phone provides everything they need

Mobile phones enable customers to contact you at any time. Having separate phones for your work and personal purposes can help you achieve a better work/life balance.
Customers understand that many sole traders do not have a fixed place of work, or work flexibly.
You’ll be given a number when you agree a contract and can’t choose it.
There are a range of mobile phone plans to choose from, including SIM only deals and packages including a phone and SIM card.
When choosing a package, consider how much data you will need and minutes and texts you’ll need for your business.
Modern smartphone apps enable you to do more than make and take calls, including managing your emails, online banking, and digital diary.
4G and 5G connections provide a fast connection to the internet but aren’t available across the UK.
You can use your mobile phone abroad (although EU roaming charges may apply – depending on the network provider).
If you would prefer to use a landline number, you can have calls routed through to your mobile, although you will pay for this service. You’re typically charged a few pence for each minute you use.

Your business phone number immediately gives a customer information about your company and the sort of relationship you are expecting. A non-geographic number can help you present a consistent image of your business and hide its location (if you wish). There are several types of non-geographic numbers to choose from.

You can use a freephone business phone number to encourage people to call you

Numbers beginning with 0800 or 0808 are free for callers to use.
Your business pays every time someone calls your freephone number.
These numbers are used by businesses selling to the public - for example, mortgage brokers, driving schools and local tradespeople.
They are also used by businesses that sell to other businesses.
A single free phone number enables you to funnel calls to different areas and offices. For example, calls from the north are fed to your Manchester office, while calls from the south go to Reading.

Low call charge numbers are attractive to callers while controlling your costs

Many businesses used to use 0845 numbers for customer lines, but this was made illegal in 2014.
Numbers beginning 03 are popular among businesses as these are free from a mobile phone (if the user has remaining inclusive minutes in their packages).
Low call charge numbers are suitable for sales or customer service lines.

You can also get a "special services" number starting with 087

Calling these numbers typically costs about the same as making a national call.
Callers pay two charges - an amount to the phone company, and a service charge set by you.
Your business receives a portion of the call charge. You could earn around 3p per minute.
The cost may dissuade some customers from calling these numbers.

Memorable numbers can be useful for marketing your business

'Golden numbers' are those that are easy to remember. They can be purchased from the phone companies, but they can be expensive. The more memorable the number (007, for example) the higher the cost. There is also a "grey market" in second-hand golden numbers which can costs substantially more.
Alphadial numbers, where the letters on the phone keys spell out a name are popular in countries such as they US, but the system is not widely used here. .

Premium-rate numbers (starting 09) are often used to fund a service

They can cost as much as £3.60 a minute to call. Your business will receive a significant proportion of the call charges.
You should explain to customers how much they will be charged to call you.

You can use international 0800 if you advertise overseas

The fixed costs are low, approximately £100 per quarter (depending on your provider). You only pay call charges if you are successful at generating sales leads.
Many UK hotels and holiday companies use this approach to win business.

Win and keep customers

Track all customer enquiries and make sales simpler with CRM software. Find your perfect fit with these tools from our Donut partners.

2. Getting online

Internet access is essential for businesses. High-speed connections are widely available and affordable. In the future, all calls will be delivered through the internet so ensuring you have a fast, stable and secure connection is essential.

ADSL and fibre are the cheapest ways to connect your business to the internet

They use your existing telephone line to connect to the internet and are generally the most cost-effective option for small businesses.
Fibre broadband is faster than standard ADSL and is now widely available from a variety of suppliers.
The connection is always on. Voice calls can be made simultaneously.
Charges are fixed and are usually charged monthly. In some cases, you can make savings by paying up-front annually.
Services are available across most of the UK, but the speed of your connection may be restricted by your distance from the local telephone exchange.
A range of data transfer speeds, with different prices, are available.
A single connection can easily be shared between several users if required.

Leased lines are permanently open digital connections used only by your business

A leased line provides the most stable connection if you need a permanent link between two offices, or if your business has large numbers of staff using the internet.
Leased lines provide guaranteed upload and download speeds.
Leased lines are usually backed by comprehensive support and a guaranteed response time if the connection fails.
Leased lines are much more expensive than ADSL and fibre connections and require specialist installation.
They are useful in situations where uninterrupted and secure access to the internet is critical.

Once connected to the internet your IT network can be used to power your business phone system

You do not need to have significant IT resources in-house to unlock the benefits of Voice over intnernet protocal (VoIP). Business VoIP phone systems are cheap to set up and the benefits can be immediately seen, including lower maintenance and call costs.
Professional features include phone conferencing and auto call back.
IP telephony can also be implemented in phases as you transition away from a fixed-line phone.

VoIP

Voice over IP (VoIP) is a way of making telephone calls using the internet. VoIP phone systems convert your voice into digital information which is sent across the internet. You can make calls using software on a computer, or through a dedicated VoIP telephone

You can call other VoIP users and people using normal telephone lines.
Making calls using VoIP is cheaper than using a conventional telephone.
You pay a monthly subscription for the service. Competition in the VoIP market is high and costs are lower than fixed line telephone systems.
The biggest savings to your business come with international calls. VoIP phone system providers can charge much less because the calls are routed over the internet.
Services such as Skype are a form of VoIP and require nothing more than an internet-connected device containing a camera and microphone.

Many telephone systems will offer the option of placing calls using VoIP

With the right equipment, using VoIP for your business is no different to using a normal telephone, yet it can offer significant savings.
Ask your telephone supplier for information about VoIP systems or speak to a specialist provider.
You will need a plan for integrating new systems into your workplace. Staff may require additional training or technology (such as a headset) to work with a VoIP system.

3. Call management

Interactive voice response (IVR) systems offer customers a menu when they call you

The customer can pick the service or department they want, by following instructions. For example, 'For sales, press one'.
Some IVR systems also respond to spoken numbers or key words. For example, a local garage might ask customers to say whether they want 'new cars', 'service' or 'parts'.
The system helps to effectively route calls to the right person which can save time and money.
The system needs to be carefully planned, as most people dislike multi-level menus. Many people object to having to deal with a machine at all.
Always provide a direct route for callers whose requests do not fit into the categories.

You can buy inexpensive software to provide IVR for a small firm.

Implemented well, voicemail offers customers a call-back option

Voicemail allows callers to leave a spoken message for the person they are calling.
Some business voicemail systems allow messages to be forwarded for a colleague to deal with. For example, a sales manager could record a briefing once, enter a code and copy it automatically to the whole sales team.
Some business telephone services can convert voicemail to text and send it to the recipient as an email or text message.
Customers may prefer leaving a message for a real person, so ensure that the message you provide is polite and from a real person.

Small businesses may benefit from a virtual reception

An agency provides call-answering services, puts callers through to the right extension or takes messages.
You pay a subscription fee each month and a set amount for each call they deal with.

4. Call centres

Call centres can manage both outbound activities (such as telesales, lead generation and market research) and inbound tasks (such as order processing and customer service). Large businesses, particularly those that deal with the public, can used dedicated call centres to deliver their services.

In-house call centres are replacing many field sales forces

A call centre can vary from two people drumming up orders for a small wholesaler to a large team in a debt recovery or telesales business.
It's not about size, but the degree of automated support for the operation that makes it a call centre.
Some automated call centres can provide adequate service with no human intervention - for example, booking cinema tickets, where callers just need to press numbers to find the service they want.

Computer Telephone Integration (CTI) boosts productivity

Both inbound and outbound calls can be more productive than having to manually process and find information.
For example, your customer service system can match a caller's number to data in a contact management database and make the details you need pop up on screen.
The system must be able to integrate with your customer records, whether held in a spreadsheet or your customer relationship management (CRM) system.
Inexpensive software can give outbound operators one-touch dialling plus on-screen scripts and prompts.

Outsourcing to a specialist company could be a most cost-effective strategy for some businesses

If you need to provide a 24-hour service or your business is highly seasonal, outsourcing is likely to be cheaper.
Outsourcing might be more economical than employing more people.
Some internet service providers and software companies outsource the handling of technical queries to specialist call centres.
You'll need to work with a specialist provider and ensure they deliver services to the quality your customers expect.

5. Mobility

Business voicemail provides customers and colleagues with the option of leaving a message when you're unable to take a call. You'll want a voicemail service that's flexible and focussed on your business

When choosing a voicemail system for your business, consider sound quality, whether you can operate the system remotely, and any time limits on incoming messages.
Voicemail can be either a function of your business phone system or a network service provided by your telephone company.

Smartphones are essential to staying in touch on the move

Providing staff with smartphones could increase your total spending on telecoms, but the ability to make calls at all times and at all locations offers significant benefits.
A wide range of calling plans include unlimited calls between people within your business, inclusive data, reduced international rates, cheaper off-peak calls or free text messages. Evaluate your needs carefully before signing a contract.
Set out clear rules about personal use of company mobiles. Call barring can be used to limit non-business calls - or even to bar all outgoing calls.
Ask your supplier about equipment that lets you call company mobiles from your office phone at the cheaper mobile-to-mobile (same network) rate.
Some businesses let staff use their own mobile phones for work. This can save money but increases security risks, so think carefully before doing so.

You can also get online to access email and the office network

Every smartphone offers access to email, enabling staff to read and send messages on the move and at all times of the day or night.
Smartphones allow you to browse the web, check emails and run a huge range of business-related apps.
Smartphone internet connections can also be shared with other devices, enabling laptops and tablets to connect to the internet via a feature known as "tethering". (Additional data service charges may apply, so be sure to check your contract.)

6. Meetings at a distance

Telephone conferences and videoconferencing are now widely used by all businesses.

Services such Zoom, Google Meet and Microsoft's Teams have become the primary way many businesses conduct meetings. They can be used for planned meetings or ad-hoc conversations.

Video conferences will save money and time

A one-hour video conference takes just one hour of each person's time. There's no need to travel or to wait, you simply log-on and do your meeting then return to your work.

The simplest form of video conferencing takes place via services such as Zoom, Google Meet and Microsoft's Teams.
Video conferencing software is affordable and should work on any modern laptop, tablet or smartphone. You will need a fast and stable internet connection, or you could experience glitches that can affect your call.
Video conference platforms such as Teams like Skype also enable attendees to send attachments, chat via text and share their screens.
People will need a device with a camera and microphone for videoconferencing.
All systems offer users the chance to dial in using a traditional phone line.
It's easy to record videoconferences. You can download the video and share it once the conference or call is finished. You will need to let participants know you are recording the meeting and get their permission.