VoIP or Voice over Internet Protocol is a phone system that uses online voice data to manage and make calls. It gets rid of many traditional office components (typically a headset is the only thing required), and one of the primary advantages is the money you can save by switching. However, every business is different, and not everyone can save: Here are several questions to consider when thinking about making the move to VoIP.

1. What Does My Office Look Like?

This question is more important than you may think. If your phone communication system is highly focused in one location among a highly limited number of people (we're talking about the reception area), then the savings from VoIP will probably be minimal. If you have phones at every, route a lot of calls to various parts of the office, and generally have a lot of employees on the phone throughout the day, then VoIP can be far more effective at saving money.

2. What is the Fee Structure?

VoIP services do have different fees based on the vendor, the features you choose, and how you use the system. Take a close look at these fees and create cost estimation models that you can easily compare with your current service. This should answer a lot of questions about budgeting and costs!

3. Does VoIP Offer Tools that Will Lead to Increased Sales?

VoIP's digital interface and online tools often allow for faster customer service, better data collection about customer calls, and a more effective combination of online work and OTP communication. Will these tools be more effective at converting customers and increasing sales than your current system? Do they offer anything new you don't already have?

How Does the Initial Cost of VoIP Compare With Long-Term Savings?

VoIP gets a lot of praise for vastly reducing the amount of equipment you need to manage a phone system. However, you will still have an initial cost for implementation. Compare that cost to what your company will save over time to see if the investment is worth it.

4. Will My Bandwidth Needs Change?

VoIP's lynchpin is bandwidth: Without reliable bandwidth that offers even data, a VoIP system can become very low-quality and may even deter customers. You need enough bandwidth to switch voice data to an online format. Do you already have enough, or are your going to have to increase your internet provider payments to make the move to VoIP?

5. What Are My Future Plans?

If you are planning to stay around the same size for the foreseeable future, then hosted VoIP services can help you save money more effectively. If you want to expand quickly, then a managed VoIP option may be smarter – as long as you have the resources for it.