The Small Business Guide To Using VoIP

If you’re running a small business and still using an outdated phone system that costs no less than an arm and a leg every month, chances are someone has told you to see the light and switch to VoIP. Whether it’s your IT person, an overly keen rep who keeps ringing you or a mate with their own business, they’re technically not wrong for encouraging the move.

Voice over Internet Protocol (VoIP), once thought to be reserved only for six-figure businesses, is the way that most small businesses are running their phones these days. Its flexibility and affordability are among the main reasons for its popularity and since old phone systems are literally being switched off in two months’ time, it’s a good time to consider it.

So, what exactly is VoIP and what are the practical steps to take before you commit to anything? Let’s get into it.

First Things First, What Is VoIP?

As a small business owner, you might take one look at the name and think that it’s a piece of complicated technology trying to be sold to you that you don’t really need. Simply put, it uses an Internet connection to make voice and video calls, instead of copper wiring used in traditional phone systems.

VoIP is used in every day life, from WhatsApp calls to Microsoft Teams meetings. Ofcom’s 2025 media-use study reports that 95% of Internet users communicate via messages and voice or video calls online – which is most of us. The business version of it usually comes with features that you would need, like call forwarding, call analytics and the ability to answer your office phone from a beach in Portugal (now doesn’t that sound appealing?).

Around 31% of businesses currently use VoIP with adoption among small and medium firms expected to continue climbing. If you look at it in actual pound terms, a traditional business phone line can set you back around £26.50 per month per line before you’ve even made a call. In comparison, VoIP for small businesses costs between £6 and £15 per user per month, often with calling minutes included. And you’re usually getting other features bundled in too.

The Landline Switch-Off Is Approaching

The VoIP conversation may be happening more frequently among small businesses because there is certainly a sense of urgency building. On 31 January 2027, the UK’s traditional phone network will officially be retired. Openreach is switching off the PSTN and ISDN lines and after that date, any business running on copper lines will find their phones going quiet.

Why is the switch-off happening? Well, the copper network is at the end of its useful life, to put it frankly. The equipment mostly dates back to the 1980s and 1990s – well past its intended lifespan. It’s becoming trickier to find spare parts and the whole thing has become increasingly expensive to maintain.

On top of that strain, copper just can’t keep up with the bandwidth that modern businesses need. Fibre can, and the UK has been rolling it out at pace. At the end of the day, it simply made more sense to retire the old network entirely instead of trying to just patch it up here and there.

There are loads of businesses who have left it to the last minute, with 1.5 million lines reportedly still using copper as of mid-2026. To avoid the panic that will inevitably arise as the deadline approaches, getting it sorted now means you can pick your provider at your own pace instead of scrambling later.

What Can VoIP Do For Your Business?

Aside from the landline switch-off and VoIP being the alternative, there are plenty of reasons that small businesses have adopted it. The obvious one is the associated cost-savings. All calls between offices, staff and those who use the same system are free and international calls cost pennies, not hundreds of pounds. You can say goodbye to that line rental and the lovely monthly charge that used to come with it.

Then you’ve got the flexibility. With traditional landlines, it, and you, were tied to the office. Since hybrid and remote working has become the norm for a lot of businesses, especially smaller teams, it just makes sense to be able to take calls from wherever you are and on any device. And if you plan on expanding your team, you can add new users from your dashboard without needing to fork out for additional lines and hardware.

Lastly, your small business gets access to features that you would traditionally only find in massive corporates. You can set auto-attendants to greet callers, call analytics to monitor trends and integrations with your Customer Relationship Management (CRM) tools. Even if your team is made up of a handful of people, these features can make your business look much larger than it is and add that extra touch of professionalism.

How To Pick A Provider That Works For You

This is where a lot of people get stuck because there are quite literally dozens of providers out there, all promising the earth and that look exactly the same. If you’re not sure where to start or what to look for, it will become overwhelming very quickly.

Consider Your Internet

VoIP needs the Internet to work so naturally, you need to check your Internet connection first. If it struggles or is unreliable, your calls will be the same. If your upload and download speeds are too slow, you may need to consider upgrading to a bandwidth that will be able to support VoIP.

Assess Your Team’s Needs

When your Internet is good to go, look at your team and what they need next. If you only have a team of three who rarely use the phone, you don’t need to be on the same package as an agency with twenty staff and a sales team. You’ll just end up paying for things you don’t need. Most of the providers will charge per user per month so only pay for what you’ll actually use.

Look At The Contract Length

Some providers may lock you in for three years which is something you may not be comfortable with. If you have shorter contracts, or even a rolling monthly one, it will give you more breathing room in case you aren’t entirely satisfied with the provider or things change within your business.

What You Need To Know Before You Switch

As with all technology, there are some things to be aware of when using VoIP for your business. The biggest one is that it’s affected by power cuts because VoIP needs your router, which needs electricity. If your area is prone to outages, it makes sense to get a backup battery to avoid any downtime.

Smooth calling relies on your broadband, your router, Wi-Fi and the provider’s network. If any of these become faulty, your calls will be interrupted. If you’ve chosen a reputable provider, they should be able to guide you through any issues to find what’s causing it.

Making the switch to VoIP isn’t the headache that most people expect it is. For a small business, it’s just a few hours of provider research, setup and training your staff members. The old network is on its way out and VoIP not only costs less, but does more and is built for modern businesses.