Set Up VoIP Phone System In 8 Simple Steps

Last Updated: October 26, 2022
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Effective communication plays a vital role in any business organization. It determines how employers interact with their workers, thus promoting their efficiency and productivity.

In addition, it is essential when passing information to customers and other stakeholders like suppliers, lenders, and other business partners.  

However, any business enterprise looking to remain relevant and competitive must use the right technologies and systems to communicate. That’s where the VoIP phone system comes in.  

This article walks you through the simple steps you can follow when installing a VoIP phone system in your business.

But before diving into these steps, you first need to understand what a VoIP phone system is. Read on to get enlightened.

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What Is A VoIP Phone System? 

To start with, VoIP stands for Voice Over Internet Protocol. The VoIP phone system is a communication technology that can facilitate voice-based calls over the internet connection instead of the local telephone company or analog phone lines.

It’s one of the best systems to communicate both locally and internationally. However, you must have a stable internet connection.   

Typically, a VoIP phone system has a desk phone, a Session Initiation Protocol (SIP) server, and a service provider. It works by converting analog voice signals into digital signals.  

These signals are then immediately sent to the recipient over the internet. Because of this, VoIP can prove the most secure communication method. It is because the message reaches only the intended recipient.  

However, it’d be a good idea to work with the right partners. For instance, if you can work with a firm like Drop Cowboy or other similar companies.

What Are The Major Components Of A VoIP Phone System? 

Before you install your VoIP phone system, it’d be a good idea first to understand its components. Understanding what’s required allows you to prepare well in advance. Some of these components include: 

A Router 

It’s a device or a tool that connects two or more IP networks. In other words, a router is a tool that transfers or shares data packets between computers.  

It means that a VoIP phone system can’t function without a router. However, for effective communication, it’d be a good idea to select a router that provides maximum speed and security.  

An Internet Connection 

An internet connection is another critical component you must have when installing your VoIP phone system. It is necessary because, in a VoIP phone system, all the communication happens online.

So, you need an internet connection to use a VoIP phone system.  

How Can You Set Up A VoIP Phone System? 

Sometimes setting up a VoIP phone system can seem a stressful and overwhelming task. However, with the information, the process can be relatively straightforward.

Though various VoIP phone systems can have different setups, they all follow similar or general steps. These include: 

Understand Your Phone System Needs 

Understanding your phone system needs is the most crucial step to consider when setting up your VoIP business phone system. It ensures you’re installing a system that can best suit your needs.  

One of the main factors to consider when evaluating your phone system needs is the number of users. Understanding the expected number of users can simplify the installation because it allows you to make sound decisions early enough.

For instance, it can let you know how many phone lines you need and whether or not your internet connection can support your call volume.

It allows you to take the necessary measures to help meet your communication needs.

Test Your Internet Connectivity 

As earlier noted, internet connectivity is one of the primary components of a VoIP phone system. It helps transfer digital voice signals online. So, it can’t function without an internet connection.

However, you must ensure that your connectivity has the desired speed. That’s why you need to test your internet connectivity.  

With that said, after determining your phone system needs, the next step should be to test your internet connectivity.

For instance, if you expect 100 people to use your VoIP phone system, test your internet connectivity to determine whether it can support such a volume of users.   

Identify Communication Features 

Another major step when installing a VoIP phone system is to determine the features you want. It is essential because various phone systems come with different features. So, depending on your business needs, it’d be a good idea to select one with the right qualities.   

For instance, if you want an automatic response from your customers, you can find a phone system that has an auto attendant’s capability.

And if you want your phone system to direct or forward calls to one or more people, then it’d be a good idea to consider a VoIP phone system with a call routing feature. 

Set Budget 

Understanding your phone system needs and features that can best serve you, drafting a budget is needed. A budget is an estimation of the total amount you’re going to spend when installing your VoIP phone system. However, you must ensure that you’re setting a realistic budget.   

It ensures you don’t overspend your money or run out of cash before you even finish installing the system.

So, if you want to ensure you’ve got a smooth VoIP phone system set up, the best deal is to have enough budget. You can achieve this by working with budgetary advisors to help draft a reasonable budget.  

Choose A VoIP Phone System Service Provider 

After understanding your phone system needs, features and budget, the next step should be to find a service provider.

A VoIP phone system service provider is a person or a firm that’ll be responsible for all your communication. They ensure all your communication messages reach the intended recipient without delay.   

However, you must ensure that you’re working with the right service provider. You can achieve this by learning about their reputation.   

One of the best ways to learn about them is by reading online reviews. It is possible, especially for those who have established their presence online.   

Reading online reviews involves going to the website and seeing what other clients say about your preferred service provider. On that note, you need to consider working with them with positive reviews.   

On the other hand, you must be cautious about their negative reviews. It is necessary because such a firm is likely to provide poor services.   

Another best way to find the best VoIP phone system service provider is by asking for referrals from other business leaders and executives. It involves asking other managers to recommend to you the best phone system service provider.   

However, it’d be a good idea not to make your final decision merely on recommendations. So, after getting a few referrals, you need to make a list of potential phone system service providers then carry your research to find the best one.   

Purchase Phones And Other Equipment 

Now it’s time to acquire your phones and other necessary equipment; you need phones and other tools to help communicate.

For that reason, you need to make a checklist of all the hardware items you need for your VoIP phone system to function.    

One of the factors to consider when purchasing your phones and other equipment is the features you want to include in your VoIP phone system.

For that reason, you need to select equipment with all your preferred features. Select the equipment with features that allow you to make the most use of your VoIP phone system.

Download Suitable VoIP Apps 

After having all the equipment ready, the next step is to download suitable VoIP apps. These are computer programs or software that can allow you to communicate with your VoIP phone system.

For that reason, you need to research and find the best VoIP apps and download them.  

Configure Your VoIP Phone System 

Configuration is the last step in VoIP phone system installation. It’s a simple process that involves plugging your phone or any other communication device into your ethernet system. You can complete this step by yourself or work with your VoIP service provider.

Working with a service provider at this point is crucial because they can educate you on how to make better use of your VoIP phone system.  

What Are The Benefits Of A VoIP Phone System?  

There are several reasons why every business owner should consider installing a VoIP phone system in their firms. Some of these include: 

Helps Minimize Costs 

Cost is one of the barriers to the success of most businesses. It is true, especially for startups and small businesses operating under tight budgets.   

Though there are several ways of minimizing costs, one of these is using a VoIP phone system. It is possible because you’re not supposed to buy any expensive equipment. Your service provider will come with all the necessary tools.   

In addition, you won’t be required to install your servers nor incur any maintenance costs. So, if you want to minimize your business costs and maximize your profits, the best deal could be to install a VoIP phone system.  

Increased Accessibility 

Ease of accessibility is another benefit you need to have a VoIP phone system for your business.

This is possible because a VoIP phone system uses a cloud-based service that can allow you to communicate from anywhere and at any time.  

However, you need to have an internet connection to make or receive calls. So, whether you’re at home, at the office, or any other place, you can still attend to your business calls.

This helps customers and other stakeholders remain connected to you 24/7. 

Higher Call Quality 

Higher call quality is another reason every business owner should have a VoIP phone system on their websites.

It is possible because a VoIP phone system provides High definition (HD) voice which helps improve clarity. Besides, a VoIP phone system offers crisp audio, thus promoting effective communication.  

Ease Of Scalability 

Another advantage of having VoIP in your business system is that it’s scalable. It allows you to add new users with ease.

So, even when your business expands, you can still use your existing VoIP phone system to accommodate new users. 

Worldwide Access 

Worldwide access is another benefit you need to have a VoIP phone system in your business. It is necessary, especially when you’ve got international customers or workers.   

Besides, communicating with your remote workers. For that reason, a system helps promote your communication. Apart from that, it can allow your workers to utilize fax and fax via your intranet.   

Ease Of Integration With Other Applications 

Another advantage you need to consider having a VoIP phone system in your business is that it can integrate well with your other business applications.

It is notable, especially in the modern world where companies are likely to use various applications. Some of these applications include marketing, staff onboarding, and customer relations tools.   

So, if you want a system that can integrate well with your other applications without any modification, a VoIP phone system could be your best deal.   


Portability is another benefit you need to have a VoIP phone system in your business. It is true, especially when compared with other traditional phone systems.

For instance, when using a conventional landline system, your phone number is permanently fixed to your location. It means that you can send or receive calls only from your business office.    

On the other side, VoIP allows you to answer calls from anywhere. It is possible because it utilizes the internet, thus allowing you to make or receive calls from anywhere and at any time.

So, if you want to move with your phone system and make calls from anywhere, the best deal could be to install a VoIP.   


Communication plays a role in the modern business world. However, you must have suitable communication systems for your business.

One of these is the VoIP phone system. This system helps promote communication, thus boosting your efficiency and productivity.

So, if you’re considering a VoIP phone system for your business, be sure to follow the above-discussed steps.   

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Written by Geoffrey Poole

Hey Geoffrey here, I’ve been into technology and the internet ever since I can remember. I enjoy writing articles about emerging technology, social media and business. But sometimes feel inspired to cover other topics too. My aim is to make complex topics digestible and easy for anyone to understand.