What is the cost of VoIP for small business?

Small businesses are the backbone of the economy. And we don’t say this lightly: according to the Key Small Business Statistics 2023 study, there are almost 1.2 million small businesses in Canada.   

And they represent almost 87% of all Canadian employer businesses.   

These companies, like startups, usually run on lower budgets and staff (it varies from 1 to 19 team members), so they need all the help they can get to streamline operations and optimize their processes.   

The cost of VoIP for small business comes as an advantage, as it allows these enterprises to save money, break free from landlines, and create a professional storefront to achieve the success they aim for and deserve.   

And if you are a small business owner, you know how challenging it can be to manage a small budget. So, keep reading to learn more about the low cost of VoIP and the benefits it can bring you.  

How much does VoIP cost for a business?  

We understand that the cost of VoIP for small business has to be advantageous to justify the change from a traditional landline and even from more informal and free apps and platforms, such as WhatsApp and social media.   

But if your goal is to really scale your business, building a professional brand is essential, and having a business phone system is part of growth.   

Before going over the benefits, let’s take a look at the costs.   

1. Internet connection  

2. Softphone  

3. Number of lines  

4. VoIP provider  

5. Number portability  

Internet Connection  

There’s no VoIP phone service without a good internet connection. Although being online is almost mandatory for having a business in 2025, ensuring a good connection is vital for call quality when it comes to Voice over Internet Protocol technology.     

In the U.S., prices for internet plans can vary from $20 to $300 a month, with the average being $65 monthly. Charges will differ depending on location, your business needs, provider, and internet speed. 

Softphone   

A softphone is software you can download for your mobile phone, laptop, or tablet. It works as a connector between your VoIP provider and the traditional telecommunications network.   

When building your professional virtual phone system, you’ll learn that your business phone system must have a softphone to work – IP phones and other hardware are optional.  

You can use Microsoft Teams as a softphone (and we have a connector to help!) or hire another third-party app.   

Take a look at an in-depth list of softphones and their main features in our Wiki but know that some of them are free, others have a paywall to either get the softphone or unlock its full potential.  

For this scenario, let’s choose Zoiper: it offers free versions for iOS, Android and desktop, but a paid version with full access to all its functionalities. Assuming a small company with a limited budget, initially a free mobile app or desktop version might suffice.   

RELATED: Choosing the best softphone to ensure unified communications according to your specific needs 

VoIP Provider  

Of course, you can’t have a digital phone service without a VoIP provider. These companies have products and services (from virtual phone numbers to advanced features such as Virtual Fax, Call Recording and Voicemail to Email) necessary for your virtual phone system to run smoothly.   

Again, VoIP pricing may vary depending on the provider, the size of your business and the features and add-ons you have (and better not forget those one-time charges!).   

Let’s use VoIP.ms as an example here. If you choose us as your VoIP service provider, and your company has five employees or less, you might spend as low as $3.29 a month for phone services, virtual fax, text messaging and E911 activation.   

Sounds incredible, right?   

RELATED: 6 Innovative uses for Call Forwarding 

New Number and/or Number Portability   

If you already have a business number, and want to keep it, you can port your phone number to the new VoIP provider. Many providers (like VoIP.ms) offer free portability for numbers from U.S. and Canada, but other locations might translate into extra one-time charges.   

The same goes for wanting a new number to represent your business – be it an “official” office business phone number, a toll-free number, vanity number or local number.  

Each DID (Direct Inward Dialing) needs to be purchased and usually has a monthly maintenance cost, either per line or per user.   

Usually, VoIP bundles offer a few DIDs for you to get started but remember to have this as a possible extra charge in your monthly bill in case you need to add users or numbers to your original account.   

RELATED: Number porting to VoIP.ms: Everything you need to know   

Summing up the cost of VoIP for small business  

Ok, you have all that information, but you are still a little confused about the final amount you’d pay monthly for your VoIP solution, correct? Let’s do the math:   

Table: Estimated Monthly VoIP Cost for a Company with 5 Users    

Important note: For this calculation, we’re considering a 5-person business that implements the most basic elements needed for a virtual phone system to work.  

This monthly cost might differ depending on your company’s size, location, advanced features you need, amount of phone calls you make, number of users and more. Local taxes were also not included.    

RELATED: CRM Integrations and 4 strategic advantages of switching to VoIP  

How can VoIP save a company money?  

Now, let’s get back to the benefits. Business VoIP cost is advantageous because it offers flexibility, unlike traditional landlines. But we need to look deeper to make an informed decision about VoIP plans and business communications.    

Here are the reasons why you can save with a VoIP phone system:   

1. Flexibility  

2. Lower rater  

3. Optional hardware  

4. Easy Set Up   

Flexibility (The best VoIP feature)  

We mentioned it in passing before, but flexibility really is key when it comes to VoIP. The technology allows you to take your business number with you wherever you go (just download your softphone on your mobile device or laptop).   

There’s also the case of scalability. Unlike traditional telephone providers, VoIP works differently regarding service bundles. You can create your personalized system with the additional features you need and add more as your business grows.   

Say you have a small retail business that’s starting to gain traction. You might consider adding Calling Queue and a few extra lines to ensure every client is answered during a busy season (say, Black Friday or the holidays).   

If the business keeps the pace – leave everything as is. If not, you can downgrade and upgrade again when needed.   

RELATED: Call Center: What you need to know about outbound calling  

Lower Rates  

VoIP providers are known for having lower rates and promote cost savings. And when your business is still small and you’re dealing with a tight budget, that’s great news.   

International calling fees can be even lower than those charged by traditional phone providers. You can also pay as low as $0.0075 for sending and receiving SMS messages—that is, if you sign up with VoIP.ms!  

Optional Hardware  

Stil in the topic of budget, a traditional landline asks for hardware, which might be a high additional cost for a small and starting company. But VoIP doesn’t.  

By opting for a Bring-Your-Own-Device model, you can migrate your communication system to a VoIP service provider without buying desk phones and headsets. Instead, use the devices you feel more comfortable with!  

Easy Set Up   

Small businesses don’t usually start out in a fancy office with a cool cafeteria and video games for team integration and downtime.   

They normally start in someone’s guest bedroom, sometimes even a garage or the nearest coffee shop. So, considering traditional landlines comes with the stress of needing a physical location that will house your physical business phone.   

That installation costs money and will require your business to halt all operations for a while. Scheduling a visit might be difficult, and the whole process is stressful and tiring.   

However, small businesses thrive with VoIP service providers. The set up is usually simple and you can do it on your own – but if you need help, you can always ask our Community Forum or reach out to our Customer Support Team!   

If you want to try doing your own set up, here’s a guide on small business phone systems that can help you.   

Five (Extra) Tips 

There’s a lot more to cover when it comes to choosing a VoIP service provider for your small business. But here are some essential tips to make the most of your investment and create a truly tailored communications system: 

• Opt for a PBX system to manage internal and external calls efficiently without the need for expensive hardware. 

• Use an auto-attendant feature to automatically route calls and provide professional customer experience. 

• Evaluate how many phone lines your business needs to avoid paying for unused capacity. 

• Choose plans with unlimited calling if your business makes frequent local or national calls. 

• Look for providers offering competitive rates for long distance calls to manage costs when communicating with clients in different regions. 

Is VoIP worth it for small businesses?  

Yes, VoIP is worth it for small businesses, especially if you plan to grow your company with time. To summarize what we’ve been talking about (and make it easy for you to really understand it!), we listed below the main advantages of VoIP for small businesses and startups:   

1. Flexibility: Have your professional phone number with you anywhere you go.   

2. Scalability: Easily scale your communications system with add-ons and advanced features.  

3. Low cost: Save your budget to invest in growing your business, and not with a phone system full of features you don’t use. Spend less on monthly fees and invest your profits to grow your business.  

4. Low maintenance: Leave the magic of IT solutions to your VoIP provider and focus only on your daily operations.   

5. No hardware required: If you wish to use only your mobile devices and laptops to run your company, you can. No need to buy desk phones or other equipment.   

It is important, however, to also point out the disadvantages of VoIP technology, so you can make a conscious decision about your virtual phone system. Let’s look at the cons:   

1. Relies on good internet connection: You need a good internet provider to ensure your system doesn’t crash, affecting your business goals.   

2. Latency and jitter: Delays may occur when dealing with exchanging information digitally, from calls taking time to go through to voice delays that might compromise communication.   

3. Compatibility issues with traditional equipment: if you choose to use hardware with VoIP, you might deal with incompatibility between phones and the technology. Nothing a good ATA (Analog Telephone Adapter) can’t solve, but this might add to your set-up costs.   

Every telephone provider has advantages and disadvantages, but VoIP phone systems still provide a solid and reliable choice for businesses of all sizes. Small businesses, however, can benefit even more due to the cost-effective nature of the technology.   

Sounds interesting? Then make sure to visit our Pricing Page to learn about our fees and plans or talk directly to our Sales Department to revolutionize your business and create a company that will positively impact the economy.