Analog telephones have been around a long time, making it easy to find an inexpensive analog phone. Most analog business telephones cost between $50 and $150 for multiple lines, caller identification and answering machines. Analog conference systems are typically more expensive, priced between $200 and $400.

Digital phones, on the other hand, are a good opportunity for most businesses to save money on their telephone service, especially if you do a lot of long distance or international calling. The cost difference for digital phones is not in the phone itself, but rather in the cost for the service, which is conducted through digital Internet rather than the phone line.

When calculating analog and digital telephones pricing and costs, consider the following sources:

1. Browse analog phones for basic business purposes;
2. Consider more expensive analog systems for more conferencing options;
3. Save money on monthly service for digital phones.
   

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Find a range of prices for analog telephones for business

Analog telephones for business need a range of basic functions, such as multiple lines and voice mailboxes. These features are available on most analog phones, and the number of lines or mailboxes is typically the main factor that influences the price of an analog phone.

I recommend: TelephonyWare sells a number of analog phones for business at prices ranging from $50 to $150, featuring all the basic functions you need. Instawares Restaurant Supply also sells cordless analog phones for use in any small business for under $100.

Get more features from conference systems for analog phones

Analog phones also are available with more advanced conferencing systems featuring high quality speakerphones and easy to use multiple party connections. Because of these advanced features, teleconference systems typically cost several hundred dollars, but your cost for service can be reduced by connecting analog conference systems to a digital service.

I recommend: The Polycom Voicestation is one of the leading conference systems, and is available for sale from Provantage or SJ Media Systems for $240 to $400. You also can get analog to digital phone systems that connect your analog phone to a digital line with a competitively priced digital to analog conference phone converter at Telcom & Data.

Save money every month on a digital phone service

A digital business phone system is a good choice for your company if you make a large volume of calls, especially long-distance or international calls, since digital phone services use your digital Internet connection rather than a phone line to connect. The price for digital phones themselves is comparable to the cost for analog, and a converter can also be used to connect your existing phones to a new digital service.

I recommend: ACN sells a digital videophone for $99 when you sign on to their digital phone service for $29.99 per month. You can also get estimates for a range of digital phone services available in your area through ConnectMyPhone.

Small businesses are, by far, the driving force and main employer in even the most developed economies. Think about it: realtors, restaurants, law offices, car repair shops — never mind the 20 million or so sole proprietors in the United States, self-employed individuals who nevertheless lease office space and have perhaps an assistant or two, the largest category of small business by four times over.

Yet each small business would love to project that "big business" sound when a customer calls. Choosing a small business phone system for less than 10 employees is tricky, both on technology and pricing. But, there are lots of new options, too.

In this guide to small business phone systems, you'll learn:

1. Starter small business phone systems
2. When to consider investing more in a small business phone system for expansion
3. A Web-based alternative small business phone system
4. The wireless small business phone system

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A basic, utilitarian small business phone system

Small business phone system technologies break right at 10 lines. If you have less than 10 employees and don't expect to grow -- and can deal with limitations on advanced features -- a simple small business phone system that works much like a home phone system can save you money on intial, upfront installation.

I recommend: Plug them in and you're ready to go. The difference is the lack of central control box, called a Key Service Unit, or KSU. A so-called KSU-less small business phone system relies on wiring the phones in sequence, which is cheaper but hard to expand. Some vendors of KSU-less small business phone systems include Panasonic, TMC, AT&T, RCA, and Cortelco. See more on small business phone system selection at the Business.com page on small business phone systems.

For a phone system, small business needs vary

Technological advances have brought a lot of big-company features to small business phone systems relatively cheaply. If sales is your goal, a key service unit (KSU) small business phone system is probably the better choice.

I recommend: The key is the number of lines in the small business phone system. A four-line KSU-less small business phone system would ring busy if all four lines are in use if a fifth customer calls. But an exandable KSU small business phone system can handle add eight or 16 lines and dozens more extensions. See KSU small business phone system vendors Toshiba, Nortel, AT&T and Vertical (Comdial). Additional resources on small business phone system handsets and technology can be seen at Business.com.

An alternative phone system for small business

If you office is already wired for high-speed data -- and you expect to make long-distance calls -- it can be cheaper to invest in a Web-based small business phone system, known as VoIP, for Voice-over-Internet-Protocol.

I recommend: VoIP (pronounced "voyp") is quickly becoming the small business phone system choice for offices where expansion is an issue, since adding capacity is a matter of buying more bandwidth, not necessarily more lines from the phone company. Major vendors of small business phone system VoIP include Cisco, Avaya and Nortel. See also the VoIP small business phone systems page at Business.com.

Wireless small business phone systems

A lot of newer small business phone systems take advantage of your existing Internet connection. If you have an office wireless Web, or Wi-Fi, network, consider adding extensions using small business phone system handsets that link to it.

I recommend: Vendors of wireless small business phone system handets that link to Web networks without adding phone lines include Siemens and Mitel.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  KSU-less small business phone systems are mighty attractive to startups, since they cost so little to install. Budget for the upgrade yoru small business phone system, though, since you might quickly find the limitations unbearable.
• •  The knock on VoIP small business phone system is call quality, but that is often not a problem with the system but bandwidth. More bandwidth means more calls can come through at the highest level to your small business phone system.

Analog telephones and digital telephones use different technologies in order to make phone calls and use call features. Analog is the more traditional technology used to make calls and utilizes electronic impulses to work. Digital phones break the voice into binary code and translate it for the connected device.

Analog and digital telephones types and styles vary by each phone manufacturer. Since digital business telephones use more advanced technology, they will typically cost more than analog phone versions.

1. Browse a selection of analog phones. Look at several models from top manufacturers for the different styles.

2. Check out digital phones for your company. Note the different characteristics, like multi-line capabilities, clarity and frequency.

3. Compare each analog and digital telephone type. Determine the features and prices of each. You will also want to check with your telephone service provider to see which type is supported by your system.

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See the types of digital business telephones

Digital phones are manufactured with the business owner in mind. Digital phones often are IP supported and will work with multiple line systems. Digital telephones will allow you to switch ring patterns, make conference calls and feature digital displays.

I recommend: Optima Communications Systems has several different digital business phone system options available. You can view product details for digital business telephones from the Avaya 2400, 4400, 5400 or 6400 line. Panasonic manufactures the KX line of digital phones with 3 and 6 line capabilities.

Check out corded analog business telephones

An analog business phone system is still a popular option for companies since it is usually more cost effective. Many analog systems will also be compatible with newer VoIP calling functions. Corded analog phones are most popular with businesses and will often have many of the multi-line and call features available through digital brands.

I recommend: For a listing of multiple types of analog business telephones, you can go to the Telephonyware site. Featured analog corded systems include versions through Aastra, Talkswitch and Uniden. Teledex has two series of business analog phones, the B Series and BTX Series.

View the styles of cordless analog phones

Cordless analog headsets allow you to conduct business while still being free to move about. These types of models are ideal for home based offices or professionals that need to multi-task while using the phone. Analog versions have been around for several decades and still offer clarity and functionality at a low cost.

I recommend: Motorola is one of the most popular producers of cordless analog telephones. You can view their Motorola MA581 5.8 GHz Cordless Analog Speakerphone with Answering Machine model on Etronics.com. Another popular manufacturer of analog cordless telephones is AT&T. Their bestselling AT&T EL42108 5.8MHz Analog Cordless Phone with Caller ID and ITAD is available through Audio Discounters.

Analog and digital telephones keep your office running by connecting you to your customers. However, the equipment that you need largely depends on the size of your business. A small company or home office can get by with certain analog and digital telephones networks, where a large business or corporation requires a larger analog and digital telephones network. Consider these analog and digital telephones key terms that will help you find the analog and digital telephones best suited for your business.

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Integrated answering system

If your business needs a plug-and-play phone system that requires no set up and very few features from the phone company, an integrated answering system is for you. It's an answering machine built into the digital or analog telephone that you choose.

I recommend: Read about answering system technology on the Integrated Answering System page of the AT&T website.

Multi-handset systems

Multi-handset systems are great for small offices and home offices because they have multiple handset receivers that all operate through one central base.

I recommend: RCA.com provides details about one of its multi-handset systems.

PBX, Private Branch eXchange

Private Branch eXchange, PBX, is a way that businesses requiring multiple phone lines can avoid leasing each individual telephone line from the phone company. A PBX, instead, allows businesses to use a privately owned telephone switching system to fulfill that company's telephone networking needs.

I recommend: Read about PBX on the wiseGEEK website.

KSU-less telephone systems, Key System Unit

KSU-less (meaning without a Key System Unit) telephone systems are the way to go if you're a business that requires ten telephone lines or less. KSU-less telephone systems enable you to string together several lines without paying for a central system. You can also get voice services and networking features appropriate for a small business budget.

I recommend: Read KSU-less telephone systems information on Resource Nation.

Key telephone systems (KTS)

KTS telephone systems, also known as key telephone systems, are similar to Private Branch eXchange. However, key telephone systems require the business to use switching services from the phone company. Even though you rely on the phone company, your business can still have telephone networking options that are appropriate for your small business if you opt for key telephone systems.

I recommend: The Linktionary website offers a detailed definition of key telephone systems.

Voice Over Internet Protocol, VoIP

Voice Over Internet Protocol, abbreviated both as Voice Over IP and VoIP, uses the Internet to handle your business phone calls instead of using traditional phone lines. That means your business can take advantage of networking features and services at a lower cost.

I recommend: The Habco Services Group website provides details about Voice Over Internet Protocol.