A decent small business phone system for most companies

What you probably expect from a small business phone system is voicemail, a receptionist station, call transfer capabilities and expandability. For those level needs, you'll need what's called a key service unit or KSU small business phone system.

I recommend: The KSU is actually a small box on the wall and you'll need your phone vendor to install it and the software to run the small business phone system. See KSU small business phone system vendors Toshiba, Nortel, AT&T and Vertical (Comdial). More on small business phone system selection at the Business.com small business phone system page.

When to look at a PBX small business phone system

From 10 users to 40, small business phone system KSU units for are probably rich enough in features. After 40 or when connecting multiple offices, a private branch exchange (PBX) system begins to make more sense as a small business phone system.

I recommend: The PBX small business phone system replicates the level of service once provided by operators at switchboards. They can can handle a lot of incoming calls, route connections accurately and quickly and provide many additional features, like automated directories of employee extensions, call parking, complex conference calling and highly configurable voicemail services. Small business phone system PBX vendors include Fonality, TalkSwitch, Nortel, Cisco Systems, Avaya and 3Com. See more at the PBX small business phone system directory at Business.com.

A middle-ground PBX small business phone system solution

Thanks to the Web, it is now possible to buy much of the usability of a private branch exchange small business phone system over the Web. Rather than invest upfront in hardware, you pay a monthly fee for small business phone system features via the Internet.

I recommend: Some vendors of hosted, virtual or IP PBX include RingCentral, VirtualPBX, GotVmail, Freedom800, and VoiceNation. See more choices at the Business.com directory on buying a virtual PBX service small business phone system.

Consder a Web-based phone system for small business

Got Internet? Then you've got a small business phone system, assuming your office is properly wired for voice and data through the same lines. (Most new buildings are.)

I recommend: Known as VoIP, for Voice-over-Internet-Protocol, the small business phone system phones themselves look the same, but the savings on calls -- especially long distance -- can be significant. And these systems can mimic the kinds of features common to expensive PBX systems as well. Major vendors of small business phone system VoIP include Cisco, Avaya and Nortel. Take a look, too, at the VoIP small business phone systems page at Business.com.