Guide to Private Branch Exchange (PBX) Phone Systems

Determine how many trunks you need

In order to make external calls from your PBX system, you need trunks (lines) to connect to your phone company's network. However, you don't necessarily need a trunk for each employee or each phone number you have. For instance, if you have 20 people in your office, chances are they won't all be on the phone at the same time so you probably don't need a trunk for every employee. Your calling patterns and the number of employees who will need extensions determines the number of trunks required.

I recommend: Order PBX trunk lines from a phone service provider, such as Sprint.

Get the basics

Look for a PBX system that includes call forwarding, hold, call waiting, conference calling, intercoms, transferring, call pick-up groups, voice mail and the ability to control which external phone numbers can and can't be dialed.

I recommend: Take an online quiz from PBXInfo.com to help you narrow down the type of PBX system that's right for you.

Get extra features

Depending on your communication needs, consider an auto/attendant/receptionist feature, interactive voice response (IVR), caller ID, music on hold or call detail records (CDR).

I recommend: Review the many features available from TalkSwitch.com.

Get the latest technology

PBX systems once used telephone cables exclusively, but today's systems combine old-fashioned telephony with Internet data capabilities. The latest breed of PBX systems also use VoIP (Voiceover Internet Protocol).

I recommend: PBXtra phone systems offer unlimited extensions and voicemail and are integrated to work with VoIP.

Find a system that fits your size

PBX systems designed for very small businesses and home offices often cost less than $1,000. Systems that support up to 100 people are called "key systems" and can range from $1,000 to $20,000.

I recommend: Several companies specialize in providing PBX systems to small businesses, including Freedom800.com and TalkSwitch, which specializes in phone systems with one to 32 users and integrates standard analog telephones, fax machines, cellular and offsite phones with the traditional telephone network and the Internet.

Fake it

If you don't have the budget to set up a PBX phone system or your business involves telecommuters who don't share the same office space, forgo the traditional PBX and get the same services without the hardware.

I recommend: Sign up online for GotVMail.com's VirtualOne Phone System, which can be customized for one to 30 employees and requires no equipment. Office Depot's Wireless Office Service allows you to offer all of the features of a PBX system such as voicemail, dial by name and an auto-attendant while using cell phones or multiple office phones. Virtual PBX is a virtual system that uses the equipment you already have and allows you to connect telecommuting employees without any extra hardware to buy.