When shopping for a phone system, you have three choices: a key system, a PBX system, or a hybrid (a cross between a key and a PBX). Key and hybrid systems are suitable for most small businesses, but if you want to use an auto-attendant to route incoming calls, you'll need a hybrid or PBX system.

A phone dealer can help you choose the best system for your business, but you should understand the basics before you invest in costly telecommunication equipment. The following list will help you evaluate your telephone-system options.

1. Size. The number of lines and extensions you'll need will determine the size of the system you'll buy.
2. Modularity. It makes more sense to purchase a modular system that will grow with your business rather than an inexpensive system that you'll quickly outgrow and need to replace in a year or two.
3. Price. It's difficult to estimate phone-system prices because the total cost depends on installation charges, the type of equipment you select, and the options (voicemail, wireless headsets, etc.) you choose. Generally, key system prices range from $160 to about $600 per station, PBX systems cost between $400 and $600 per station, and hybrids fall in between. Get quotes from a number of suppliers before you make a decision.
4. Products. Telecommunications experts usually recommend buying popular brands over buying obscure brands. Not only is it easier to find dealers that can provide support and system upgrades for popular brands, but it also will be easier to find a new dealer if you become dissatisfied with the dealer who originally sold you the system.
5. Features. Base your feature selection on how employees will use the phone system and how calls get routed through your business. The most common features include:
   • Call forwarding. With call forwarding, you can program a phone system to forward a call to another extension if the first extension is busy or not answering.
   • Call waiting. Many systems provide a signal when the user is on the phone and a call comes through on another line.
   • Hold. Hold allows you to park a call until it can be transferred or managed. Exclusive hold lets only the person who places the incoming call on hold retrieve that call.
   • Speakerphone. Check the sound quality of this hands-free feature before you choose a model. Speakerphone quality varies drastically from product to product.
   • Speed dial. A standard feature on most phone systems, speed dial allows users to store frequently called numbers and access them at the push of one or two buttons.
   • Voicemail. No business telephone system should be without voicemail. But if this capability isn't included with your current phone system, you have other options besides purchasing a new system. Consider one of the many third-party voicemail products on the market.