A functional telephone is arguably the most basic of tools for any business, but that doesn’t make a phone system simple to buy, especially for a business looking to expand beyond a few headsets. As hardware gets more sophisticated and service options multiply, the selection of a phone system can be bewildering. Monty Ferdowsi, president of business telephone system supplier Nextcom, has some suggestions for entrepreneurs who want to avoid buying more or less than they need.

“The first thing you must do is get a good hardware vendor. Typically, people get referrals from their local phone company or the yellow pages. A referral from someone who has had a good experience with the vendor is the best choice.

“Before you choose, take the time to thoroughly check the vendor out. Make sure it’s been around a while. Take the time to get references and call them. Once you’ve satisfied yourself that the vendor is for real, the next step is clearly specifying your needs. Tell the vendor about your business and the problems you’ve had with your old system. The vendor must know exactly what your particular problems are in order to find a solution. One size does not fit all.

“If you are a small customer, don’t buy anything until you get a working demonstration of the system and make sure you know exactly what you’re getting. At that point, you can ask any questions that may not have been brought up before. Don’t trust the glossy brochures. The quality of a phone system is not reflected in glossy paper.

“After you’ve made your needs clear, demand a detailed written quotation of the equipment and warranty costs, labor costs for installation, and sales tax. You have to have an actual number to work with. People will often quote half the job and then quote the other half once the customer has committed.

“In addition to equipment, you need to buy a service package from the phone company. It helps if your vendor is aware of the service options so it can recommend what kind of service plan to take.

“Even if you’re satisfied at this point, don’t stop shopping. Talk to a couple of other vendors to make sure that you’re getting the system at the best price. But don’t choose a vendor on price alone. Select the vendor based on its ability to deliver, install and maintain your system. Often a savings of 5 percent to 10 percent on a telephone system can be quickly erased with service costs. Once you’ve selected your system, let your hardware vendor coordinate the ordering of your phone company service along with your hardware installation. You save yourself a lot of grief by having one person handle it all.”