Introduction
Your phone rings. A homeowner needs their AC fixed - it's 95 degrees and their system just died. But you're up on a ladder finishing a job, hands full of tools. The call goes to voicemail. They call the next contractor on their list. You just lost a $4,000 emergency repair.
This happens more than you'd think.
In our analysis of thousands of customer service calls from home services businesses over 7 months, we found that 74.1% of calls went completely unanswered. That's nearly three out of every four potential customers calling someone else.
The fix isn't complicated. You need a business phone number that actually gets answered - whether that's a simple VoIP line, an auto-attendant, or an AI receptionist that handles calls 24/7.
This guide walks you through everything: the types of business phone numbers available, how to choose the right one, step-by-step setup, and modern alternatives that mean you never miss another call. If you're a small business owner in the US or Canada who's tired of losing leads to voicemail, this is for you.
Why You Need a Dedicated Business Phone Number
The Problem with Using Your Personal Number
Using your personal cell phone as your business line seems easy at first. No extra costs, no setup hassle. But it creates problems that compound over time.
Privacy disappears. Your personal number ends up on your website, business cards, Google listing, and marketing materials. Now anyone can reach you - including spam callers, difficult customers at 10 PM, and people you'd rather not hear from.
Work-life balance goes out the window. When your business calls come to your personal phone, you can never truly disconnect. That call during your kid's soccer game? Could be a big lead. Could be a robocall. You won't know until you answer.
You look less professional. Customers notice when caller ID shows a personal cell instead of a business line. It makes them wonder if you're a real company or someone working out of their garage. Fair or not, perception matters.
You can't track anything. How many calls did your business get last month? How many went unanswered? What percentage converted? With a personal number, you're flying blind.
What Happens When Calls Go Unanswered
The stats here are painful.
According to industry research, 85% of callers won't call back if their call goes unanswered. They don't leave voicemails. They don't try again later. They just call your competitor.
Research from Invoca shows that 62% of calls to small businesses go unanswered. That's not a rounding error - that's the majority of your potential customers never reaching a human.
Let's do the math. Say you get 42 calls per month (typical for a small service business). If 74.1% go unanswered, that's 31 missed calls. If even 20% of those would have converted at an average job value of $3,500, you're losing $21,700 per month. That's $260,400 per year walking out the door.
The real kicker? Studies show 78% of customers buy from whichever company responds first. Not the cheapest. Not the best reviewed. The first one to pick up the phone.
Many of these calls come after business hours - evenings and weekends when customers have time to research and call. If you're only available 9-5, you're missing a huge chunk of high-intent leads.
Types of Business Phone Numbers Explained
Before you pick a provider, you need to decide what type of number makes sense for your business. Each has different strengths.
Local Numbers
Local numbers use an area code tied to a specific region - like 212 for Manhattan, 415 for San Francisco, or 512 for Austin.
Why they work: People trust local businesses. When they see a local area code, they assume you're nearby, established, and accountable. You're not some faceless call center in another state.
The numbers back this up. Local numbers see 60-70% answer rates when you call customers back. Only 2-5% of people perceive them as spam. Compare that to toll-free numbers, where answer rates drop to 40-50% and spam perception jumps to 20-30%.
Best for: Service businesses, local retail, anyone targeting a specific geographic area.
Cost: Usually included free with VoIP plans.
Toll-Free Numbers (800, 888, 877, 866, 855, 844, 833)
Toll-free numbers let customers call you without paying long-distance charges (though this matters less now that most people have unlimited calling plans).
The perception issue: Because telemarketers and robocallers love toll-free numbers, many people screen them. That 20-30% spam perception rate is real - your legitimate call might get ignored simply because it comes from an 800 number.
Best for: National brands, customer support lines, businesses with customers across multiple states.
Cost: $0-10/month additional on most VoIP plans.
Vanity Numbers
Vanity numbers use letters to spell memorable words or phrases - like 1-800-FLOWERS or 1-800-GOT-JUNK.
The upside: They're memorable. Customers can recall 1-800-PLUMBER more easily than 1-800-758-6237.
The downside: Good vanity numbers are expensive and often taken. You might pay $5-20/month premium, and activation can take up to 5 days while the number is verified and ported.
Best for: Marketing-heavy businesses where phone branding matters.
Virtual/VoIP Numbers
Virtual numbers run over the internet instead of traditional phone lines. They work on your existing smartphone, computer, or desk phone through an app.
The big advantage: No hardware needed. You get business phone features (call routing, voicemail-to-email, auto-attendant) without buying a physical phone system.
Best for: Almost everyone. VoIP has become the default for small businesses because it's cheaper, more flexible, and packed with features traditional lines can't match.
Quick Comparison
| Number Type | Best For | Monthly Cost | Answer Rate | Spam Perception |
|---|---|---|---|---|
| Local | Local/regional businesses | Included | 60-70% | 2-5% |
| Toll-Free | National brands | $0-10 | 40-50% | 20-30% |
| Vanity | Marketing-focused | $5-20 | Varies | Varies |
| Virtual/VoIP | Almost everyone | $15-35/user | Depends on number type | Depends on number type |
How to Get a Business Phone Number (4 Steps)
Getting a business phone number isn't complicated. Most people can be up and running in under an hour. Here's the process.
Step 1: Decide What Type of Number You Need
Start with a simple question: Where are your customers?
If they're local (within your city or region): Get a local number with your area code. You'll build trust and see better answer rates when you call back.
If they're national (across multiple states): Consider toll-free, but weigh it against the spam perception issue. Some businesses use a local number for their main line and toll-free only for customer support.
If you want a memorable number: Budget for vanity, but have a backup option since the good ones are often taken.
One more thing: If you plan to text customers (appointment reminders, follow-ups), you'll need to register for 10DLC. This became a requirement in early 2025 - unregistered business texting gets blocked by carriers. Your provider can help with registration.
Step 2: Choose Your Provider
Your options fall into three categories:
Simple VoIP apps (Google Voice, Grasshopper): Best for solopreneurs who just need a second line. Basic features, lowest cost.
Full phone systems (RingCentral, Nextiva, Dialpad): Best for teams that need extensions, shared lines, and advanced routing. More features, more complexity.
AI receptionists (NextPhone): Best for businesses that can't afford to miss calls. AI answers 24/7, qualifies leads, and routes emergencies. Higher cost, but solves the "who answers when you can't" problem.
Questions to ask any provider:
- Can I port my existing number? (Most can, in 1-2 weeks)
- What's the actual total cost? (Watch for hidden fees)
- How quickly can I get set up?
- What happens if I need help?
Provider Comparison
| Provider | Starting Price | Best For | Standout Feature |
|---|---|---|---|
| Google Voice | Free (personal) or $10/mo (business) | Solopreneurs on a budget | Google ecosystem integration |
| Grasshopper | $14/mo | Small teams wanting simplicity | Easy setup, no hardware |
| RingCentral | $20/mo per user | Growing teams | Full-featured phone system |
| Dialpad | $15/mo per user | Teams wanting AI features | Built-in AI transcription |
| NextPhone | $199/mo flat | Businesses that can't miss calls | AI answers 24/7, unlimited calls |
Step 3: Select and Activate Your Number
Once you've chosen a provider, getting your number is straightforward:
- Search available numbers in your provider's dashboard
- Pick your area code (local) or prefix (toll-free)
- Complete verification - some providers need business documentation
- Wait for activation - usually instant for standard numbers, up to 5 days for vanity
If you're porting an existing number, don't cancel your old service until the port completes. Your number stays active during the transfer (typically 1-2 weeks).
Step 4: Configure Your Phone System
Now make it work for your business:
Set up voicemail. Record a professional greeting that includes your business name, hours, and what callers should do. Avoid the generic "leave a message after the beep."
Configure call forwarding. Decide where calls go - your cell phone, a team member, an auto-attendant, or an AI receptionist. Most providers let you set up call forwarding with different rules for business hours vs after-hours.
Set business hours. Let the system know when you're available so after-hours calls get handled appropriately.
Enable notifications. Get email or SMS alerts for missed calls so nothing falls through the cracks.
Consider an auto-attendant. Even a simple menu ("Press 1 for appointments, 2 for billing") routes calls efficiently and sounds professional.
Try NextPhone AI answering service
AI receptionist that answers, qualifies, and books — 24/7.
Is Google Voice Free for Business?
This is one of the most-searched questions about business phone numbers, so let's clear it up.
Google Voice Personal: Yes, it's free. You get a US phone number, unlimited calling to the US and Canada, voicemail transcription, and basic call forwarding. No monthly fee.
Google Voice for Business: No, it's not free. You need a Google Workspace subscription ($7+/month per user) plus a Voice subscription ($10-30/month per user). That adds up to $17-37 per user monthly.
What You Get with Free Google Voice
- One local phone number
- Unlimited US/Canada calling
- Voicemail with transcription
- Call forwarding to one number
- Basic spam filtering
What You Don't Get
- Toll-free numbers
- Multiple numbers or extensions
- Ring groups (multiple phones ring for one number)
- Auto-attendant
- Call recording
- 911/emergency calling (critical limitation)
- Business-level support
When Free Google Voice Makes Sense
- You're a solopreneur just starting out
- Your budget is extremely tight
- You already use Google Workspace
- You don't need 24/7 coverage
- You're okay with basic features
When to Upgrade
If you're getting more than 20 calls per week, losing calls to voicemail, or your business depends on capturing every lead, free Google Voice probably isn't enough. The limitations will cost you more in missed opportunities than you'd spend on a proper business phone system.
Best Phone System Options by Business Size
Not everyone needs the same solution. Here's how to match your phone system to your situation.
For Solopreneurs and Freelancers
You need one thing: a separate business number that doesn't require a second phone.
Best option: Google Voice (free) or Grasshopper ($14/mo)
Both let you use your existing smartphone with a dedicated business line. Calls come through the app, so you can screen them and decide whether to answer. Your personal number stays private.
Grasshopper adds more professional features (custom greetings, multiple extensions) if you want to appear more established.
For Small Teams (2-10 People)
You need extensions, shared lines, and the ability to transfer calls between team members.
Best option: RingCentral ($20-35/mo per user) or Dialpad ($15-27/mo per user)
These give you a real phone system without the old-school hardware. Everyone gets their own extension. You can set up departments ("Press 1 for Sales, 2 for Support"). Call quality is excellent on modern internet connections.
For Businesses That Can't Miss Calls
If your revenue depends on answering calls - and you can't always get to the phone - you have two choices:
Traditional answering service ($500-800/month): Humans answer your calls and take messages. Works, but expensive, and quality varies wildly.
AI receptionist like NextPhone ($199/month): AI answers calls naturally (not "press 1 for..."), asks qualifying questions, captures lead information, and routes emergencies to your cell. Works 24/7/365.
The math often favors AI. A human receptionist costs $35,000+ per year and only works business hours. NextPhone costs $2,388/year and never sleeps.
Learn more about AI receptionists for small business and whether they're right for your situation.
Setting Up an Automated Phone System
Even a basic automated system makes your business more professional and captures more leads.
What an Auto-Attendant Does
An auto-attendant (sometimes called IVR or virtual receptionist) answers calls automatically with a recorded greeting and menu options. "Thanks for calling Smith Plumbing. Press 1 for appointments, 2 for billing questions, or hold for the next available representative."
Benefits:
- Every call gets answered immediately
- Callers self-route to the right person
- Filters out spam and wrong numbers
- Works 24/7 without you being there
Basic Auto-Attendant Setup
- Record a professional greeting - Include your business name and keep it short (under 30 seconds)
- Create menu options - Keep it simple. Max 4 options. More confuses people.
- Set routing rules - Where does each option send callers?
- Configure after-hours behavior - Voicemail? Emergency routing? Different message?
Most VoIP providers include auto-attendant in their plans. Setup takes about 30 minutes.
Auto-Attendant vs. AI Receptionist
These sound similar but work very differently.
| Feature | Auto-Attendant | AI Receptionist |
|---|---|---|
| How it greets | Pre-recorded message | Natural conversation |
| How it routes | "Press 1 for..." | Asks questions, understands context |
| Lead capture | None | Collects name, phone, email, reason |
| After-hours | Limited options | Full conversations, scheduling |
| Monthly cost | Included with VoIP | $199-500 |
| Best for | Simple call routing | Never missing a lead |
For a deeper comparison, check out our answering service comparison guide.
How NextPhone Helps Small Businesses Never Miss a Call
Let's be direct about the problem NextPhone solves.
You're a contractor, service provider, or small business owner. You can't always answer your phone. You might be on a job site, meeting with a customer, driving, or (revolutionary concept) eating dinner with your family.
But when your phone rings, there's money on the other end. Our analysis of thousands of calls showed that 25.4% of callers explicitly request callbacks. Another 15.9% have urgent needs. And 6.2% are true emergencies - pipe bursts, power outages, AC failures.
When those calls go to voicemail, 85% of people don't call back. They call your competitor.
How NextPhone Works
NextPhone is an AI receptionist that answers your business calls the way a great human receptionist would.
When someone calls, the AI:
- Answers in under 5 seconds (faster than most humans)
- Has a natural conversation (not "press 1 for...")
- Asks qualifying questions (name, reason for calling, urgency)
- Captures all contact information accurately
- Routes true emergencies immediately to your phone
- Sends you a summary, transcript, and recording after each call
It sounds like talking to a person, not wrestling with a phone tree.
What You Get
- 24/7/365 coverage - Nights, weekends, holidays
- Unlimited calls - No per-call fees, no overages
- SMS follow-ups - AI can text callers with booking links
- CRM integration - Lead info flows into your existing systems
- Emergency detection - Urgent calls get transferred immediately
The Cost Comparison
| Solution | Monthly Cost | What You Get |
|---|---|---|
| NextPhone | $199 | 24/7 AI answering, unlimited calls |
| Answering service | $500-800 | Human operators, 100 calls, then overage fees |
| Part-time receptionist | ~$1,500 | 20 hours/week coverage |
| Full-time receptionist | ~$2,900 | 40 hours/week (no nights/weekends) |
| Doing nothing | $21,700+ | Lost revenue from missed calls |
That last line isn't a joke. The real cost isn't what you pay for a phone system - it's what you lose by not having one that works.
Frequently Asked Questions
How much does a business phone number cost?
VoIP business phone numbers typically run $15-35 per user per month. Free options like Google Voice Personal exist but have significant limitations. Traditional landlines cost $50-100 per line monthly and are being phased out by many carriers. AI receptionists like NextPhone cost $199/month flat for unlimited calls with 24/7 coverage.
Can I use my personal cell phone for business?
You can, but it creates problems. Your personal number ends up everywhere, work-life boundaries disappear, and you can't track business calls separately. A better option is a virtual business number - you still use your same phone, but business calls come through a separate app with their own ringtone and voicemail.
What's the difference between VoIP and a regular phone line?
VoIP (Voice over Internet Protocol) uses your internet connection to make calls instead of traditional copper phone lines. VoIP is typically 50-70% cheaper, offers far more features (voicemail-to-email, call recording, integrations), and works on any device with internet access. Traditional landlines are becoming obsolete - many carriers have stopped selling them entirely.
Do I need a toll-free number or local number?
For most small businesses, local is better. Local numbers have 60-70% answer rates vs 40-50% for toll-free because people perceive toll-free as spam or telemarketing calls. Only use toll-free if you have a truly national customer base or run a dedicated support line where the "free to call" perception matters.
How do I port my existing number to a new provider?
Most VoIP providers can port your existing number in 1-2 weeks. You'll need your current account number and PIN (call your existing carrier to get these). There's usually a small fee ($5-25). Critical: don't cancel your old service until the port completes - your number stays active during transfer. For a complete walkthrough, see our phone number porting guide.
What is 10DLC and do I need to register?
10DLC (10-Digit Long Code) registration is required if you send business text messages from your phone number. Since early 2025, all business SMS must be registered with carriers or your messages will be blocked. Registration costs about $10/month and takes 2-4 weeks for approval. Your VoIP provider can help with the registration process.
How quickly should I answer business calls?
Within 3 rings (about 15-20 seconds) is the industry standard. Research shows that after 4+ rings, conversion rates drop 10-25%. If you can't consistently answer that fast - because you're with customers, on job sites, or just busy - an AI receptionist or auto-attendant ensures every call gets answered immediately.
Final Thoughts
A dedicated business phone number isn't a nice-to-have. For most small businesses, it's the difference between capturing leads and losing them to competitors.
Here's what we know:
- 74.1% of calls to small businesses go unanswered
- 85% of those callers never call back
- 78% of customers buy from whoever responds first
- The average missed call costs over $1,200 in lost revenue
VoIP has made professional phone systems affordable for everyone. For $15-35/month, you can have a dedicated business line with features that used to require expensive hardware.
And if you're in a business where missing calls means missing money - contractors, service providers, anyone who can't always get to the phone - modern AI receptionists solve a problem that's existed since the telephone was invented: who answers when you can't?
The question isn't whether you can afford a better phone system. It's whether you can afford to keep letting calls go to voicemail.
Try NextPhone AI answering service
AI receptionist that answers, qualifies, and books — 24/7.