Starting A Call Center

Smaller organisations often outsource call centres to satisfy their customer care demands without creating a new department. Because call centres may handle many firms at the same time, agents must be very versatile. Call centres may charge per call or per hour, which includes the cost of all overhead (wages, rents, equipment, etc.

Follow these ten steps to start a call centre:

Prepare your Call Center

Create a legal entity for your call centre.

Register your Tax Call Center

Create a Business Bank Account and a Credit Card

Configure Accounting for your Call Center

Obtain the Required Permits and Licenses for Your Call Center

Purchase Call Center Insurance

Create a Call Center Brand

Make a website for your call centre.

Configure your Business Phone System

Starting a company entails more than just registering it with the state. We’ve put up this straightforward guide to getting your call centre up and running. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.

STEP 1: Make a business plan.

A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:

What are the initial and continuing expenses?

Who is your intended audience?

How much money may you charge your customers?

Fortunately, we have done a lot of the legwork for you.

What are the expenses of establishing a call centre?

The cost of establishing a contact centre may be fairly significant, and 33 states need a licence to do so. Licenses may be free in one state but cost several thousand dollars in another, so check with your state first. Lease agreements may cost up to $12 per square foot, and updating workstations with the proper furniture, connections, and equipment can cost up to $1,250 apiece. Taxes and utilities will most likely cost roughly $6 per square foot every year. The good news is that there are hundreds of abandoned contact centres around the United States, and they usually come with (often substantial) discounts for new businesses. You may often make use of the equipment that has been left behind.

Alternatively, you might adapt a regular shop space and save up to half on rent. It will, however, cost you extra to equip (up to $2,000 per workstation). If your building does not have one, a generator might cost up to $200,000. The average compensation for contact centre personnel is $9-12 per hour, but you may wish to spend more since the quality of the staff reflects greatly on your business and the image of your clientele. Labor will most likely account for around 80% of your budget.

What are the continuing costs of running a call centre?

Much of your expenditures will occur at the start, however keep the following prices in mind:

Employee wages

Office supplies in general (including equipment replacement)

Utilities and construction costs

Travel expenses to entice new customers

Equipment upgrade (e.g., VoIP technology, etc.)

Who is the intended audience?

Contact centres seek organisations who lack the means to establish their own call centres. Most businesses aren’t equipped to manage a contact centre the way it needs to be run because of the expenses of equipment, employing people, and handling high call volumes. Their requirements are best left to a firm that specialises in offering high-quality service that will increase revenue and client retention.

How does a call centre generate revenue?

Call centres must decide whether to charge by the employee hour or by the call. Because call times might be unpredictable, it may be appropriate to arrange it by staff hour. A contact centre firm may multiply the salary of its employees by four to estimate the cost of equipment, leasing payments, and so on. International corporations typically charge $.35 per call or $8 per staff hour, while US companies charge closer to $1 per call or $25 per staff hour.

How much money may you charge your customers?

It is dependent on the industry you are targeting. Customer service for a clothes firm will need a completely different skill set than selling high-end equipment to orthodontists. If your organisation is efficient, you may charge more for highly skilled labour and justify your charges. Undercutting your competition does not always equal losing quality.

What kind of profit can a call centre make?

According to firstresearch.com, US contact centres generate around $21 billion in income each year, with an average revenue of $4 million.

The actual figures depend on the margins of the contracts you bring in, but you can usually expect to start making money when you’ve landed several significant customers. Remember that this is a competitive industry, and you must be able to provide something unique in order to acquire a competitive advantage.

How can you increase the profitability of your company?

Adding new services is the most effective approach to increase profits. Consider offering customers extra services such as video, customised ads, or more support calls.

STEP 2: Establish a legal entity

Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.

Creating a formal company organisation, such as an LLC or corporation, shields you from personal liability if your contact centre is sued.

STEP 3: File your taxes

Before you can begin for business, you must register for a number of state and federal taxes.

To register for taxes, you will need to get an EIN. It’s really simple and completely free!

Taxes on Small Businesses

Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).

These guides will teach you more about small company taxes:

Taxes on LLCs

LLC vs. sole proprietorship

Corporation vs. LLC

S Corp vs. LLC

How to Form a S Corporation

S Corporation vs. C Corporation

There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.

STEP 4: Establish a company bank account and credit card

Personal asset protection requires the use of distinct business banking and credit accounts.

When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.

Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.

Establish a business bank account.

Opening a business bank account is not only required when asking for business financing, but it also:

Separates your personal assets from the assets of your firm, which is required for personal asset protection.

It simplifies bookkeeping and tax reporting.

Create a net 30 account.

Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.

Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.

Apply for a business credit card.

Obtaining a business credit card benefits you in the following ways:

Put all of your company’s costs in one location to separate personal and business spending.

Build your company’s credit history, which will be important for raising funds in the future.

STEP 5: Establish business accounting

Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.

STEP 6: Obtain all required permissions and licences

Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.

Requirements for State and Local Business Licensing

A specific licence is required in 33 states to run a telemarketing or call centre. To learn more about licencing requirements in your state, visit the sba.gov Telemarketing Laws website.

Furthermore, local licencing or regulatory restrictions may apply. For additional information on local licences and permissions, please visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

Service Contract

Before beginning a new project, call centre companies might consider forcing customers to sign a service agreement. By defining payment terms and conditions, service level expectations, and intellectual property ownership, this agreement should clarify client expectations and reduce the likelihood of legal problems. Here’s an example of a service contract.

When you join up for Rocket Lawyer’s premium membership, you can easily write a professional service agreement for your contact centre company. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.

Occupancy Certificate

A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.

If you intend to rent a space:

In most cases, it is the landlord’s obligation to get a CO.

Before leasing, ensure that your landlord has or can get a valid CO for a call centre.

A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.

If you intend to buy or create a location:

It is your responsibility to secure a valid CO from a local government entity.

Examine all building laws and zoning standards for the location of your company to guarantee your contact centre is in compliance and may receive a CO.

STEP 7: Obtain commercial insurance.

Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.

There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.

Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.

STEP 8: Establish your brand

Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.

How to Market and Promote a Call Center

Establish trust and consistency in the circles where your customers are likely to be found. Call centres rely on their effectiveness, and many fail because they are unable to establish themselves early enough.

Owners should concentrate on what distinguishes their call centre. If a contact centre is more concerned with shoving contracts in the faces of customers than with showcasing its assets, it is significantly more likely to fail.

How to Keep Customers Returning

Increase either your revenue or your customer satisfaction levels to attract new customers. When discussing your successes with prospective customers, utilise real-world examples. You may also allow prospective customers to listen to past conversations to observe how agents handle complicated circumstances without passing the call to the management.

STEP 9: Create your company’s website.

After you’ve defined your brand and designed your logo, the next step is to build a website for your company.

While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.

The following are the primary reasons why you should not put off developing your website:

Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.

Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.

STEP 10: Install your company phone system.

Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.