Initial Steps
- Research and planning
- Legal entity
- Taxes
- Banking
- Accounting
- Permits and licenses
- Location
- Equipment
- Staffing
- Training
- Call routing
- Performance monitoring
To start your own call center, first determine your purpose and set specific goals. Research the costs to set up operations, either virtually or on-site. Consider legal requirements like business insurance. To retain clients, focus on excellent customer service when managing calls. Promote services effectively to attract new clients.
Monitor key metrics like handle time and customer satisfaction to identify areas for improvement. Careful planning and preparation are needed to launch a successful call center business. Decide what services to offer and the industry niche based on your business aims. Weigh pros and cons of on-site versus virtual call centers. Proper budgeting is also critical so you do not overspend. With hard work and execution, starting a profitable call center is very possible.
Cost Analysis
The average cost to start a brick and mortar call center is $3 million dollars. However, Arise removes the barriers of entry for small businesses to enter the call center market. The average call center company that partners with Arise has startup costs of just $200 – $2000*. A blended call center that provides both inbound and outbound services may have startup costs of around $15,000, including hiring staff, renting space, and purchasing equipment.
Main Cost Categories
- Startup Costs: The cost of starting a call center business will vary depending on your call center type. The average startup costs for a 1-800 telephone call center business: $12,272. Some call center providers use online resources to meet client communication needs.
- Initial costs of starting a virtual call center: Website hosting through providers like Bluehost can cost as little as $2.95 per month. Purchasing and registering a domain can cost as little as $10 per year.
- Staffing and hiring costs: Call centers need to determine whether to charge per staff hour or per call.
- Equipment costs: Selecting the right call center technology is the most important aspect of starting a call center, and essentially determines its success or failure.
- Business operations software costs: Call Center Software as a Service (SaaS) combines cloud VoIP calling with third-party integrations, analytics and performance monitoring, advanced call management strategies, and automation to streamline workflows, agent tasks, and customer service.
According to recent statistics, the call center industry is expected to reach $496.6 billion globally by 2027, growing at a CAGR of 9.2% from 2020 to 2027. While this growth is promising, the cost of starting a call center can be significant. From equipment to staffing, there are various expenses to consider.