If you are looking for a relatively inexpensive way to start a home business, you can consider starting an answering service business. The demand for such a business has increased tremendously since the recent pandemic that hit the world. That means there is an ample opportunity for someone with a pleasant phone demeanor to start and earn good money from it.
An answering service business doesn’t require a huge capital investment, and you can start all from home. With a few telephones and computer bandwidth to meet customers’ needs, you can set your own answering service business rolling. In this post, we will be showing you what an answering service business is and how you can start it – even from home.
What Is An Answering Service Business?
This is simply a type of business that helps companies and businesses manage their inbound and outbound communications. This could include answering phone calls, replying to text messages, responding to emails, transferring calls, cold calling, etc.
How Does an Answering Service Works?
When a client meets you to handle their calls, they get on your list of people you manage. Now, when the company or business gets phone calls, instead of calls ringing their office, they will ring at your end to pick up.
There are different methods and options available for different businesses. Some would prefer you only take their calls after work hours. Anything from 8 a.m to 4 p.m, all calls go to their office. Now that you know what this business is all about, let’s look at how you can get it started.
How to Start an Answering Service Business – Step By Step Approach
#1: Write a business plan for your answering service business
This is the first place to start. A well-written business plan will serve as a guide when you are about to launch your business. It tells you what to do at a particular time in the business and how exactly to do it. A business plan can also help you gather your ideas together, help you secure funding, and fine-tune your business idea.
So write a business plan for the business, and determine what business structure you will be going with. Are you going to be creating a proprietorship, partnership, LLC, or corporation? The plan should also include your budget, marketing strategy, pricing, etc.
#2: Get on the right side of the law
Before you start the business, make sure you are doing everything right – and not against the law in your area. So, find out what the rules and regulations guiding opening such a business in your area is. Are there any federal guidelines, zoning concerns, or work-from-home guidelines you need to observe?
#3: Register the business
Once you are sure you are on the right side of the law with opening an answering service business, then go ahead and register the business. Registering your business will make your potential clients more assured that they can do business with you. No one will want to deal with a business that is not registered.
So, walk into the office of the secretary of state and register the business. Obtain a tax identification number from the IRS, and check with your state franchise board if there are any local permits you should get.
#4: Open a bank account for the business
You will need a bank account dedicated solely to your answering service business. Then use the money from the account to buy your equipment and pay your utilities. This account is for your business, so no personal purchase should be made from it. Every income made from the business should also go into the account and withdraw paychecks from there to place in your personal account.
#5: Purchase the basic equipment you will need
Answering service business is not a capital or equipment-intensive one. However, you will need to invest in purchasing some basic requirements to get the business off the ground. You will need to buy phones and phone lines. Since you are starting small, you don’t have to buy too many of them from start. You will also need headsets, PC, and answering service software.
#6: Set your rates
Your rates would depend on the hours you set for your clients. For instance, you can have a plumber that only requires you to take calls for him only during work hours. You might decide to do this for $100 per month for a specified number of calls. Taking additional calls on that line would mean extra costs.
If you will be doing this during non-business hours, that may mean double the cost because the calls might also double during this time. If you include other virtual office duties, you can increase the monthly fee. At this rate, it means you can earn up to $3,000 or $5,000 in monthly income if you have about 10 to 15 clients.
#7: Hire a call center agent
If you think you are not well experienced with this, there is an option to get a professional on board. You can hire a call center agent who has the skills and experience to help you get the business off the ground. When looking to hire such a professional, however, you will need to look out for some features. Some of them include a good grasp of what services you offer, good communication skills, and patience. They must also be able to place customers’ satisfaction as their priority.
#8: Market and network
Now that your business is ready, the next thing is to think of how to get your first clients. You will need to get the word out to businesses to tell them about your services. Join local networking groups and business associations to meet small business owners in your area who might need your services. Create a professional website and business card to make it easier for people to contact you. Don’t forget social media – it can be a powerful tool to reach lots of business owners that might need your services.
Extra tip: target medical businesses in your area – they are typically the ideal place to start looking for customers. They usually find it difficult to keep up with phones.
Final Note
If you have been thinking of starting an answering service business, now is the time to get it started. The business is presently in high demand and doesn’t require huge capital or space to start. You can take a clue from the tips mentioned above to get your business off the ground as soon as possible.
