Starting An Answering Service

Starting An Answering Service - Background Info:

When looking for a business opportunity that you can run from home, it might come as a surprise that people are still turning to a professional answering service. Even with mobile phones and answering machines, there is still a need for a human voice in many businesses.

Experts agree that a live operator is always best for business. With today's technology, starting your own live answering service from home can be both easy and lucrative.

The integral role played by the telephone as a business communication tool accounts for the growing importance of answering service businesses. All businesses, whether a physician's private practice, a small construction company, or a conglomerate, rely on the telephone as one of the fastest and most reliable communication tool in their businesses.
If you'll just be taking messages for one or two clients, an additional land-line may be all you need. For multiple clients, it may be handy to invest in a multiple-line phone system. These usually handle up to 8 or 10 lines and can be marked with each client's name.

For a very large volume of clients, you may need to invest in a specialized type of switchboard system, sometimes called a PBX system. Such systems can be a large box with lots of switches or virtual applications. PBX and switchboard systems made for answering services can handle up to a hundred different lines. Either type may be purchased or rented.

If you'll work at your answering service for more than a few hours per day, it's a good idea to invest in a headset. Otherwise, you could develop a permanently twisted neck.

The first thing you want to do is decide what sort of answering service you'll offer. Choose a business name that describes what sort of answering services you'll provide. Make sure it doesn't limit your potential future work.

Get the equipment necessary to ensure success. Be sure you're set up to take the volume of calls during the hours you'll be operating. Make sure you have plenty of office supplies to keep your answering service organized. Get some business cards printed up and start handing them out.

Most importantly, be sure you have a professional voice and know your clients' businesses well enough to be able to answer any and all questions. Even if an answering service starts out small, it can grow quickly. Be sure your answering service is ready to expand.

Running a home-based answering service means more than just picking up the phone and taking messages. While that may be part of most answering services, it's what you do with that message that can set your business apart. Some common variations include:

Setting appointments

Selling tickets

Performing staffing services

Taking orders

Conducting surveys

Delivering messages

Scheduling

Message delivery
Be sure your answering service is well organized. This may mean keeping a list of contacts on note cards or managing virtual files.

Starting An Answering Service - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running an answering service business:

Bookkeeping

Billing

Scheduling

Filing

General office

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate an answering service business:

Set appointments

Call with reminders and pass along messages left

Answer business calls and take messages

Starting An Answering Service - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - Hours vary according to the needs of each client. Some answering services are set up to take calls during after-business hours and weekends.

Hours Needed to Prepare - Before Opening and After Hours Activities - Make sure all equipment is operational, clean call/message station area, update call logs, perform billing.

Starting An Answering Service - Number of Employees:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Call monitors and workers

Starting An Answering Service - Skill Requirements for This Business:

Polite and courteous phone presence and manners

Ability to handle irate callers at times

Flexibility in work hours is required, as clients' needs dictate

Warm and personable personality

Answering Service Licenses:

File business license and forms as required by federal, state and city offices. If you are working from a home office, you will most likely need a permit to operate as well.

Answering Service - Approximate Minimum Start up Cost:

Bare essential: - The average startup cost is approximately $200-500.

Minimal exposure - There are several ways to advertise for free including flyer distribution, media coverage, and contacting local businesses and leaving a business card with them.

Necessary Equipment to Start An Answering Service:

Necessary Start-Up Equipment & Supplies:

Computer with high-speed internet connection

Printer

Cell phone

Website

Fax

Second phone line

Multi-line phone system

Filing cabinet

Headphone

Microphone

Scanner

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

PBX system

Office space with furnishings

Additional phone lines, systems for call center employees

Higher quality headphones and microphones

A phone and phone line for each client. Place the client name on each phone.

Answering Service - Monthly Expenses To Consider:

Wages
Phone/cell phone service
Internet access
Permits
Advertising/Marketing
Electricity
Toll and long-distance calls

Special Requirements and Considerations For An Answering Service:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
It's very important that you answering service be very well organized. When your clients call for their messages, you need to make sure everything is right there. Often, this is best done by having messages stacked in a ready and sent stack for each client.
If taking messages as a call center, you'll likely be entering orders into a dedicated fulfillment system. That means that your answering service will be judged by how quickly and accurately you enter each order. If setting appointments, be sure you have a separate appointment book for each answering service client.
Obtain a customer service contract, then have each client sign the contract. Avoid spending expensive lawyer fees.
Create a filing system for client messages.
Write down customer instructions and messaging preferences. Follow customer instructions at all times.
Be precise when taking messages. Use short sentences.
Know when to get an office. If you are servicing too many customers or when the limit is reached on phones lines.
Maintain your budget and finances.
Provide excellent service and guarantee your work.

Pros And Cons of Opening An Answering Service:

The Pros of Running An Answering Service Business:

You can work from home

You can work alone

Fairly inexpensive and easy to start and grow

The Cons of Running An Answering Service Business:

Your work hours are often hours when most people are off

Can be stressful keeping up with client demands and some callers

Hard to take time off unless you hire other workers

It can be competitive

Type of Customers You Need to Attract For An Answering Service:

Your answering service can help both local and long-distance clients. While you will most likely start out with clients in your local area, you can also serve clients anywhere. This is especially true when answering a toll-free call center.

Answering service businesses are very often best advertised by "cold calling" likely potential clients and offering your services. Make sure you have some business cards printed up, and don't be shy about handing them out.

Anyone with a telephone and a busy schedule can become your client, although small businesses are emerging to be a very good target market.

The best prospects for an answering service are those businesses and professionals that are "on call" 24 hours a day, such as doctors, repair service business owners like electricians and plumbers, among others.

Answering Service Business Statistics:

In-depth and most current answer service business statistics is available at Bureau of Labor Statistic and MarketResearch.com.

Answering Service Revenue:

A one-office operation can generate gross revenues of as much as $150,000 upwards in a year, depending on the number of telephones or switchboards in operation and the number of calls taken.

Answering Service Business Resources:

Industry-Specific Websites:

Answering Service, Call Center and Customer Service Excellence

Answering Service

Answer First

Courses:

Voice Nation Live

Apollo

Equipment and Supplies:

Telephone Answering Service Vendors

VirtualPBX.Com

Forums:

CNET

Franchises:

We Answer

Associations:

ATSI

Books:

How to Start and Manage an Answering Service Business: Step by Step Guide to Business Success [Paperback]

Software:

Mastar

Call Center Tech

NSolve

Other:

Hiring Call Center Staff

Businesses To Related to An Answering Service Business:

Hospitality
Reservations
Medical/dental/veterinary
Customer service
Advertising/promotion