When starting a call center, it is essential to have a budget plan. This will help you understand the expenses commonly found in call centers and give you a roadmap for how to allocate your funds.
Common expenses associated with running a call center include office space, equipment, and staffing costs. This blog will explore the line items you should include in your call center budget.
The Importance of a Call Center Business Estimate
A budget estimate allows call center business owners to see the inflow and outflow of funds. Ideally, the inflows will outweigh the outflows. This will help you understand if your call center is profitable.
Office
Even if you establish a virtual call center, you’ll need a dedicated space to run the business. As such, you’ll need to acquire office space, pay for utilities, and purchase furniture.
Office Floor Space Rent
The cost of office rent depends on the floor space that your team occupies. The average cost of office space in the United States varies significantly based on
Utilities
In addition to rent, you’ll need to pay for utilities such as electricity and internet. These costs will vary depending on your location and the size of your office. You’ll need to factor in the cost of electricity, water, and internet for your call center. Average utility costs are $1.50 per square foot according to JLL.
Furniture
You’ll need to purchase chairs, desks, and other furniture for your call center employees. Furnish the call center with essential office equipment such as computers, printers, and fax machines. In addition, you’ll need to purchase storage cabinets and shelves for call center materials. Typical office furniture costs are $7 per square foot.
Equipment
Your call center will need various equipment such as computers, phones, and software. The cost of this equipment will vary depending on the type and quantity that you need.
Communication Devices
You’ll need to purchase software to manage call center operations. Your call center will need communication devices such as phones, headsets, and microphones. You’ll also need a computer with internet access for each call center employee. In addition, you’ll need to purchase call center software which typically costs between $50 and $100 per month.
Software
Your call center will need call center software to help manage and route callers. The cost of this software will vary depending on the type and quantity that you need. Average costs are $100 per user.
Staffing
One of the largest expenses associated with running a call center is staffing. You’ll need to hire call center agents and train them to use the equipment and software. In addition, you’ll need to pay for their salaries and benefits. Call center agents earn an average salary of $30,000 per year.
Hiring and Recruiting
The cost of hiring and recruiting call center employees will vary depending on the size of your call center and the location. However, you can expect to spend between $1,500-$2,000 to hire each call center agent.
Training Costs
The cost of training call center employees will vary depending on the size of your call center and the location. However, the average cost to hire and train a call center agent can reach up to $30,000.
Marketing
You’ll need to market your call center to potential customers. There are several ways to do this, including online and offline marketing.
Online Digital Marketing
Digital marketing is a great way to reach potential call center customers. You can use online strategies such as search engine optimization (SEO), content marketing, and social media marketing. Typical digital marketing costs are $2,000-$3,000 per month.
Offline Strategies
There are several offline marketing strategies that you can use to reach potential call center customers. You can use traditional marketing methods such as print advertisements, direct mail, and television commercials. Typical offline marketing costs are $500 to $1,000 per month.
Built-in Cushion to Scale Company
As your call center business grows, you’ll need to add more call center agents to handle the increased volume of calls. Scaling will require additional training and office space. You’ll also need to purchase additional equipment and furniture. You should establish a three-month fund of $10,000 to $15,000 to cover these call center expansion costs.
Once you have drafted a budget plan, you can choose how you’ll allocate your funds. Moreover, you’ll gain a realistic view of how to get started.
Create Your Call Center Budget
A call center budget estimate is an essential tool for call center business owners. It is important to clearly understand all the costs associated with running a call center before you begin to allocate your budget. Planning will help you make informed decisions about where to spend your money and avoid overspending.