Running your own call center business can be a very profitable business venture, but it’s essential to understand the cost involved in starting and running one.
This article will explore the different types of call centers and their corresponding startup costs. We will also provide tips for reducing these costs.
Types of Call Centers and Startup Costs
Inbound call centers handle incoming calls from customers, while outbound call centers make calls to customers. Blended call centers do both. The startup cost for each type of call center will vary depending on the call center services offered, how much center outsourcing is used, and the size of the operation.
For example, an inbound call center that provides customer service for a small business may have startup costs of around $5,000, including hiring staff, renting space, and purchasing equipment.
An outbound call center that makes sales calls on behalf of a client may have startup costs of around $10,000. This includes hiring staff, renting space, and purchasing equipment.
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.
How Much Does It Cost to Start a Call Center?
Now that we’ve covered the different call center types let’s look at startup costs.
There are four main cost categories to consider: startup costs, staffing and hiring costs, equipment costs, and business operations software costs.
Startup Costs
The cost of starting a call center business will vary depending on your call center type. For example, if you decide to start a virtual call center business, or outsourced call center, those costs will be lower than if you were to start a brick-and-mortar call center.
The main cost categories for starting a call center include:
Rent or lease costs
If you decide to open a physical call center, you will need to factor in the cost of renting or leasing space. The cost of rent will vary depending on the location and size of the space you choose. Typical costs are $1-$3 per square foot. These costs will be waived if you are operating a virtual call center.
Build-out costs
If you lease space for your call center, you may need to factor in the cost of build-outs. Build-outs are improvements or changes made to leased space to suit the tenant’s needs. If you lease office space for your call center, you may need to build cubicles or install a phone system. The cost of build-outs varies depending on the scope of work.
Furniture costs
If you decide to open a physical call center, you will need to factor in the furniture cost. The cost of the furniture will vary depending on the type and quantity of furniture you need. On average, workstations range from $100-$200 to furnish.
Telephone costs
If you decide to open a physical call center, you will need to factor in the cost of a telephony system. A telephony system is a system that enables your call center agents to make and receive calls. Typical costs are $500-$5,000.
Computer costs
If you decide to open a physical call center, you will need to factor in the cost of computers for your call center agents. The cost of computers will vary depending on the type and quantity of computers you need. Costs you can expect are $500-$1,000 per computer.
Internet costs
If you decide to open a physical call center, you will need to factor in the cost of an Internet connection. The cost of an Internet connection will vary depending on the type and speed of the connection you need. Typical costs are $50-$200 per month.
Security costs
If you decide to open a physical call center, you will need to factor in the cost of security. The cost of security will vary depending on the type and quantity of security you need. Average costs are $500-$5,000.
Staffing and Hiring Costs
The call center pricing for staffing and hiring for your call center will vary depending on the number of agents you need to hire and the salary you are willing to pay them. Average costs are $30,000-$50,000 per year.
The main cost categories for staffing and hiring are:
Recruiting costs
The cost of recruiting call center agents will vary depending on the method you use to recruit them. For example, if you were to post a job listing on a job board, you would need to pay a fee to the job board. The call center pricing for recruiting will also vary depending on the role you are trying to fill. For example, if you were looking to hire a customer service representative, the cost of recruiting would be lower than if you were looking to hire a sales representative.
Training costs
The cost of training call center agents will vary depending on the training you provide. For example, if you were to provide online training, the cost would be lower than if you were to provide in-person training. The cost of training will also vary depending on the length of the training program. You can expect to pay $500-$1,000 per trainee.
Equipment Costs
The cost of equipment for your call center will vary depending on the type and quantity of equipment you need. The main cost categories for equipment are:
- Telephones cost
- Headsets cost
- Computers cost
Business Operations Software Costs
The cost of business operations software for your call center will vary depending on the type and quantity of software you need. Typical costs are $500-$5,000.
The main cost categories for business operations software are:
- Automatic call distribution software cost: Automatic call distribution (ACD) software is used to route calls to the appropriate call center agent. The cost of ACD software will vary depending on the features and capacity you need.
- Customer relationship management software cost: Customer relationship management (CRM) software is a type of software used to manage customer data. The cost of CRM software will vary depending on the features and capacity you need.
- Workforce management software cost: Workforce management (WFM) software is a type of software that is used to schedule and track the performance of call center agents. The cost of WFM software will vary depending on the features and capacity you need.
Manage Ongoing Costs Tips
There are a few things you can do to manage the ongoing cost of your call center company:
- Use a cost-effective telephone system
VoIP (Voice over Internet Protocol) is a type of business phone system that uses the Internet to make and receive calls. VoIP is typically more cost effective than traditional telephone systems. - Use cost-effective business operations software
There are several cost-effective business operations software solutions on the market. When selecting a software solution, be sure to compare the features and call center pricing of various solutions. - Use cost-effective staffing and hiring practices
There are many cost-effective staffing and hiring practices that you can use to reduce the cost of staffing and hiring for your call center. For example, you can use online job boards to post job listings, or you can use recruitment agencies to help you find qualified candidates. - Use cost-effective training practices
There are some cost-effective training practices that you can use to reduce the cost of training for your call center. For example, you can use online training courses, or you can use train-the-trainer programs. - Use cost-effective equipment
When selecting equipment for your call center, be sure to compare the cost of various types of equipment. For example, VoIP telephones are typically more cost effective than traditional telephones.
Try Our Call Center Startup Costs Calculator
Enter your expected startup costs below and then click the “Calculate My Startup Costs” button. We have included estimated/typical startup costs for each category, but feel free to modify our figures to reflect your specific business needs.
Run a Cost-effective Call Center
Running a call center can be expensive, but there are ways to reduce the cost. By using cost-effective technology, staffing, and training practices, and by selecting affordable equipment, you can keep your costs under control.