People usually ask this question very often that how do we start a call centre business. So, in today’s article, we are going to discuss in detail about how to start a call centre business and what is exactly the cost. I will try to explain in a way so that you can take maximum benefit out of it.
So when you want to start a business especially a call centre, there are many things you need to take care of. There are many questions that need to be answered properly before you start a successful call centre. The most important questions are as follows:
- What is a Call Centre?
- How much money does a call centre make?
- Is call centre business profitable?
- Why call centre is a good business?
- How to start a call centre?
- What do call centre jobs pay?
- How can I run a successful call centre?
- What stuff do we need to start this business?
- What sort of project do we need to look for?
- How much does it cost to open a Call Centre?
- What is the best call centre software?
- What is CRM in the call centre?
- How do you motivate a call centre staff?
- How can I make my call centre better?
- Why do call centre agents quit?
I will be discussing each of these questions in this article so that after reading this article you have no doubts and can see a clear road map that can show you how to start a call centre.
So first thing First:
What is a Call Centre?
A call Centre is an incorporated office to which telephone calls from present and potential clients are coordinated. Call Centre can deal with inbound or potentially outbound calls, and be found either inside an organization or re-appropriated to another organization that has some expertise in taking care of calls.
How much money does a call centre make?
how much money does a call centre make totally depends on the number of projects and the types of project it gets. Some companies give call centre a per seat project in which they pay you a per-seat or lead charges. Let’s say if you’re talking about U.S. project it might pay you around 700 USD, 800 USD or a 1,000 USD per seat and you can hire a person in 300 or 400 USD and the remaining will be profit. Some companies give a sales project in which the company gives money from 20 USD to 60 USD per sale. In that case, you have to make sure that you hire decent reps who can produce as much as sales as they can. So the more sales more profit.
Is call centre business profitable?
I will be telling you this very honestly that if there are 10 call centres which are open recently, 9 call centres getting close as well. This is a risky business unless you know exact information about the call centre doesn’t get into it. At first, do a job somewhere start working in a call centre get the complete idea about the call centre and then get into call centre business. You will have a better idea about how to start a call centre business.
Why call centre is a good business?
Since it is a “virtual” hub, it can be located anywhere in the world, regardless of the business being served. Virtual call centre businesses can meet the needs of businesses that handle incoming customer service, or technical calls, but do not want to invest in dedicated staff for this purpose.
How to start a call centre?
- Determine the type of call centre you want to start.
- Check local and state requirements.
- Write out a business plan.
- Invest in the necessary equipment.
How can I run a successful call centre?
First thing first, before you start a call centre, you need to have a call centre experience and if you don’t have a call centre experience please do not start call centre business. Join some call centre get a complete idea, learn the call centre business tactics and then start your business. This is a must-have thing in order to run a successful call centre business.
What do call centre jobs pay?
Call centre jobs pay ranges from $200 to $500 per month on average. But it actually depends on the projects a particular call centre have. I have seen some call centres that pay over $1,000 per month because they have a big project that pays them in higher. How much call centre pays you, totally depends on the size and the number of projects and not on the fact that how big the call centre is.
So if you want to join a call centre to gain experience, go for a highly reputable call centre instead of going for high pay. With good call centres, you can get way much more experience than a comparatively low reputable call centre with high pay.
What stuff do we need to start this business
I am going to talk about 5 things in detail that you need in order to start a decent call centre. These five things are very important and without any doubt if you’re missing only one thing out of these five things that mean you’re missing the whole idea you won’t be able to run this business with a 100% quality and 100% success.
These five things are very important so make sure you read this article with deep attention to get a complete idea and complete picture.
You need to set up a decent office with decent equipment. Your computer, your headsets, comfortable seating and kitchen, make sure the lighting is great, the air conditioner should work fine and your computer’s equipment everything works great.
Remember, the environment matters a lot. I have seen call centres with a better environment that even pay less, many people still go to work for those calls centres comparatively more than those call centres where the salaries are high but the environment is not that good. So again the environment matters a lot.
You see most of the call centres are working on the night shift. Which means that someone is working against nature. And if you’re not providing them with a suitable environment to work in the night shift that means they will not be able to feel the charm in the job. They will feel lazy. When they will get to the half shift or by the time they will take their food break they will feel that they have to come back and work for more hours. They will not feel comfortable coming back to the office so make sure your environment is great.
If you’re giving a good environment that means better reps will come and work for you
2. Having a project in Hand:
This is the most important thing for a successful call centre. Having projects in the pipeline is necessary for the livelihood of a call centre.
I’m not saying that number one number two importance wise. I’m just giving you a total of five basic things you need to have to start a call centre.
What sort of project do we need to look for?
Look for a project that is authentic and longterm with high per sale commissions. Some companies give you a per seat project. They pay you per-seat or in other words, they pay you for a lead to their company. Let’s say a U.S. project might pay you around 700 USD to a 1,000 US per seat. You can hire a person, pay him 300 USD to 500 USD and rest will be your profit. Some companies give you a sales project. Which means they give you commissions on a sale. The commissions range possibly from 20 USD to 60 USD in most of the cases.
Make sure to hire decent reps who can produce as many sales as they can.
Project stability is very important if that project is stable your project is giving you good money. If the client pays you money on time every month or quarterly month or whatever the contract says that good anything less than that its a trouble. You have to make sure you have a very stable project, very stable client. Also, some call centres have more than one project so it’s easier for them if one project is close they can easily switch to another project and keep working.
It happens a lot that people start a call centre but after sometime when the client is quitting the business with with a particular call centre they don’t pay the last payment and that is the major problem in call centres if they don’t pay you money then, of course, your revenue stops. You cannot pay your rent, you can’t pay the salaries either because the main revenue stopped. So this is the main reason most of the call centre gets closed because one project is finished and they can’t find the second project.
So if you have a call centre if you’re looking to open one find at least one or two projects there should be at least two or three projects in the pipeline so that if something happens to one project, you can easily switch to other projects.
3. Talent to run the show:
Number three we have here is the talent to run the show. You need management skills and many other skills you need to run a call centre successfully. Opening a call centre and running a call centre is two entirely different things. You have a project and you have set up the call centre business. But if you don’t have the skills and management abilities to run that call centre, my friend it’s a real problem for you. Before starting the business you need to learn each and everything about the call centre. If you have a customer services project then you need to learn about customer services. If you have a sales project you need to know each and every information about sales.
Not only the information but you need to be a good teller or you need to be a good customer services representative. Otherwise, it is not possible for you to run the whole show. It is not possible for you to produce the number or the quality or even running any call centre businesses.
So if you’re looking to start a business, like I suggested before getting a job in a highly reputable call centre work for them for a few months or a year, learn each and everything about this industry then step into it.
4. Exact Cost of the Call Centre:
On number four, we are going to talk about the exact cost needed to start the call centre.
You need to understand where you have to spend money, how much exactly you have to spend. Mainly it depends on the location you are living in. Like I’m living in Pakistan so my cost estimation and expenses will be different than a person in the United States.
How much does it cost to open a Call Centre?
It varies and depends on the area where you are opening the call centre. Expenses include office equipment, computers, internet rent, office rent, electricity bills, you also have to arrange the other stuff as well like you know the backup generators and the U.P.S. Also, employees salaries. You also have to spend money on buying the dialer.
e.g. In the United States, office rent for a small office implies on average from $300. Good Quality office equipment and some kitchen stuff for office can cost you around $500, electricity cost $200 per month, Internet cost is around $50 per month, employees salary ranges from $200 to $500 on average. A good dialer can cost you from $200. So the minimum money you should have in hand to open a decent call centre is around $2,500 to $4,000. Once your call centre is in running form you can add more into it.
What is the best call centre software?
One of the best dialers in the market right now is VICI dialer. if you have a sales project then you need to have a list of the customers where you are going to be dialling. So that is another cost. If you’re dealing on a mortgage project, you need to purchase the list of people who have mortgages on their houses. if you are dialling on a landline or a cell phone services then you need to have some backup related to those customers who might be interested in landline who already have landline depending on the country you are dialling. So these data cost a lot of money.
What is CRM in the call centre?
If you have a per seat project in the call centre where you are providing customer services then, you don’t have to purchase a dialer. Most of the time companies set up their own system i.e. Customer Relationship Management Software (CRM). They set up their own system on your computer or the laptop. and you use their systems for calling etc.
One of the most important thing after the project is the staff members of the team. Make sure that you don’t have anyone in your team who is willing to work for you but not giving his 100% effort to produce results.
How can I make my call centre better?
if you ask me personally, the best way to make call centre better it is that when you’re starting Project. You should first hire your manager then hire a trainer and then hire a supervisor. When you have these sweet people in your call centre, have a meeting and start creating a strategy on how to hire or where to find the right people.
See, one person making a strategy sometimes does not make sense. Instead, you need to have a proper team that can help you complete the picture.
How do you motivate a call centre staff?
Create great planning for the hiring procedure also make points of what kind of people you looking for. Once you have the team hired now you have to create the policies for the call centre. Those policies should be 100% professional. Those policies should include everything including the motivation factor for your team environment. You need to have a complete policy structure will going to run the show. Include points in policies that are in favour of workers and make them feel better working in your call centre.
Each person you hire has to take calls, so make a policy about how many calls you want and how many calls a person can make easily. And if someone is not giving good customer services then you need to give them the training to increase their general idea of customer services.
Why do call centre agents quit?
There are many negative factors involved due to which your call centre agents quit their job. You need to remove those factors right away. You need to work on the team has to be perfect. And for that, you need to give a perfect environment for the workers in your call centre.
So that’s it for today’s article. I hope this extensively detailed article gave you an idea of how to start a call centre business. And I believe I have talked about each and every relevant question. This is the main theme and idea of A2Z Awareness website. Whenever I choose a topic for the website, I take time and gather all the relevant questions and problems related to that topic and talk about it. So make sure that you check our other content. And if you think I have missed something important in this article or you want to add something to it, let me know in the comment section below.