How to start a call center business: Your launch plan

Starting a call center business is an exciting venture that combines strong communication skills with business savvy. The industry is a multi-billion dollar market, showing consistent demand for services like customer support, sales, and technical assistance across many sectors.

This guide will take you through the practical steps of validating your business concept, securing funding, acquiring equipment, and hiring staff to help you launch a successful call center business in the U.S.

Step 1: Plan and validate your business concept

Define your niche and services

First, decide on a specific market. Will you offer inbound support for e-commerce brands or outbound sales for tech companies? A narrow focus helps you stand out. A frequent misstep is to offer everything to everyone, which dilutes your expertise and marketing.

Use industry reports from sources like IBISWorld to identify growing sectors. You might also survey potential clients directly to understand their pain points. This research shows you where the real demand is, rather than just guessing what services to offer.

Analyze competitors and costs

With your niche in mind, look at the competition. Review company profiles on platforms like Clutch or G2. Pay attention to client reviews to see what competitors do well and where they fall short. This gives you a roadmap for your own service quality.

Speaking of planning, you need a realistic budget. Initial costs for a small, remote-first call center often range from $10,000 to $50,000. Under-budgeting for technology is a common problem that can lead to dropped calls and frustrated clients. Plan for quality from day one.

• VoIP & CRM Software: $150-$300 per agent, per month.
• Hardware (computers, headsets): $800-$1,500 per agent.
• Legal & Business Registration: $500-$2,000 one-time.
• Initial Marketing & Website: $2,000-$5,000.

Here are 4 immediate steps to take:

• Identify three potential niches and the specific services you would offer.
• Create a preliminary budget using the estimated cost ranges.
• Review two direct competitors on a platform like Clutch.
• Draft a one-page summary of your proposed business model.

Step 2: Set up your legal structure and licensing

Choose your business entity

Most new call centers start as a Limited Liability Company (LLC). This structure protects your personal assets from business debts and offers simple pass-through taxation. An S-Corporation is another option that can save on taxes once profitable, but it has more formal requirements like payroll.

Navigate licensing and compliance

With your entity chosen, you must handle compliance. The Federal Trade Commission (FTC) governs outbound calls via its Telemarketing Sales Rule (TSR). You must follow its rules on call times and the National Do Not Call Registry to avoid large fines.

A frequent misstep is forgetting to register in every state you call into, not just where you are based. This can be a costly error. Check with each state's Attorney General's office for their specific requirements. Expect the following costs:

• State Telemarketing Registration: $50 to over $600 annually, per state.
• Registered Agent Service: About $100-$300 per year, required for an LLC or Corp.
• Local Business License: Typically $50-$150 from your city or county.

Here are 4 immediate steps to take:

• Decide between an LLC and S-Corp and file with your Secretary of State.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• List the top five states you plan to call into and check their registration fees.
• Contact your city hall to apply for a general business license.

Step 3: Secure insurance and manage risk

Key insurance policies

With your legal entity formed, the next step is to protect it. You will need several types of insurance. General Liability covers third-party injuries or property damage, while Professional Liability (also called Errors & Omissions) protects you if a client claims your service caused them a financial loss.

A mistake some new owners make is to skip Cyber Liability insurance. Since you handle sensitive customer data, this policy is not optional. It covers costs related to data breaches, which a standard liability policy will not. This protection is a core part of your risk plan.

If you hire employees, you must have Workers' Compensation. This covers medical costs and lost wages if an employee is injured on the job. Below are typical annual premium estimates for a small call center.

• General Liability: $400 - $1,500 for $1M coverage.
• Professional Liability (E&O): $600 - $2,500 for $1M coverage.
• Cyber Liability: $1,000 - $3,000 for $1M coverage.

You might want to get quotes from insurers like Hiscox, The Hartford, or Chubb. They specialize in policies for service and tech businesses and can often bundle what you need into a Business Owner's Policy (BOP) for a better rate.

Here are 4 immediate steps to take:

• Request quotes for a Business Owner's Policy from two of the recommended providers.
• Ask each provider about their specific Cyber Liability coverage options.
• Check your state's website for its Workers' Compensation requirements.
• Draft a simple data security policy for your future agents.

Step 4: Set up your location and equipment

First, decide if you will operate from a physical office or remotely. A remote model saves on rent but requires strong management systems. A physical office needs about 70-100 square feet per agent and must be in a commercially zoned area.

When you look at leases, ask about a Tenant Improvement (TI) allowance. This is money from the landlord to help you build out the space. It can cover costs for wiring, soundproofing, or creating cubicles, which reduces your initial cash outlay.

Core equipment and costs

Whether your team is in-office or remote, their equipment determines service quality. Many new owners try to save money with consumer-grade gear, which often fails under heavy use. Professional equipment is a must.

• Professional Headsets: $150 - $350 per unit. Brands like Poly or Jabra offer superior noise cancellation.
• Reliable Computers: $600 - $1,200 per agent. Focus on processing power and RAM for multitasking.
• Dual Monitors: $200 - $400 per setup. This allows agents to view scripts and CRM data at once.

You can purchase hardware from direct suppliers like Dell or through IT resellers. They typically do not have minimum order quantities for small businesses, which gives you flexibility as you start.

Here are 4 immediate steps to take:

• Decide between a remote, hybrid, or physical office model.
• If physical, research local commercial real estate for suitable office spaces.
• Price out professional headsets from two different brands like Poly and Jabra.
• Create a per-agent equipment budget based on the cost estimates above.

Step 5: Set up your payment processing

Establish your payment terms

For B2B services, Net 30 terms are standard. This means clients pay within 30 days of your invoice. Most payments will come via ACH or wire transfer, so open a business bank account to accept them. You should also require a deposit or first month's payment upfront to protect your cash flow.

Some new owners fail to secure an upfront payment. This creates risk if a client is slow to pay the first invoice. Always include payment terms and a deposit requirement in your service agreement. This sets clear expectations from the start.

Choose a payment solution

While bank transfers work for retainers, you may need a way to accept card payments. For call center businesses that need to accept payments on the go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone.

Many mobile payment providers charge nearly 3% plus a fixed fee. At just 1.99% per transaction with no hidden costs or extra hardware needed, JIM is particularly useful for collecting setup fees from a new local client. Getting started is straightforward:

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available on your JIM card as soon as the sale is done.

Here are 4 immediate steps to take:

• Draft your standard payment terms (e.g., Net 30) for client contracts.
• Open a dedicated business bank account for ACH and wire transfers.
• Decide if you need a mobile solution for collecting deposits or one-off fees.
• Review JIM's features to see if it fits your business model.

Step 6: Fund your business and manage finances

Secure your startup capital

For a new call center, an SBA 7(a) loan is a strong option. Lenders often look for a solid business plan and a credit score over 680. You could secure between $50,000 and $150,000, with interest rates typically around Prime + 3-5%.

Another route is equipment financing. This loan specifically covers your hardware costs like computers and headsets. The equipment itself serves as collateral, which can make qualification easier than for a general business loan. Rates often range from 4% to 8%.

Many new owners miscalculate their initial cash needs. You should have enough working capital to cover at least six months of expenses without any revenue. For a small team, this often means having $50,000 to $100,000 set aside for payroll, software, and marketing.

Set up your financial systems

Once you have funding, you need a system to manage it. Open a business bank account immediately to keep your finances separate from personal funds. This simplifies tax time and protects your personal assets.

You should also use accounting software from day one. Platforms like QuickBooks Online or Xero help you track income, manage expenses, and send invoices. Plans start around $30 per month and will save you significant headaches later.

Here are 4 immediate steps to take:

• Draft a detailed six-month operating budget.
• Check your credit score and review SBA 7(a) loan requirements.
• Request quotes for equipment financing from two different lenders.
• Sign up for a free trial of an accounting software like QuickBooks Online.

Step 7: Hire and train your team

Hiring your core team

Your first hires will be Call Center Agents. They handle the day-to-day calls and are the voice of your business. Look for people with clear communication skills and a patient attitude. Many owners focus too much on prior call center experience, but a positive personality is often more valuable.

Expect to pay agents between $15 and $22 per hour, depending on your location. Once you have 5-8 agents, you should hire a Team Lead to manage them and handle escalations. Their salary typically ranges from $45,000 to $60,000 per year.

As a benchmark, many call centers aim for one agent per $100,000 to $150,000 in annual contract value. This ratio helps you scale your team in line with revenue growth.

Training and management

With your first agents hired, you need a solid training plan. There are no universal certifications for agents, so your in-house program is what matters. Plan for at least one week of paid training covering your VoIP and CRM software, client-specific scripts, and call-handling protocols.

For scheduling, software like When I Work is a great starting point for smaller teams. As you grow, you might look into more advanced workforce management platforms like Calabrio or NICE that also track performance metrics and help with forecasting agent needs.

Here are 4 immediate steps to take:

• Draft a job description for a Call Center Agent role.
• Research average agent pay rates in your city using job sites.
• Outline a one-week training schedule for a new agent.
• Review the features of a scheduling software like When I Work.

Step 8: Market your business and acquire clients

Establish your digital footprint

With your services defined, it is time to find clients. Start with a professional website and a LinkedIn Company Page. These are your digital storefronts. Use them to clearly list your services, niche expertise, and contact information. Platforms like Squarespace are good starting points.

Focus on direct outreach

Cold email and LinkedIn outreach are effective for B2B sales. Your outreach will fall flat if it is generic. Personalize the first two sentences of every message to show you have done research on the prospect's company and their specific needs.

You should track your metrics. A 1-3% meeting booking rate from cold outreach is a solid benchmark. Aim for a Customer Acquisition Cost (CAC) under $2,000 per new client in your first year. This helps you measure if your marketing spend is effective.

You can also showcase your expertise through content. Write articles on LinkedIn about solving common customer service problems. This positions you as an expert and attracts inbound leads over time, rather than you always having to chase new business.

Here are 4 immediate steps to take:

• Create a LinkedIn Company Page that details your services.
• Identify 20 potential clients in your niche on LinkedIn.
• Draft a personalized email template for direct outreach.
• Outline one article topic that would interest your target clients.

Step 9: Develop your pricing strategy

Select your pricing model

Most call centers use one of three models. Per-agent pricing charges a flat monthly fee for each dedicated agent. Per-minute pricing bills for the exact time agents spend on calls. A hybrid model combines a lower agent fee with a per-minute rate.

A frequent mistake is to set prices too low. To ensure profitability, aim for a 30-40% gross profit margin. If your fully loaded agent cost is $25 per hour, you should bill that agent out at $35 to $40 per hour to cover overhead and grow the business.

Set your final rates

With a model in mind, you can set your rates. Analyze what competitors charge on platforms like Clutch, but focus on those who serve your specific niche. You can also calculate your cost-per-agent, which includes salary, software, and overhead, then add your margin.

For example, a per-agent price might be $3,500 per month for one full-time agent. A per-minute rate could be $0.90 to $1.50, depending on call complexity. Always be clear about what your price includes, such as training time or standard reporting.

Here are 4 immediate steps to take:

• Choose between a per-agent, per-minute, or hybrid pricing model.
• Calculate your fully loaded cost per agent per hour.
• Research the pricing of two direct competitors on Clutch.
• Draft a simple rate sheet for your services.

Step 10: Maintain quality and scale your operations

Once your agents take calls, your focus shifts to quality control. You should track key performance indicators (KPIs) to measure success. This data shows you what works and where you need to improve agent training or processes.

Measure what matters

Many new owners obsess over Average Handle Time (AHT). While efficiency is important, pressuring agents to rush can damage customer satisfaction. Instead, balance AHT with metrics that reflect the quality of the conversation. Your initial goals should be:

• First Call Resolution (FCR): Aim for over 75%. This means the customer's issue is solved in one contact.
• Customer Satisfaction (CSAT): Target a score of 90% or higher from post-call surveys.
• Internal Quality Score: Have a manager review 3-5 calls per agent each week against a simple scorecard.

Plan your growth path

As you gain clients, you need a plan to scale. A good rule of thumb is to hire a new agent for every $100,000 to $150,000 in annual revenue. When you reach 15-20 agents, your simple scheduling software will not be enough.

At that point, you should invest in dedicated Quality Assurance (QA) software like Klaus or Scorebuddy. These platforms help you review calls more efficiently. You might also look at Workforce Management (WFM) systems like Calabrio to forecast staffing needs accurately.

Here are 4 immediate steps to take:

• Create a simple quality scorecard for reviewing calls.
• Set up a dashboard to track FCR and CSAT weekly.
• Review the features of a QA software like Klaus.
• Map out your hiring plan for the next six months based on revenue goals.

You have a roadmap to start your call center, but success ultimately depends on service quality. Remember that strong client relationships are your greatest asset. With this plan, you can take the first step with confidence.

As you start, make your first financial steps simple. To collect deposits or fees easily, JIM turns your phone into a card reader. You can accept payments for a flat 1.99% fee with no extra hardware. Download JIM to get set up.