How To Start An Answering Service: Insights to Consider

June 21, 2018 567 views

Image of a woman wearing a headset

Starting an Answering Service, What You Need to Know Before Starting

This type of business involves answering calls for businesses and professionals. You may need to take messages or even taking orders, troubleshooting, answering pre-sales questions, and more.

Keep in mind this type of business is diminishing, because of technology. Everyone can have their own answering service, voicemail, email, and texting. With that in mind, we can see that this type of business can survive. The key is personalized service that allows people to connect with a person when they call in.

Three important issues to keep in mind with this type of business:

1. Someone has to be there to take the call, every day, no matter what time of day it is!

2. You need to have professional communication skills in order to keep your clients satisfied.

3. This type of business takes a high level of organizational skills. You may need to switch phone scripts, get correct information quickly while speaking on the phone, and keeping messages clear and organized for your clients.

Skill Set:

  • Set appointments
  • Call with reminders
  • Answer business calls and takes messages
  • Strong clear voice
  • Polite and courteous phone manners
  • Ability to handle occasional irate callers
  • Warm and personable personality
  • Organization skills are a must
  • Common Business Skills

Employee and Job Consideration During The Start-Up Phase or In The Future:

Approximate Daily Hours Needed:

Hours vary according to the needs of each client. You may be required to even have a night shift, for business such as a tow truck company, where calls are answered 24/7.

Equipment, Supplies, & Services During Start-up or In The Future:

Monthly Expenses and Operating Costs To Consider:

In addition to our list of common business expenses, your answering service will require a budget for your Multi-Line Phone Bill, plus Toll and long-distance Charges.


See Our Page on Licenses and Permits

Approximate Minimum Startup Cost:

Startup Costs are estimated to be $2,000 – $10,000

Special Requirements and Considerations:

  • It’s very important to be 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.
  • Create a filing system for client messages.
  • Write customer instructions and messaging preferences. Follow customer instructions at all times.
  • Be precise when taking messages. Use short sentences.
  • Provide excellent service.
  • Think of each call to your customer could we worth thousands of dollars. Treat each call with great importance, no matter what the message is.
  • For multiple clients, it may need 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.
  • Get the equipment necessary to ensure success. Be sure you’re set up to take the volume of calls you’ll receive during the hours you’ll be operating. Make sure you have plenty of office supplies to stay organized.
  • 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.

Pros and Cons:

The Pros:

  • You can start and work from home
  • Fairly inexpensive and easy to start and grow

The Cons:

  • Your work hours are often hours when most people are off
  • It 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
  • You have no control of when calls come in, you may have no calls for hours while other times you have too many calls to handle
  • Current technology can do a lot of the required tasks of an answering service

Type of Customers You Need to Attract:

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 operating a toll-free call center.

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


In-depth and most current answer service business statistics are available at the Bureau of Labor – Switchboard Operators, Including Answering Service and MarketResearch.com


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


Starting Your Business

Important Steps You Must Consider When Starting A Business – Take a couple of minutes to go over this list of issues to consider before starting a business.

Questions To Consider Before Starting A Business – 10 key issues to look at before starting a business. Starting a new venture blindly is asking for headaches! Know what to expect before you start!

A Day In The Life of A Switchboard Operator:

A Day In The Life of Switchboard Operators | Owlguru.com

Answering Service Articles

How To Start An Answering Service: Gaebler.com

How To Start A Home Answering Service Business: Chron.com

Telephone Answering Service: Entrepreneur.com

Virtual TAS | Start Your Own Telephone Answering Service, Hosted: Virtualtas.com

Start A Phone Answering Service By Julia Derby: Evan Carmichael


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