Organize yourself properly. decide how much money it's going
to take for you to feel comfortably wealthy, and the reach it with your own
Telephone Answering Service.
Our research has turned up hundreds of husband and wife entrepreneurs
who, beginning with just a couple of thousand dollars in borrowed funds, and a
lot of ambition are grossing $250,000 or more after a couple of years in
business.
The exciting part is that the door is wide open for you to
do the same! The demand for telephone answering services is growing!!! The
advent of electronic answering devices in not even beginning to slow this
demand! A great many people are completely "turned off" by the
frustration of expecting to talk with a "live person," and having to
listen to a recording that advises the caller to leave a message at the sound
of the tone.
Exasperation of this kind can sometimes cost a business person
thousands of dollars in lost profit. Realizing this, today's successful business
person wants the personal touch of a friendly, professional
"secretary" answering their phones for them.
The professional answering service operator can pass along
the proper messages to the different callers, take messages, get clarifications
and even set up meetings with special customers. In many instances, businessmen
come to thick of the operators at their telephone answering service as vital to
their success, and often reward them them with special favors or bonuses when a
particularly lucrative deal is closed because of courteous and efficient
service by the people at the answering service.
To get started
properly, you'll need an initial investment of about $10,000 for equipment and
facilities, plus working capital. In the beginning, with a 2 person operation,
you can have your operator selling by phone while you make in-person sales
calls. You might also want to add a couple of "hungry" commission
sales people to help line up a good list of accounts as fast as possible. These
efforts will take planning and coordination because you won't want two
different sales people calling on the same prospect.
You can begin operating out of a spare bedroom or your garage--you'll
need a leased switchboard from the telephone company--with plans to move your
operation into more formal quarters at a later date. However, it's quite
expensive and time-consuming to have a switchboard moved once it's been installed.
Our suggestion would be to locate a "beginning" small office, and
plan on being there at least 5 years from the start.
Many operations begin in a small 200 to 300 square feet
economy office location, and as their growth warrants, open a second location
with space for eventual expansion to include 3 or more switchboards. Our research
has found that you'll need an average of 85 regular customers per switchboard
in order to realize a minimum profit after expenses.
Just about anyone with a business card will be a good
prospect for your services. People working out of their homes are a very good
prospects, especially those holding down regular jobs while moonlighting with a
part-time businesses of their own. Every salesmen is a prospect, people who
work on a 24 hour "on-call" basis, repair service business owners
such as plumers, electricians, locksmiths, and auto mechanics...There are other
kinds of services that will be interested too, such as ambulance companies,
towing services, volunteer fire departments, survey organizations, and customer
complaint departments of virtually every business in your area..By all means
don't forget the doctors, dentists and other professionals!
A lot of beginners start by providing service only for these
intermittent users. These people "put out the word" that if they can't
be reached at their regular number after 4 or 5 rings, the caller should dial
the number of the answering service. The answering service, which in this case
is just a housewife answering her home phone, takes the caller's message and
either relays it to the customer or holds it until he checks in with her. Very
simple, very easy and very profitable!
Usually after such a "shoestring" operation has 15
to 20 customers. it's necessary to install a phone with multiple incoming
lines. The cost and questions of the phone company can be allayed by purchasing
your own telephone and explaining that your have several teenagers in the
family. However, once you have 35 to 50 customers it's time to expand into a
commercial operation complete with switchboard and hired operators.
The average rates to charge for your service should be about
$35 per month for a specified number of calls--usually 70 to 75--with a
surcharge of 25 cents for each call beyond that number. Other calls such as
"wake-up" and reminder calls for appointments, are usually billed on
a "per call" basis at about 50 cents per call.
Most telephone answering services provide a variety of other
services to keep their operators busy during the times when there are no
incoming calls. These services range form typing, envelope addressing, computer
input services, envelope stuffing, subscription soliciting and order
fulfillment for mail order operators to reviewing books for publishing agents.
In recent years, some have even included private post office, mail drop and forwarding
services. The important thing is to keep your operators busy doing some kind of
work that makes money for you.
When you decide to lease an office get going, complete with switchboard--it's
important that you try to get as close to the telephone company's switching or
exchange station as possible. This is due to the mileage charges it'll cost you
for landlines. Remember too that each exchange station handles prefixes limited
to customers within a certain radius of that station. What all of this means is
that if most of the businesses in your area have a 234 and 345 prefix, you'll
want to locate your answering services offices as close to the station serving
these prefixes as possible. Basic installation and set-up of one switchboard
will cost you close to $4,000...
Generally, a metro population of 35,000 people will support
a telephone answering service hoping for $50,000 per year; 75,000 to 80,000
people will be needed for $100,000 and $150,000 people for $200,000 per year or
more. For more help and further information, it would be wise to contact the
Associated Telephone Answering Exchange, Inc. This organization the industry's watchdog
group can up-date you on current practices and trends.
Meanwhile, in setting up your own facilities keep your costs
in line with a realistic view of your anticipated first year income. It
should't be too difficult to find low-cost rental space in an older building
not far from the telephone company's exchange building- the telephone company
is usually just as reluctant to pay high rent as you are..Locating in an older,
less than "beautiful" building should not detract from your business because
few of your customers will ever actually see your offices. Most will sign up
for your services either thru your in-person sales calls on them, or your
telephone soliciting efforts, and send their payments in by mail.
You'll need 125 square feet of space for each a small
reception area which can also double as a rest area for your operators and general
office area for bookkeeping, billing and other administrative functions. Be
sure there are convenient restroom facilities as well.
Before installation of your first switchboard, the phone
company will require an inspection of your office, mainly to determine if the
floor is strong enough to support the weight of the switchboard. Save yourself
a lot of frustration by explaining this to the real estate agents or the
building managers before they start showing you what's available. The best
thing is to ask for certified copies of the original building blueprints or previous
inspection reports, and have these in hand when you contact the phone company.
Once you're ready to go, consider the attitudes and feelings
of the people who'll be working long hours on the switchboards for you--invest
in some cherry paint for the walls, non-glare lighting, carpeting for the
floors and a few wall prints, pictures or other decorations. Look around for
good used office furniture and buy or lease only what is absolutely essential.
A pocket calculator and a used manual typewriter will work fine until you get
the business running on a dependably profitable.
When you order your first switchboard, listen to the telephone
company's instruction, read the operating manual and attend their training
sessions. The more you know about the equipment, the easier it's going to be to
operate it, and the more you'll understand your profit potentials. The traditional telephone company switchboard
is known as the model 557 or TAS-100. This board handles 100 incoming
secretarial lines and 15 office trunk lines, with this board, you have the capabilities
of receiving incoming calls and making outgoing calls at the same time. You
also have a business answering line which can be used as your number for
customers wanting to use your number as their business number and/or for
special events such as a special number for survey replies or telephone orders such
as advertised on television for one-time-only sales promotions.
Even though you have the capabilities of 100 incoming lines,
you shouldn't activate more than 5 or 10 more than your actual customer list.
As you add to your customer list, it's then a simple matter for the phone
company to activate or "tie-in" according to your needs. Your rental
lease payments to the phone company for equipment includes maintenance, so
whenever you have a problem or something isn't working properly to suit your
needs, call and ask the phone company to send a repairmen. Some of the extras you can get with your
board includes a "secrecy" switch. This feature prevents an operator
from listening in if a customer has already picked up his phone and answered
the call, but it does not prevent the customer from picking up his phone after
the operator has answered. The customer could by request the operator to hang
up and conduct whatever conversation he wants with the caller.
Another feature is the "position-splitting" key. This
involves plugging in a second headset and simply turning the key to enable two
operators to work the same board during an especially busy period. When your customers want to call to check
with you for any messages, you can have them call their own number if they're calling
from a different number, or pre-designated trunk line. Most answering service
owners equipment works both ways until they decide upon the system that works
best for them. Whichever method is finally chosen should be decided upon with
the efficiency of the operators in mind.
In addition to your switchboard, you should install a time
clock and message racks. These are ideally located above or on top of your
switchboard. The operator the takes the call, jots down the message, punches
the time clock and quickly slips it into the customer's message box. When the
customer calls in for his messages the operator retrieves the messages from his
message box, reads them to him, again punches the time clock with each message
slip, and drops them into a "dead message" box.
You should keep these message slips for totalling at billing
time, so it's a good idea to have each operator file them in your customer
folders as they finish their shifts on the board. retention of these message
slips for at least 30 days is not required, but it is a good policy to
practice. You may find a customer will want to check on a message received or
double-check his billing against your records.
Basically your message rack can be either pigeon hole compartments
in a wooden box designed and built to fit your space, or a lazy Susan clips
similar to what restaurants use for fast food orders. At any rate, you
shouldn't have any problem in finding what you need on the open market.
It isn't necessary that you have specially designed or
printed message slips, but you should have a plentiful supply available and
within easy access to your operators. Simple 4 x 5 inch pads should be all
you'll need, and if you'll check with your local quick print shops, you'll find
most of them willing to make a thousand or so pads of 50 to 100 pages each,
from scrap paper, for almost next to nothing. Another essential to plan on--buy
in wholesale lots and keep handy for your operators--is pens. It may be
exasperating until the business is on a sound profitability basis, but in a
busy month, one operator can easily go thru 100 or more pens. Don't fight the
how's and why's just charge it up as a business expense and order more pens.
You'll need some form of maintaining basic customer
information such as address, name and number to contact during an emergency and
any special answering instructions. For this, simply go with 3 x 5 or 4 x 5
index cards and place them in each customer's message slot for easy operator
reference. Many services have these cards laminated in plastic to prevent them
from getting dirty or deteriorating with constant use.
Efficiency is the name of the road leading to profits in any
small business, so when you begin one switchboard, make sure you have that
position-splitting key, and that you balance the board. In other words, don't
put all of your similar customers--such as plumers, electricians and doctors on
one side of the board. Instead, divide them across your board--half on them on
one side and half on the other side. This will enable you to put two operators
on that board in times of emergency. Your customer lines must be distributed
according to usage across the board for maximum efficiency of your operation.
Each time a customer "signs" for your services you
should have him sign a simple contract that specifies the name and address of the
firm to be billed for the service, and typed name as well as signature of the
person authorizing the service. There should also be space on this contract for
alternate phone numbers, names and addresses as well as phone numbers of
persons to contact in case of emergency, and any special answering instructions
the client may want you to use. Don't forget to include a clause requiring
30-day notification of service cancellation by either party to the contract.
It's also a good idea to state that a full month's payment must be made for any
partial month's usage, in order to cover any disconnect charges. You'll
probably want to stipulate that the last month's base charges are to be paid at
the time of service approval, in order to enhance your working capital
situation.
Check with the phone company--find out if they or you are to
bill the customer for hook-up charges, and the line into your switchboard. By
all means, get everything written out and fully explained in the contract.
You'll be money ahead by paying a good contract that not to put all that you
want into a legal contract that not only protects you, but also is binding upon
your customers.
One other item of paperwork you should have is an Errors
& Omissions Insurance Policy. This protects you and your operators against
any liability form mistakes or missed messages--very good to have, and
available at very low cost thru the Associated Telephone Answering Exchange,
inc. by special arrangements with Lloyd's of London. Your other insurance needs
are those basic to any business. Always shop around for the best rates.
In the beginning, you and your spouse or partner can operate
a telephone answering service. However, we strongly suggest that you add to
your "operator staff" just as quickly as your customer list warrants.
The longer you try to operate with just 2 people, the longer it's going to take
you to achieve real profitability.
Remember, you want a 24 hour, seven-days-a-week, full
service operation. This will require at least three full time operators for
your board, plus at least one relief operator--and don't forget about commission
sales people.
Ideally, you should try to hire people with telephone
switchboard experience, but in order to get these people, you may have to offer
short-shift, moonlighting tom regular telephone company operators. It will take
some time to train inexperienced people, so bear this in mind when you begin
looking for people to hire. It's always a good policy to hire your new,
inexperienced people for the evening shifts. Break them in by having them
"sit in" with an experienced operator during the daytime hours, and
have someone close at hand during their first week on the evening shift before
turning them loose to handle the board by themselves.
The most important qualifications to look for in an operator
are voice and attitude. The voice must be pleasant and sound alert, interested
and ready to help the caller. Warn your operators never allow their
"personal feelings" to show thru when they're answering the phone.
They represent your business and your customers. As such, they must project a
professional manner at all times.
Teach your operators to answer the phones with a "happy
smile" in their voices. Train them to take their time with the callers,
and get the message right by reading the message back to the caller, and also
be sure they ask the caller for the correct spelling of his or her name. Unless
specifically instructed otherwise by a customer, insist that your operators
never allow an incoming call to ring more than twice before answering it. Hardly
anything frustrates anyone calling a business number more than a telephone that
seemingly rings forever before someone answers it.
You can start you inexperienced people at $4 an hour, and
your experienced operators at $6 an hour. Try to explain to them that the
success of your business depends on them, and as your business prospers, so
will give them their monetary rewards. Get them involved and interested in
helping you succeed. It's going to take
aggressive selling on your part to reach success with a venture of this kind.
You must spend at least 50 percent of your time making sales calls--if you
can't or don't wish to do any personal selling, then you'll have to hire at least
two full time people to take your place. In addition to your own sales efforts
or people who will fill your shoes in this area, you should hire at least one
other full time sales person. You should plan to have someone making telephone
solicitations for at least 3 hours out of each working day.
Selling your services--building an ever larger customer
list--is the name of the game for real success. You've got the start-up information,
and form here on, the rest depends on your own ambition...
Associated Telephone Answering Exchanges, Inc.
Bankers Square
100 Pitt Street
Alexandria, VA 22314
(703) 683-3770
TYPICAL EQUIPMENT COSTS:
TWO OPERATOR CHAIRS...........................$90
DESK & CHAIR..................................100
TWO SIDE CHAIRS................................50
BOOKCASE.......................................50
FILING/SUPPLY CABINET..........................50
CALCULATOR.....................................50
USED TYPEWRITER...............................150
BASE FOR SWITCHBOARD...........................60
MESSAGE RACK...................................75
TIME CLOCK....................................250
OFFICE FURNISHINGS/DECORATIONS................150
5-THOUSNAD MESSAGE PADS........................25
24-DOZEN PENS..................................12
SWITCHBOARD LEASE (ONE BOARD)...............4,000
CABLE INSTALLATION (ONE BOARD)..............1,500
RENT ON OFFICE................................600
UTILITY DEPOSITS...............................50
BUSINESS LICENSES..............................50
BUSINESS INSURANCE............................350
LEGAL FEE.....................................100
SUPPLIES..................................... 200
TOTAL
$7,957
