Call Center Business Plan Template
If you want to start a call center business or expand your current call center, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of call center business plans.
The following call center business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Sample Business Plan For Call Centers
I. Executive Summary
Business Overview
[Company Name] is an inbound call center operating in [Location] that provides outsourced phone and online customer service for entrepreneurs and small businesses. When companies can’t afford to hire their own customer support team, they look to outsourced call centers to help them out. We will partner with these companies to provide any customer support they need, including answering customer questions, resolving complaints, and providing tech support.
Services
[Company Name] provides outsourced inbound customer support through our call center. Depending on the client, we can provide numerous services to assist their customer base. Some examples of the services we provide include:
- Answering customer questions
- Handling complaints and problems
- Scheduling appointments
- Providing tech support
- Managing reservations
- Managing customer loyalty programs
- Assisting with order management
Customer Focus
[Company Name] will collaborate with any entrepreneurs, startups, or other small businesses that need outsourced customer support. We will take clients from any industry, including healthcare, tech, and retail. We expect many clients to be located near [Location], but we can also offer all of our services remotely for clients located elsewhere.
Management Team
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently a high demand for call center services. Companies need a dedicated staff that can help their customers with whatever questions or concerns they have.
- There has been significant growth in the call center market over the past few years.
- The management team has a track record of success in the customer service and call center industries.
- The call center business is a proven, successful business in the United States.
Financial Highlights
[Company Name] is currently seeking $550,000 to launch. Specifically, these funds will be used as follows:
- Call center design/build: $250,000
- Equipment, technology, and supplies: $100,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is an inbound call center operating in [Location] that provides outsourced phone and online customer service for entrepreneurs and small businesses. When companies can’t afford to hire their own customer support team, they look to outsourced call centers to help them out. We will partner with these companies to provide any customer support they need, including answering customer questions, resolving complaints, and providing tech support.
[Company Name] is founded and led by [Founder’s Name], who has been a customer service professional for [X] years. He has extensive experience working in call centers and customer service positions. He most recently served as the Director of Customer Relations for [company]. His in-depth knowledge and expertise will help [Company Name] provide professional and result-oriented outsourced customer service support for our clients.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] on [date of incorporation] and found a commercial office soon after. Once the lease is finalized, all operations will run from the commercial office.
Since incorporation, the company has achieved the following milestones:
- Found a commercial office and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Began recruiting key employees with experience in customer service
[Company Name]’s Products/Services
[Company Name] provides outsourced inbound customer support through our call center. Depending on the client, we can provide numerous services to assist their customer base. Some examples of the services we provide include:
- Answering customer questions
- Handling complaints and problems
- Scheduling appointments
- Providing tech support
- Managing reservations
- Managing customer loyalty programs
- Assisting with order management
III. Industry Analysis
Every company needs great customer service. Companies that don’t have a system to connect with customers or have a negative customer service reputation often fail. Therefore, all companies need experienced customer service professionals and can benefit from partnering with inbound call centers.
Since their skills and expertise are essential to the success of any business, call centers are in high demand and will continue to be for the foreseeable future. According to Research And Markets, the global call center outsourcing market was valued at $249 billion in 2021 and is expected to grow at a compound annual growth rate of 8.93% until 2027. This is significant growth for any industry and shows just how much companies will continue to depend on these services
IV. Customer Analysis
Demographic Profile of Target Market
Company Name] will serve entrepreneurs and small businesses located near [Location]. We will also offer remote services to companies elsewhere who wish to work with us.
Customer Segmentation
[Company Name] will primarily target the following customer segments:
- Entrepreneurs: Entrepreneurs are often too busy to handle customer concerns. They need a team of professionals to help them with their customers but may not have the time or money to hire their own team. Our call center can take on all customer service-related tasks so that entrepreneurs can focus on growing their businesses. Therefore, we expect to partner with many local entrepreneurs.
- Startups: Startups often lack the stability and funding to bring on a permanent customer support staff, despite how essential these professionals are. Working with outsourced call centers like [Company Name] is often much cheaper, so we expect to collaborate with many startups.
- Small Businesses: Small businesses that need to engage with current customers but lack the resources to bring in their own customer support team will also benefit from working with [Company Name].
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments offer call center services within 10 miles of our company and therefore provide direct or indirect competition.
Fission BPO Services
Fission BPO Services has been a popular business process outsourcing company in [location] for [X] years. They offer numerous services for local companies, including inbound customer service, human resources, and marketing. Since they can offer a whole package of services, they have maintained many long-lasting clients throughout the years and will continue to be popular for the foreseeable future.
Though Fission BPO Services will continue to thrive, they are only a minor competitor since they do not specialize in customer service outsourcing. Therefore, our call center will be much more appealing to companies that specifically need experienced customer service professionals.
Solar Tech Support
Solar Tech Support is an inbound call center that specifically helps tech companies with customer service and tech support services. They know that tech companies want to focus on their products and don’t have the time or resources to assist their clients. Therefore, they pick up the workload of customer support so that their clients can focus on running their businesses.
Since Solar Tech Support only focuses on one industry and a few services, they are only a minor competitor. [Company Name] has the advantage of working with multiple industries and offering a long list of services.
Lumber City Call Center
Lumber City Call Center is just what you expect: a highly fast-paced call center environment located in the heart of [Location]. Just like [Company Name], they offer a wide variety of outsourced inbound call center services and cater to numerous industries around [Location]. They have been in the business for [X] years and are often the first call center businesses think of when they need customer service support.
Despite its success, Lumber City Call Center’s reputation has been dwindling over the past few years. With numerous negative reviews and severed relationships with major local business leaders, the company is struggling to keep clients. [Company Name] aims to take on clients that are no longer satisfied with Lumber City Call Center.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
- Management: [Company Name]’s management team has [X] years of customer services experience that allows them to market and serve clients in an improved and more sophisticated manner than the competitors.
- Relationships: Having lived in the community for [X] years, [Founder’s Name] knows all of the local leaders, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
- Location: [Company Name]’s location is near the center of town, giving the company access to corporate organizations, entrepreneurs, and small businesses who may be interested in our services.
VI. Marketing Plan
[Company Name] seeks to position itself as a respectable, upper-middle-market competitor in the outsourced call center industry. Clients can expect great-quality customer service and a long-lasting business relationship.
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide variety of high-quality outsourced customer support services for entrepreneurs and small businesses.
- Maintaining long-lasting relationships with clients.
- Convenient location.
Promotions Strategy
[Company Name] expects its target market to be entrepreneurs, start-ups, and small businesses. The company’s promotional strategy to reach these audiences includes:
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post client reviews to increase audience awareness and loyalty.
Website
The company will create a professional website for business prospects, which will provide easy access to essential information about the company offerings, contact details, and other information. The website will be updated and optimized to enhance the company’s online presence.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers.
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other individuals by providing discounts on future services for every new client produced. This strategy will increase in effectiveness over time.
Pre-Opening Events
Before opening, [Company Name] will organize pre-opening events designed for prospective clients and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be moderate, so clients feel they receive great value when hiring our inbound call center services. Clients can expect to receive high-quality outsourced customer service support for a more affordable price than what they pay at an ultra-premium call center or by hiring a team themselves.
VII. Operations Plan
Functional Roles
To execute [Company Name]’s business model, the company needs to perform several functions, including the following:
Service Functions
- Learn about the client’s products and services
- Provide outsourced customer service support
- Provide any other services the client needs to maintain their customer base
- Answer all questions and resolve complaints/problems
Administrative Functions
- Social media management
- Website management
- Bookkeeping
- Marketing
- Networking with potential clients
- Hiring and training staff
- Other general administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is founded and led by [Founder’s Name], who has been a customer service professional for [X] years. He has extensive experience working in call centers and customer service positions. He most recently served as the Director of Customer Relations for [company]. His in-depth knowledge and expertise will help [Company Name] provide professional and result-oriented outsourced customer service support for our clients.
Hiring Plan
[Founder’s Name] will serve as the President of the company. In order to launch the business, [Company Name] will need to hire the following personnel:
- Customer Service Agents (8 to start)
- Administrative Assistants (2 to start)
- Accountant
- Social Media Specialist
IX. Financial Plan
Revenue and Cost Drivers
[Company Name] will earn its revenue through the fees and rates charged for customer call center services.
The major costs for the company will be staff salaries and the lease. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $550,000 to launch. Specifically, these funds will be used as follows:
- Call center design/build: $250,000
- Equipment, technology, and supplies: $100,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Average Number of Clients | |
|---|---|
| FY 1 | 42 |
| FY 2 | 63 |
| FY 3 | 96 |
| FY 4 | 162 |
| FY 5 | 243 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
