sample business plan for answering service

Sample Telephone Answering Service Business Plan

However well you think you know about a business, you’ll never have a full grasp of its running without setting a strategy for its running. This is what a telephone answering service business plan helps you achieve.

Large companies and businesses have found efficient ways of outsourcing non-essential work to smaller businesses. One of such is a telephone answering service.

If you’re interested in starting one, then you should also be interested in having a plan in place. We are talking about a business plan.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

TELEPHONE ANSWERING SERVICE BUSINESS PLAN SAMPLE

Consider this article a guide on how to piece together a good business plan.

By putting all the needed work, you’ll have yourself to thank when you begin to reap its benefits. Without further delay, let’s get into the business for which we’re here for.

BUSINESS PLAN OUTLINE

This is one of the first things you need to know before commencing your telephone answering service business plan.

By “pattern” we’re simply referring to the systematic arrangement of your business plan. There are basic sections you cannot exclude. They include the following;

The executive summary, company description, products and services, and market analysis. Others are strategy & implementation, organization & management team, and also the financial plan & projections.

These components of a plan are useless without further information on how they should be written.

i. Executive Summary

A business plan, whatever it is for, will never be complete without an executive summary section. Consider this a brief introduction to your telephone answering service business plan.

Provides a highlight of the entire plan and should be so written to hold the reader’s attention.

The executive summary is best written last. Although this is the case, it’s the section that appears first in your plan for good reason. The reader should know what your business is about among some basic information.

The summary also has its own sections for better comprehension and coverage. These include business name and location, services offered, mission and vision statements, and also its purpose.

Business Name & Location

To be taken seriously, your telephone answering service will need to go by a business name. Also, its location counts.

Your audience will seek to know what location your business is situated. This is a way to give a brief picture of your operations.

Services Offered

As a service-based business, you’ll be handling a lot of calls for large businesses.

Therefore, you’ll need to include all such services. Whatever you need to offer your clients should be captured in this section.

Mission & Vision Statements

Where do you see your telephone answering service in some years from now? You should state your company’s goals and why you offer your current services.

In the case of a vision statement, you won’t give a picture of what you intend for your business to achieve in the future.

In other words, the vision statement should encapsulate all the necessary information about where the business is headed.

Purpose of the Plan

Without purpose, operating a business will be futile.

With this knowledge, ensure that you include the purpose of the plan. Doing this gives more drive and direction to your business.

ii. Company Description

As the name suggests, this section is all about describing your telephone answering service. It covers key areas of operation as well as your business goals. This should feature information relating to the legal structure it will take, as well as the history (this should be short).

Additional contents of the company description should include a clear demand for the service you offer. You should also include details of all the services you wish to provide. Also, add the clients you wish to serve.

If your telephone answering service has been in existence for some time, including a summary of company growth.

Such a summary should capture the market or financial highlights. What more? Proceed to add your short and long-term goals. More importantly, you should be able to show how your business will earn profits.

iii. Products & Services

Services are the major focus here as telephone answering is service-based. Give an in-depth description of your service with specific reference to how it will benefit your clients.

Does your telephone answering service have a market role? What exactly is such a role and state the edge you have over other competitors.

iv. Market Analysis

This is where you need to demonstrate your knowledge of the telephone answering industry.

Here, you should have a clear sketch of your target clients. Include an industry description as well as outlook and also provide the past, current, and projected marketing data.

Your competitors are a key part of the equation. Therefore, you’ll need to include an assessment of their strengths and weaknesses.

v. Strategy & Implementation

Marketing strategy is key to winning outsourced call contracts. Therefore, include information on how you intend to sell your telephone answering business to clients.

Here, cost details, promotion, and pricing will have to be fully unveiled.

Which sources of labor are you counting on and how many employees do you wish to hire? Operating hours will need to be clearly stated too.

vi. Organization & Management Team

An effective organizational structure promotes efficiency.

Therefore, you’ll need to provide details in the form of an organizational chart. This chart should include important management staff. A profile of these management team members is needed including names, roles played as well as prior experience.

For the owner(s), names should be included as well as their percentage ownership (in the case of a partnership).

What’s their extent of involvement? Include this piece of information too.

vii. Financial Plan & Projections

For your telephone answering service to be lucrative, it needs to have a financial plan as well as projections. If you aren’t a financial expert, writing this section will be difficult. As such, consider seeking the help of financial experts.

This part of your telephone answering service should include historical financial data. This is applicable if you’ve been in operation for some time. This historical financial data consists of income statements, cash flow statements, and balance sheets.

Information on projected financial goals must be included. This includes forecasted balance sheets, income statements, budget, and capital expenditure for a period covering 5 years.

With these sections all included, your telephone answering service business plan is complete and ready for implementation.

Leave a Comment Cancel reply

• EXPLORE Random Article

How to Start an Answering Service

Last Updated: April 12, 2023 Approved

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 12 people, some anonymous, worked to edit and improve it over time. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 94% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 51,036 times.

Starting an answering service can be a relatively inexpensive way to start a home business. With a few companies on board and a telephone for each operation, you can earn income by providing a service to customers. You can establish your own business by answering phones and recording messages for each company. Follow these steps to learn how to start an answering service.

• Specifically for an answering service business, you need to determine the type of business structure you will be creating, whether it's a proprietorship, partnership, LLC, or corporation. You should mention your services, packages, and pricing structure to determine how much capital you will bring in and how many clients you will need to book to get yourself in a profit margin.

Community Q&A

• As your business expands, secure office space and hire employees to answer phones when you are not available. Eventually, you will be able to run an answering service that is open all hours of the day for various companies. When you reach this point, you will need to consider employment applications, background checks, and drug testing. Thanks Helpful 0 Not Helpful 0
• Try not to schedule yourself more than 12 hours a day, regardless of how many businesses you are helping, unless you have a support staff to assist you. Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ https://bizfluent.com/how-5177116-start-homebased-answering-service.html
• ↑ https://www.nsolve.com/equipment-to-start-an-answering-service/
• http://www.powerhomebiz.com/BizIdeas/answer2.htm

About this article

Reader success stories.

Tanya Harris

Jul 5, 2016

Did this article help you?

David Amador

Nov 4, 2017

Mar 16, 2017

Theresa Williams

Jun 11, 2017

Feb 18, 2019

• About wikiHow
• Terms of Use
• Privacy Policy
• Do Not Sell or Share My Info
• Not Selling Info

How to Start an Answering Service

Main Sections In This Post Steps To Starting An Answering Service Points to Consider Resources Knowledge Is Power Featured Video

Introduction

Overview: Starting an answering service requires careful planning and consideration. This guide will provide numerous examples, an overview of what to expect, and important issues to consider.

Additionally, we will offer valuable resources and information to assist you during the startup phase and as your business becomes operational.

Introduction: We have a wealth of information to share, so it may be beneficial to bookmark this page for future reference. If you find this post helpful, please share it with others!

Let’s get started with the steps.

Steps to Starting an Answering Service

1. gaining an overview, a.) is starting a business the right step for you.

Running your own answering service can be an exciting prospect. You can be your own boss, make important decisions, and potentially earn a good income. However, it’s essential to ensure that starting an answering service is the right choice for you and that you have the right reasons for pursuing this path.

I recommend reading my article below to help you make an informed decision. It will highlight key points to consider and guide you toward making the right choice before taking further steps.

Look at the article below for valuable insights and ensure that starting an answering service aligns with your goals and aspirations.

See Considerations Before You Start Your Business to identify key points for a new business owner.

b.) A Quick Overview of Owning an Answering Service

Running an answering service can be both rewarding and challenging. As an owner or operator, you’ll have various responsibilities to handle daily.

These may include answering phone calls, taking messages, providing customer support, and managing schedules.

However, it’s important to be aware of the challenges that come with this role. Meeting high call volumes, ensuring accuracy and efficiency, and maintaining exceptional customer service can be demanding.

Additionally, managing staffing levels, training employees, and handling unexpected emergencies can pose further challenges.

While running an answering service can offer opportunities for success, it requires dedication, strong organizational skills, and the ability to handle the pressure of a fast-paced environment.

Types of Answering Service Setups and Business Models

Virtual Answering Service:

In this setup, calls are answered remotely by a team of virtual receptionists. The business model typically offers various call-handling services on a subscription or pay-per-use basis.

On-Site Answering Service:

This setup involves having an in-house team of receptionists who handle calls on location. The business model may include charging clients based on the number of calls answered or offering customized packages.

Specialized Answering Service:

These setups cater to specific industries or niches, such as medical, legal, or real estate. The business model focuses on providing industry-specific expertise and may charge higher rates for specialized services.

Automated Answering Service:

This setup relies on automated systems, such as interactive voice response (IVR) technology, to handle incoming calls. The business model may involve charging clients based on the number of minutes used or offering subscription plans for different levels of automation.

Hybrid Answering Service:

This setup combines elements of virtual and on-site answering services. It may involve a mix of remote receptionists and an in-house team to provide a flexible and scalable service. The business model can vary, including subscription-based fees and per-call charges.

Each answering service setup and business model has its own advantages and considerations.

The choice depends on factors such as your target market, desired level of personalization, scalability requirements, and available resources.

• Potential for a steady income stream through recurring clients and service contracts.
• Flexibility in setting your own working hours and managing the business.
• Opportunity to provide valuable customer support and enhance client satisfaction.
• Possibility of scaling the business by adding more clients and expanding services.
• Ability to leverage technology and automation to improve efficiency and call handling.
• High demand for availability, including working evenings, weekends, and holidays.
• Dealing with challenging or irate callers can be emotionally taxing.
• Maintaining a reliable and efficient call center infrastructure can be costly.
• Staffing and managing a team of receptionists may require additional time and resources.
• Constantly staying updated with industry trends and technology advancements can be challenging.

It’s important to consider these pros and cons carefully to determine if running an answering service aligns with your goals.

2. Research

Answering service research.

Gaining Insights for Starting an Answering Service

Gathering valuable information to guide your decision-making process before starting an answering service is crucial.

Quality information is essential as it helps you make informed choices and determine if this business venture suits you. A great way to obtain reliable insights is by connecting with industry professionals with firsthand experience.

Engaging with these knowledgeable individuals can provide priceless guidance based on their years of expertise. I’ve written an article with practical ideas to help you find and approach the right people.

I highly recommend reading the article linked below before launching your answering service to understand what you’re getting into. It will equip you with the necessary knowledge to make informed decisions and set you up for success.

See An Inside Look Into the Business You Want To Start  for all the details.

Target Audience

Understanding Your Target Market for an Answering Service:

To effectively run an answering service, it is crucial to understand your target market—the people most likely to benefit from and be interested in your services.

By gaining insights into your target market, you can tailor your offerings to meet their specific needs and preferences, leading to improved advertising and sales outcomes.

Potential Interested Parties in an Answering Service:

Small and medium-sized businesses seeking professional call handling and customer support.

Medical professionals, such as doctors or dentists, who require reliable phone assistance for appointment scheduling and patient inquiries.

Legal firms seek a dependable answering service to handle client calls and provide efficient message relay.

Service-based industries, like HVAC or plumbing companies, requiring 24/7 call coverage and dispatch services.

E-commerce businesses aim to enhance customer experience by offering round-the-clock phone support.

Understanding your customers and catering to their unique requirements can boost your advertising efforts and sales performance. For more in-depth information, refer to my article, How To Understand Your Target Market.

3. Looking at Financials:

Startup Costs, Revenues, and Profits for an Answering Service:

Startup Costs:

Estimating startup costs accurately is crucial for your answering service’s smooth launch and operation.

It’s essential to list all the necessary items and services, gather pricing information, and update the list as new considerations arise.

Factors such as the size of your operation, hiring employees versus working alone, and your chosen location will impact your startup costs.

Deciding whether to purchase new or used equipment will also affect your expenses.

For more detailed information, refer to my article on  Estimating Startup Costs.

Sales and Profit:

Your sales and profits will depend on various factors:

• The popularity and demand for your answering service.
• Effective marketing strategies to raise awareness among the right target audience.
• Generating enough sales to cover expenses and have sufficient profit.

Aiming for sales that exceed monthly expenses and leave room for your living costs is crucial.

In summary, your answering service’s success relies on achieving sufficient sales with a profit margin surpassing your monthly expenses.

For More, See Estimating Profitability and Revenue

It’s important to conduct further research using the provided lists as a starting point to gain a deeper understanding of the specific ideas and expectations associated with running an answering service.

Sample Lists

Sample Estimated Costs for a New Answering Service in the USA:

Office Space Rental: $1,500

Phone System and Equipment: $3,000

Computer Hardware and Software: $2,500

Furniture and Fixtures: $1,000

Initial Marketing and Advertising: $2,000

Licenses and Permits: $500

Insurance (General Liability, Professional Liability): $1,200

Initial Staff Training: $1,500

Website Development and Maintenance: $1,000

Miscellaneous Expenses (Stationery, Office Supplies): $500

Grand Total: $14,200

Sample Estimated Monthly Expenses for an Answering Service in the USA:

Staff Salaries and Benefits: $8,000

Rent and Utilities: $1,500

Phone and Internet Services: $500

Maintenance and Repairs: $200

Marketing and Advertising: $1,000

Software and Subscription Services: $500

Insurance (General Liability, Professional Liability): $300

Administrative and Office Expenses: $300

Grand Total: $12,300

Sample Revenue and Profit Projection for an Answering Service in the USA:

Average Monthly Revenue: $15,000

Monthly Expenses (as per previous section): $12,300

Gross Profit: $2,700

Note: The revenue and profit projection will vary based on the number of clients, pricing structure, call volume, and operational efficiency. This is a simplified sample projection for illustrative purposes only.

It’s important to conduct thorough market research and tailor these estimates based on your specific business model, location, and target market to obtain a more accurate projection.

4. Choosing The Right Business Location

Selecting the right location for your answering service can significantly impact its success.

Avoid areas with no demand for your services, as this can lead to failure even before you launch your business.

Opening in an area saturated with competition can make it challenging to generate sales.

Ideally, you want a location with sufficient demand and a reasonable level of competition.

Affordability is another crucial consideration. While operating in a highly populated area can provide more exposure, ensure that the increased expenses won’t outweigh your profitability.

Similarly, operating from a low-cost area may seem tempting, but assess whether there will be enough demand to sustain your business.

Choosing the right location is a vital factor in achieving success. Conduct thorough research to ensure you’re making the right choice for your answering service.

For more about business locations, see Choosing The Best Location for Your Business.

5. Choose a Business Name

Choosing the Right Business Name for Your Answering Service:

When selecting a name for your answering service, choosing something catchy, appropriate, and easy to remember is important.

Remember that the name you choose will likely stay with your company for a long time, so take the time to find one that fits your business and that you’ll be satisfied with both now and in the future.

Additionally, having a matching domain name for your online presence is crucial. Ensure that another business does not already register the name you desire.

Business Name Ideas for an Answering Service:

QuickConnect

VirtualVoice

CallSolutions

InstantResponse

ReliableReception

AnswerGenius

StellarVoice

AnswerMakers

CallConnect

SmartAnswer

ReliableCall

Remember, this list is meant to spark your creativity and help you develop an original business name not already used by another company and is available for registration.

For this important step, see How to Choose a Business Name.

6. Register Your Company

The Importance of Registering Your Answering Service:

Registering your answering service is crucial to establishing your business legally and ensuring compliance with local regulations.

It provides various benefits, including:

Legitimacy: Registering your business gives it a legitimate and professional image, instilling confidence in potential clients and partners.

Legal Protection: Registering your answering service as a legal entity, such as an LLC or corporation, helps protect your personal assets in case of legal issues or debts.

Tax Compliance: Registering allows you to obtain a tax identification number to file taxes correctly and meet your financial obligations.

Considerations for Registering an Answering Service:

Business Structure : Determine the most suitable business structure for your answering service, such as a sole proprietorship, partnership, LLC, or corporation. Consider factors like liability protection and ease of management.

Name Availability : Conduct a thorough search to ensure your desired business name is available and not already used by another company. Checking with the Secretary of State or similar authority is advisable.

Permits and Licenses : Depending on your location and the services you offer, you may need to obtain specific permits and licenses to operate legally. Ensure compliance with local, state, and federal regulations.

Permits and Licenses to Consider for an Answering Service:

Business License: Obtain a general business license from your local municipality.

Professional License: Check if your state requires a specific professional license for offering answering services in certain industries, such as healthcare or legal.

Call Center License: Some jurisdictions may have specific requirements or licenses for operating a call center.

Privacy and Data Protection Compliance: Familiarize yourself with data protection laws, such as HIPAA or GDPR, if you handle sensitive client information.

Federal Employer Identification Number ( EIN ): Apply for an EIN from the IRS if you plan to hire employees.

Local Permits: Research and obtain any additional local permits or certificates required by your city or county.

Remember to consult with local authorities or a business attorney to ensure you have the necessary permits and licenses to operate your answering service within the legal framework.

See, How to Register your Business  for more.

7. Create Your Corporate ID

A corporate identity (ID) is a design that represents your answering service and creates a strong first impression. It is crucial because you want to leave a positive and professional impact on your customers.

A consistent and professional design across various components of your corporate ID is essential for impressing new and existing clients. These components may include:

Logo : Your unique logo serves as the visual representation of your answering service and helps customers recognize and remember your brand.

Business Cards : Professionally designed business cards provide contact information and create a lasting impression when networking or meeting clients.

Website : A well-designed and user-friendly website showcases your services, builds credibility, and serves as a central hub for information.

Stationery: Consistent design elements on letterheads, envelopes, and other stationary items reinforce your brand identity in written communication.

Business Sign : A visually appealing and clear business sign outside your office or storefront helps customers easily locate and recognize your presence.

Promotional Items: Branded items like pens, notepads, or keychains with your logo can serve as useful giveaways and increase brand visibility.

Maintaining a cohesive corporate ID across these components enhances your professionalism, builds trust, and reinforces your brand in customers’ minds.

Consider investing in professional design services to create a memorable and visually appealing corporate ID that reflects the values and image of your answering service.

See A Complete Introduction to Corporate Identity Packages for more.

8. Writing a Business Plan

A business plan is a vital document that serves multiple purposes for your answering service. It helps you secure funding and attract potential investors. It also acts as a roadmap to guide you through the startup phase and the ongoing operation of your business.

Writing a business plan requires time and effort because you’re creating a vision of what your answering service will be like once it’s up and running. It involves carefully expressing the details and considering various aspects of your business.

The effort put into creating a business plan is worthwhile because it clarifies what you need to get started and offers a clear vision of how to operate your answering service effectively.

When creating your business plan, remember that you have different options available. You can start from scratch, hire a professional, use a template, or utilize business planning software.

Regardless of your chosen approach, actively participating is crucial, especially if you decide to work with a professional. This ensures that your business plan stands out and effectively communicates the unique nature of your answering service.

Remember that your business plan can evolve and be optimized as you gain experience. Regularly reviewing and making necessary adjustments to the document is advisable to align with changes in your business or operations.

Sample Business Plan for An Answering Service

I. Executive Summary

Company Name: AnsweredRight

Mission Statement: AnsweredRight aims to offer reliable, efficient, and cost-effective answering services to businesses of all sizes, helping them stay connected to their customers 24/7, increase customer satisfaction and enhance their professional image.

II. Company Description

AnsweredRight is an answering service providing businesses with professional call answering, call forwarding, appointment scheduling, and customer support services. We strive to enable businesses to focus on their core competencies while we handle their communication needs effectively and professionally.

III. Market Analysis

Industry Overview

The answering service industry is a growing market, especially due to the trend of outsourcing non-core tasks. With the rise of digital commerce and the increasing need for around-the-clock customer service, the demand for answering services is on the rise.

Target Market

Our target market includes small to medium-sized businesses across various industries, such as medical, legal, e-commerce, IT services, etc., who lack the resources or need to offer 24/7 customer service.

Competitor Analysis

Our key competitors are companies providing similar services. We differentiate ourselves through personalized service, leveraging advanced technology, and competitive pricing.

IV. Organization and Management

AnsweredRight is led by an experienced team with telecommunications, customer service, and business operations backgrounds. The organizational structure includes a CEO, Operations Manager, HR Manager, Sales & Marketing Manager, and a team of professional telecommunication operators.

V. Services

• 24/7 Call Answering Services
• Customer Support Services
• Message Taking & Delivery
• Call Forwarding
• Appointment Scheduling
• Emergency Dispatching

VI. Marketing and Sales Strategy

Marketing Strategy

We will leverage online marketing channels such as SEO, content marketing, and social media advertising. We will also participate in local business networking events and trade shows.

Sales Strategy

Our sales strategy will revolve around demonstrating the value of our services through free trials and offering scalable plans to suit businesses of varying sizes.

VII. Financial Projections

We expect steady growth in the first three years. Our revenue will primarily come from monthly subscription fees from our clients. As we grow our client base and add more services, we project an increase in revenue and profitability.

Revenue: $350,000 Expenses: $250,000 Net Income: $100,000

Revenue: $500,000 Expenses: $325,000 Net Income: $175,000

Revenue: $700,000 Expenses: $420,000 Net Income: $280,000

VIII. Funding Request

We are seeking $200,000 in funding to cover initial setup costs, technology investment, marketing, and operational expenses. In exchange, we offer an equity stake in the business.

IX. Exit Strategy

In case of a successful run, we plan to scale the business across the country, potentially going public or selling to a larger player in the industry.

X. Conclusion

AnsweredRight is poised to capitalize on the growing demand for professional answering services.

With our business model, operational strategy, and market understanding, we believe we can provide superior value to our clients while generating significant returns for our investors.

For information on creating your business plan, see,  How to Write a Business Plan.

9. Set up Your Banking

When selecting a bank for your answering service, consider opting for a nearby bank that specializes in serving business owners.

Opening a dedicated business account offers several advantages. It allows you to separate your business expenses from personal spending, making it easier to track your business finances and provide evidence during tax audits.

Building a professional relationship with your banker is beneficial. They can provide assistance and advice if you require funding for your answering service, and they can expedite loan processes.

Additionally, applying for a merchant account is advisable, which enables you to accept credit and debit card payments from your clients. A positive relationship with your banker can streamline setting up a merchant account.

By choosing a bank that understands the needs of business owners, you can access the necessary financial services and support for your answering service.

Take the time to research and compare different banks, considering their proximity, business-friendly services, and reputation for excellent customer service.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

10. Getting the Funds for Your Operation

Securing the necessary funds to start and operate your answering service is critical in turning your business idea into a reality.

Several funding options are available to consider:

Traditional Lenders:

Approach banks or credit unions that offer small business loans. They may require a solid business plan, collateral, and credit history.

Private Loans:

Explore borrowing from family, friends, or acquaintances who believe in your business venture. Clearly define loan terms and repayment plans to maintain transparency.

Seek potential investors interested in supporting your answering service in exchange for equity or a share of future profits. Be prepared to present a compelling business plan and growth potential.

Selling Assets:

Consider selling personal assets or unused business equipment to generate capital for your answering service.

Collateral:

Determine if you have valuable assets, such as property or equipment, to be offered as collateral to secure a loan.

When meeting with a loan officer, consider the following considerations:

Clearly articulate your business plan and financial projections.

Present your expertise and industry knowledge to instill confidence.

Be prepared to answer questions about your target market, competition, and growth strategies.

Sample list of documents needed to apply for a business loan for a NEW answering service:

Business plan

Personal and business tax returns

Financial statements (income statement, balance sheet)

Bank statements

Personal and business credit reports

Legal documents (licenses, permits, registrations)

Collateral documentation (property deeds, equipment titles)

Resume and references

Each funding option has its requirements and considerations, so thoroughly research and assess which option best aligns with your specific needs and circumstances.

See, Getting a Small Business Loan for more.

11. Software Setup

Software Considerations for Your Answering Service:

Researching and choosing the right software is crucial for the smooth operation of your answering service. Here are important points to consider:

Ease of Implementation:

Starting with a software program from scratch is easier than switching to a new system after your data is already in another program. Choose a software solution that aligns with your long-term needs to avoid disruptions in the future.

Demo and Reviews:

Look for software providers that offer demos or free trials. Take advantage of these to assess the user interface and functionality. Additionally, read reviews and explore forums to learn about other user’s experiences with the software.

Expense Tracking and Tax Preparation:

Research software options for efficiently tracking expenses and preparing financial documents for tax filing. Consult with your bookkeeper or accountant to ensure the software integrates well with your accounting practices and meets your needs.

You can make an informed decision when selecting the software for your answering service by conducting thorough research, exploring demos, and considering user reviews.

A reliable and user-friendly software system will streamline operations, enhance efficiency, and facilitate accurate financial management.

Here are some software packages to consider:

PBX Systems:

• Avaya IP Office

Call Center Software:

• Genesys Cloud
• Zendesk Talk
• Cisco Unified Contact Center Express

CRM (Customer Relationship Management) Software:

• HubSpot CRM
• Microsoft Dynamics 365

Virtual Receptionist Software:

• Ruby Receptionists
• Abby Connect
• Nexa Receptionists

Accounting and Invoicing Software:

Team Collaboration and Communication Software:

• Microsoft Teams
• Google Workspace

Appointment Scheduling Software:

• Acuity Scheduling
• SimplyBook.me
• Square Appointments

Remember to assess your specific needs and requirements when choosing software packages for your answering service.

It’s important to consider the software’s features, scalability, integration capabilities, and user-friendliness to ensure it aligns well with your business operations and goals.

Check out Google’s Latest Search Results for Software Packages for an answering service.

12. Get The Right Business Insurance

When seeking insurance coverage for your answering service, there are several important concerns to remember.

These include:

Liability Coverage:

Ensure you have adequate general liability insurance to protect against potential accidents or injuries on your premises. This coverage should include protection for customers, employees, and anyone at your business location.

Professional Liability Insurance:

Consider obtaining professional liability insurance, also known as errors and omissions (E&O) insurance, which provides coverage in case of claims related to mistakes, errors, or negligence in your service delivery.

Property Coverage:

Assess the need for property insurance to safeguard your business property, equipment, and any physical assets associated with your answering service.

Home-Based Business Insurance:

If you plan to operate or manage your answering service from your home, inform your home insurance agent about your business activities. This is important to avoid potential conflicts or nullifying your existing home insurance policy.

Cyber Liability Insurance:

Given the sensitive nature of client data handled by an answering service, consider cyber liability insurance to protect against data breaches, cyberattacks, or privacy-related claims.

Business Interruption Insurance:

Evaluate the need for business interruption insurance, which can cover lost income and ongoing expenses if your answering service experiences a significant disruption or cannot operate temporarily.

Consult with an Insurance Broker:

Work with a competent insurance broker who specializes in business insurance. They can guide you through the process, assess your needs, and ensure you have appropriate coverage for your answering service.

Remember to discuss your specific requirements with an insurance professional to address any unique concerns related to your answering service.

For more, see What to Know About Business Insurance . You can also browse the latest Google Search Results for answering service Business Insurance .

13. Physical Setup

Setting up the Workspace for Your Answering Service:

When setting up the workspace for your answering service, focus on creating an organized and efficient environment. Here are some key considerations:

Layout and Organization:

Design the workspace layout to maximize efficiency and ease of operation. Arrange desks, chairs, and equipment in a way that promotes productivity and collaboration among your team members.

Business Signage:

Install a visible and attractive business sign to help attract clients to your answering service. Additionally, display any necessary signs, such as entrance signs or waiting area directions, to provide clear guidance to visitors.

Office Equipment and Supplies:

Equip your office with the necessary tools and supplies for efficient operation.

This includes reliable phone systems, computers, headsets, and software for the answering service industry. Stock up on stationery, office supplies, and other resources needed for day-to-day operations.

Organization and Productivity:

Maintain an organized workspace by implementing filing systems, labeling, and storage solutions. This will help you stay focused, locate information quickly, and streamline your workflow.

By setting up an organized and well-equipped workspace for your answering service, you can enhance productivity and professionalism and provide a pleasant working environment for you and your team.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

14. Creating a Website

Having a website for your answering service offers several benefits:

Online Presence:

Establishes a professional online presence for your business.

Makes it easier for potential clients to find and contact you.

Credibility and Professionalism:

Enhances your credibility and showcases professionalism.

Builds trust with potential clients by having a professional online representation.

Information Hub:

Acts as a central hub for clients to access detailed information about your services.

Provides a platform to share your expertise, showcase testimonials, and highlight your unique offerings.

24/7 Accessibility:

Allows potential clients to access information about your answering service at any time, even outside of regular business hours.

Enables clients to gather information and make inquiries at their convenience.

Marketing and Promotion:

Provides a platform for marketing and promoting your answering service.

Helps you reach a wider audience, attract new clients, and stay ahead of the competition.

Customer Convenience:

Offers a convenient way for clients to learn about your services, pricing, and contact details.

Enables clients to submit inquiries, request quotes, or even sign up for your services directly through the website.

Competitive Edge:

Sets you apart from competitors who may not have a website.

Gives you a competitive advantage by showcasing your professionalism and accessibility.

A well-designed and informative website can establish a strong online presence, attract new clients, and provide a convenient and professional experience for your existing customers.

For more, see How to Build a Website for Your Business .

15. Create an External Support Team

An external professional support team can be invaluable for your answering service. These individuals are not on your payroll but provide advice and services on a per-use, contract, or hourly basis. Here’s what you need to know:

Importance of an External Support Team:

An external support team comprises professionals offering specialized expertise in various areas. They can provide guidance, advice, and services that complement your answering service’s needs.

Building Professional Relationships:

You don’t need all the team members in place before starting your business. Building strong professional relationships takes time, so it’s an ongoing process. Invest in networking, attending industry events, and seeking referrals to connect with reliable professionals.

Key Team Members:

Your external support team may include:

• Accountant: Helps with financial management, bookkeeping, and tax compliance.
• Lawyer: Offers legal advice, helps with contracts and agreements, and ensures compliance with laws and regulations.
• Financial Advisor: Guides financial planning, investments, and strategies to support business growth.
• Marketing Specialist: Assists with developing marketing strategies, branding, and promotional campaigns.
• Technical Advisors: Offer expertise in technology, software, and infrastructure to optimize your operations.
• Consultants: Provide industry-specific advice and recommendations to improve your answering service.

A strong external support team means you can rely on their expertise when needed, benefiting from their specialized knowledge and experience.

As your answering service grows, these professionals can help navigate challenges and maximize opportunities for success. Continuously nurturing these relationships ensures ongoing support for your business.

For more, see, Building a Team of Professional Advisors for Your Business.

16. Hiring Employees

Operating an Answering Service and Job Positions to Consider:

Initially, running your answering service independently may be feasible without hiring employees. This approach helps minimize payroll expenses, especially in the early stages.

However, as your business grows, managing and operating it alone may become challenging. Hiring employees can significantly enhance productivity when you find the right individuals for the job.

The following are job positions or outsourced services you may want to consider as your answering service grows and becomes successful:

Call Operators: Handle incoming calls, provide customer support, and manage call routing.

Receptionists: Greet clients, schedule appointments, and assist with administrative tasks.

Sales Representatives: Generate leads, convert prospects into clients, and promote your answering service.

Quality Assurance Specialists: Ensure high service standards by monitoring call quality and providing feedback.

IT Support: Maintain and troubleshoot technical systems, software, and equipment.

Marketing Specialists: Develop marketing strategies, manage online presence, and attract new clients.

Administrative Assistants: Provide administrative support, manage paperwork, and assist with office tasks.

Human Resources: Handle employee recruitment, onboarding, training, and personnel management.

Accountants: Manage your answering service’s financial records, invoicing, and budgeting.

Legal Services: Consult with lawyers to ensure compliance with regulations, contracts, and legal matters.

Outsourced Services: Consider outsourcing tasks like bookkeeping, IT support, or marketing to specialized service providers.

As your answering service grows, evaluating the need for these job positions or outsourced services can help streamline operations, improve customer satisfaction, and ensure the continued success of your business.

For more, see, How and When to Hire a New Employee.

Points To Consider

Getting customers through the door.

For your answering service to thrive, it’s crucial to attract customers.

This can be more challenging when your operation is new and unfamiliar to people. However, as time goes on and you gain more marketing experience, it will become easier, especially if customers appreciate your services.

I recommend reading the following article to help you get customers through the door as a new business.

It provides valuable ideas and strategies to effectively attract customers and promote your answering service. By implementing these suggestions, you can increase awareness of your services and establish a solid customer base.

Remember, customer acquisition is a continuous effort, and with persistence and effective marketing, your answering service will have a greater chance of success.

See our article How To Get Customers Through the Door ; you’ll find a few ideas you can use.

Marketing Ideas

Marketing your answering service is an ongoing process vital to generating revenue.

You don’t necessarily need to hire an expensive marketing agency. Instead, focus on creating awareness and seizing opportunities to promote your business. Here are some key points:

Continuous Marketing:

View marketing as a continuous effort rather than a one-time task. Consistently promote your answering service to maintain a steady flow of potential clients.

Effective Techniques:

Invest in effective marketing techniques that align with your target audience.

This can include online strategies like social media marketing, search engine optimization, content marketing and offline approaches such as networking and attending industry events.

 Budget-Friendly Options:

You can effectively market your answering service without breaking the bank.

Utilize free or low-cost methods, such as creating a professional website, utilizing social media platforms, leveraging word-of-mouth referrals, and distributing informative brochures or business cards.

Seizing Opportunities:

Capitalize on opportunities to promote your answering service whenever they arise.

This can be through community events, partnerships with complementary businesses, offering special promotions, or participating in relevant online forums or groups.

Effective marketing builds awareness and attracts potential clients to your answering service.

By consistently implementing targeted marketing techniques and taking advantage of opportunities, you can increase visibility, generate revenue, and achieve long-term success.

See our marketing section for articles that will provide ideas to bring awareness to your answering service.

Assessing your skills and determining your ability to run an answering service is important.

If you lack a necessary skill, remember that you can either learn it or hire someone with that expertise.

Evaluating your skill set ensures you can successfully handle the various aspects of operating an answering service.

Essential Skills for an Answering Service Owner:

Strong Communication Skills :

Communicating effectively with clients, team members, and other stakeholders is crucial for an answering service.

Excellent Customer Service :

Providing exceptional customer service is vital for building and maintaining client relationships in the answering service industry.

Time Management :

Time management and prioritizing tasks are essential to meet clients’ needs and maintain smooth operations.

Problem-Solving Abilities :

Analyzing situations, thinking critically, and finding effective solutions are key when handling diverse client inquiries and resolving issues.

Attention to Detail :

Paying close attention to details ensures accuracy in message taking, call routing, and other important aspects of an answering service.

Technology Proficiency :

Using phone systems, call management software, and other technology tools is essential for smooth operation.

Adaptability and Flexibility :

Adapting to changing circumstances and handling different types of calls and client requirements is important in the dynamic field of answering services.

Organization and Multitasking :

Being organized and able to handle multiple tasks simultaneously helps maintain efficiency and deliver prompt responses to clients.

Professionalism and Poise :

Maintaining a professional demeanor, even during challenging or stressful situations, is crucial for representing the answering service effectively.

Sales and Marketing Skills :

Basic sales and marketing knowledge can be valuable in promoting your answering service and acquiring new clients.

Having a combination of these essential skills or the willingness to develop them will contribute to your success as an owner of an answering service.

A List of Equipment You May Need for an Answering Service:

Telephone Systems: Multiple phone lines and extensions to handle incoming and outgoing calls efficiently.

Headsets: Comfortable and reliable headsets for call operators to ensure clear communication.

Computers: Desktop or laptop computers for managing calls, accessing client information, and running necessary software.

Internet Connection: Reliable high-speed internet connection to ensure uninterrupted communication and access to online resources.

Call Management Software: Software specifically designed for call routing, message taking, and tracking call activity.

CRM Software: Customer Relationship Management software to manage client information, track interactions, and maintain a database of contacts.

Voicemail Systems: Voicemail setup to handle calls outside business hours or when operators are unavailable.

Fax Machines: Fax machines or online fax services for sending and receiving faxes as required.

Printers and Scanners: Printing and scanning equipment for document management and record-keeping purposes.

Office Furniture: Desks, chairs, and workstations for call operators and administrative staff.

File Storage and Organization: Filing cabinets or digital file storage solutions to securely organize and store client information.

Backup Power Supply: Uninterruptible Power Supply (UPS) or backup generator to ensure continuity of operations during power outages.

Networking Equipment: Routers, switches, and cabling to establish a local network connection within the office.

Security Systems: Security cameras, access control systems, and alarms protect the premises and ensure the safety of the equipment.

Office Supplies: Basic office supplies include pens, paper, notepads, folders, and stationery.

Remember, the specific equipment needed may vary depending on the scale and requirements of your answering service.

When acquiring the necessary equipment, assessing your needs and considering factors such as call volume, team size, and technological requirements are important.

This section will provide valuable resources to support your answering service while it operates.

These resources enhance your understanding of the industry and offer helpful tips for improving your business.

Utilizing these resources lets you stay informed about industry trends, gain valuable insights, and implement strategies to optimize your answering service operations.

Industry Trends and Statistics

Looking at industry trends and statistics for your answering service offers several benefits.

It helps you stay informed about market conditions, identify emerging opportunities, make business decisions, and stay competitive.

See the latest search results for trends and statistics related to an answering service.

Top Answering Service

Looking at established answering services can inspire you to identify gaps in the industry that you can address in your own business.

It also helps you recognize any areas you may have overlooked or improvements that can be made within your operations.

See the latest search results for the top answering servicees.

The Future of the Answering Service Industry

Researching the industry’s future is beneficial for someone looking to start an answering service.

It provides insights into emerging trends, potential growth opportunities, and market demands. Understanding the industry’s future enables you to make informed decisions and position your business for long-term success.

See the search results for the future of the answering service industry.

Researching industry prices when starting an answering service provides several benefits.

It helps you understand pricing trends, competitive rates, and market expectations. This knowledge allows you to set competitive prices, maximize profitability, and attract customers effectively in your new business venture.

See the latest Answering Service Prices.

Answering Services for Sale

Buying an existing answering service already in operation has advantages and disadvantages. Here’s what you need to know:

Benefits of Buying an Established Answering Service:

Immediate Revenue: You start earning income from the day you take over the business.

Skip the Startup Phase: By acquiring an established service, you bypass the challenges and uncertainties of starting from scratch.

Proven Business Model: You know that the business works and has the potential for success.

Financial Insights: You can access existing revenue, profit, and expense information.

Existing Customer Base: The business already has a customer base, providing a foundation for ongoing revenue.

Established Reputation: The business has built a reputation, which can help attract and retain customers.

Disadvantages of Buying an Existing Answering Service:

Higher Cost: Purchasing an established business usually comes with a higher price tag due to the goodwill associated with the customer base.

Potential Customer Loss: If you make significant changes to how the business operates, you risk losing customers.

Inherited Reputation: When buying a business, you inherit its reputation, including any negative aspects.

It’s important to weigh the pros and cons carefully when considering buying an existing answering service.

Conduct thorough due diligence, assess the financials and customer base, and consider the potential for growth and your ability to make necessary changes to suit your business goals.

See Answering Service – Businesses for sale to browse the latest listings.

Answering Service Franchise Opportunities

Buying an answering service franchise has advantages and disadvantages, but it’s worth exploring as an alternative to starting from scratch. Here’s what you should know:

Pros of Buying an Answering Service Franchise:

Proven Business Model: You can follow the franchise’s corporate office’s established plan, giving you a blueprint for success.

Existing Reputation and Marketing: Benefit from the franchise’s existing reputation and marketing efforts, which can help attract customers.

Comprehensive Knowledge: Before diving in, you gain valuable insights into every aspect of the business.

Corporate Support: Enjoy support from the corporate office, providing guidance and assistance.

Cons of Buying an Answering Service Franchise:

Higher Cost: Purchasing a franchise can be expensive, typically involving initial fees and ongoing royalty payments.

Limited Autonomy: Making significant changes to the business requires approval from the corporate office, restricting your flexibility.

Approved Products and Services: You must adhere to the franchise’s guidelines and limitations regarding the products and services you offer.

Operating within the Agreement: Your business operations are bound by the terms outlined in the franchise agreement.

Ongoing Franchise Fees: Franchisees are typically required to pay ongoing fees to the franchisor.

Carefully evaluate the pros and cons of buying an answering service franchise to determine if it aligns with your goals and resources.

Thoroughly review the franchise agreement, understand the financial obligations, and assess the level of support and restrictions the franchisor imposes.

See Answering Service franchise opportunities to browse the latest listings.

Knowledge Is Power if You Use It!

Gaining knowledge is a powerful tool when you apply it effectively! Luckily, a wealth of online information about the answering service industry is available.

You can access valuable resources to support your research, startup phase, and ongoing business operations by exploring the links provided in the following sections. These resources offer insights, tips, and guidance that can contribute to your success.

A Day in the Life

Gain Insights into the Life of an Answering Service Owner:

Discover valuable tips and insights from industry professionals on what to expect in a typical day as an answering service owner. This resource provides a comprehensive overview, helping you confidently prepare and navigate your business’s daily operations.

See the search results for a day in the life of answering service owners.

Answering Service Owner’s Interviews

Unlocking Valuable Insights through Interviews with Answering Service Business Owners:

Explore this section featuring interviews with experienced business owners in the answering service industry. These interviews offer vital information and perspectives, providing valuable insights and a deeper understanding of the industry.

Take the time to dive into this section to gain valuable knowledge and prepare yourself for what lies ahead.

See the search results for Interviews of answering service owners.

Publications

Staying Informed with Answering Service Publications:

Publications are a valuable resource to stay up-to-date with the latest information in the answering service industry. Explore these publications to gain insights, stay informed, and keep pace with the industry’s ever-evolving landscape.

See the search results for publications related to an answering service.

Participating in answering service forums allows one to join discussions on current industry topics. By actively participating in these forums, you can foster relationships wi

See the latest search results for the top answering service forums.

Enhance Your Skills and Stay Current with Answering Service Courses:

Enrolling in courses related to the answering service industry offers a valuable opportunity to learn and improve your skillset. These courses provide updated knowledge and insights, helping you stay current with industry trends and enhance your expertise.

See the latest courses related to running an answering service.

Stay Informed and Inspired with Answering Service Blogs:

Subscribing to answering service blogs is an excellent way to generate ideas and stay updated with the industry. By subscribing to multiple blogs, you can curate a valuable collection of sources that provide a continuous stream of relevant and informative content for your benefit.

Remember to prioritize the blogs that consistently deliver value and unsubscribe from those that no longer meet your needs. Embrace this resource to access a wealth of information you can utilize to enhance your understanding and make informed decisions in the answering service industry.

Look at the latest search results for answering service blogs  to follow.

Tap into Valuable Insights with Answering Service Books:

Books serve as a valuable source of information to assist you in starting an answering service. Delve into these resources to gain valuable insights and guidance for your entrepreneurial journey.

The latest books about starting an answering service are listed on Amazon

Stay Informed with Answering Service News:

Keep up-to-date with the latest happenings in the answering service industry by following news sources. Set up alerts to receive notifications whenever the media cover new developments. Stay in the know and stay ahead.

See what’s in the news related to an answering service?

Gain Valuable Tips and Insights through Answering Service Videos:

Explore videos about the answering service industry that provide tips and insights. Additionally, take advantage of related videos suggested by YouTube, as they often cover topics you may not have considered, expanding your knowledge and understanding.

See the links to YouTube Videos Below.

• Videos related to starting an answering service can be found here.

Privacy Overview

• Testimonials

Affordable call answering services for small businesses

Missing business calls? Feeling burnt out? Wish you had a receptionist? Our live answering services help thousands of US small businesses to thrive by preventing lost opportunities, all for a fraction of the cost of a full-time employee.

Save precious time, get more done and never miss a lead with a PAYG virtual reception from just $19 a month

Us receptionists.

The majority of our receptionists are in the US, with bilingual answering options and overflow support available.

24/7 availability

After-hours, weekends, public holidays … we can answer day or night, 365 days a year, so you never miss opportunities.

Custom call greetings

Calls are answered with your preferred greeting to ensure your callers enjoy a consistent experience.

Instant emails or texts

Receive email or SMS messages after each call, containing caller details and their reason for calling.

Screening & transfers

Call screening and transfer options for unlimited staff or departments, so you only take the most important calls.

Short-term flexibility

With no lock-in contract, you can use our services temporarily to cope with staff shortages or seasonal demand.

How our virtual receptionist service works

Set up within minutes.

Tell us about your small business, your preferred greeting and how you’d like us to interact with your callers. Then simply confirm who should receive messages or, depending on your plan, call transfers when they’re available.

Customer calls you

By forwarding your small business phone to the unique number we provide, we’ll know when an incoming call is for you. You’ll have flexibility to send all calls to us or only unanswered calls.

We answer for you

Our predominantly US-based small business virtual receptionists will answer your calls with your preferred greeting, 24/7 if you wish. Depending on your plan, we can take messages, transfer selected calls, answer FAQs, submit leads into your CRM, take orders, process payments, schedule your appointments and more.

We deliver your messages

After each call you’ll immediately receive a message by email, SMS or both (as chosen by you) including details such as the caller’s name, phone number and, of course, the reason for their call.

Your tools are our tools

Our MyAssistant and MyDiary call answering services include seamless integration with the software you already use, including your preferred calendar, booking system or CRM for scheduling appointments or adding new clients.

Reclaim the hours in your day

Small business owners have many hats to juggle, but trying to answer every call yourself can quickly result in burnout. 

ReceptionHQ’s 24/7 virtual receptionists answer your calls as though they work for your business, leaving you free to focus on your business priorities or spend uninterrupted time with your family.

Best of all, with no lock-in contract, you can just as easily use our services long-term or short-term, to fill an urgent need.

• No phone ringing at all hours
• No pesky voicemail hangups
• No stress over lost opportunities
• No HR or training headaches
• No massive wage cost
• No-obligation free trial

Complementary small business solutions

+ phone numbers.

Add multiple additional local numbers or toll-free numbers to the local number you receive for free with your live call answering package.

+ Automated messaging

Have voicemails instantly emailed to you both for convenience and to ensure no important communications are ever missed.

+ Virtual address

Choose a virtual business address to expand your presence geographically, without expensive overheads or the need to relocate.

What our customers love

I highly recommend ReceptionHQ to any business looking to enhance their customer service and streamline their operations. Radiant Day Spa

We are very happy with the wonderful customer service (and) the staff that answers our incoming calls. They are very professional and polite to our customers. Jody Galvan

We are a small, but very busy company. Having ReceptionHQ enhances our image and makes us look very professional. Tami Podell, Assisted Living Connections

I am a small business owner and having a live person take calls, book consultations, and take messages has been a game changer for me. Angelina Torres

After our one-week trial of ReceptionHQ, we knew we needed this for our business. We couldn’t believe we had missed 50 calls in a week’s time for our small business. Katie Vivian

We started with ReceptionHQ a little over a year ago and it has truly changed the way we do business. From a customer service perspective, no caller goes to a voicemail. Christopher Amos, No Boundaries

ReceptionHQ has been great in screening our calls and transferring over the important ones! AIM Consulting Services

I have nothing but great experiences with ReceptionHQ. Over the years of using your service … your reps have been super professional with our clientele. Small Business Outsource

As a solo attorney with a mostly virtual practice … I’ve received great feedback on the professionalism of the ReceptionHQ virtual receptionists. Andrea Paris, Californian attorney

Trusted by thousands of small business owners across the US

Are you able to answer just some of our calls?

Yes. This is referred to as “call overflow”.

A lot of companies require their phone calls to be answered only when they are unable to take the call themselves. For example, if you step out of the office for an hour or your in-house receptionist goes to lunch, is on leave or is busy on another call and you have multiple calls coming in at the one time.

You can set your business phone number to divert (to the unique local phone number we allocate your business during the Free Trial setup process) only when the phone rings for more than a specified period (such as after 5 rings) or if your line is busy/engaged.

In such instances our receptionists will then answer the phone as if we were in your office. You’re always in control and can relax knowing you will never miss another important call again! 

Do you offer live call answering services in Spanish?

Yes.  Spanish bilingual service is included with every account at no additional cost.  Whether Spanish-speaking callers are common or occasional to your business, we provide customizable options free of charge to ensure exceptional experiences for your Spanish and English-speaking callers.

Are you able to book appointments for us?

Yes, we have a dedicated team of highly experienced receptionists who can book appointments for you. The MyDiary service is ideal for professionals who depend on appointments being made and managed while they are focused on their clients.  Our receptionists can schedule and reschedule appointments, manage cancellations and even take payments in your preferred software.  We support a large number of third-party appointment booking tools and CRMs .  Please contact us for more information.

Can you transfer calls to me or a staff member?

Yes, we are able to transfer calls to any staff member on any phone (landline or cell).  With our innovative software, we can record availability preferences for each staff member and only transfer when requested.  Individual details can be updated at any time via our online client portal or mobile application.

We pride ourselves in offering ‘warm transfers’, that is, callers are always announced to you before the transfer takes place.  If you’re unavailable, or if you don’t answer the call, our receptionist will go back to your caller, let them know you’re unavailable, take a message then forward it to you.

We do not blind transfer calls (transfer unannounced) unless you request this.

Can we list multiple staff members with individual message preferences?

Yes.  Each staff member and/or department can set their own availability status and decide whether to have their calls transferred or a message taken.  All settings can be updated individually and instantly via the ReceptionHQ client portal or mobile application.

Can your receptionists answer questions from callers?

Yes.  We are able to answer basic questions such as your location, directions to premises, fax number, website, pricing and other general questions. Depending on your plan, you can provide us with detailed call scripts or answers to FAQs to assist your callers.  Just let us know your needs and we’ll set up your account according to your preferred process.

Is it possible to update settings and handle contact management in real time?

You can notify our live answering service online in real-time with our easy-to-use smartphone apps or web client portal to notify us of your greeting, call, transfer and message preferences.

Unavailable to take calls? Just quickly update your status and we’ll take messages for you, exactly as an in-house receptionist would do.

Do you give me a number and is it exclusive to me?

Yes. You will be allocated an exclusive, dedicated local number based on the location of your company. You can either advertise this number directly, or forward calls to it from your existing business number. When calls are received to your dedicated number, our professional receptionists will be prompted to answer in your business name.

If your business would benefit from multiple numbers or toll-free number, you can add these for an additional cost.

How do I forward my calls to ReceptionHQ?

Forwarding your business phone calls to ReceptionHQ is easy. To have our team of virtual receptionists answer your calls, simply:

• Decide whether you wish to forward calls immediately to ReceptionHQ (the best solution for most businesses) or have delayed call forwarding.
• Identify the call forwarding codes for your telecommunications provider. Most providers publish these codes on their websites.
• Use the codes to enable call forwarding to the local or toll-free number you choose to have allocated to you (aka your Assigned DID).

For more information, check out our article Forwarding Your Business Calls to ReceptionHQ’s Reception Team , which outlines:

• Immediate and delayed call forwarding options
• Specific instructions for forwarding from AT&T , CallRail , Dialpad , Google Fi , Google Voice , Grasshopper , JustCall.io , Nextiva , Ooma , Ring Central , Sprint , T-Mobile , Verizon , Vonage , Wix and ZOOM Phone

Can I forward my existing business number to ReceptionHQ?

Yes, you can forward any landline, cell phone number or toll-free number to us, to be answered by our receptionists. Forwarded calls are seamlessly answered by our receptionists in your company name with the greeting of your choice.

Can I get additional numbers for each region?

Yes. ReceptionHQ can provide you with a local number for where you are based and, if you require it, we can also provide multiple numbers in different area codes. Advertising local numbers in additional cities or regions can give customers the impression your business is more established or has a larger coverage area. For a national appearance, we can provide you with a toll-free number. Contact us to find out more.

Find out more

Have questions? Please fill in your details and we’ll be in touch.

Want to try our small business answering service for free?

Put America’s leading virtual receptionist solution to the test! We’re ready to answer your phone FREE for 7 days.

What does the free trial include?

The trial is based on our ReceptionistPlus service, with our team of virtual receptionists able to take messages and transfer calls based on your availability settings.

By continuing to use the site, you agree to the use of cookies. Learn more. Accept

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

How to Start an Answering Service Business from Home

Home » Business ideas » B2B Industry » Call Center Agency

Do you want to start an answering machine business? If YES, here is a complete guide to starting an answering machine business with NO money and no experience . For centuries, communication has been eased with the advent of telephones. In this our modern age, one of the easiest businesses to start is the telephone answering service business.

Without doubt, those that have gone ahead to start businesses that revolve around the telecommunication industry are smiling to the bank daily. It is for this reason that it is believed that this business is relatively inexpensive to set up and can allow you to earn thousands of dollars each year without having to leave the comfort of your home.

Have it in mind that the one-office operation can generate gross revenues of as much as $150,000 upwards in a year, depending on the number of telephones or switchboards in operation and the number of calls taken. Experts say that one of the crucial parts played by the telephone as a business communication tool, accounts for the growing importance of answering service businesses.

This is because all business ventures, whether a physician’s private practice, a starting construction company, or a conglomerate, depend on the telephone as one of the easiest and most reliable communication tools in almost all their business process. This is why this business has a wide range of potential customers. Have it mind that any individual with a telephone and a busy schedule can become your customer.

A lot of small businesses have neither the time nor the means to take incoming calls during business hours when they are out on jobs – yet those calls represent the very lifeblood of their financial activity. These businesses cannot afford an office, much less a secretary, but they certainly need those phone calls to be able to progress. Unless they can find a reliable and affordable answering service, they will probably have to do without (or ask people not to call them after 7 PM) or use an answering machine (which has a whole set of disadvantages).

Note that the ideal prospects of an answering service are those businesses and professionals that are “on call” 24 hours a day, such as doctors, repair service business owners like electricians and plumbers, among others. Fancy, complex phone–answering systems have left clients talking to computer generated voices, leaving messages on “voice mail” and pressing numerous telephone numbers to work their way through to conversing with an actual human being. As a professional answering service business, you can take messages, deliver specific messages to callers, provide basic information, clarify the intent of calls and even arrange meetings with customers.

17 Steps to Starting an Answering Service Business

1. understand the industry.

From our research, we have been able to point out that the telephone answering service industry has not been part of the telecommunications technology boom of the last thirty years. Right from the late 70’s, as voice mail, cellular, paging and sophisticated telephone company switching services became commonplace, the percentage of businesses and professions using traditional telephone answering services reduced by approximately ninety percent.

Also, although smaller in number and belonging to relatively narrow vertical markets, the telephone answering service customers of today still need a human being at the end of the line. For these businesses and professions, there is no other alternative to human-to-human interaction. But the problem remains that there are simply not many high quality answering services from which to choose.

We have been able to find out that this industry has always suffered a bad reputation, and for good reason. Have it in mind that this is an incredibly complex business and lots can go wrong. Most of the product is based on human decision-making, as well as very complex telephone equipment and networks.

Telephone answering service is a 24/7/365 proposition that regularly involves emergency call support as well as routine call processing, which is why to survive at all is a challenge and comes with extreme innovations. But note that the challenge is compounded by the typical answering service owner’s failure to invest in the strategies that could produce the highest quality telephone answering service.

To stay afloat, a lot of surviving answering services cut costs by compensating Telephone Service Representatives (TSRs) with minimum wages/benefits while failing to upgrade equipment. Also, a lot of businesses in this industry are locked in a who-can-offer-the-lowest-price battle. Indeed it might be because of the historical low-pay/high staff-turnover syndrome; there are just a handful of high quality answering services in the united states.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

It is very important to state that just any business can gain from the services provided by a Telephone Answering Service. For businesses or professionals like doctors or emergency service providers, a live-answer message service is a must. Other clients simply desire a more professional business image, which is something a Message Centre agent provides.

Also others might wish to differentiate their business by having their calls answered first by a person rather than an impersonal automated answering system. But in all it boils down to just one point, the demographics and psychographics of this business is very huge. Note that the range of Answering Service Business clients would include:

• Air Conditioning Companies
• Alarm Monitoring Services
• Cable TV Companies
• Car Dealerships
• Chimney Cleaning Companies
• Cleaning Companies
• Electrical Contractors
• EMS Transport Services
• Fencing Companies
• Fuel Oil Delivery Service Companies
• Funeral Homes
• Health and Medical Care Centres
• Heating Services
• Hospice Nurses
• Hospital Equipment Providers
• Manufacturer Representatives
• Medical Equipment Specialists
• Municipalities
• Specialty Nurses
• Oxygen Equipment Services
• Paving Companies
• Pharmacies that Deliver
• Physicians and Surgeons
• Psychiatrist
• Refrigeration Companies
• Restaurant Reservations
• Roofing Companies
• School Districts
• Sewage Authorities
• Sewer and Drain Cleaning Services
• Towing Companies
• Veterinary Hospitals
• Visiting Nurses
• Water Authorities

3. Decide Which Niche to Concentrate On

We believe that one of the most important details of an answering service business is having a phone line dedicated to answering business phone calls. It doesn’t matter if the phone line is a cell phone or a land line, the sole purpose of that phone should be strictly professional.

Also when starting this business, you need to choose whether you are going to record the answered call messages on a pad or enter them online. This is the reason why you will need to develop a system for getting the messages to the business you are working or contracting with. One very important thing you also need to do is to research what type of business you want to provide services for.

Indeed medical answering services are always in demand, and the need for virtual office assistant is growing every day. You should have some idea of the type of business you want to do, and you should have some experience in the area.

Note that immediately you decide on a type of business, you need to research the going rates so you know what to charge for your service. We believe that it is best to start on the low to average end of the scale, until you have some references to call upon. Indeed businesses have a variety of phone needs, depending on their size and complexity. The phone can save them time and money in communicating with their customers. Note that apart from the businesses you decide to focus on, the services you provide can also serve as a niche. They may include:

• Incoming Message Services, both during and after normal business hours
• Complete Answering Service where customers believe they are calling the actual business office
• 800 Number Service
• Order Taking Service, where customers call in to order a specific product or service they have seen advertised
• Call Forwarding Service, where the business forwards calls to you only when their personnel leave the office
• Message Delivery Service, where you not only take messages, but you also call people for your business client
• Voice Mailboxes, where you have lines that record messages, but also call people for your business client
• Beeper Service, where you take the call and then page the client via a beeper
• Computerized Telemarketing, where you hook up a computer to a standard phone and program it to dial telephone numbers to help a business to prospect for clients or to advertise
• Appointment Setting Service, where you call a list of individuals furnished by a business to set up appointments for the firm’s sales people
• Phone Sales, where you are calling on behalf of a business to sell a specific service
• Surveys, where you call designated people to obtain answers to an opinion survey

The Level of Competition in the Industry

Indeed there have been lot examples throughout the history of this industry where competition has led to innovation. For instance, when competition arrived in the telephone business in 1984, it led to the advent of call forwarding, nationwide toll-free calling and expansion of the answering service industry.

We believe that when companies who fulfill a market need recognize a way to differentiate themselves from their competitors, the results are often incredible inventions and milestone achievements. Things that are pushing this industry towards intense competition include;

• Changing ownership
• Adopting new ideas and processes
• New marketing ideas
• Third party vendors

4. Know Your Major Competitors in the Industry

All over the globe there are businesses that have gone way ahead of others. These businesses can be termed as well-known brands. Here is a list of well-known brands in the answering service industry;

• Voice Nation
• Answer Correct
• My Receptionist
• Sound Telecom
• Intelligent office
• Answer first
• AnswerForce
• Xact Telesolutions
• Office sense
• MAP communications
• Specialty Answering Service
• Call experts
• ReceptionHQ
• Money Penny

Economic Analysis

Indeed in this modern age where networking is everything, the need for telephone answering services is growing. The advent of electronic answering devices is not even beginning to slow this demand at all. Note that a lot of individuals 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.

This has moved today’s successful business person to provide the personal touch of a friendly, professional “secretary” answering their phones for them. It is very important to note that a 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.

So, for you to start this business properly, you will 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.

Also 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. Also have it in mind that you can begin by operating out of a spare bedroom or your garage, with plans to move your operation into more formal quarters at a later date.

5. Decide Whether to Buy a Franchise or Start from Scratch

In the answering service industry, there are several possible ways to approach entry. You can start out as a new business – that is from scratch; you can add an answering service to an existing business – if you have one; or you can acquire an existing business. The route you choose will depend upon your circumstances, and your financial situation.

But note that one important advantage of starting your business from scratch is that your financial commitment can be lower; although you still need to be sure you have sufficient capital to see you through the start-up phase of the business. We also believe that another advantage is that you (and perhaps your spouse or partner) can provide some of the initial labour, thereby limiting the number of other answering agents you need to hire.

Have it in mind that this is a service-type of business that needs constant ‘people’ contact, including both your clients and your employees. This is exactly why you need to do some research; talk to existing telephone answering service owners; visit several existing businesses; contact the ATSI (the Association of TeleMessaging Services International).

Also note that you can be able to identify a special niche market for your business by examining your own work experiences. Indeed you might have experience in a specific industry with special needs. For example, you may have an intimate understanding of the dispatching issues faced by trucking companies.

Or you may have worked in the medical industry and be especially adept at providing appointment scheduling type of services. Having expert knowledge like this can give you a leg up over your competition, and better help you to secure new clients.

6. Know the Possible Threats and Challenges You Will Face

To start this business, you do not need much equipment to start up, and this business can be run from your home. Indeed we all can agree that the telephone is still an important business tool, and business professionals rely on live operators answering calls at all times in order to run their business. The few threats you will be facing when planning to start this business may include;

• Taking Care of the Practicalities
• Gathering all necessities
• Choosing a niche
• Writing a comprehensive plan
• Choosing a suitable location

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

Indeed there are several ways to form a business (Sole Proprietor, LLC, Incorporation, etc.), so you will need to do a little research and see which model is right for the services and products you intend to offer. When starting your Answering service, it seems unlikely that you will want to organize as a sole proprietor . This is the reason why you need to do your own research.

It is much better to know why you are running your business the way that you are, rather than relying solely on the advice of others. But we strongly believe that you should make your decision based on the size of your Answering service business.

For the sake of this article, the LLC is the best entity for your Answering service business. Note that the many advantages of forming an LLC business structure is well known to the world, but the reason why it is the best structure for your Answering service business is because it provides security, flexibility and credibility.

8. Choose a Catchy Business Name

• Next door calls
• Answering service Brigade
• Attentive ears
• Quick answer LLC
• Steady Line Prompts
• Fun receivers
• Business Assurance
• Receptionist Squad
• Call Phoenix
• Magnet People Inc.
• Business cycle
• Answering Squad
• Business calls
• First class
• Business Knockouts
• Call Marshall
• Telemarketing legends

9. Discuss with an Agent to Know the Best Insurance Policies for You

In this business, it is very important that you cover yourself as a business owner from potential lawsuits by purchasing business insurance. But even before you purchase insurance, you must first have a solid business plan that states your risks as a business owner and how you plan to cover those risks. Have it in mind that not all of your risks as a business owner can be covered simply by purchasing a basic insurance policy.

To identify the risks of your business, you can simply consult with an attorney or even an insurance professional. The risks of an answering service business can be very wide because of the many different exposures involved with your business activities. These are some of the policies you should acquire for your business.

• General Liability Insurance
• E&O Insurance
• Cyber Liability Insurance (Data Breach Insurance).
• Business Owner’s Policy
• Workers’ Compensation Insurance
• Employer’s Liability Insurance
• Fidelity Bond Insurance
• Employment Practices Liability Insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

In the answering service industry, it is very possible for you to successfully run your business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties, but do not be too sure or relaxed. Protecting your intellectual properties can be stressful but in the modern world where ideas and patents are being stolen on a daily basis, you need to consider protecting your hard earned intellectual property rights. You need to,

• Have the right provider
• Choose the right service
• Go through and understand your fine prints
• Know that you have to pay more
• Consider IP creation
• Protect it yourself
• Prevent a lockout
• Revisit control on daily basis

11. Get the Necessary Professional Certification

Generally, professional certification is seen as a program that measures your knowledge and skills against industry- and vendor-specific benchmarks to prove to customers that you have the right mix of skills, knowledge and expertise. Professional certification in the Answering service business includes;

• HIPAA certification
• ATSI Site Certification
• Contact centre manager technical certification
• Contact centre Certification

12. Get the Necessary Legal Documents You Need to Operate

Before you start any type of business, you need to research the requirements of your city, county and state. The legal documents you will need may include;

• Certificate of Incorporation
• Business License
• Business Plan
• Non – disclosure Agreement
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Consulting contract documents
• Online Terms of Use
• Online Privacy Policy Document
• Apostille (for those who intend operating beyond the United States of America)

13. Raise the Needed Startup Capital

Even without being told, we all know that every business needs outside funding, yet a lot of entrepreneurs don’t know how to find it, or the amount to ask for. Ways of financing your Answering service business may include,

• Personal savings
• angel investor
• Partnership
• Venture Capital
• Loans and grants
• Alternative funding source like Crowdfunding

14. Choose a Suitable Location for your Business

In this business, whenever you decide to lease an office, complete with a switchboard, it is important that you try to get as close to the telephone company’s switching or exchange station as possible. Note that this is because of the mileage charges it will cost you for landlines. Also have it in mind that each exchange station handles prefixes limited to customers within a certain radius of that station.

All these simply means that if most of the businesses in your area have a 234 and 345 prefix, you may need to locate your answering services office 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. It is very important to note that 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.

Also when organising your own facilities, keep your costs in line with a realistic view of your anticipated first year income. We believe that it shouldn’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.

Also have it in mind that choosing in older, less than “beautiful” building should not detract from your business because few of your customers will ever actually see your offices. A lot of them will sign up for your services either through your in-person sales calls on them, or your telephone soliciting efforts, and send their payments in by mail.

We also believe that you will need 125 square feet of space for each 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. Experts’ advice that you make sure there are convenient restroom facilities as well.

15. Hire Employees for your Technical and Manpower Needs

Have it mind that two important factors to look for in an agent are voice and attitude. You want agents that sound pleasant, yet alert and interested in helping the caller. This is the importance of hiring people with some prior telephone answering or related experience (perhaps as a receptionist in a professional office). Also, have it at the back of your mind that it takes time to train an inexperienced agent. There is the issue of how to handle the variety of calls and clients, plus how to use the answering system.

You might assign less experienced agents to slower call shifts, and then further groom them by having them sit in with a more an experienced agent during a busier shift. Also remember to train your agents to answer with a “smile” in their voices.

You need to train them to take their time with callers. Also groom them to get the message and call-back number right by reading the message back to the caller, and to be sure to ask the caller for the correct spelling of their name. Indeed technological advances in computer, telephone, and communication technologies have added sophistication to the capabilities of Telephone Answering Services.

Computer Telephony Integration

It simply enables computers to know about and control telephony functions such as making and receiving voice, fax, and data calls, telephone directory services, and caller identification. Productivity advantages include: improved customer service, increased productivity, reduced costs, enhanced workflow automation, protected investment in equipment, and computerized telephony intelligence.

T-1 Service

This is simply the term used to describe a telephone signal carrier facility that transmits digital signals at 1.544 megabits per second, and allows 24 separate audio conversations to be carried simultaneously over four wires.

Voice over Internet Protocol (VOIP)

This is the ability to transmit voice over Internet networks. Recent advances in VOIP technology are making the convergence of digital phone calls and data traffic cost effective, and allowing the integration of voice and data applications while expanding telephony options.

Basic Telephone Service

Note that it is possible to start a Telephone Answering service business with a basic telephone service. A new business, for example, can start with as few as four Direct-Inward-Dial (or DID) lines, 100-DID numbers for handling in-coming call traffic, and three or four business lines for handling out-bound calls for dispatching pages and for fax message delivery.

The Service Delivery Process of the Business

It is very important to state that the only talents required to start a telephone answering service are a pleasant telephone manner and excellent communication skills. Indeed entrepreneurs, professionals and sales consultants are all starting to understand that customers want the personalized service of talking to a live person when they call a business, not a pre-recorded message.

This is why a lot of focused entrepreneurs are turning to forwarding their calls to a telephone answering service after normal business hours, on weekends, during lunch breaks and when no one is available to take incoming calls. The services you will be providing will include: answering incoming calls, answering basic customer questions, forwarding messages and often additional office services, such as sending and receiving faxes and e-mails.

Have it in mind that rates are based on the number of services provided for clients, and standard no business-hour telephone answering rates start at about $200 per month. Securing 10 to 15 clients for the service could easily generate business revenues in the range of $3,000 to $5,000 per month.

16. Write a Marketing Plan Packed with ideas & Strategies

Even though networking can be an effective marketing tool for you, it is not the only way to put your name and services in front of a potential client. Indeed, a lot of individuals do not like the practice of networking and would prefer to solicit prospects in another way. This is essentially why marketing is simply explained as a collection of activities that helps you to obtain business.

A lot of these actions may involve advertising, direct mail, press releases, public appearances, promotional flyers or brochures. Have it in mind that your services will not be contracted unless people know about them. This is where marketing is useful. Marketing should create an image for you, preferably one that is professional and encourages individuals to look further into what you have to offer. Ways to market your Answering service business may include;

• Think of how to make customers feel special
• Create business cards that prospects can keep
• Stop servicing break-even customers
• Develop an electronic mailing list and send old fashioned letters
• Boost your profile at trade shows and conferences
• Combine business with pleasure – charity
• Create a destination
• Be an expert
• Finally, don’t let customers simply slip away

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Let us just say that your business is up and ready to go, then getting active accounts from an existing business is a viable way to add new clients fast. Note that this route may not be readily available, but since you would need to find a willing seller in your operating area, it is worth looking into, and we suggest using the services of a business broker specializing in the Telephone Answering Service industry to help you locate a potential seller.

Have it in mind that buying a group of accounts will save you the time and money you would otherwise spend adding one client at a time through advertising and sales efforts.

Indeed you will have to pay for the accounts, but you can most likely do that on an arrangement basis with the seller. Also, note that it is best to purchase accounts being serviced in the same central office where your business is located. We believe it would be easiest for you and the clients, because then the accounts would retain the same DID (call forwarding) numbers.

You can purchase accounts being serviced outside your central office area, but that simply entails additional planning to properly move those customers onto your answering system. Other ways to boost your brand awareness may include;

• Stay in touch
• Deliver outstanding customer service
• Make it easy for customers to buy from you
• Stay active on social media
• Be transparent

Related Posts:

• Call Center Agency Business Plan [Sample Template]
• How to Start a Virtual Call Center Business from Home
• How to Start a Telephone Answering Service – Sample Business Plan Template
• 50 Effective Customer Service Tips and Tricks for Call Centers

Service Business Plan Template

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their service businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a service business plan template step-by-step so you can create your plan today.

Before we get into how to write a service business plan, here are links to several service business plan templates:

• Beauty Salon Business Plan
• Car Detailing Business Plan
• Car Wash Business Plan
• Catering Business Plan
• Cell Phone Repair Business Plan
• Child Care Business Plan
• Cleaning Services Business Plan
• Computer Repair Business Plan Template
• Construction Business Plan
• Consulting Business Plan
• Day Care Business Plan
• Dog Daycare Business Plan
• Dog Grooming Business Plan
• Financial Advisor Business Plan
• Hair Salon Business Plan
• Indoor Playground Business Plan
• Insurance Business Plan
• Janitorial Business Plan
• Landscaping Business Plan
• Massage Therapy Business Plan
• Nail Salon Business Plan
• Photography Business Plan
• Plumbing Business Plan
• Spa Business Plan
• Staffing Agency Business Plan
• Tutor Business Plan

Download our Ultimate Business Plan Template here >

What Is a Service Business Plan?

A service business plan provides a snapshot of your service company as it stands today, and lays out your growth plan for the next five years. It explains your goals and your business strategy for reaching them. It also includes market research to support your company plans.

Why You Need a Business Plan

If you’re looking to start a service business or grow your existing business you need a good business plan. A business plan helps you attract investors to satisfy your funding requirements, and plan out the growth of your entire business in order to improve your chances of success. Your service business plan is a living document that should be updated annually as your company grows and changes.

How to Secure Funding for a Services Business

With regards to funding, the main source of funding for a services business are personal savings, credit cards, bank loans, and angel investors. 

With regards to bank loans, banks will want to review your service business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will want to see a professionally written plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

How to write a business plan for a service business.

The traditional service business plan format includes these 10 key elements:

Executive Summary

Your executive summary provides an introduction to your business plan in 1 – 2 pages, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of services business you are operating and the status. For example, are you a startup, do you have a services business that you would like to grow, or are you operating a chain of services businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the service industry trends. Discuss the type of service business you are operating. Detail your direct competitors and your competitive advantage. Give an overview of your ideal customers. Provide a snapshot of your marketing plan. Identify the key members of your team, and offer an overview of your financial plan.

Company Overview

In your company description, you will detail the type of service business you are operating.

In addition to explaining the type of service business you operate, the company analysis section of your service business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the service business.

While this may seem unnecessary, it serves multiple purposes.

First, researching your specific niche of the service market educates you. It helps you gain insights and understand the market in which you are operating. 

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards more eco-friendly services, your company might want to emphasize its environmentally friendly initiatives.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your service business plan:

• How big is the service business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market? What is your market share?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your service business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your service business plan must detail the target market you serve and/or expect to serve.

The following are examples of customer segments in the service industry:

• Businesses in need of a specific service, such as computer repair or consulting
• People who have a need for a service that is not currently being met
• People who are price conscious and are looking for the best deal on a service
• People who want to support businesses with social responsibility values

As you can imagine, the customer segment(s) you choose will greatly depend on the type of service business you operate. Some of your clients may want different pricing and product options and would respond to different marketing promotions compared to other target customer segments.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most service businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your existing clients.

Finish Your Service Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other businesses that provide similar services.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes businesses that provide an alternative solution to the services that you provide, but not the exact service. Think do-it-yourself and public options for similar services. You need to mention such competition to show you understand that not everyone who needs the specific services will engage your service business.

With regards to direct competition, you want to detail the other service businesses with which you compete. Most likely, your direct competitors will be service businesses located very close to your location. 

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products and services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your competitive advantages. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to book your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a service business plan, your marketing plan should include the following:

Product : in the product section, you should reiterate the type of service business that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to a lawn care business, you may offer to trim trees, bushes, and hedges.

Price : Document your business’s pricing strategy including the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your service business. Document your location and mention how the location will impact your success. Discuss how your location might provide a steady stream of customers. 

Promotions : the final part of your service business marketing strategy is the promotions section. Here you will document how you will drive new customers to your location(s). The following are some promotional methods and marketing materials you might consider:

• Advertising in local papers and magazines
• Reaching out to local bloggers and websites 
• Social media advertising
• Local radio advertising
• Pay per click advertising
• Banner ads at local venues

Client Retention

Your service business plan should discuss not just how you will find clients, but how you’ll hold on to them and discourage them from switching to one of your competitors. After all, it should be much less expensive to keep a client than to market and sell services to a new one. Some methods of retaining customers involve creating the perception of switching costs; that is, that they will lose money and time when switching to a new service company. Others involve fine-tuning your customer service skills into a system designed around retention.

Loyalty Program

Creating a loyalty program is a positive way to retain customers. This could involve a punch card system where customers receive a free service after a certain number of visits, or it could involve a points system where customers accumulate points that can be redeemed for discounts or free services. Other loyalty programs offer exclusive deals and privileges to members, such as special access to new services before they are made available to the general public.

Premium Customer Levels

Another related retention strategy is to reward the frequency and/or the amount of money that customers spend with your service business. This is often done by creating different customer levels and providing perks to customers who reach a certain level. The higher the customer level, the more exclusive the perks. Common perks include discounts on services, express service, access to unique services or products, and early notice of promotional deals.

Referral Program

A referral program is a great way to keep customers happy and encourage them to refer their friends and family members. This could involve rewarding customers with a discount or free service for every new customer they refer, or it could involve giving customers a set amount of credit for each referral. Either way, the referral program should be designed to be as simple as possible for customers to participate in.

Customer Testimonials

Finally, customer testimonials can be a powerful retention tool. As potential customers research your service business, they will likely come across your website and online profiles. Seeing positive customer testimonials on your website and across the internet will help convince them that you provide outstanding customer service. You can create a separate page on your website that is dedicated to client testimonials, or you could set up a separate social media profile that features client testimonials and allows customers to provide feedback through a special email address.

Tracking Retention

Simply tracking the numbers and percentages involved in your customer retention can yield valuable information about what you’re doing right or wrong and how successful new initiatives are over time. Statistics to track may include client complaints, the average speed of complaint resolution, the percentage of customers in a given month who were using your services last month, 3 months ago, 6 months ago, a year ago, etc, and so on. When your staff is aware of these statistics and is given targets to work towards, the message that customer service and retention is a priority is heard loud and clear.

Operations Plan

While the earlier sections of your service business plan explained your goals, your operations plan describes how you will meet them. Your plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your service business such as serving customers, procuring supplies, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th client, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch in a new city.

Management Team

To demonstrate your service business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in the service business. If so, highlight this experience and expertise, but also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in a service business and/or successfully running small businesses.

Financial Plan

Your plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per week or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $50,000 on building out your service business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 damage restoration contract that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a service business:

• Cost of equipment to perform the service
• Cost of maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include any insurance company affiliations or remediation licenses.

Service Business Plan Summary

Writing a business plan for your service business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the service business, your competition, and your potential customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cleaning services business.  

Service Business Plan FAQs

What is the easiest way to complete my service business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Service Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of service you are providing and the status; for example, are you a startup, do you have a service that you would like to grow, or are you operating a chain of service locations?

Don’t you wish there was a faster, easier way to finish your Service business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how our professional business plan consultants can create your business plan for you.

Other Helpful Business Plan Articles & Templates

September 30, 2016

What You Need to Know About Small Business Answering Services

Small business answering services are a great way for growing companies to get the help they need in a shorter amount of time. They can also help with portraying a more professional image and with answering calls when things get busy. What else is there about small business answering services, besides getting someone to take calls for you? Here’s what you need to know about call answering service for small business :

A Personal Touch Matters

Research has found that 90 percent of consumers will hang up and call another company if they get a voicemail or an automated menu of some kind. This means that a real live voice answering your small business phone can go a long way in bringing in more leads and customers. Besides, your business looks better to potential customers when you have someone there to answer with your company name and a friendly greeting. It’s more legitimate and potential customers feel that they can get the help they need to solve their pain points (which it ultimately what you need to do to bring in and to keep customers).

A Small Business Answering Service Can be 24/7

Even if you aren’t open 24/7, there are many reasons why you would want 24/7 availability for your customers. Perhaps you have customers located all over the world, so you might have people call at any hour of the day. Or, you could provide emergency services where you need to take a call at 3 a.m., but not every night so it’s not worth staffing for. Sometimes, no one is there or can take a minute away from the current task to answer the phone. Whatever the case may be, a small business answering service can serve as a great backup plan so it never looks like you’re too busy to take calls or that a person’s call isn’t important to the business.

A Small Business Answering Service is More than Just Phone Answering

A small business answering service can do more than just take calls, forward the good ones, and take messages. You can also have the service take orders, provide some basic customer support, lead management, and even set appointments. This is good news, as many more small businesses could use help taking orders and setting appointments, and not necessarily with taking messages and forwarding calls. What’s also good news is that the service can adjust to your needs i.e if you didn’t need help taking orders at first, and now you do, then most answering services can work with that. Most small business answering services will also allow you to customize the phone script, so even that can change depending on your needs.

Small Business Answering Services Can Be as Low as $279/Month

Yes, the prices will differ depending on call volume and minute volume, but if your small business needs an answering service because it just doesn’t have the time to deal with phone calls, then $279 a month is a bargain is you’re just too busy to answering the phone. Granted, not every call answering service for small business is that low , but consider that a traditional receptionist costs about $2,000 a month, on average. And that figure only includes the salary, not the benefits or the overhead costs just so the receptionist can have everything he/she needs to work in the office. Anything lower than $2,000 a month is great for any company’s bottom line. Outsourcing a part of your business operations can be tricky at times, but outsourcing your phone calls typically isn’t.

Does all that make small business answering services a little bit clearer for you? We hope so. Next week, we’ll actually discuss what you need to think about if small business answering services are in your radar. Simply needing them isn’t enough!

Marlene Cosain

Marlene started with Abby Connect 7 years ago as a receptionist and was won over by the culture and care the company has for its employees. The minute she took her first phone call, she fell in love with helping people. Since then, Marlene has been a pivotal piece of growing Abby Connect – having been a long-time leader in hiring, training, developing, and managing the receptionist floor. Outside of work, Marlene and her husband also run an online retail business. Marlene’s personal mission as a certified Life Coach and as an Abby Way Co-Director is to inspire, empower and educate others in the Abby Way.

Tips & Tricks

• Start free trial

Start selling with Shopify today

Start your free trial with Shopify today—then use these resources to guide you through every step of the process.

Free Business Plan Template for Small Businesses (2024)

Use this free business plan template to write your business plan quickly and efficiently.

A good business plan is essential to successfully starting your business —  and the easiest way to simplify the work of writing a business plan is to start with a business plan template.

You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other  entrepreneurs and startups. 

Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today. 

What this free business plan template includes

• Executive summary
• Company overview
• Products or services offered
• Market analysis
• Marketing plan
• Logistics and operations plan
• Financial plan

This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.

That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.

Our free business plan template includes seven key elements typically found in the traditional business plan format:

1. Executive summary

This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand. 

2. Company overview

This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.

3. Products or services offered

What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.

4. Market analysis

This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.

5. Marketing plan

How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.

6. Logistics and operations plan

Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.

7. Financial plan

It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.

Business plan examples

What do financial projections look like on paper? How do you write an executive summary? What should your company description include?  Business plan examples  can help answer some of these questions and transform your business idea into an actionable plan.

Professional business plan example

Inside our template, we’ve filled out a sample business plan featuring a fictional ecommerce business . 

The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.

Lean business plan example

A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires. 

Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:

• Company description
• Key members of your team
• Customer segments

💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read our guide on how to create a lean business plan .

Benefits of writing a solid business plan

It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:

• Test the viability of your business idea. Whether you’ve got one business idea or many, business plans can make an idea more tangible, helping you see if it’s truly viable and ensure you’ve found a target market. 
• Plan for your next phase. Whether your goal is to start a new business or scale an existing business to the next level, a business plan can help you understand what needs to happen and identify gaps to address.
• Clarify marketing strategy, goals, and tactics. Writing a business plan can show you the actionable next steps to take on a big, abstract idea. It can also help you narrow your strategy and identify clear-cut tactics that will support it.
• Scope the necessary work. Without a concrete plan, cost overruns and delays are all but certain. A business plan can help you see the full scope of work to be done and adjust your investment of time and money accordingly.
• Hire and build partnerships. When you need buy-in from potential employees and business partners, especially in the early stages of your business, a clearly written business plan is one of the best tools at your disposal. A business plan provides a refined look at your goals for the business, letting partners judge for themselves whether or not they agree with your vision.
• Secure funds. Seeking financing for your business—whether from venture capital, financial institutions, or Shopify Capital —is one of the most common reasons to create a business plan.

Why you should you use a template for a business plan

A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.

No blank-page paralysis

A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.

Guidance on what to include in each section

If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.

Knowing you’ve considered every section

In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.

Tips for creating a successful business plan

There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.

Understand the audience for your plan

If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.

Know your goals

Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.

Take it step by step

Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.

Maximize your business planning efforts

Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.

To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.

• How to Start an Online Boutique- A Complete Playbook
• How To Source Products To Sell Online
• The Ultimate Guide To Dropshipping (2024)
• How to Start a Dropshipping Business- A Complete Playbook for 2024
• 6 Creative Ways to Start a Business With No Money in 2024
• What is Shopify and How Does it Work?
• What Is Affiliate Marketing and How to Get Started
• How to Price Your Products in 3 Simple Steps
• 10 Common Small Business Mistakes to Avoid
• How to Turn a Hobby into a Business in 8 Steps

Business plan template FAQ

What is the purpose of a business plan.

The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.

How do I write a simple business plan?

• Choose a business plan format, such as a traditional or a one-page business plan. 
• Find a business plan template.
• Read through a business plan sample.
• Fill in the sections of your business plan.

What is the best business plan template?

If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.

What are the 5 essential parts of a business plan?

The five essential parts of a traditional business plan include:

• Executive summary: This is a brief overview of the business plan, summarizing the key points and highlighting the main points of the plan.
• Business description: This section outlines the business concept and how it will be executed.
• Market analysis: This section provides an in-depth look at the target market and how the business will compete in the marketplace.
• Financial plan: This section details the financial projections for the business, including sales forecasts, capital requirements, and a break-even analysis.
• Management and organization: This section describes the management team and the organizational structure of the business.

Are there any free business plan templates?

There are several free templates for business plans for small business owners available online, including Shopify’s own version. Download a copy for your business.

Keep up with the latest from Shopify

Get free ecommerce tips, inspiration, and resources delivered directly to your inbox.

By entering your email, you agree to receive marketing emails from Shopify.

popular posts

The point of sale for every sale.

Subscribe to our blog and get free ecommerce tips, inspiration, and resources delivered directly to your inbox.

Unsubscribe anytime. By entering your email, you agree to receive marketing emails from Shopify.

Latest from Shopify

Jun 17, 2024

Jun 15, 2024

Learn on the go. Try Shopify for free, and explore all the tools you need to start, run, and grow your business.

Try Shopify for free, no credit card required.

Meet our leadership team

See how we care for the community

Get help, support, or just say hello

Lean how you can become a partner

See our upcoming events

Learn about our culture and jobs

Grow Your Business

Nextiva is shaping the future of growth for all businesses. Start learning how your company can take everything to the next level.

See every product, app, and suite

VoIP phone service

Pipeline and customer management

VoIP, CRM, Live Chat, & Surveys

Worry-free phone service

Advanced business VoIP devices

Learn & Connect

Access our self-help portal

Find phone and product guides

See what people are saying about us

See fees for international calling

One-click VoIP readiness test

Uptime transparency

Nextiva Blog

• Customer Experience
• Business Communication
• Productivity
• Marketing & Sales
• Product Updates

Answering Service for Small Business: 6 Best Options

March 21, 2024 11 min read

Maintaining a competitive edge as a small business can be challenging in today’s fast-paced business environment. Rapidly evolving technology and ever-shifting customer demands create moving targets that are tough to capture without the right tools.

Routing calls to an answering service via a virtual receptionist also helps free up time and resources you’d otherwise spend managing calls internally. That way, you can focus more on scaling your business.

In this guide, we’ll explore the best answering services for small business owners to boost customer retention, plus what you need to look for before choosing.

Let’s start the comparison.

A complete call center solution.

See why top brands use Nextiva to handle calls at scale. Easy to use. Fast setup.

AnswerConnect

Best overall service

AnswerConnect is a live answering and chat tool that offers bilingual support. Their support team can help you by taking messages, routing calls, and qualifying inbound leads.

AnswerConnect can also help manage customer experience (CX) with personalization thanks to caller ID.

AnswerConnect offers a range of features in addition to live answering:

• Caller ID to recognize repeat callers for better in-call personalization
• Inbound lead qualification so your sales team can hit the ground running
• Detailed message-taking so you don’t lose any important information
• Time-sensitive call routing depending on where your teams are located
• Appointment bookings to set up a future point of contact

Plus, AnswerConnect has an overflow response system for busy hours to ensure no call goes unanswered.

There are three main pricing options from AnswerConnect:

• 100 minutes included: $325 per month plus $2.95 per minute and a $75 setup fee
• 300 minutes included: $425 per month plus $2.75 per minute
• 450 minutes included: $825 per month plus $2.75 per minute and a $75 setup fee

There are also 14 additional pricing tiers for larger companies, from 600 minutes at $1,095 per month to 100,000 minutes at $168,995 per month. Plans from 600 to 5,000 minutes have a $75 setup fee, while larger plans have no setup fee.

Best for personal service-oriented businesses

Posh is a live answering service that offers outbound calling capabilities. Its knowledgeable agents specialize in customer service for businesses in health, wellness, real estate, and consulting.

Most notably, its outbound capabilities mean it can help capture and qualify leads and convert initial customer inquiries.

Related Article

What Is IP Telephony? How Does It Work?

Posh offers several features to businesses of all sizes looking for phone answering service capabilities:

• Live answering on every call so your customers never reach a voicemail on their first touchpoint
• Bilingual virtual receptionist to cater to more of your customers
• A mobile app so agents can help customers from where they’re at
• Unlimited users so businesses don’t have to pay for more seats

Thanks to its partnership with Zapier, Posh also offers integrations with 3,000+ business applications.

There are seven pricing tiers for Posh customers:

• 0 minutes included: $64 per month plus $2.20 per minute
• 50 minutes included: $119 per month plus $2.10 per minute
• 100 minutes included: $204 per month plus $2.04 per minute
• 200 minutes included: $394 per month plus $1.97 per minute
• 350 minutes included: $664 per month plus $1.90 per minute
• 500 minutes included: $924 per month plus $1.85 per minute
• 1,000 minutes included: $1,794 per month plus $1.79 per minute

VoiceNation

Best for small businesses needing to offer round-the-clock service

VoiceNation is a live answering service provider and virtual receptionist solution.

VoiceNation provides agents with tech support know-how for small businesses without intensive resources. It also offers instant activation if you need an immediate live answering solution but don’t have the infrastructure to set it up quickly.

VoiceNation offers several features, including:

• Unlimited long-distance calls so your customers get heard no matter where they are
• Live answering on every call so customers don’t reach voicemail on the first point of contact
• Custom call scripts to align with your brand
• Instant activation for easy out-of-the-box setup
• Free call patching ( warm transfers ) so you don’t rack up charges, making sure your agents are informed

VoiceNation users can also take advantage of message delivery free of charge via channels like voicemail, email, or SMS.

VoiceNation offers five pricing plans:

• 20 minutes included: $65 per month plus $2.19 per minute
• 50 minutes included: $135 per month plus $2.19 per minute
• 150 minutes included: $319 per month plus $2.19 per minute
• 250 minutes included: $525 per month plus $2.19 per minute
• 500 minutes included: $925 per month plus $1.99 per minute

Best for businesses with fluctuating call volumes and forwarding needs

Ruby is a live answering and chat solution. Its agents are entirely based in the U.S. and have the expertise to assist with customer service, support, and even acquisition needs.

Ruby handles outbound calls, qualifies and captures leads, and routes calls to the appropriate party.

Ruby offers quite a few features:

• Third-party integrations to mesh with your existing tech stack
• Automatic inbound lead capture so your sales team can hit the ground running
• Call routing and forwarding to reach the right team member

Ruby is also known for exceptional customer service, a great option if you need outside help for a CX boost.

Ruby has four different live reception pricing tiers:

• 50 minutes included: $235 per month plus a per-minute fee
• 100 minutes included: $375 per month plus a per-minute fee
• 200 minutes included: $680 per month plus a per-minute fee
• 500 minutes included: $1,640 per month plus a per-minute fee

They also offer live chat as well as bundled reception and chat options.

Abby Connect

Best for businesses that want a dedicated account manager

Abby Connect offers live answering, chat, and virtual receptionist services. While live receptionists aren’t available on holidays through Abby Connect, live chat is available around the clock, 365 days a year.

The features that Abby Connect offers include:

• Dedicated receptionist teams that stay with your account for consistency
• Call announcements for transparency and clear communication
• Call transfers to reach the right team member

Abby also features Zapier integration for compatibility with more than 3,000 third-party apps.

Abby Connect has three live answering pricing packages:

• 100 minutes included: $299 per month plus $2.99 per minute
• 200 minutes included: $549 per month plus $2.75 per minute
• 500 minutes included: $1,199 per month plus $2.40 per minute

Abby also offers live chat as well as bundled reception and chat options.

Davinci Virtual

Best for solopreneurs and startups

Davinci Virtual is a comprehensive business solution that includes live receptionist services. It’s a relatively affordable answering service offering businesses administrative services, like providing a physical address, customer support resources, and live receptionists.

Rather than compensate for business off-hours and holidays, Davinci takes over call support for extremely small teams. This means they don’t have live call answering services around the clock like other solutions.

Davinci Virtual’s Business plans prioritize their live answering services and offer quite a few features, like:

• Free local or toll-free phone number, depending on your needs
• Call forwarding and screening to reach the right team member
• Online faxing for transfer of important documents and information

Live answering with Davinci is only available during standard business hours, and not 24/7/365, so callers may sometimes reach voicemai.

Davinci has four pricing tiers customers can choose from, split into two categories. Business plans are answering services, while Premium plans are more broad contact center solutions:

• Business | 50 minutes included: $129 per month plus $1.75 per minute
• Business | 100 minutes included: $239 per month plus $1.75 per minute
• Premium | 50 minutes included: $249 per month plus $2.50 per minute
• Premium | 100 minutes included: $319 per month plus $2.50 per minute

Each pricing tier has additional setup fees starting at $50 and up, depending on your needed services.

What to Look for When Choosing an Answering Service

The answering service you choose will often be the first impression for callers contacting your business. When you consider that 83% of businesses either lost a customer, missed a deadline, or terminated an employee due to miscommunication, that first impression becomes even more important.

A telephone answering service can help boost customer engagement KPIs like customer effort score (CES) and customer lifetime value (CLV). It does so by increasing convenience for your customers so they might be more likely to walk away from the experience with a positive opinion.

Common VoIP Problems and How To Fix Them

The best small business answering services help engagement and retention by being:

• Customizable : Look for a service that offers customizable solutions, like the ability to tailor scripts and call handling procedures to align with your brand.
• Available 24/7: Opt for a service that can handle calls around the clock (even on weekends and holidays) to ensure you’re always accessible to customers.
• Scalable: Pick a service that can scale with your business. That means handling increasing call volumes and adapting to rapid changes.
• Cost-effective: Select a service that balances affordability and quality, ensuring you get the best value for your money.
• Able to integrate: Go for a service that seamlessly integrates with your tech stack, like CRM software, to streamline call handling and data management.
• Reputable: Single out testimonials and reviews from other small businesses. A reputable service with a track record of satisfied customers is more likely to meet your expectations.

By capturing customer attention on the first point of contact, an answering service engages and primes customers for the next step in their journey. Engaged customers are more valuable, too — according to Gallup , they drive a 23% premium over the average customer regarding wallet share among your competitors.

How Businesses Use Answering Services

Businesses use answering services to keep lines of communication open with their customers when the usual team isn’t available. They might add the answering service to their call flow after business hours, during a holiday, or when a service outage hits.

A typical call flow that includes an answering service might look like this:

• A customer calls your business over the weekend while your team is off.
• The call triggers an interactive voice response (IVR) menu that prompts the customer for a response.
• The customer gives an input.
• The call routes to an answering service covering for the caller’s intended destination.
• The caller connects with a support agent from the answering service who notes the issue and sets up expectations for the next steps.
• If needed, your team follows up with the caller when normal business hours resume or via automated email or text.

Streamlining business processes can help make operations more efficient, lead to better customer service, and lower turnover rates . Keeping customers around for the long haul is important — the longer they do business with you, the more money they spend. They might even send new business your way, too.

Ready for VoIP? Advantages & Disadvantages to Make the Right Choice

Be There Any Time Your Customers Call

To compete in today’s market, you must be there when customers call. That’s day or night, weekday or weekend — holiday or not. With round-the-clock availability, professional call handling, and scalability, an answering service for small businesses can improve your customer service game and retention.

A Voice over Internet Protocol (VoIP) solution like Nextiva is essential to manage, route, and analyze those calls so you can be there for your customers even when you aren’t actually available.

Small Business Answering Service FAQs

If you’re still curious about an answering service for small businesses, check out these frequently asked questions.

Live answering services cost anywhere from $64 to more than $300 monthly, plus a per-minute fee of around $2–3. The more minutes in your plan, the less your per-minute charge will likely be.

An answering service can help: Enhance customer service Improve call efficiency Reduce operational costs Scale business operations Be more available to customers With an answering service, you can also free up time to focus on core activities like developing new products and acquiring new customers.

Trained professionals, often called customer service representatives or agents, answer calls for an answering service. The answering service provider usually employs them, and they follow scripts and protocols provided by the businesses they serve.

Answering services and virtual receptionists serve similar purposes but differ in scope and level of service. Virtual receptionists offer more than answering services, including call answering and forwarding and appointment scheduling. Virtual receptionists can also offer customers a higher level of personalization and are more integrated with day-to-day business operations.

Answering services and call centers handle incoming calls, but the size of the businesses they serve and the expertise of their agents can differ greatly. Call centers can be larger in scale, while answering services typically serve only small and medium-sized businesses. However, answering services offer general services like call handling and recording messages. If you have broader needs, you might opt for a call center that can often offer more specialized services like technical support.

ABOUT THE AUTHOR

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

• Best Help Desk Software
• Live Chat Software
• IT Helpdesk Ticketing Systems
• Zendesk Alternatives
• Zendesk vs Freshdesk
• Call Center Software
• Virtual Receptionist Services
• Small Business Answering Services
• Sales CRM Software
• Long Term CRM System
• Benefits of CRM
• CRM Implementation
• Creating a CRM Strategy
• Effective CRM Process
• CRM Best Practices
• Key Components of CRM
• Types of Customers & How to Approach Them
• Communication Skills
• Self-Management Skills
• People Management Skills
• Management Skills
• Outsourcing Statistics
• Inbound Marketing Statistics
• Branding Statistics
• Cold Calling Statistics
• Goal Setting Statistics
• Small Business Statistics
• Employee Productivity Statistics
• Work From Home Statistics
• Emotional Intelligence Quotes
• Inspirational Quotes to Inspire You Today
• Hard Work Quotes
• Productivity Quotes
• Time Management Quotes
• Inspirational Short Quotes
• Personal Development Quotes
• Believe in Yourself Quotes

8 Best Small Business Answering Services of 2024

Have you ever calculated the benefits that having a business answering machine can have for your business?

Right from saving the cost of having to pay an in-house receptionist, to paying for their health care and benefits, to paying for overtime, there is so much more that it has to offer.

Deploying a business answering service makes sure that you never miss a single call again.

Your business is always accessible throughout the year , even on holidays, and is represented by a team of professionals who have been trained to answer calls.

Yes! Your callers will no longer hear a dog barking in the background or all the noise happening in the office.

You will also never be bothered by a tele-caller again when you have been waiting for urgent calls if you deploy a business answering service.

Still not convinced?

Let us walk you through what different business answering services offer and how your business can benefit from them. In our guide, we will also help you choose the best answering service for your business.

If you are ready, let’s get started.

Best Small Business Answering Services

1. ringcentral, best answering system for small businesses with offices in multiple locations..

RingCentral’s auto attendant feature makes sure you never miss another call even when you may be out of the office. Its automated phone system ensures that your callers get connected to the right department and even external numbers anywhere in the US and globally.

You can greet your customers with a custom greeting that you can record using the voice of your choice. You can either choose from the pre-recorded messages available or even hire professional voice talent to record the messages for you.

Suppose you are running an offer or are off on a holiday, you can also record a custom message for those days and then automatically go back to your regular greeting.

It even lets you set advanced rules for specific caller IDs , for example, your vendors, or investors. So when they call, they do not hear the message that you want your customers to hear.

If you have offices in different parts of the country, or the globe, the multi-level auto-attendant feature lets you direct all your calls to a single number . You can then set extensions for each location which will then direct customers to the location they want to connect to.

You can also very easily offer language options to your callers so that they can choose the language they want to use.

With RingCentral, you can set up conditional forwarding as well so that when your customers call beyond office hours, they get directed to a number out of the office. While connecting to the other number, you can also play a custom message.

While your agents attend to customers and solve their problems, you can play hold music for them so that the wait does not seem that long.

Using their multi-level auto-attendant feature you can manage call routing for multiple locations, add up to 250 voice menus and submenus for each location , deploy different IVR menus for each of the locations and add a separate number for each IVR.

RingCentral’s auto attendant feature is available with all of their plans and their most basic plan starts at $19.99 with which you get other features as well like unlimited calls within the US and Canada, business or toll-free numbers, document sharing, and team messaging.

If you find RingCentral’s pricing expensive and are looking for a complete package you might want to compare RingCentral’s alternatives as well.

2. Ruby Receptionist

Best professional live receptionists and web chat services..

While many businesses choose business answering services, many other businesses prefer that their callers are greeted with a personal touch by a real person. This is where services like Ruby Receptionist come in.

Ruby Receptionist has a team of US-based live receptionists who help small businesses manage their calls and make sure no caller is turned away. These live receptionists are real people working to handle your calls and sound like they are located within your office.

They can receive calls on your behalf, transfer them to another number that you assign, take messages for you, schedule appointments , answer FAQs, and forward calls to voicemail. It all depends on how you want your calls to be handled.

Even though you outsource your receptionist, you have complete control over the message you want your callers to be greeted with. They are available round the clock throughout the year so your callers can call you anytime and they will be greeted by a real person.

When you deploy Ruby Receptionists at your office, you can be assured that all your calls will automatically be screened by your receptionist and you will not have to waste your time on spam.

They also have a mobile app through which you can access all the forwarded calls, read transcripts of voicemails, and set call handling rules.

Even if you choose your calls to be forwarded on your personal phone, with Ruby Receptionist, you can keep your personal number and your business number separate .

Along with handling calls, Ruby’s receptionists also help businesses handle their web chat s. These chat specialists answer customer queries on your website, answer FAQs, schedule appointments and connect them to someone in your office if needed.

If you are looking for a HIPAA compliant service, you are in luck as Ruby also offers a HIPAA compliant call handling and chat service .

It is also quite easy to get started with them. All you have to do is call the number given on their website and an onboarding specialist will walk you through the process.

There are three broad categories of plans that you can choose from depending on whether you want Ruby’s receptionists to handle calls, provide chat services or do both.

If you are looking for bundled services, the Bundled Chat Ruby 30 is ideal and fits perfectly with small business needs.

3. MAP Communications

Best feature-rich small business answering service..

With MAP Communication’s business answering service, you can have a team of US-based agents attending to your callers twenty-four hours a day, round the year, so you do not have to miss another call again.

Even when your customers call you beyond office hours , the team is available to receive calls on your behalf. This can be of great help especially if you have customers across different time zones.

Also, if you cater to Spanish-speaking demographics , you are in luck here because MAP Communications provides answering services in English and Spanish.

Like other best small business answering services, MAP Communications lets you determine the experience your callers will have. You can set the message you want them to be greeted with , determine how your calls will be handled, and set numbers where they will be forwarded.

Every time your business receives a call, all the details are logged into a system, where you can log in and access them. Their live answering service makes sure that your callers speak to real people and not automated voice messages.

Along with the live answering service, you can also provide directions on which calls qualify as urgent. When such urgent calls arrive, MAP Communication’s team makes sure that the right person receives the message even if it is after working hours.

They also offer a Disaster Recovery Answering Service through which you can ensure that your phone lines are active and all your callers are attended to even when a disaster strikes or there is an emergency.

Some other features that you get with this answering service are call routing, appointment scheduling, reporting tools, and RSVP answering service among others.

There are three different pricing options that you can choose from. Each of these plans comes with 24/7 receptionist service, text and email delivery, a nationwide 800 number, and real-time portal access.

However, for small businesses, the Business plan is ideal where you get all the basic features, 125 minutes of calling, and other additional features.

Best answering service for small businesses with a very responsive customer support team.

PATLive is another great business answering service that is available to take calls for businesses 24/7, 365 days of the year. They are quite well-known for having a very helpful and responsive customer support team .

If you face any problem , they also keep an eye on your account and ensure that the problem gets remedied. With PATLive you can decide and provide instructions on how you want your calls to be answered.

Through their web and mobile app , you can also update your status in real-time, so that their receptionists get notified and your calls or texts are handled accordingly.

You can also log in to the system and check the calls you’ve received , the messages that have been taken for you, and listen to your voicemail.

PATLive offers several third-party integrations with scheduling apps, CRM tools, eCommerce platforms so that the receptionists handling your calls can directly update the system from the calls they receive for you. This can take a load off your shoulders and streamline processes.

Some of the tasks that your PATLive receptionist can do for you are transfer calls, take messages, schedule appointments, collect leads, process orders, take event registrations and of course, answer your calls.

PATLive offers five pricing plans for businesses to choose from. However, their Basic and Started plans may be too basic and have limited functionality. For small businesses, the Standard plan is ideal and has all the important features.

They also have Spanish Language Support like other best business answering services, but it is optional and you can get the service for an added fee of $20 per month.

5. VoiceNation

Best professional business answering service for streamlined communication with customers..

Whether you want a virtual receptionist or an answering service for your business, VoiceNation offers both to businesses. Whichever service you choose, you get live receptionists who handle your business calls as if they were located within your office.

Setting up your system with VoiceNation is very simple. Once you sign up for their services, an onboarding specialist will guide you through the process and will also help you set up custom scripts for your calls and the way you want your calls to be answered.

Later, if you want to make any changes to the script or call handling rules, you can directly do so from their mobile app or from their online portal. VoiceNation converts all the calls you receive into data so that you can gain insights about your callers from their reporting feature.

Depending on what you want, the receptionists at VoiceNation can take calls for you , make appointments, take product bookings, forward calls, attend calls after business hours, and much more.

You can access real-time records about your callers from the VoiceNation mobile app . Suppose you would like to call back a caller, you can do so using the VoiceNation number so that your personal number stays private.

Every new member who signs up gets a VoiceNation number where all incoming calls to your business are forwarded or you can even give that number to your customers to reach you.

They also have a very helpful customer support team to help you when you get stuck. Moreover, every business gets an account manager who makes sure you have no problems with the system.

There are five plans that you can choose from at VoiceNation. They offer a free trial for seven days. After that, depending on the number of minutes you require, you can choose a plan. For small businesses, the Pro plan is ideal where you get 150 minutes included.

6. Abby Connect

Best straightforward business answering service with a personal team of receptionists for every business..

Abby Connect is a very straightforward business answering service and is ideal for small businesses that are looking for a small team of receptionists to handle their calls rather than having a call center.

With Abby Connect, you will be assigned a dedicated team of receptionists who will soon become a part of your team. These receptionists also offer bilingual support, so it is especially appealing to international businesses.

Instead of having to get in touch with all these receptionists if you face any issue, you can directly get in touch with your account manager , who acts as the head of the team and solves your problems.

Your Abby Connect Receptionists will handle calls for you the way you want, i.e. they will forward calls, take messages, screen all incoming calls, answer FAQs and make appointments on behalf of you.

Depending on whether you want to read or listen to your messages, Abby Connect lets you choose between written messages and voicemai l, where you get separate inboxes for each.

When they transfer your calls to your employees, they also play transfer music instead of the usual hold music.

Abby Connect has a mobile app called AbbyGO , that lets you manage all your calls from one place. You can access all your messages, a list of callers, messages from receptionists, update your status on the system, and much more.

Abby Connect offers three pricing plans to choose from and they offer a 14-day free trial. However, when compared to other service providers, these plans might seem quite expensive. They even charge quite high for every added minute after the receptionist minutes are over.

Small businesses might only find the plan with 100 receptionist minutes within their reach.

7. Davinci Virtual

Best live virtual receptionist service with auto-receptionist and advanced call handling features..

Davinci Virtual lets businesses choose between live virtual receptionists and auto receptionists to handle all your business calls.

With their auto-receptionist solution, you can be assured that your calls will be answered as professionally as they would be by a human receptionist.

Getting started with their services is easy. Within an hour a dedicated customer care representative will reach out to you to help you get started. Each of their plans is customizable.

All you have to do is fill out an online form and let the team know how you want your calls to be attended , the greeting that you want your callers to hear when they call, and even give any special instructions about the way you want your calls to be handled.

With the virtual receptionists as well as auto receptionists, all your calls are screened so that you receive only the messages that contribute to your business.

If you choose their auto-receptionist service , you get local or toll-free numbers, unlimited long-distance service, voicemail management features, advanced call routing, call forwarding, online faxing, along with conference calls, and many more features.

With the live virtual receptionist service, you get a small team of dedicated receptionists who are trained to handle your business needs.

With their business plan , you get live call answering, call forwarding and screening, personalized call scripts and routing, free local or toll-free number, auto receptionists, and much more.

If you choose their premium plan , you get all the features in the business plan along with appointment scheduling, lead generation, order processing, administrative tasks, and bilingual receptionists. You can also get help with your outbound calling under this plan.

They also have a great reputation for having a responsive customer support team, so you do not have to be worried if you get stuck anywhere.

They have f our different plans broadly categorized under Business plans and Premium plans. If you are looking for premium features like order processing, lead generation, appointment scheduling, the Premium 50 plan is ideal which offers 50 live answer minutes .

For small businesses looking for a simple live receptionist service to handle their incoming calls, greet customers with professional messages and route them to the appropriate department, the Business 50 plan is the right choice.

There are separate plans for businesses looking just for the auto-receptionist feature.

Best low-cost business answering service for small businesses.

Even though PCMSI has the lowest pricing options in the industry and offers very low per-minute charges for calls, its offerings include all the important business answering features that one might look for in the best business answering service.

Their agents are available round the clock throughout the year and are trained to attend to calls the way a particular business wants. So you can set the custom greeting that you want your callers to be greeted with when they call you.

You can decide how you want your calls to be handled , specify which calls need to be forwarded immediately, and even receive calls after business hours. It lets you set the number you want your calls to be forwarded to.

Once you set call handling rules, you can also give special instructions for holidays or promotions , and update the way your calls are handled at any time. They all screen all your incoming calls so that all spam calls are filtered.

PCMSI agents can also schedule appointments on your behalf and then notify the entire team about it through email or text. There is also an order-taking feature where they can take orders from customers on your behalf and update your systems accordingly.

Through their lead capturing feature, you can also get the contact information of prospective leads and get in touch with your callers later.

While there is no pricing information available on their website, they do offer a Best Rate Guarantee according to which they evaluate your usage and compare it with your current plan. They then offer you the best rate according to your usage.

This way their pricing is affordable for small businesses that are getting started with business answering services for the first time.

How to Choose the Best Answering Service?

With so many business answering services in the market, it might get confusing when you try to choose just one from the list. However, you can evaluate each of the available options on several criteria and determine if it is the best fit for your business.

1. 24/7, 365 days availability

The idea behind having an answering service is that your business is accessible to customers round the clock even after business hours . If you want your in-house receptionist to be available after business hours, it will cost you a fortune to pay them over time.

But the best business answering services operate round the clock all around the year. This is possible because these services hire professionals who are located across time zones and work remotely or from the office. So they are able to provide their services 24/7.

Choose a service that lets you get your calls forwarded even when you are not in the office, out on leave, or have a public holiday . This way, every single call is attended and you do not miss a single call again.

2. Well trained professional receptionists

Before you choose an answering service or a live receptionist, make sure you check the reviews to find out about their professionalism . Most customers will let you know through their reviews if the receptionists from a company are up to the mark.

Since your receptionist will be the first touchpoint of a caller for your business, it is important to make sure that you have professionals answering your calls. The best business answering services will have warm yet professional-sounding agents who know proper call etiquette.

3. Excellent customer support

Almost every user needs to get in touch with their service provider at least once due to some issues they may face. Make sure you choose the answering service that has the best reputation for good customer support like PATLive .

You must also choose a service that assigns a dedicated account manager to every business so that all your interaction happens with them before you need to contact the customer service team.

4. Personalized caller experience

While it is great to have an answering service that lets you customize the script to greet customers when they call, it is ideal to have a service that knows how to personalize messages according to the needs of the caller.

When your customers call, they should not feel like they are talking to a machine. Instead, you must choose a service that is experienced enough to add a personal touch to all your interactions while still being professional.

5. Best call answering features

What good is a business answering system that has good customer support and experienced agents, but does not offer the basic features that an answering service should have? Before you choose your service provider, make sure you evaluate all the available features.

The best business answering service will have advanced features like call patching and transferring, voicemail management, appointment scheduling, lead capturing, order processing, and others.

Davinci Virtual is one such service that offers all basic as well as advanced call answering features.

6. Mobile phone application and online interface

Virtual receptionists and auto receptionists will update all the information about calls received, messages taken, orders received, and others into a system. You can then log into the system and check your messages and other information related to your calls.

However, the best answering service for businesses will have a mobile app and an online interface where employees can update their status of availability, so messages are taken accordingly. This also makes it possible to check messages and call back even on the go.

7. Third-party integrations

Choose a service provider that supports third-party integrations so that your systems can be updated accordingly. For example, the best answering service will make appointments and update your calendar, or take orders and update the inventory, and so on.

8. Security compliances

Make sure that the service provider you choose is HIPAA compliant and also PCI compliant as sensitive customer information will be handled by them during calls.

An answering system for your business is meant to reduce the costs of hiring a traditional receptionist who works from the office. Therefore, choose a service that fits your budget and charges much less than an in-house receptionist would’ve charged.

Types of Answering Services

In some places, you might have noticed that we have spoken about live answering services or virtual receptionists, and in some places, we spoke about automated receptionists. We even briefly spoke about web chat services.

You must be confused if these are just used interchangeably or are actually different. Let us clear it out for you.

1. Live answering services

Live answering services are also referred to as virtual receptionists . These are actual humans attending your calls from a remote location which could be their headquarters or even their homes.

Even though they may be located outside your office , when a caller calls, it seems like someone within your office is answering the calls . These receptionists answer calls the way you want and greet customers with a custom greeting.

They are also able to add a personal touch to every call and use their own judgment for each caller.

2. Automated answering services

These are different from live answering services and are often referred to as interactive voice response menus (IVRs) where a software receives incoming calls and handles them as per the call handling rules.

Unlike live answering, the software receives the call and plays a custom greeting that you can set. You can even choose the voice and tone you want to play the message in .

Depending on the call handling rules, a set of options are played and callers can select the appropriate extensions to get connected to the department or employee they desire.

3. Webchat services

Businesses that have a website also commonly have a webchat option where customers can ask questions instead of calling the customer care center. Instead of having software answer customer questions, through web chat services, real humans can answer customer queries.

Just like virtual receptionists, these are actual agents that answer customer queries that come from the website and mobile application through the same portal.

4. Call center services

Call center services are answering services required by businesses that receive a large volume of calls regularly and a major part of their business relies on customer support. With the best call center software , businesses can easily handle large volumes of calls with a click.

Answering Services FAQ

Live answering services are also known as live virtual receptionists and these are real people who answer calls on behalf of businesses . They work with business answering service providers that take complete charge of incoming calls for businesses.  The virtual receptionists are located remotely in the headquarters or different parts of the world and attend calls from their respective locations. However, when someone calls a business, it feels like an in-house receptionist is answering the call.

An answering service is a company that handles calls for a business for a fee. Depending on the type of answering service a business chooses, the service providers either have automated receptionists or live receptionists to handle the calls.  Every business that signs up for an answering service gets a phone number where all the incoming calls can be forwarded or customers can call directly.  The receptionists then greet the caller with a customized greeting , forward the call, take messages, send to voicemail, schedule appointments, and others depending on the call handling rules.  In the case of automated receptionists , callers are greeted with a customized greeting in the voice that the business wants. An IVR is then played for the caller where they can listen to the menu and choose the correct extension to get connected with the desired department.

The cost of answering services vary depending upon the features including in the package and also depending on the service provider. In general, an answering service can cost anywhere between $49 and $1098.  Depending on the plan you choose, you get a set number of receptionist minutes or call minutes after which you will be charged on a per additional minute basis.

Businesses need an answering service for several reasons but the primary reasons are that it helps them save the cost of having an in-house receptionist .  By deploying an answering service a business can be available to customers by phone even after business hours .  It helps businesses ensure a personalized yet professional touch is experienced by every caller and not a single call gets missed even if you may not be in the office.

A virtual receptionist is a real person that performs the same duties that an in-house receptionist does, except that they are located in a different location and connected to the business by a software that makes it possible to handle calls remotely. Virtual receptionists may simply receive and forward calls or perform administrative tasks, capture leads, schedule appointments, take event registrations, and others.

A phone answering service may be handled by a real person or an automated receptionist that just answers calls on behalf of a business, forwards and transfers them, manages voicemail, schedules appointments, and captures leads.  Virtual receptionists on the other hand are receptionists located in a different location that may handle many more tasks apart from handling calls for the business like scheduling meetings, processing orders, taking event registrations, and more.

Which Answering Service Should I Pick?

The step to deciding which answering service is best for your business is first deciding whether you want a real human being answering your calls or whether you want your callers to be greeted by an automated machine.

Once you have decided that, then comes the features that you would like the answering service for your business to have.

If you are looking for a solution that is loaded with advanced features like order processing, appointment scheduling, and others, Davinci Virtual may be a good choice. Similarly, if you want a service that has lots of features, MAPCommunications is a feature-rich solution.

However, if you are looking for a straightforward service , Abby Connect can be of help.

Businesses looking for a cost-effective solution might find that PCMSI has all the necessary features and has many cost-effective plans too. For businesses that want to have real people attend their calls , Ruby’s live receptionists are the best.

You can also choose RingCentral if your business has offices in multiple locations .

Depending on the service provider you choose, make sure you read some customer reviews and find out the experience that others have had with them. More often than not, you will come to know what the service is best for and also its weaknesses from them.

Was This Article Helpful?

Anastasia belyh.

Anastasia has been a professional blogger and researcher since 2014. She loves to perform in-depth software reviews to help software buyers make informed decisions when choosing project management software, CRM tools, website builders, and everything around growing a startup business.

Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software.

• Best Answering Services

Best Answering Services (2024)

Updated: Apr 6, 2024, 7:16pm

Customer experience (CX) has become a key differentiator for brands. Readily available phone support is key to improving your customer satisfaction and net promoter scores. But hiring support staff full-time to handle incoming calls and live chat messages 24/7 may be cost-prohibitive. That’s when savvy businesses start evaluating the best answering services. Forbes Advisor selected the top seven answering service companies that offer access to live human attendants and extra software features for managing phone, email, and chat conversations.

• Best VoIP Service
• Best Free VoIP Phone Service
• Best VoIP Cell Phone Service
• Best Conference Calling Services
• Best Call Center Software
• Best Business Cell Phone Plans

Featured Partners

VoiceNation

20 minutes from $63 per month

Live bilingual agents available 24/7 in English and Spanish

Appointment scheduling, lead qualification and outbound calling

On VoiceNation’s Website

30 minutes for $129 per month

Live and virtual attendants available 24/7 in English or Spanish

Live chat, Microsoft Teams, appointment scheduling, lead qualification and outbound calling

On Moneypenny’s Website

AnswerConnect

200 mins at $350 per month

Professional, customizable live answering. Real people, 24/7.

Bilingual service, appointment scheduling, live chat

On AnswerConnect’s Website

The Best Answering Services of 2024

Why you can trust forbes advisor small business, methodology, how to choose an answering service, benefits of answering services, frequently asked questions (faqs), next up in business.

• AnswerConnect: Best overall
• Specialty Answering Service: Best value for money
• VoiceNation: Best bilingual call answering service
• PATLive: Best virtual receptionist services
• Davinci: Best for remote companies
• MAP Communications: Best for custom scripting
• Moneypenny: Best for global support

The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.

To find the best answering services for small businesses, we considered over 25 of the leading services in the space and narrowed it down to 15, which we then evaluated across five key categories and 27 different metrics. Our ratings consider factors such as transparent pricing, features, service quality and inclusions, and access to customer support and ratings. All ratings are determined solely by our editorial team.

Best Overall

Starting price

$350 (200 minutes), plus $2.50 per minute and $49.99 setup fee

Phone answering service

Extra support channels

Web chat, email, knowledge base

AnswerConnect offers a 24/7/365 phone answering service and a live chat answering service in English and Spanish. Your virtual support team can take messages, reroute calls, book appointments, qualify leads, and answer general customer queries using provided scripts. All call flows are tailored to your business operations. Plus, you can personalize every customer experience thanks to AnswerConnect’s called ID technology.

AnswerConnect also stood out due to its exceptionally high reviews on Trustpilot (4.8 out of 5) and G2 (4.7). Existing users say it’s the best answering service regarding reliability, consistency, and overall agent professionalism. Unlike other answering service providers, AnswerConnect offers monthly plans based on an estimated number of minutes, which adds predictability to your budget.

Who should use it:

Small to mid-market service companies seeking comprehensive and predictable coverage.

• 24/7/365 coverage
• Phone answering & live chat answering services
• Appointment booking service
• Detailed call recordings
• Easy integration with popular CRMs
• Flexible pricing plans
• Occasional transcription errors
• Non-customizable reporting on call details and types

Best Value for Money

Specialty answering service.

$38 per month, plus $1.39 per minute and $50 setup fee

Live agents available 24/7 in English or Spanish

Web chat, email, knowledge base, social media

Specialty Answering Service (SAS) has been in business for 30 years. The company operates a US-based bilingual inbound call center in Philadelphia. Users can select among five support packages — general phone answering, 24/7 call center services, a dedicated call center with agents exclusively working on your account, lead-gen services, and virtual receptionist services.

Each service has the same pricing tier: for example, $139 for 100 minutes per month (plus a standard $50 setup fee). SAS doesn’t charge extra fees for handling calls during weekends or holidays. However, voicemails, interactive voice response (IVR) services, and call patching minutes are billed separately.

A 14-day free trial is available. Billing is month-to-month, meaning you can cancel anytime without any extra fees.

Companies looking for flexible service levels at a competitive rate.

• Established, award-winning brand
• Free 14-day trial, no credit card required
• Month-to-month billing, no contract, cancel anytime
• US-based telemarketing and telesales services
• Dedicated virtual receptionist service
• No toll fees
• Lead generation services
• Geotagging features aren’t available
• IVR only supports basic canned messages
• Live chat and email service is 10/5

Best Bilingual Call Answering Service

From $70 per month

(20 minutes included)

Phone call answering service

VoiceNation phone support services include basic message taking, call patching, outbound call handling, and over-the-phone ordering. Unlike other answering service providers, VoiceNation doesn’t offer full call center services — such that include customer support, lead qualification, or phone marketing service. However, you can ask your agent to process orders or book appointments.

On the pro side, VoiceNation has a sleek mobile app where you can be notified about processed calls, review messages, listen to call recordings, and block calls you don’t want to accept (to save on minutes).

The company also offers specialized bilingual (English & Spanish) support for healthcare and legal services providers. VoiceNotion is HIPPA compliant.

Small healthcare providers, legal firms, and real estate companies with bilingual customers.

• Competitively-priced plans
• Free 7-day trial
• Automatic screening for solicitations and robocalls
• Easy on-call scheduling for your team
• Convenient online management dashboard and mobile app
• Training, competent, confidentiality-oriented bilingual agents
• Occasional accuracy issues with name transcriptions
• No virtual attendants available
• Per minute cost is on the higher end

Best Virtual Receptionist Service

from $205 per month, plus $1.82 per minute

PATLive is a pure-play phone answering service. They don’t offer support for other channels but excel in phone communication. The team does more than pick up the phone and relay messages. A trained virtual receptionist can also book appointments, manage event registrations, pre-qualify leads, take orders, and patch callers to the correct person based on their availability. The team continuously provides training to all hires and has cultivated a productive work culture. Employees rated PATLive at 4.6 on Glassdoor and customers gave them an A+ on Better Business Bureau .

Integrations with other business products are another standout feature. You can sync the service with popular calendar apps, such as Calendly and AppointmentPlus, so that the receptionist adds calls straight to your agenda. You can also provide PATLive staff with access to your CRM apps like Zoho or Salesforce to facilitate lead management. PATLive also has integrations with popular e-commerce platforms (BigCommerce, Shopify, Etsy and Magento), legal (Clio and Zolo Suite), and property management software (TrueRent and AppFolio).

Pricing-wise, this answering service isn’t the cheapest, but its pricing reflects the quality of service, according to numerous users on Trustpilot.

Anyone looking for an A-level virtual receptionist.

• Transparent, low-cost plans
• Free 14-day trial
• Prevetted, trained, polite virtual receptionists
• Onboarding, customized to each client
• Good performance for lead generation campaigns
• Support event registrations
• User-friendly online and mobile account dashboards
• No live chat or email answering services
• No IVR service available
• More expensive than other similar services

Best for Remote Companies

Davinci virtual.

$129 per month

(for 50 live answer minutes)

Davinci is best known for its virtual office services, which hook you up with a business address in major global hubs, mail forwarding services, on-demand meeting rooms, and workspace for rent.

However, the company also offers convenient live phone answering services. Customers receive a free local, toll-free number and all the standard back-end support: Call screening and forwarding, voicemail setup and management, advanced call routing, and even faxing services.

On a more expensive Premium Plan, you also benefit from outbound call support, such as lead generation campaigns, client confirmations or follow-ups, phone sales, appointment scheduling, or market research. Likewise, your virtual receptionist can be tasked with simple admin tasks like order processing, appointment management, meeting planning, travel coordination, or calendar management.

Davinci teams take time to settle into the required call flow and master your scripts. But when they do, the service levels are consistently high.

Fully remote companies or branches in other countries.

• Customizable call flows
• Unlimited long-distance calling
• Auto receptionist service with customizable greetings, gingles, and customer messages
• Conference phone calls handling
• Extra virtual office services (priced separately)
• Extra admin support
• The mobile app is a bit outdated
• Doesn’t offer many integrations with other business apps
• Live chat support is quite expensive

Best for custom scripting

Map communications.

$47 per month, plus $1.37 per minute

Live and virtual attendants available 24/7 in English or Spanish.

MAP Communications is an employee-owned company headquartered in Chesapeake, VA. This means the company’s staff (including call center agents) have a stake in the company and receive financial incentives based on the business performance. Such culture creates a greater sense of ownership and productivity among the personnel, positively reflecting their service levels. MAP Communications has an A+ rating with the Better Business Bureau .

The company offers three types of customer support services: general answering, call center, and virtual receptionist. The answering service can be designated as a primary or backup line of communication 24/7. The company’s agents are well-trained to work with custom call scripts and carefully follow all the provided requirements, policies, procedures, and language preferences.

Call center services offer more advanced support, including customer issue troubleshooting, tech support, product recalls handling, disaster recovery services, order management, and more. In other words, MAP Communications teams can handle any customer scenario your business faces.

Rapidly growing companies looking for a long-term partner.

• Trained, bilingual operators
• Full setup within 48 hours
• Voicemail and IVR services included with all plans
• Scalable, cloud-based call center solutions
• Lead qualifications and management services
• E-commerce business support services
• Extra fees charged during holidays
• Occasional issues with billing
• No live chat support

Best for global support

(up to 30 minutes)

Live and virtual attendants available 24/7 in over 100 languages.

Help desk, live chat, chatbot, email, social media.

Moneypenny is a UK-based phone answering services provider with a branch in the US and an international presence. Moneypenny is also the parent company of VoiceNation, but the two brands operate independently.

The company claims to have handled over 20 million calls and chats on behalf of its clients, who range from one-person teams to multinational enterprises and government agencies. For each customer group, Moneypenny has a bespoke solution.

Small businesses usually use the phone answering service, which includes scripted and free-flow conversations. On the backend, Moneypenny integrates with your corporate business systems so that the receptionist always knows the company background, staff availability, and messaging preferences. Unlike other answering services, Moneypenny can also transfer calls to Microsoft Teams or send a transcription message in an email or text.

Larger companies usually use Moneypenny’s outbound calling service or dedicated customer support team service. Both can handle more complex call flows and business processes, e.g., for lead generation or market research, plus offer multi-layered service across multiple channels.

Customer-centric startups looking for lean support services.

• Bespoke call handling for various industries
• Seamless integration with standard operating workflows
• Trained virtual receptionists and customer support agents
• Dedicated regional, national, or freephone numbers available
• High-quality live chat support
• Call forwarding to Microsoft Teams
• Level 4 PCI compliance for secure data processing
• Minimum contract length of 3 months
• One month notice required for service cancelation
• Standard answering hours are 8:30 am to 6 pm. 24/7 support costs extra

To determine the best answering services for small businesses, Forbes Advisor researched providers in the space and narrowed it down to the 15 top providers. These providers were then analyzed across five primary categories for a total of 27 different metrics. The criteria were then weighted to favor features that matter most to small businesses. The best answering services had the best overall scores based on our methodology.

Here are the metrics we used to evaluate the top answering services.

For pricing, we considered the cost per month for each paid plan, the number of minutes included in the monthly fee, if there are any setup fees and the ability of free trials or a money-back guarantee. Pricing accounts for 20% of our total score.

Key Features

We analyzed each answering service based on key features such as the inclusion of live human attendants, virtual attendants, the availability of canned responses, custom scripts, geotargeting, calling functionalities, web chat, call transfers and routing. These key features make up 30% of our score.

Unique Features

In addition to the key features, we also devoted 20% of our score to whether or not the services included unique features that could make a difference for certain businesses and use cases, such as email functionality, user knowledge base, call recording, third-party integrations, customer satisfaction surveys, legal agents, and healthcare agents.

Ratings and Reviews

We analyzed third-party customer reviews to determine if user experience matches marketing promises. We considered each provider’s average rating as well as how many reviews each had and weighed them at 20%.

Expert Score

Finally, we included our expert opinion based on first-hand experience using answering services. This category also considered factors such as ease of use and value for price based on the quality of the available features. This accounts for 10% of the total score.

First, evaluate your needs against the offered service models. A small service business may just need a virtual receptionist for office hours to pass on messages and re-route calls. A larger product company may need a dedicated call center with bilingual operators and 24/7/365 coverage to handle complex customer support cases.

Create an itemized list of tasks you’d like to outsource. Identify a provider that covers the majority of them. When making the comparison, pay attention to the price structures. Some answering services charge a one-time setup fee on top of a monthly plan. Others bundle this fee into the initial pricing.

Most answering service providers bill by the processed minute. Some, however, offer separate per-minute prices for inbound and outbound calls. Call patching and voice message minutes are sometimes billed separately too. Therefore, it’s always worth asking for a precise quote, e.g., offering a sample price of 100/minutes per month.

Remember that companies that provide the cheapest answering services probably aren’t investing in attracting, training, and retaining talented people. The “you get what you pay for” maxim will likely hold here, so pinching pennies might be unwise.

Ideally, you want to check out several options before committing to one, which should be possible with the companies that offer free trials.

Also, ensure you test each answering service by making calls yourself so that you can evaluate them by how quickly the calls are answered, how polite and friendly the live operators are and how good the company is at following your specific instructions.

On VoiceNation's Website

On Moneypenny's Website

On AnswerConnect's Website

Listed below are some key benefits of using answering services.

A ringing phone can become a nuisance for growing businesses. Leaving it unanswered means a potential opportunity is lost. Picking it up round the clock is unfeasible. Answering services ensure that all calls get sorted fast and professionally. Using a service is almost always more affordable than hiring and training full-time employees.

Cost-effective

Answering services are competitively priced, especially as you only pay for minutes used. Hiring full-time employees to handle calls and live chat messages 24/7 is more expensive. You need to account for the cost of the hiring process, the onboarding process, salary, benefits, employment taxes, etc.

Improved Customer Service

An answering service provides 24/7/365 coverage, so potential and existing customers can always contact your company. A reputable answering service also has well-trained agents who can resolve customer queries, process orders, book appointments, or pre-qualify warm leads.

What does an answering service do?

Answering services process calls on behalf of their customers. Most provide 24/7 phone support: take messages, transfer calls, schedule appointments and perform other admin tasks. Providers follow customizable scripts to ensure consistency in communication and offer bilingual support. Some answering service providers also answer live chat messages or help desk tickets.

What is the average cost of an answering service?

Prices vary, but you can expect to pay a fixed monthly fee plus $1 to $2.50 per minute. Alternatively, you might pay a set monthly bill for a specific call time and an additional $1 to $2.50 per minute if you exceed the monthly plan.

Do people still use answering services?

Automation can’t replace humans just yet. No one wants to be stuck interacting with a canned responder or a voice bot. People want to know they can talk to a real person if needed.

Is an answering service the same as a call center?

The answer is they are not the same., although they may be similar A call center may only provide call answering services, but many call centers offer many different phone-related services, such as those related to sales and services.

• What Is VoIP?
• Best Cheap VoIP Phone Service Providers
• RingCentral Review : Features, Pricing & More
• Nextiva Review: Features, Pricing & More
• Grasshopper Review : Features, Pricing & More
• 8×8 Review: Features, Pricing & More

Tomas Laurinavicius is a writer and designer. He's a co-founder of Best Writing, an all-in-one platform connecting writers with businesses. He has built multiple online businesses and helps startups and enterprises scale their content marketing operations. He worked with TIME, Observer, HuffPost, Adobe, Webflow, Envato, InVision, and BigCommerce.

• Live Call Answering
• Live ChatSupport
• Appointment Scheduling
• After Hours Answering
• Marketing & Media
• Service Providers
• AnswerConnect Portal
• AnswerConnect App
• Integrations
• Pledge People, Not Bots
• 1 Tree, 1 Planet
• Learning, Sharing & Giving Back
• The Power of the Phone
• Grow your brand, not a marketplace
• Plans & Pricing

Call us now to find out more

Support callers with a 24/7 answering services .

Customer service that fits right with your business.

Integration

trees planted

By using our site you accept our Cookies policy.

How can an answering service help you grow .

A business answering service means less time handling phone calls and more time to focus on your business.

Give every customer 24/7 support from a team of experts.

The top features of a business answering service .

24/7 customer service.

Give your customers 24/7 support with a team of virtual receptionists.

Lead qualification

Capture and qualify callers’ and convert more leads to customers.

Live chat answering

We can answer chats on your website just like we do your calls.

Appointment booking

Take control of your schedule with secure appointment scheduling.

We’re here for your business .

90 % of customers rate an "immediate" response as essential or very important when they have a customer service question.

Why it works .

Always available.

Be there for your prospective customers. Anywhere, anytime.

Capture every lead

Never miss an opportunity when clients call.

No voicemail, no bots

Win more business with real people, not automated voices.

Never closed for business

Work from home, your office, or Anywhere.

Know your callers

We recognize your returning callers for a personalized experience.

Manage your calls

Busy? Have an important meeting? We've got you covered.

The voice (and ears) of your business .

The best virtual receptionist service is the one that can handle the unique challenges of your business. Our friendly receptionists are an extension of your firm.

From lead qualification to appointment scheduling, they combine expertise, efficiency, and empathy to give your customers consistently professional service.

1 . Let’s talk.

We work with you to create call flows to give your clients the best experience.

2 . Start forwarding your calls.

Our friendly receptionists engage and interact with your leads and customers, 24/7.

3 . Stay up-to-date Anywhere.

See details of every customer interaction via our app , SMS, or email.

Flexible plans to fit your business .

We know the needs of your business are constantly changing. That's why we never tie you into a contract.

Want to upgrade? That can be sorted in just a click. Downgrade? No problem. You can also cancel your plan at any time.

Learn more about business answering service .

Dig deeper into how an answering service can help you.

AnswerConnect selected as Best Answering Service of 2023 by Forbes

B2B Customer Experience provider wins top accolade for “reliability, consistency, and overall agent professionalism”

How to choose the right answering service for your business

How do you choose the right answering service for your business? We unpack everything you need to consider before making your choice.

How can your business benefit from a 24/7 live answering service?

Every missed call is a missed opportunity. A 24/7 live answering service can give your customers and prospects a real person, on every call.

What is a business answering service?

An answering service is a B2B customer experience solution that is staffed by friendly, professional customer experience experts. Our experts answer your customer calls, take messages, schedule appointments, and more!

What are the benefits of using a business answering service?

There are countless benefits to using a business answering service. To name a few:

• Your customers receive instant support from real people.
• We handle calls 24/7, 365 days a year so your business always operates!
• Voicemail becomes a thing of the past.
• We capture new leads promptly.
• Enjoy more time to focus on other areas of your business.

How does a business answering service work?

A business answering service works in three simple steps.

• We get to know your business and work with you to develop your scripts
• We handle your customer service.
• We notify you with messages from callers. Listen back to call recordings and read call transcripts through the AnswerConnect app.

How do you get to know my business?

We learn about your business from you. During the onboarding process, we discuss your business model, objectives, and your customers.

How will you answer my calls?

We answer your calls just as you would — with a friendly, professional, and on-brand voice. We work with you to create the perfect script for every type of call. This means prospects get the right response every time.

Can't find the answer to your question? Call us now: 800-700-8888 or email us at [email protected]

See pricing .

Find the right plan for your business.

By submitting this form you agree to our privacy policy . We may email, text or call you to follow up. You can opt-out any time.

Choose your plan .

Every plan comes with 24/7 coverage and a suite of powerful services.

200 minutes

$ 350 per month

+ $49.99 setup fee

• Real people, 24/7
• Basic scripting
• CRM integrations
• Desktop & mobile app

$2.50 per additional minute

300 minutes

$ 395 per month

No setup fee

• Customizable scripting
• Live chat support

$1.85 per additional minute

400 minutes

$ 575 per month

There is no charge for the first 30 interactions under 30 seconds per billing cycle. All interactions are rounded up to the nearest minute and billed in 1 minute increments.

Learning, Sharing & Giving Back .

These are the core values of AnswerConnect. Here is a book we think you might like.

Let my people go surfing

The story of the founder of Patagonia who brought doing good while making great products into the heart of a pioneering business.

AnswerConnect customers have helped us plant

Low-cost call answering services for any business.

No matter how big or small your company is, we have plans to suit all your needs. Starting from just $19/month, with fully transparent pricing, our answering services are efficient, reliable and affordable.

No matter how big or small your company is, we have plans to suit all your needs, starting from just $19/month.

Why AnsweringService.com is the solution.

Why choose answeringservice.com, 24-hour answering.

Need calls answered after-hours? No problem! We have virtual receptionists available 24/7.

US receptionists

Live answering by professionals in the US, with bilingual services and overflow support available.

Customizable greeting

No matter how you want to say hello, we’ll greet your customers or other callers accordingly.

Instant notifications

Messages containing all the details you need are sent promptly by email, SMS or both after each call.

Toll-free numbers

You can choose a toll-free number as an add-on to your answering service or port-in an existing one.

No lock-in contract

Monthly subscriptions and no cancellation fees mean you can easily scale or cease your service.

Searching for more time? By having us answer your calls, we can save you 10+ hours a month – so you can focus on growing your business.

Searching for time by having us answer your calls, we can save you 10+ hours a month – so you can focus on growing your business..

Compare our business answering services.

Messageexpress.

Messages taken and sent to a single email or mobile number by SMS.

$ 19/month*

(cancel anytime)

All plans include:

• 24-hour call handling ^
• US receptionists, plus overflow support
• Messages sent by SMS ^ and/or email
• Self-service management via online portal
• Customer support as required

Plan-specific settings:

• Choose your preferred caller greeting
• 1 contact can receive messages
• 3 details collected per call
• No setup fee

* Plus relevant sales tax. ^ Additional charges apply for add-ons. See Terms & Conditions .

Warm call transfers and messages sent to multiple staff or departments.

$33 /month*

• Customizable caller greeting
• Unlimited contacts can receive messages ^
• 5 details collected per call

Additional Answer features:

• Call transfers when appropriate ^
• Schedule availability for call transfers
• Company information can be provided

* Plus relevant sales tax. ^ Additional charges apply for some add-ons. See Terms & Conditions .

MyAssistant

Complex call flows, order taking and CRM or web-based form input.

$49 /month*

• Up to 11 details collected per call
• Setup fee based on service complexity

Additional MyAssistant features:

• Customer FAQs answered on your behalf
• Conditional scripting to guide call flows
• Order processing
• Payment processing
• Appointment setting
• Leads entered into CRMs or forms
• Other tasks interacting with your tools

How it works.

With instant activation of your service, we can start answering your calls within a few minutes.

A customer calls your number.

The call is diverted to us if you’ve chosen to send us all calls or you can’t answer it in-house.

We answer the call.

A friendly receptionist uses your preferred greeting and handles the call as required by you.

You receive a message.

You receive all the information you need via SMS and/or email immediately after the call.

Frequently Asked Questions.

What are some of the benefits of using a telephone answering service.

Virtual receptionists ensure that your customers, or prospective customers, always connect with a real person when they call – instead of being directed to voicemail and hanging up, regardless of the time of day or night.  At a fraction of the cost of an in-house receptionist, a 24/7 call answering service like AnsweringService.com can prevent missed calls, increase customer satisfaction, assist in capturing more leads and help prevent lost business opportunities.

How fast are calls answered?

Average Speed of Answer (ASA) is a key metric for any answering service and we proudly answer within 3 rings on average (less than 10 seconds), which is considerably faster than a typical call center.  This is achieved by using enterprise-grade software that enables seamless global call routing when required, such as during unforeseen peaks in call volumes. Calls are always answered by AnsweringService.com’s team of US-based receptionists whenever possible during standard office hours, with overflow to highly-trained receptionists in the United Kingdom, Australia and Jamaica occurring after hours or when a call simply can’t be routed to any of our local receptionists within an acceptable timeframe because they’re already all handling calls.

Is 24-hour live call answering possible?

Yes, you can have calls answered by AnsweringService.com at any time of day or night.  We have virtual receptionists available around the clock and you simply need to advise us that you want after-hours answering turned on.

Do you offer a Spanish-speaking answering service?

Sí!  We have bilingual receptionists who speak both English and Spanish, plus a team of Spanish-speaking receptionists who can handle calls to dedicated Spanish-speak phone lines, so we can absolutely answer inbound calls for your business if you have customers who are native Spanish speakers.  Our bilingual service is included with every account at no extra cost.

Are you able to answer concurrent inbound calls?

You betcha!  Whether you’re sending all calls to us or only the calls you can’t answer in-house, one of the huge benefits of using AnsweringService.com is that we have a whole team of virtual receptionists, so we can handle multiple calls to your business number at the same time.  That means calls you’d usually miss simply due to your line being tied up,  which you may not even realize has been occurring, will be answered.

Can we still answer calls in-house, but use AnsweringService.com as a back-up?

Absolutely!  A call overflow service can easily be provided and controlled via your call forwarding settings.  Simply set your advertised business number to divert to your AnsweringService.com receptionist number only when the phone rings for a specified duration or if your line is engaged.

Can I use your answering services temporarily, such as just for one week?

You absolutely can!  If you have a short-term need for help answering inbound calls – whether for a day, a week or a month – we can provide the solution.  Because we offer monthly subscriptions with no lock-in contracts and no cancellation fees, if you need a temporary answering service due to staff absences, an office closure, increased call volumes or any other reason, you can simply sign up for one month.

I only need a no-frills message-taking answering service – can you provide that?

We sure can!  Our MessageExpress service is exactly that and it’s the most affordable answering service we have available.

What’s the difference between the MessageExpress and Answer services?

MessageExpress is a message-taking answering service, with no option for interaction with your caller beyond greeting them and asking if they can take a message.  The Answer service tends to provide a more seamless experience for callers, who are typically totally unaware the receptionist isn’t part of your in-house team or isn’t located within your business premises.

"AnsweringService.com has been invaluable in freeing up internal resources so we can focus on helping our clients save time." Derek Donovan, Dictation Direct

Find out more.

Have questions? Please fill in your details and we’ll be in touch.

By continuing to use the site, you agree to the use of cookies. Learn more. Accept

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

A third party independently reviews these products & services and may earn a commission from qualified purchases made through the links included.

NAWBO, however, does not receive a commission for purchases. If you find these resources useful, consider joining NAWBO.

Answering Services for Small Business

Best Answering Services for Small Businesses

We compared dozens of answering services to choose our top picks for 2024

Raechel Conover

Jamie Ostroe

Fact Checked

Are you tired of missing calls and losing business? Small business answering services help prevent your customers from turning to your competitors when you can’t answer. From pricing to pros and cons, we review reputable answering services to help you choose one that best meets your small business needs.

Our Top Picks

Answering Services for Small Business Reviews

No matter the size of your business, our guide has you covered. How did we make our selections? We tested 24 of the leading companies that offer answering services for small businesses and handpicked five of the best.

We chose our top picks based on services offered, round-the-clock availability, pricing transparency, excellence in customer support, and a solid brand reputation among users. We also chose based on mobile access and bilingual capabilities. Check out our methodology for more details and information about our selection process.

VoiceNation

Best for Flexible Pricing

Never miss a call again with VoiceNation. VoiceNation is a solution where real people answer your calls 24/7. The answering service provider offers extensive features, including intake services and order processing for many industries. Between live receptionists and live chat options, there are 15 flexible plans to choose from. You can take advantage of a seven-day free trial to determine which is right for you.

VoiceNation Pricing and Plans

VoiceNation is your dependable partner in call and chat management. Skilled live receptionists, trained to adhere to your customized scripts, provide services such as bilingual answering, live chat support, order processing, intake services, and a local or toll-free phone number. 

VoiceNation ensures that you capture every business opportunity, deliver consistent service, and support your customers around the clock, 365 days a year.

With a variety of 15 plans to choose from, you can easily find the ideal solution to meet your specific business needs. They offer seven live receptionist plans and eight chat plans for you to choose from. Opting for one of each will earn you a 20% discount on your chat plan.

The services are commitment-free, allowing you to instantly adjust or scale your plan as needed through the dashboard. You can also try their seven-day free trial to determine the most suitable plan for your needs.

Getting instantly started is easy. Upon sign-up, your account is ready for immediate use, and customization can be completed within just 24 hours. You can also monitor and modify your interactions in real-time through a comprehensive dashboard.

If you’re looking for a provider that can make a substantial impact on your operations, then VoiceNation is a good option for you to try.

Who Should Use It

VoiceNation is best for companies that need flexible pricing and the ability to adjust their plans based on ever-changing needs. With 15 plans to choose from, there is bound to be one that matches your small business needs.

Furthermore, if you choose one and it ends up not working or your needs change, that’s not a problem. You can scale up or down instantly through the dashboard.

VoiceNation Features

• Scalable plans and pricing
• Order processing and intake services
• Instant activation
• Lacking chat feature in customer support

Abby Connect

Best for Live Receptionists with AI Assistance

At Abby Connect, you don’t just get a live receptionist; you get a team of five to ten live receptionists who understand your business, giving your customers consistent service. You also get Abby Intelligence, which means your live receptionists are assisted by AI to reduce errors, optimize your account, and improve the whole experience.

Abby Connect Pricing and Plans

Abby Connect provides your business with live receptionist and chat services. With Abby Connect as your partner, you get your own team without the overhead costs. Your calls and chats are handled by a team of five to ten live receptionists who are assisted by Abby Intelligence, or AI. This AI reduces errors, streamlines your information and account, and creates a better experience for every single call or chat.

Pricing depends on the chosen plan. They offer nine plans– three for live receptionists, three for live chat, and three bundle plans. There are no contracts, and you can cancel at any time. Available features include bilingual receptionists, appointment scheduling, custom intake, AI, voicemail solutions, custom transfer tunes, call blocking, and mobile app access.

Abby Connect is best for small businesses that want to provide a streamlined approach. A team of live receptionists is assigned to your account and assisted by AI technology to make every call a unified experience, no matter how many calls you get.

Abby Connect Features

• AI reduces errors and streamlines the experience
• Scalable pricing structure
• Custom transfer tunes included
• Higher priced than competitors

Specialty Answering Service

Best for Call Center Services

If you run a business with a high volume of calls, Specialty Answering Service (SAS) is your call center solution. Even if you already have your own in-house call center, SAS can help augment operations (especially if your call center is not enough alone). 

They have 300 live receptionists ready and waiting to take your calls, chats, and messages. SAS can even make call transfers and answer texts and emails. SAS is designed to let you massively scale and can take and dispatch calls to your on-call staff.

Specialty Answering Service Pricing and Plans

Built to massively scale, Specialty Answering Service is designed for any sized business and provides live answering services, call center services, and small business operator services.

They offer robust features that many competitors don’t, such as inbound/outbound calls and interactive voice response (IVR) systems—like automated answering services, call dispatch, text and email message responses, appointment setting, emergency response services, and so much more.

Bilingual services are available, and calls are answered 24/7 and after hours. A free, robust mobile app is available, giving you insights and complete control over scripts and calls. They also make sure to provide industry-specific solutions. The services are all HIPPA compliant, and your customer’s privacy and security are heavily protected.

Pricing varies by plan. They have eight plans that come with a specific number of monthly minutes, and each plan has additional costs per minute if you go over. There is a one-time set-up fee, but all fees are very transparent. 

If you’re unsure how many minutes you’ll need, you can take advantage of their 14-day free trial to get an estimate.

Specialty Answering Service works for any size business but is best for businesses that need call center services or support for their in-house call center. Additionally, with the privacy and security provided and the ability to dispatch calls quickly and efficiently, SAS is a worthy choice for any healthcare, medical, and high-volume emergency response company.

Specialty Answering Service Features

• 300 live receptionists available
• Interactive voice response (IVR) available
• Unique features
• One-time setup fee

AnswerConnect

Best for High Call and Chat Volumes

AnswerConnect believes strongly in connecting your callers with a person, not a bot. They provide overflow call answering services and chat 24/7 during and after business hours. Their highly trained receptionists work from home/remote, so they are less susceptible to call outages. While slightly higher priced than its competitors, AnswerConnect’s lowest plan comes with 200 minutes.

AnswerConnect Pricing and Plans

At AnswerConnect, your customers get a custom, human experience every time, whether through incoming calls or chat—it even recognizes your repeat callers for a custom experience.

Services include 24/7 service, bilingual live-call answering, live chat support, Teleport video calls, and appointment scheduling. They also offer call recordings for every interaction.

You can create custom scripting and manage all calls, chats, and scripts through the free desktop and mobile app. Receptionists can also send you instant messages through the app, allowing for easy communication.

AnswerConnect integrates with hundreds of popular programs and software, such as CRM, your calendar, Zendesk, and Salesforce. The distributed workforce also helps prevent widespread outages and downtimes.

AnswerConnect has three plans—with the Entry plan starting at 200 minutes. There is a one-time set-up fee and a variable fee per minute over your plan.

Due to the large plans with lots of minutes (even in the lowest plan), businesses that experience high call and chat volumes will benefit most from AnswerConnect services. With live answering 24 hours a day, 365 days a year, your customers will get a personalized, friendly experience every time they call or chat.

AnswerConnect Features

• Robust third-party integrations
• Call forwarding and call routing are available
• Spanish and English call answering service
• Distributed workforce reduces outages
• Calls are rounded up to the minute, increasing costs
• No free trial

Best for Small Business Answering Service

PATLive is an excellent choice for live answering and chat services. It offers an impressive range of features from call screening and transfers to many popular integrations. With PATLive, your small business can put forth a professional, streamlined image 24/7 without the overhead cost of live receptionists.

PATLive Pricing and Plans

When it comes to the best answering services for small businesses, PATLive shines.

Services include a virtual receptionist solution and a live chat with scripted calls and chats. They also have many special features you can enjoy.

These include numerous integrations, a handy mobile app, scheduling solutions, lead collection, event registrations, message taking, call screening, and call transfers.

Live answering is available every day, all year, 24/7—meaning you’ll never miss a customer’s call. Setup is easy and free, and you can test out the whole service with their 14-day free trial. PATLive prioritizes your experience and walks you through the setup process so you can get started immediately.

PATLive values prompt service. They pride themselves on answering calls within four rings and chats within eight seconds, on average.

Small businesses can enjoy no contracts and the ability to scale the plan up or down immediately, without penalty. One drawback we encountered is that the bilingual answering service is an added fee rather than included in the plans.

PATLive is ideal for small businesses because of its pricing structure. There are no contracts, and you can easily and quickly scale between plans when you need to. Additionally, there is no setup fee for the “white-glove treatment” you receive during onboarding and after.

PATLive Features

• No contract or commitment
• Easy-to-scale plans
• Calls answered within four rings
• Bilingual receptionists are an extra fee
• Not all fees are disclosed, and some vary by location

Compare the best answering services for small businesses side-by-side

What is an answering service?

A live answering service is a third-party service that handles incoming phone calls on behalf of a company or organization. The primary purpose of answering service companies is to ensure that calls from customers, clients, or other stakeholders are answered promptly and professionally, even when the business is closed, busy, or understaffed. 

This service can be beneficial for small and medium-sized businesses, professionals, and organizations that may not have the resources to maintain a full-time, in-house receptionist or customer service team.

How do answering services work?

Answering services provide functionality by streamlining operations and handling incoming phone calls and chats on behalf of businesses or organizations. When a call comes in, the virtual receptionist provides:

• Call Answering: They answer inbound calls in the name of the business. Virtual receptionists are trained to handle calls according to the company’s specific instructions, scripts, and protocols.
• Message Taking: They record messages from callers and relay them to the business through email, text messages, or a dedicated online portal or mobile app. 

This ensures that important information is not missed. Sometimes, they will even provide follow-ups, which can improve customer relations . All the vendors we chose provide message-taking.

• Call Screening: Receptionists screen calls based on pre-defined criteria, forwarding urgent or important calls to the appropriate personnel while filtering out unnecessary or spam calls. PATLive can screen and transfer calls for you, while Abby Connect blocks spam calls and transfers calls with custom transfer tunes.
• Appointment Scheduling: Virtual assistants schedule appointments on behalf of the business, which is particularly useful for service-based businesses like healthcare providers, law firms, and salons. AnswerConnect integrates with your calendar to schedule appointments for you directly.
• Order Taking: They process orders for e-commerce, answer customer inquiries, and provide product information. VoiceNation will take orders over the phone for you, streamlining operations.
• Emergency Dispatch: They also follow specific protocols to ensure immediate action is taken in the case of emergencies, such as contacting emergency services. Specialty Answering Service is equipped to handle emergency dispatch.

What are the benefits of an answering service?

Answering services offer several significant benefits to small businesses. By providing professional and reliable support, these services can help you build credibility, increase customer satisfaction, and ultimately grow your operations. Answering services are a cost-effective and efficient way to manage your phone calls and customer interactions. Here are some of the key advantages of using an answering service:

• Professionalism: Answering services provide a professional and consistent image to callers. This can help you compete with larger competitors and make a positive first impression.
• 24/7 Availability: You may not have the resources to offer round-the-clock customer support. Answering services can handle calls after regular business hours, on weekends, and during holidays, ensuring customers can reach your business anytime.
• Reduced Missed Calls: A telephone answering service ensures that calls are answered promptly, reducing the risk of missed opportunities, leads, or customer inquiries. This can lead to increased sales and customer retention, as well.
• Cost Savings: You can save on hiring and training a full-time receptionist or customer service staff. Answering services are typically more cost-effective, as businesses only pay for the services they use.
• Scalability: These services can adapt to the varying call volumes of your business. They can handle a few calls during slow periods and manage a surge in calls during busy times.
• Enhanced Productivity: Using an answering service allows you to focus on core tasks without constant interruptions from phone calls.
• Improved Customer Service: Answering service professionals are trained to handle customers professionally and follow specific procedures provided by you to ensure consistent and quality customer service.
• Multilingual Support: Some answering services offer multilingual support, which can be advantageous if your business serves a diverse customer base.
• Flexibility: You can customize the service to align with your specific needs and brand, allowing for a personalized customer experience.
• Competitive Edge: Using an answering service can give you a competitive edge by ensuring your business provides consistent and excellent customer service, which can differentiate you in the market.

How much does an answering service cost?

While there’s no such thing as a free virtual answering service, there are affordable answering services for small businesses. Of the vendors we reviewed, prices ranged between $38 and $325 a month. Pricing is complex and often based on a monthly fee and set number of minutes. 

However, some companies charge a base monthly fee and per minute. An example is Specialty Answering Service’s economy plan, which charges just $38 a month (no included minutes) then $1.38 per minute. PATLive is similar, with a $60 monthly charge plus $2.34 per minute for the lowest-priced plan.

Other providers do include minutes in their plans. For example, AnswerConnect charges $325 a month but includes 200 minutes in that plan. Abby Connect is $299 a month with 100 minutes included, and VoiceNation is just $65 a month with 20 minutes included. 

When we look at the overall cost per-minute price, AnswerConnect is the cheapest at about $1.62 per minute. Of course, if your business does not need 200 minutes, you should choose a plan that has an appropriate number of minutes at a lower cost. 

Other expenses to keep in mind are set-up fees. AnswerConnect charges a one-time set-up fee of $49.50, while Specialty Answering Service charges an even $50 for setup. Several companies like Specialty Answering Service , PATLive , and VoiceNation offer free trials of 7 to 14 days, allowing you to test the service and decide what plan will work best. 

It’s wise to choose a provider that offers month-to-month plans so you can easily cancel or scale as needed. 

Answering Services for Small Businesses FAQs

How to choose the best answering service?

To choose the best answering service, you want to first identify and carefully consider your business or personal needs. You should also consult guides, do research, and conduct due diligence. Once you have all the information, you can choose a service that aligns with your needs, supporting your business properly.

Consider the following when assessing small business answering services:

• Your call volume
• Hours of operation
• Reputation of companies
• Licensing and compliance
• Pricing and transparency
• Customer support
• Privacy and security
• Scalability of plans
• Integrations
• Free trial periods
• Reliability
• Customizations available

What is the difference between an answering service and a virtual receptionist?

A phone answering service typically consists of a team of operators who answer calls based on predefined scripts and protocols. They handle high call volumes and ensure that important calls are not missed. 

Most answering services also have virtual receptionists available. These operators can perform a broader range of tasks, including appointment scheduling, customer inquiries, and order processing. They aim to offer a more customized and comprehensive customer experience.

The choice between an answering service and a virtual receptionist depends on your business’s specific needs. If you require efficient handling of a high number of calls, an answering service may be more cost-effective. However, a virtual receptionist might be the better option if you prioritize a personalized customer experience and a wider range of services.

Why do small businesses need answering services?

Small businesses and startups need answering services for several reasons. Many work within smaller budgets, and answering service companies can be cost-effective solutions. Answering services streamline phone operations ensuring that all calls are answered promptly and professionally. 

They also handle calls after business hours, which small businesses would not normally be able to receive. Additionally, these services free up time for small business owners and staff, allowing them to focus more on core operations.

Methodology: How we chose the best answering services for small businesses

We compiled a list of 24 live answering services for small businesses. Out of these, we identified the five leading vendors that earned significant attention due to their offered features, customer support, and brand reputation.

Our information-gathering process involved collecting data from these vendors. We meticulously verified the data through interviews, video and live demonstrations, and thorough reviews of vendor and parent company websites. 

Furthermore, we scored providers on a scale from 1 (subpar) to 5 (outstanding) in vital categories like features, pricing transparency, onboarding and support, and brand reputation. Each of these categories carried a weight of 25% in our overall evaluation.

When reviewing all the best answering services for small businesses, we emphasized the following key criteria:

• Live Answering and Chat: Recognizing the need for businesses to adopt an omnichannel approach, we made sure the services offered both live answering and chat services.
• Availability: To meet the high expectations of customers, we ensured that the selected vendors provided services around the clock, 365 days a year.
• Privacy and Security Measures: We chose based on whether providers were HIPAA compliant and met security protocols for payment processing and safeguarding customer information.
• Mobile App: We also considered whether they offered a mobile application to allow you to create and modify call and chat scripts, manage messages and calls, and facilitate communication with virtual receptionists.
• Bilingual Support: We checked for language support in both Spanish and English, even in the less expensive answering services for small businesses.

About the Authors

Senior Writer, NAWBO Expert Reviews

Raechel covers HR, finance, technology, and small business software for the NAWBO Expert Reviews Team. As an experienced journalist and small business owner, she is passionate about helping entrepreneurs make informed purchasing decisions.

Editor, NAWBO Expert Reviews

Bringing more than a decade of editorial experience to the NAWBO Expert Reviews Team, Jamie is dedicated to ensuring articles are accurate and helpful. Her experience running a small business inspires her to help others choose the best products for their unique business needs.

How to Answer Emails Professionally in 6 Easy Steps

Jonathan Michael

9 min. read

Updated February 20, 2024

What’s the best way to communicate with your website visitors, sales prospects, customers, or even your coworkers or employees?

Innovations in instant messaging such as Slack may be ideal for a quick response or chat. To keep your potential customers informed at all hours, it may make sense to go all-in on chatbots. Then you have companies like Zappos, planting their flag firmly in mastering the art of customer phone calls.

But what if your business doesn’t have a call center or even a dedicated customer service team? And what if you don’t have the time or expertise to try using chatbots?

There’s a simple, straightforward answer that’s already been in use for decades: email.

• Why use email for professional conversations?

To this day, email remains one of the most common, even  preferred , forms of communication. It’s everywhere, all the time.

The vast majority of U.S. adults use email, and Adobe  suggests  that Americans are “practically addicted to email, checking it around the clock no matter where they are or what they’re doing.”

According to  Marketing Charts , email is the preferred customer choice for sharing positive feedback and is second only to a phone call for answering a simple question or registering a complaint.

To put it simply, your customers are expecting to email you, and they’re expecting you to respond quickly.

• Not replying to business email comes at a cost

The problem is that most companies are terrible at replying to emails.

About a third of companies never respond to emails from customers or prospects at all. When companies do reply, their responses are often incomplete or inaccurate. 

For small businesses, this is a costly mistake.

91 percent of respondents in an Accenture study reported being frustrated by having to contact a company about the same issue more than once.

According to that same study, 66 percent of global customers  switched to a competitor after a poor customer experience .

As David Pierce wrote for Wired, email isn’t dead, but it is broken. Perhaps more accurately, the way we  use  email is broken.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Managing team email is work—but you can improve your responses

Now, if those numbers discourage you, don’t worry—the truth is that your business has an incredible opportunity. With some training and attention to process, anyone who touches email in your company can do better.

By simply improving your email responses, you can keep your customers around longer. If you’re able to respond quickly with accurate, helpful information, you may even convert your competitor’s frustrated customers.

It’s going to take a little bit of work, but once you and your team get the hang of it, it’ll pay off in a big way.

To help you out, we’ve put together a six-step checklist that will improve your email responses.

• 6 steps to writing a professional email response

When you receive an email, you can follow these steps to write clear and helpful replies.

1. Read the message

Done? Great! Now read it again. It’s easy to miss important details the first time around. Most email readers skim through an email in less than eight seconds. 

Try to do better than that by actually reading and re-reading the message. It may seem like a waste of your time, but you’ll be surprised how often your brain adds or removes words while reading.

2. Look for clues

Context matters. Emotions and underlying intent can be harder to convey and understand in written form. Ask yourself the following questions to get a stronger sense of how you can help.

• What’s the problem, if any?
• What’s your sender’s goal or intent?
• Can you tell how they’re feeling? Are they angry? Happy? Neutral?
• What level of priority level does the email have: normal, high, or urgent?

Is this urgent? To determine the priority of the email, you’ll have to consider two things: the nature of the problem (something wrong/broken versus a generic question) and the time expected to offer a solution (does the problem need an answer as soon as possible?).

If you’re working with a team, then there’s a third factor to consider: does the issue need to be resolved by someone with more expertise or authority on your team? 

Perhaps you don’t have access to private information or need a co-worker from IT to provide a technical solution. If that’s true, you’ll want to increase the priority level of the issue. As a team, make sure you’re all on the same page about message priority. Your particular organization might have (or need to create) specific guidelines.

Don’t put it off. Customers expect a timely response. If they’ve given you an opportunity to address their concern, take that seriously. Generally, aim for responding within 24 to 48 hours, but work with your team to establish a response time goal.

3. Think it through

If it’s an easy issue that you can solve on your own, you can skip straight to writing your response.

Do you need to gather more information, like account numbers, support documentation, or something else? If so, take the time to gather all your resources.

Do you need team support? Maybe you want to offer a discount and need a supervisor’s approval. Or maybe the sender’s issue is more of a misunderstanding that requires more education rather than a fix. If the priority seems urgent or the sender is hostile, then you may want to check in with your team for a little support in getting your own tone and response right.

4. Write your response

Start with empathy. It’s one of the best customer service superpowers you can hone. It’s too easy to read text on a screen and forget that a real human with real emotions took the time to write it. If you understand how they’re feeling, acknowledge that in your response. 

Recognizing someone else’s perspective doesn’t mean that you’re accepting responsibility, but it makes a big difference when your reader knows that they are understood.

Confirm the problem and goal. By reiterating what you understand from the sender’s stated problem or intent, you accomplish two things. First, you’re helping them feel heard. Second, you’re providing the opportunity for your recipient to state their purpose and further clarify the issue in case you’ve misunderstood.

Commit to a resolution. It’s important to communicate that you’re going to stick with your reader until their issue is resolved. No one wants to feel like they’ve been added to a line of customers, or fallen into an abyss where they might never get a response. Be there for your reader, for as long as possible.

Offer a clear and concise solution, or use the internal notes function in your shared inbox to contact a team member and ask for their assistance directly within the email conversation. If possible, use the opportunity to also educate your reader on how they might be able to find a solution to this or other problems in the future, using your website FAQs. If you have support documentation, offer some links that further explain the solution.

5. Invite a reply

Cultivate the relationship by avoiding a “one and done” response. Don’t ever respond from a do not reply address. Invite a reply. Encourage your reader to let you know if you’ve reached a solution, or if there’s more you can do to help.

Before you hit send, take one last look through your email to catch any typos, or find phrases that need to be reworded. If you’re not a very experienced writer, feel free to ask a coworker to read through your response.

When you’re ready, send the email.

6. Ask for feedback

How did you do? Whether your reader sends a reply or not, it’s nice to follow up with them again after a day or so. When you do follow up, include a satisfaction survey, or simply ask them to reply with feedback on how well you cared for their initial request.

With customer satisfaction scores, you can start to quantify and measure how well your whole team is doing with email responses. Those scores can also help you identify ways to improve.

How can you do better? It’s also important to create a feedback loop for your team. Regularly ask coworkers for suggestions on how you could improve your responses in the future.

Develop your FAQs. If you notice that a frequent number of your incoming emails related to the same topics or issues, start tracking and reporting those issues to your team. 

That will give you an opportunity to improve internal processes or update a “Frequently Asked Questions” page that can be used to answer recurring issues. You can even use those FAQ pages as templates for responses to common questions.

• Professional email response example

Here’s a working example of the six steps in action. This customer sent the following email, see how we craft our response email.

Customer email

Hi I was trying to log in to my account and my access keeps getting denied. I know my password is right but now I’m locked out and can’t even try anymore. I’ve had it. You guys must have changed my account and I really need to log in today before I leave for vacation. Fix my account. Please. Joe

Your response

Hi Joe, I’m really sorry to hear that you can’t access your account. That sounds like a frustrating experience, and I’d be happy to help you get back into your account. It looks like your account password was changed on October 21st. I’ve unlocked your account and sent a temporary password to the email address that’s associated with the account. By clicking the link within that email, you should be able to choose a new, secure password. I know you’re headed out on vacation soon, so please let me know if you received that email, and whether or not you were able to log back in. If this ever happens again, you can manually reset your password by clicking the “Forgot password?” link on the login screen. Here’s a helpful article that explains how to do that: http://example.com/reset-your-password Thanks, and enjoy your vacation time! Jonathan How helpful was this response? Not helpful  |  Somewhat helpful  |  Very helpful

• Leverage this checklist for consistent email responses

So there you have it — a six-step checklist that will help you make every response clear, accurate, and helpful.

The ability to write helpful and well-considered email responses is an important tool for your toolbox for building long-term relationships with your customers, prospects, and team.

Jonathan Michael is a creative marketing professional with over 15-years experience in digital and product marketing roles. He stands by the notion that empathy and authenticity are strengths by which companies can effectively engage with individuals at every point throughout the customer journey.

Table of Contents

• Managing team email is work—but you can improve your responses

Related Articles

8 Min. Read

How to End Business Emails Professionally With Examples

10 Min. Read

How to Use Google Tag Manager for Google Ads Remarketing

How To Use Google Trends For Keyword Research

6 Min. Read

The 6 Digital Marketing Channels to Prioritize in 2024

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software