A call center is a centralized office facility that is used to receive or transmit a large volume of requests by telephone; it could be an inbound call center, outbound call center, or both. An inbound call center handles incoming calls from clients while an outbound call center is all about making calls to clients to market their products or services.
A recent report published by IBISWorld shows that over the five years through 2021-22, industry revenue is expected to decline at a compound annual rate of 1.8 percent to £2.1 billion, though this includes a forecast growth of 5.1 percent during 2021-22.
The depreciation of the pound since the EU referendum has reduced competition from abroad, although competition in the industry remains high. The global contact center market size amounted to 339.4 billion U.S. dollars in 2020. This industry is expected to grow steadily in the next years and reach a value of 496 billion U.S. dollars by 2027.
Steps on How to Start a Call Centre Business in the UK
Table of Content
Conduct Market Research
If you are considering starting a call center business in the UK, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your call center business in the UK should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, give you a clue of what your potential market will be looking out for from a call center business in the UK, and also help you operate your call center business in the UK with less stress.
a. Who is the Target Market for a Call Center Business in the UK?
- Marketing agencies (Handle their telemarketing)
- Religious Organizations (For fundraising and campaigns)
- Non – Profits Organizations/NGOs (For fundraising and campaigns)
- Telecommunication agencies (who would want to outsource some of their call center services)
- Advertising and Branding Agencies
- Corporate Organizations
- Political Parties (For fundraising and campaigns).
b. Is a Call Center Business in the UK a Profitable Business?
Yes, the call center business in the UK is profitable because the industry is worth over £2 billion in the UK.
c. Are There Existing Niches in the Industry?
Yes, there are existing niches when it comes to a call center business, and here are some of them;
- Inbound call center
- Outbound call center
- Customer support
- Telemarketing and sales services
- Answering services
- Order processing
- Collection services.
d. Who are the Major Competitors?
- Sitel UK Ltd
- Teleperformance Ltd
- Concentrix Corporation Inc
- Capita Customer Management Ltd
- Bosch Service Solutions
- Williams Lea Tag
- Capita Customer Mgt
- The Contact Company
- Virtusa Polaris
- Firstsource Solutions
- UK CPM (OmnicomGroup)
- CCA International
- Bill Gosling Outsourcing
- TELUS International
- M&Y Global Services
- Intelligent Office
- FM Outsource.
e. Are There City Regulations or Zoning Laws for a Call Center Business in the UK?
No, there are no city regulations or zoning laws for call center businesses for now, but players in this industry are expected to work with the existing regulations or zoning laws governing similar businesses in the council or city where their business is domiciled.
f. Is There a Franchise for a Call Center Business in the UK?
No, there are no franchise opportunities for call center business in the UK.
g. What Do You Need to Start a Call Center Business in the UK?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses
- A well-equipped Call Center Facility
- HM Revenue and Customs (HMRC) for Value Added Tax (VAT) and/or Pay As You Earn (PAYE)
- A Corporate Bank Account
- Startup Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a call centre business are;
Creative Call Centre Business Name ideas for UK
- Ozone Network® Call Center, Ltd.
- Customer Pro® Call Center, Ltd.
- Pendant© Call Center, Ltd.
- Redington® Call Center, Ltd.
- Clement Trent® Call Center, Ltd.
- Critical Rescue™ Call Center, Ltd.
- Anderson Micah© Telemarketing Company
- Ella Morrison™ Telemarketing Company
- Hull City© Call Center, Ltd.
- King’s Court® Call Center, Ltd.
- King Edwards® Call Center, Ltd.
- Leading Light Telemarketing Company
- 7th Street™ Call Center, Ltd.
- Wow, Network® Call Center, Ltd.
- Upper Street® Call Center, Ltd.
- Flourish Network® Telemarketing Services, Ltd.
- Red Network™ Call Center, Ltd.
- Multimplier© Call Center, Ltd.
- Riverine® Call Center, Ltd.
- Wes Greene™ Telemarketing Company, Ltd.
Register Your Business
a. What Type of Business Structure is Best for a Call Center Business in the UK?
The United Kingdom has a wide array of options that you can choose from if you are looking for a business structure to build your business on. The most important thing is that you should select a business structure that will best serve your overall business vision and mission.
In the UK, you have the option of starting your business as a Sole trader, Limited company, Private limited company (LTD or Ltd), a Public limited company (PLC), a Limited liability partnership (LLP), or a Guarantee Company (LBG).
b. Steps to Register a Business in the UK
One of the most important steps you should take when starting a business in the UK is to register the business name with the regulating authority. You can register your new business at Companies House on GOV.UK. Please note that the entire process will take you about 30 minutes if you have all the required details ready before approaching them.
In the United Kingdom, you can register your business online but it will cost you £12 to register a company online (you can pay via PayPal, debit card, or credit card). It takes on average 24hrs for your company to be registered. Please note that to register a business in the UK, you will need to submit the following document and information:
- A company name (You can find more information on naming your company below).
- Valid ID
- Address for the company.
- One or more directors’ names and details
- Details of the company shares, shareholding, and shareholders (with at least one shareholder).
- A Memorandum and articles of association.
- Detailed information on anyone who owns a significant interest or control in the company (this means anyone who owns 25% or more shares or voting rights in the company).
c. What Type of License is Needed to Open a Call Center Business in the UK?
- General Business License
- Zonal Permits
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Call Center Business in the UK?
These are some of the certifications you can work towards achieving if you want to run a successful call center company;
- Call Center Management Certification
- The RCCSP Call Center Manager Certification
- The Certified Call Center Manager (CCCM) certification.
e. What Documents are Needed to Open a Call Center Business in the UK?
- Business and liability insurance
- Council Permit
- HM Revenue and Customs (HMRC) for Value Added Tax (VAT) and/or Pay As You Earn (PAYE)
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Insurance Policy
- Contract Document
- Company Bylaws
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering opening a call center business in the UK, usually you may not have any need to file for intellectual property protection or trademark.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Call Center Business in the UK?
You might be looking to spend anywhere from £125,000 and it could be far more.
b. What are the Cost Involved in Starting a Call Center Business in the UK
- Business Registration Fees – £12.
- Legal expenses for obtaining licenses and permits – £1,300.
- Marketing, Branding, and Promotions – £1,000.
- Business Consultant Fee – £2,000.
- Insurance – £1,400.
- Rent/Lease – £35,000.
- Operational Cost (salaries of employees, payments of bills et al) – £30,000
- Store Equipment (cash register, security, ventilation, signage) – £1,750
- Furnishing and Equipping (telephone boxes, headsets, server room, computers, software applications, “Private Automated Business Exchanges” (PABX), printers, fax machines, furniture, telephones, filing cabins, safety gadgets, and electronics et al) – £57,500
- Website: £600
- Opening party: £3,000
- Miscellaneous: £2,500
c. What Factors Determine the Cost of Opening a Call Center Business in the UK?
- The size of call center business
- The choice of location
- The required licenses and permits
- The types of service offerings
- The cost for branding, promotion, and marketing of the call center business
- The cost of furnishing and equipping your office facility
- The cost of the insurance policy covers
- The cost of registering the business
- Source of your ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost of the grand opening of the call center business in the UK
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your call center business in the UK.
e. What are the Ongoing Expenses of a Call Center Business In the UK?
- Supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Equipment and machine maintenance fee
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (President) – £55,000 Per Year
- Head of Human Resource and Admin – £36,200 Per Year
- IT Manager – £34,100 Per Year
- Call Center Manager – £32,630,000 Per Year
- Accountant – £28,100 Per Year
- Call Center Executive – £26,000 Per Year
g. How Do You Get Funding to Start a Call Center Business in the UK?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and your friends.
Write a Business Plan
a. Executive Summary
Red Network™ Call Center, Ltd. is a licensed call center that is fully equipped with the latest technology in the telemarketing and call center industry. Our call center will be located in the heart of Westminster, London and we are positioned to work for a wide range of clients ranging from religious organizations to political parties to corporate organizations.
b. Products and Service
- Providing telephone answering services
- Providing contract or fee-basis telemarketing services
- Providing wakeup call services
- Providing voice mailbox services
- Providing telephone solicitation services
- Providing customer service via call centers
- Technical support services
- Debt collection services
- Related call center advisory and consultancy services.
c. Mission Statement
Our mission is to establish a call center business that will provide professional telemarketing and call center services to a wide range of clients.
Our vision is to build a global call center brand that will become the standard of how a call center should be run anywhere in the world.
d. Goals and Objectives
The goals and objectives of the call center business are basically to help companies and organizations handle some of the non-essential services that can be outsourced to allow them to concentrate on their core service offerings.
e. Organizational Structure
- Chief Executive Officer (President)
- Head of Human Resource and Admin
- IT Manager
- Call Center Manager
- Call Center Executive
a. SWOT Analysis
- Ideal location for call center business in the UK
- Highly experienced and qualified employees and management
- Access to business partners
- Well-equipped and world-class call center facility.
- Financial constraints
- A new business that will be competing with well-established call centers and telemarketing companies in the UK.
- Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.
- Increase in e-commerce and online activities hence an increase in the demand for call center services
- Online market, new services, new technology, and of course the opening of new markets.
- The arrival of a new call center business within our market space
- Economic uncertainty
- Liability problems
- The UK government could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
b. How Do Call Center Businesses in the UK Make Money?
Call center businesses in the UK make money by offering their services to businesses and organizations.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your call center business by sending introductory letters alongside your brochure to corporate organizations and other key stakeholders all across the globe
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your services
- Provide discount days for your customers
- Advertise your business in community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
a. How Much Should You Charge for your Service?
Most call centers in the United Kingdom charge between £20 to £40 per hour.
b. How Much Profit Do Call Center Businesses in the UK Owners Make a Year?
The profit you stand to make as a call center business owner is not fixed, but you can rest assured that if you work with high-paying clients, you are sure going to make a fortune from the business.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the call center business
- The types of services offered (telemarketing, debt collection, fundraising et al)
- The location of the call center business
- The management style of the call center business
- The business approach of the call center business
- The advertising and marketing strategies adopted by the call center business
- The number of years the call center business is in business
d. What is the Profit Margin of a Call Center Business in the UK?
The profit margin of the call center business in the UK is not fixed. In most cases, it is based on the percentage of the products or services you sold for the company.
e. What is the Sales Forecast?
Below is the sales forecast of a call center business in the UK. It is based on the location of the business and other factors as it relates to such startups in the United Kingdom;
- First Fiscal Year: £240,000
- Second Fiscal Year: £360,000
- Third Fiscal Year: £420,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Call Center Business in the UK?
- The e-commerce and online activities in the location
- The demand for call center services in the location or country
- The purchasing power of businesses in the location
- Accessibility of the location
- The closeness of the location to an IT hub
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What City is Best to Open a Call Center Business in the UK?
c. What Equipment is Needed to Operate a Call Center Business in the UK?
Telephone boxes, headsets, server room, computers, software applications, “Private Automated Business Exchanges” (PABX), printers, fax machines, and call center software.
When it comes to hiring employees for a standard call center business in the UK, you should make plans to hire a competent chief executive officer (president), human resources and admin manager, call center manager, accountant, IT manager, and call center executives.
Launch the Business Proper
In recent times, no call center business in the UK opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the call center business in the UK, you will officially inform people in your city that your call center is open for business.
a. What Makes a Call Center Business in the UK Successful?
- Choose a good location to launch the business
- Offer robust call center and telemarketing services (give your customers options)
- Be deliberate with your marketing and sales approach
- Encourage the use of word of mouth to promote your call center business
- Leverage all available online and offline platforms to promote your call center business
b. What Happens During a Typical Day at a Call Center Business?
- The call center is open for the day
- The facility is cleaned and ready for work
- Call center agents resume and start executing their job descriptions
- Administrative duties are carried out
- Maintenance of equipment and service are carried out
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build Call Center Business?
- Understanding call center technology
- Excellent customer services skills
- Excellent training skills
- Interpersonal skills (Networking skills)
- Accounting and bookkeeping skills (Understanding finance and budgets)
- Business management skills
- Bargaining skill
- Analytical skills
- Accountability and adaptability
- Ability to receive feedback
- Communication skills
- Work experience in a call center business environment
- Experience in managing people
- Experience in business administration.