A phone answering service business is probably one of the easiest service businesses that you can start. It does not involve a lot of risk, has a low start-up cost and does not require any special expertise. What is really needed is a pleasant voice, good telephone manners, tactful answering strategies and of course, a passion to mind your own business.

Estimated start-up costs and financing sources:
The start-up costs for this business are relatively low. All you need when you first start out is a phone and a phone line for each of your clients. This will probably cost you around $200 per phone line with phone rentals of less than $50 a month. Even if you prefer to purchase your own physical phone, each of them will cost less than a $100, which is fairly cheap to start a business with. You can also name each phone with the name of the company that you are representing.

Pricing guidelines for service:
In general, a basic call answering service costs a client $50 - $60 for 60 to 100 calls. Additional calls will be charged at $0.30 to $0.50 each call. This service is only for answering calls and does not include any other services. Clients are also charged line rentals of $15 - $20 a month. Paging service will be an additional $20 to $30 a month.

Advertising and marketing methods and tips:
You will probably need to cold call for clients during the early part of your business. Locate listings of your target customers in phone books, newspapers and local community boards. You can also target potential clients who may need telemarketing services which you can provide also. These would be businesses such as employment agencies, pet services, collection agencies, restaurants and travel agencies. Marketing efforts will take time to materialize, but you will soon see results as long as you are persistent and patient.

Essential equipment:
You will initially need a phone and a phone line for each client that you are providing phone answering services for. As your business grows, you may want to utilize computer software to track your calls and your messages, as well as manage your business operations as well.

Recommended training, experience, or needed skills:
Running an answering service business requires personality and a good speaking voice rather than any specific trained skills. Speaking properly and clearly with good diction and excellent grammar would definitely be a plus point for this business.