BPO Company Business Plan [Sample Template]

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Are you about starting a BPO company? If YES, here is a complete sample BPO business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a BPO company. We also took it further by analyzing and drafting a sample BPO service marketing plan template backed up by actionable guerrilla marketing ideas for BPO companies. So let’s proceed to the business planning section.

One of the most lucrative businesses for an entrepreneur to start up today is a Business Process Outsourcing (BPO). A new BPO company might not be so easy to start up especially as there are already established BPO companies making waves and dominating the scene, however, as a new start-up, one can effectively compete by providing services that would readily fill in the gap.

A BPO company usually handles certain aspects that relates to a business operation such as call centers, finance, human resources, cleaning services or accounting. BPO companies sprung up due to the fact that businesses needed to outsource their non-core functions in order to be able to concentrate on the core functions of their company, sustain themselves and expand.

Using the services of a BPO company is far cheaper for businesses which make BPO companies to be a highly lucrative business. Another important aspect that you would need to consider before starting your business, is a business plan. It is for this reason that a sample BPO business plan is made available for you below;

A Sample BPO Startup Business Plan Template

1. Industry Overview

The Business Process Outsourcing (BPO) industry has no dominant company with a large share of the market. The industry is valued at $136 billion and has grown at a 4% per annum between the periods of 2010 to 2015. There are more than 162,000 such businesses in the united states of America, employing more than 900,000 people.

The industry fared well from 2010 to 2015 and this is due to the fact that the US economy vastly improved due to the rising revenue especially in the finance and accounting sectors, human resources industries as well as credit card services and insurance sectors.

Also, employers in the above named sectors outsourced to BPOs in order to control rising costs due to wage increases and rising health insurance.

According to analysis, the industry will continue to experience a fair percent of growth till the year 2022, especially as companies in the affected sectors will be pressured to increase wages for their employees as well as healthcare insurance costs.

According to IBISWorld, the BPO industry is in its growth stage and will grow at a rate of 3.9% over the next 10 years to 2022. In comparison, the economy of the United States will not grow that high as it will grow at 2.5%. This therefore depicts that the industry is a growing one.

Globally, the market for BPOs will reach $220 billion by 2022, which will be due to the fact that companies will be pressured to increase customer satisfaction and improve operational efficiency whilst reducing costs to a reasonable level. Te industry’ growth is due to the fact that businesses have realized how important BPOs are and how they help reduce business risks and increase efficiency.

The United States leads the BPO market globally; however, the Asia-Pacific has the fastest growing market with a CAGR of 10%.

While the Philippines are seen as a strong competitor for BPOs globally, India remains the most lucrative destination for BPOs due to its financial attractiveness, availability of people and skills as well as an appropriate business environment.

Globally, the BPO market revenue declined by $15 billion in 2015 compared to the previous year. The revenue globally for the BPO industry therefore stood at $63.5 billion. Europe, Middle East and Africa generated the largest share of revenue for the BPO industry globally.

2. Executive Summary

Citotech BPO LLC is a standard company that will be located in Houston – Texas to serve all our clients here in the United States and abroad. We intend to provide traditional customer care operations and internal business functions to our various clients as a way to help them handle the non-core aspects of their business.

We are in business to generate revenue and make profit here in the United States of America and our vision is to offer high valued service to our clients and ensure that we not only met up with our clients’ expectations but exceed them as well. We also intend to be amongst the top three BPO companies here in the United States of America by 2023.

We are strategically located in Houston – Texas as it will be very easy for our clients to get to us, whilst easily accessible to our employees. Our location also allows us to have low overheads as well as running costs.

Procuring the best equipment with which to handle our business is a must for us so that we could provide our clients with best service. We also intend to build a business structure that will run smoothly and allow us to achieve our desired goals and objectives.

We will hire the right number of employees who are qualified and competent and who have aligned with our vision as a company and are committed to ensuring that we attain the height we intend for our business.

We will ensure that we provide a conducive and work friendly environment for our employees so that they will be able to focus on work. We will also ensure that they get the right training that will not only enhance their skills but boost productivity for us as well.

We will ensure that our employees are well paid and have the best welfare structure across similar start-ups such as ours in the industry. We know how this can boost their work output and so are willing to ensure that they remain motivated.

Finally, our owner Mr. Steve McMahon is a prominent business man and property developer, who has several businesses both here in Texas and all around the United States of America. He has several years of business experience and all his companies are successful in their own right. He has ensured that only the best are brought to work at Citotech BPO LLC.

3. Our Products and Services

Citotech BPO LLC intends to offer traditional customer care operations and internal business functions as its core functions here in Houston – Texas.

However, we also intend to boost our revenues as well by offering other services that are related to our core functions such as trainings and consultancy services. This is so as to make profit, re-invest part of the profits back into our company and boost our bottom line as well. Below are some of the services we intend to offer our various clients;

Provision of customer care services to our clients
Provision of other outsourcing services such as accounting and finance
Consultancy services
Trainings

4. Our Mission and Vision Statement

Our vision is to offer high valued service to our clients and ensure that we not only met up with our clients’ expectations but exceed them as well. We also intend to be amongst the top three BPO companies here in the United States of America by 2023.
In order to achieve our vision, we intend to ensure that we build a business structure that has committed; professional and highly dedicated employees to allow us attain our goals and objectives. We will also ensure that we get the right equipment that will allow us carry out our job to the highest standard

Our Business Structure

Building the best business structure is very important for us as a business that takes its affairs very seriously and due to this we are willing to go the extra mile to ensure that we hire the best hands that are not only highly qualified but also have the experience to ensure that we are able to attain our desired goals and objectives here at Citotech BPO LLC.

We will be sourcing for highly intelligent individuals who understand what it means to work with a start-up such as ours and ensure that we get to be the preferred BPO company or our clients here in Texas as well as around all the United States of America.

Due to this fact we are going to ensure that the employees we get understand and are aligned with our goals as a company and that our management staff will ensure that our business ethics and standard remains high at all times.

Because we would not be running a conventional BPO company due to the various services that we would be offering, we will be hiring more employees than the average BPO company, to handle all the various responsibilities and tasks so that all the different aspects of the company will run smoothly as one unit, with everyone knowing and understanding their responsibilities.

Below is the business structure we intend to build at Citotech BPO LLC;

Chief Executive Officer
Human Resources and Administrative Manager
Business Development Manager
Infrastructure Manager
Systems Administrator
Accountant
Frontline Responders
Marketing Executives
Maintenance Department
Security Guard
Cleaner

5. Job Roles and Responsibilities

Chief Executive Officer

Drafts and formulates the company’s core policies
Drafts the budget and sources for capital for the company
Reviews policies and removes or modify ineffective ones

Human Resources and Administrative Manager

Sources for and hires competent and qualified employees to work for the company
Ensures that all the administrative functions of the company are effectively coordinated
In charge of employee welfare package, orientation, induction, performance appraisals and dismissal

Business Development Manager

Carries out research on new businesses ideas in order to generate more source of revenue for the company
Reviews company’s services and looks for ways to upgrade the services
Works with the marketing executives to determine how corporate sales goals can be achieved

Infrastructure Manager

In charge of all the IT and security systems in the company
Helps to implement updated solutions across all the company’s infrastructure
Ensures that company’s data is secure and runs efficiently

Systems Administrator

Responsible for the implementation of a network security plan for the organization
Keep up-to-date with changing network technology and how it is likely to affect the company
Review software and hardware and recommend upgrades when necessary

Accountant

In charge of preparing all the financial information, statement and budget on behalf of the company
Ensures that the company’s tax records are up-to-date and that it is submitted to the tax authorities on time
Ensures that the company’s budget is effectively implemented

Frontline Responders

In charge of attending to client’s customers’ inquiries, complaints and feedbacks on behalf of the organization
Keeps up-to-date with industry trends of clients and company policies so as to pass accurate information to the client’s customers
Ensures that clients are well attended to as well as keep an accurate database of logbooks on behalf of the organization

Marketing Executives

Drafts the right marketing strategies on behalf of the organization
Meets with high level clients and conducts direct marketing on behalf of the organization
Identify new markets for the company

Maintenance Department

Ensures that the equipment bought are genuine
Carries out light repairs on the equipment in the company
Installs new equipment and ensures that it works well

Security Guard

Patrols the premises at night to ensure that no intruder enters
Monitors the surveillance cameras to ensure that the building is secured at all times
Carries out any other duties as determined by the management

Cleaner

Keeps the premises and convenience clean at all times
Ensures that cleaning supplies are always in stock
Carries out any other duties as directed by the Human Resources Manager

6. SWOT Analysis

Our intention of starting our own BPO Company is so that we would run a standard business and in order to achieve this, we hired the services of a reputable business consultant here in Texas to look at our business concept and determine if starting this company was the best thing especially as regards the location we are in.

The business consultant was also to help determine if we were going to thrive and compete favorably against our competitors all around the United States of America.

In respect to our request, the business consultant took stock of our strengths, weaknesses, opportunities and threats and used this to determine if we were likely to survive in the BPO industry. Below is the SWOT analysis that was conducted on behalf of Citotech BPO LLC;

Strengths

We have a strong client relationship management which has allowed us to retain a high number of our clients who outsource several aspects of their business to us and allow us also boost revenue for our company. Part of our strength is the fact that we offer standardized services and deliver processes, resources and tools in an efficient and effective manner.

Our employees are highly competent and qualified and know what it takes to achieve organizational goals. We also have publicity strategies in place that will allow increase awareness for our BPO Company. The various services we offer has also given us an edge over our competitors.

Weaknesses

Since we are relatively a new company, we have limited brand presence outside of Texas and this is due to the fact that we are running on a tight budget, which has not allowed us to promote our company as we would have liked. There is also a perceived complexity which has affected our vertical concentration.

Opportunities

There are several opportunities in this market and they include the fact that there are enough customer bases to be developed and cultivated. There is also an opportunity for us to gain more markets as we expand our business.

Threats

The threats that we are likely to face are; declining or slow revenue growth due to a slow economy or the arrival of a major competitor. Every business faces threats and ours is no different, but we have laid down strategies to overcome any challenges we might face.

7. MARKET ANALYSIS

Market Trends

The BPO industry is very vital to the growth of certain businesses and as such most have developed comfortable relationships that have gone on for decades with their clients. As this relationship grows, these BPO companies are offering their clients consultancy services due to the familiarity with the client’s core business and culture. This is leading to the evolvement of the industry.

A niche of BPOs has started evolving and is known as impact sourcing which is built on the foundation of social responsibility.

The aim of impact sourcing is to deliver quality service at low cost while employing those that were socioeconomically disadvantaged. This is gaining traction as corporations are looking to meet their diversity and social responsibility goals.

Another niche is the knowledge process outsourcing (KPO) where businesses have started to outsource core business services to third parties. This field dwells on tasks that require high research and analytic skills.

8. Our Target Market

There are a huge number of companies (clients) that demand the services of a BPO Company for various reasons. However, in order for us to truly determine our target market, we intend to conduct a thorough market research that will allow us map the necessary strategies in order to attract them to our company.

The aim of the market research we intend to conduct will allow us understand the characteristics of our target market and what to expect from them. In regards to this, we are going to offer our services to the following people;

Market operators
Consultancy firms
Training organizations
Telecom and IT companies
Cloud providers
National regulatory authorities
Government and public sector
Financial institutions
Small and medium enterprises

Our competitive advantage

Our BPO Company is a business that has been established with the intention of offering outsourcing services that are value-added to all our customers. We will offer our services in such a way as to allow us compete favorably against our competitors. We have therefore drafted strategies that would allow us have an edge over our competitors.

We are located in a strategic location that is not only conspicuous but also allow all our employees and clients to easily access us. Our location is one that is also quite cheap enabling us have low overheads that will have an impact on our rates.

We have a highly qualified management team that is not only highly experienced but is also aligned with our core values and objectives.

Our management team are highly committed and dedicated and have the capability of bringing our business to the level we intend for it nationally. All our core objectives are always being communicated and projected positively internally and externally.

We intend to source for and hire employees that are competent and qualified to handle all the responsibilities in our BPO Company. Our employees understand the industry that we are in and use the trends to ensure that we are able to achieve all our goals and objectives.

Finally, we will ensure that our employees are well paid and have the best welfare packages as compared to others in similar start-ups in the same industry.

We will ensure that our employees work in a safe and conducive environment. Our employees will also undergo continuous trainings that will further enhance their skills and also boost productivity for our company and boost the bottom line of our business and allow us grow.

9. SALES AND MARKETING STRATEGY

Sources of Income

Citotech BPO LLC is established with the sole intention of generating revenue and maximizing profit here in the United States of America. We intend to offer all our clients various services that will bring in this revenue to ensure the sustainability of our business. We therefore intend to generate revenue for our BPO Company via offering the following services;

Provision of customer care services to our clients
Provision of other outsourcing services such as accounting and finance
Consultancy services
Trainings

10. Sales Forecast

The BPO industry is one that is regarded as saturated but regardless of this fact the industry is still has several services that has kept the industry stable and can allow for the influx of more businesses.

We are located in a strategic location here in Houston – Texas which has made it quite possible for us to be optimistic about the revenue we will generate from our BPO Company. We are quite sure that the profits that we will generate from our business will sustain and allow us grow our business within a year of starting and running our operations.

We conducted a thorough evaluation of the BPO industry here in the United States of America that would allow us carry out an accurate sales projection.

The analysis of the sales projections we conducted were gotten from data and information from similar startups that were not only based here in Houston – Texas but all over the United States of America as well. Below is the sales projections that was conducted for Citotech BPO LLC;

First Fiscal Year-: $350,000
Second Fiscal Year-: $700,000
Third Fiscal Year-: $1,400,000

N.B: We conducted the above sales projections based on several assumptions and information that were gotten from start-ups here in Texas and the United States of America. Some of the assumptions we used were that the economy would be stable enough and that there would not be an arrival of a major competitor.

It should however be noted that should there be a change in any of the assumptions, it would have a negative or positive impact on the projected figures.

Marketing Strategy and Sales Strategy

Every business no matter its level requires marketing in order to thrive and this is why we have set aside a budget for marketing our company.

Marketing is vital for the growth of any business because not only does it generate revenue and boost a company’s growth, it also allows the companies generate interest and increase awareness amongst its target market. The marketing strategies we would draft for our BPO Company are ones that would allow us penetrate the target market and gain a huge share.

Before drafting our marketing strategies, we will conduct a thorough marketing survey using accurate data that will allow us understand our target market and create effective marketing strategies.

We will leverage on conventional and unconventional means of marketing our brand to all our existing and potential customers. These marketing strategies we will create will allow us have a marketing budget that we will channel to the right use.

We intend to hire the services of a reputable marketing consultancy firm here in Texas who has the experience that would be needed to move our BPO Company to the level that we want it to be and also allow us effectively compete with our competitors.

The marketing consultancy firm we have engaged will help us draft the right strategies that would be of great benefit to our business and allow us generate the revenue that would boost our business. We have also empowered our marketing executives to also draft the right strategies that should be in line with our corporate policies and goals.

They will modify or remove ineffective strategies so that we don’t waste money using the wrong channels to market our BPO Company. Therefore, the marketing strategies that we would adopt in generating revenue for Citotech BPO Company are;

Ensure that we place adverts in local and national newspapers, magazines as well as on radio and television stations
Empower our marketing executives to engage in direct marketing
Formally introduce our BPO Company to organizations and other stakeholders in the industry as well as in the United States of America
Throw an opening party that will generate interest and create awareness for our BPO Company
Ensure that our business is listed in online and offline directories
Use social media platforms such as Facebook, Twitter and Google Plus in order to market our BPO Company

11. Publicity and Advertising Strategy

Once a business has been set up, it is important that the business is promoted vigorously. Promoting a business is very important as this is the way that not only awareness is created for the business but also revenue is generated from the exposure as well.

The BPO industry which is already termed as a saturated market, will require intense publicity if it intends to stand out from others and generate revenue.

To ensure that we create the right strategies for our BPO Company, we intend to hire the services of a reputable brand consulting company who have had several years of experience in branding companies in this industry and who would know what strategies would be right for our business and promote us positively to our clients.

We will ensure that the crafted strategies will be one that will not only communicate our brand but will also allow our brand stand out. Below are some of the publicity and advertising strategies we intend to use in promoting Citotech BPO LLC;

Create a website that is professional and explains what we will be offering our clients
Use social media platforms such as Facebook, Twitter and Google Plus to our advantage by posting updates with special information weekly
Throw quarterly contests and special offers an use hash tags to make sure our brand trends
Attend trade shows and events in order to network, know about new technologies and participate I workshops and presentations that would bring new ideas
Join relevant associations in order to have valuable information on industry trends and allow others know about our progress
Install billboards in various strategic locations all around Texas

12. Our Pricing Strategy

Due to the fact that we would be offering a service, it might not be so easy to determine how to rightly charge our clients especially as we would be offering various other services in addition to our core service.

We however will deploy the following strategy that will allow us determine what factors we would use in determining the right rates for our clients. Some of the factors we would use are cost of leasing the facility, power costs, property taxes and what our nearby competitors are offering.

However, since we are relatively new to the market, we intend to start off with lowering our rates for at least two months in order to increase awareness about our business and also attract the needed clients to our business. Lowering our rates for the first two months will also allow us gain a sizeable share of our target market.

After a careful study of our proposed discounted rates, we have found that even though our revenue might be low during this period, we would not be running at a loss in any way.

Payment Options

Due to the various services that we will offer at Citotech BPO LLC, we will offer different payment services that will suit the different business preferences of our customers. Our payment options will be made to be convenient for our various clients. Therefore, the payment options that we will make available to our different clients are;

Payment via check
Payment via online payment portal
Payment by bank transfer

The above payment options which were carefully chosen by us will work without any sort of hitches for our clients and will also be very convenient for our business as well.

13. Startup Expenditure (Budget)

In order to set-up and run a standard business process outsourcing company, one would require all the equipment that will used to be genuine and be of a high quality so as to be able to withstand the heavy workload that they would be required to carry out.

The bulk of the things that the generated capital would be used on asides from procuring equipment are, leasing and renovation of a facility, paying the salaries of employees and utility bills for at least six months, and ensuring that there is sufficient power.

Therefore the key areas where we intend to spend our start-up capital on are;

Total fee for registering Citotech BPO LLC in the United States of America – $750
Obtaining of licenses, local permits, legal services as well as accounting and browser-based call center software – $1,250
Insurance policy (general liability, equipment insurance, property insurance and workers’ compensation) – $3,000
Cost of hiring a business consultant – $2,000
Leasing and renovating a 20-seater facility for use for at least a year – $20,000
Operational cost for the first 6 months (salaries of employees and payment of utility bills) – $200,000
Other start-up expenses which includes (workstations, computers, telephone, office furniture, ventilation, lighting, secure internet) – $25,000
Cost of purchasing office supplies (staplers, folders, paperclips, pens, paper, ink and pencils) – $5,000
Marketing promotion expenses (general marketing expenses and promotion activities for grand opening ceremony) – $5,000
Cost of purchasing an official vehicle – $30,000
Cost of launching a website – $1,000
Cost of throwing a grand opening party – $5,000
Miscellaneous – $12,000

From the above analysis, we would need an estimate of $310,000 to be able to start and successfully set up a BPO company here in Houston – Texas.

It should be noted that the above capital stated will be used to pay the salaries of employees and utility bills such as electricity and water for at most 6 months. We will also use part of the capital to lease and renovate a 20-seater facility as well as procure the equipment that will be used.

Generating Funding / Startup Capital for Citotech BPO Business

Citotech BPO LLC, is a business outsourcing company that is owned by Steve McMahon, a prominent business man and property developer, who has several businesses both here in Texas and all around the United States of America. Steve will not be seeking for external investors for his business and so will likely limit his sourcing of income to just two avenues;

The two different areas where Steve McMahon intends to generate capital from are;

Generate 40% of capital from sale of some his stock
Approach the bank to loan 60% of the capital

N.B: Steve sold some of his personal stock for $124,000 in order to generate the first capital for his business. He approached the bank in request for the sum of $186,000 so as to be able to kick-start his business.

The loan will be repaid in 7 years at the rate of 3% per annum and has already been approved by the management of the bank. All necessary papers have been signed and the Citotech BPO LLC’s account will be credited by the end of the week.

14. Sustainability and Expansion Strategy

In order to ensure that we grow our business to an enviable level, we intend to focus on several strategies that would allow us not only thrive but also excel as well. Some of the factors that we intend to focus on are; building a strong business structure, retaining a high rate of our loyal customers and also reinvesting in our business in order to ensure that we remain for as long as we should.

Building a business structure is very vital because not only will it allow us to start and run our BPO company with as few hitches as possible, it also enable us to be able to focus on our core service and achieve our goals more quickly.

We will hire qualified and highly competent employees that do not only have the necessary experience but also are aligned to our core values and are committed to ensuring that we are able to grow from a start-up to becoming a national force that is able to compete favorably with our competitors.

We will ensure that our employees are well trained so that their skills will not only be enhanced but will also ensure that the productivity of our company are enhanced.

We will also ensure that our employees are well paid and have a great welfare package that is better than their counterparts in similar start-ups such as ours. We will also ensure that the environment we will use for our employees is conducive.

We will ensure that we retain a high level of our clients because we know how valuable our clients are to us. Our aim is to ensure that we not only meet with our clients’ expectations but also surpassing them as well. We will offer our customers high quality service that is commensurate with our core policies.

We will ensure that all our loyal customers are rewarded with incentives every once in a while. We also intend to offer contests and other attractive programs in a bid to attract new customers to patronizing our services.

For our business to grow to an enviable standard, we will re-invest 25% of our profits back into the business. This is to ensure that we have a solid bottom line and that our BPO Company is able to run itself without having to sources for funding externally all the time. We intend to focus on these three factors as we believe that we would be able to suitably sustain and grow our business.

Check List / Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Conducting feasibility studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
Recruitment of employees: In Progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party / launching party planning: In Progress
Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
Purchase of trucks: Completed