How an Answering Service for Business Leads to Reduced Overhead

Running a successful business means managing your operating costs so that they don’t exceed your profits. That’s more challenging today than ever before thanks to rising inflation, increased competition in virtually every industry, and subscription-based services that lead to recurring fees. It’s enough to make you want to throw up your hands and walk away. 

It doesn’t have to be that way, however. You can take control of your overhead so that it doesn’t outpace your business income. One of the smartest moves you can make is to hire an answering service. This single decision can unlock multiple ways to cut your overhead costs. 

How can hiring an answering service help you reduce your costs? Let’s look at some of the most important benefits.

Key ways an answering service reduces business overhead costs

Overhead is technically any cost your business incurs that isn’t related directly to producing goods or services. They’re usually fixed, although that doesn’t mean they don’t change and are often (but not always) recurring, so you’ll pay them over and over again. Some examples include:

  • Property rent
  • Employee salaries
  • Property taxes
  • Licensing costs
  • Utility costs
  • Office furniture and equipment
  • Insurance
  • Legal fees
  • Technology

An answering service offers several workarounds that can help you cut those expenses and boost overall profitability.

Staff-related costs

Staffing represents a major cost for most businesses. If you employ people, you’re paying them. You likely also provide insurance and PTO, and offer other perks or benefits. Then there’s the payroll tax aspect to consider. Plus, every time an employee leaves, you’re faced with a broad range of other related costs, including advertising the position, interviewing candidates, hiring someone, and training them to fill the role. 

An answering service ensures that you don’t have to deal with some of these costs. No, you won’t be able to eliminate all employees by outsourcing your answering needs, but you can eliminate some positions, particularly receptionists. This allows you to tailor your team to your financial needs – maybe you keep a single receptionist to work with people who walk through the door while outsourcing call answering. 

Equipment and furniture-related costs

Every employee within your business requires furniture and equipment to perform their job duties. We’re talking about things like desks, laptop or desktop computers, computer monitors, telephones, headsets, software, and so much more. That can add up to several thousand dollars per employee. 

By hiring an answering service, you negate the need for that type of equipment and furniture. If you have not yet hired an employee to handle communications, then you can skip the expense. If you’re downsizing your workforce and swapping to an answering service, you can sell excess furniture and equipment to recoup some of your costs.

Knock-on effects

A reduction in staff and equipment/furniture-related costs are the most obvious overhead reductions you’ll experience, but they’re far from the only ones. You’ll discover many more knock-on effects.

More time with leads

Most businesses today don’t have the budget for more than one receptionist. That means some of your people likely fill in during busy periods, handling overflow calls when your primary receptionist is tied up on the other line, or handling an in-person visitor that stops by. 

That’s bad news because every second they spend handling phone calls is time that they aren’t devoting to their core responsibilities. By hiring an answering service, you ensure that your team can focus on what they do best and never have to worry about answering the phone unless it’s a warm lead primed to convert.


You’re no stranger to the ups and downs of business. Cash flow rises and falls with patterns in the wider economy. It can be challenging to make informed decisions that support profitability, such as whether it’s the right time to hire someone, or whether you’d be best served by letting people go. In most instances, you’re stuck in a reactive stance and unable to make real headway. 

An answering service gives you the scalability and flexibility you need without the challenges that come with hiring/laying off actual employees. Experiencing a higher call volume? No problem. Your answering service will add more virtual receptionists. Not getting as many calls as you used to? Don’t worry – your answering service scales things back to match demand, while still ensuring that every call is answered immediately.

Lead screening

How much time does your team spend answering phone calls from people who will never convert into customers? Chances are good that it’s quite a bit. Not only is that a waste of time, but it might mean that calls from leads who are better suited are going unanswered. This is another area where an answering service can help.

With the right answering service, you’ll benefit from experienced lead screening and intake help. Virtual receptionists can capture and qualify leads based on your stated criteria, and then transfer calls when those leads are ready to convert.

It’s time to cut unnecessary overhead costs

With the cost of doing business rising across the board, now is the time to act. There’s no reason you should be at the mercy of increasing overhead costs. An answering service can help you control those and bolster efficiency and profitability across your team. 
At, our virtual receptionists are fully trained and ready to help you cut overhead costs. We offer flexible answering plans ranging from overflow answering and after-hours answering to 24/7 phone answering. We can also provide expert lead screening and intake, warm phone transfers, appointment booking, and more. 

It's never been easier to cut overhead costs without sacrificing capabilities. To learn more, schedule a consultation or reach out to

24/7 Call Answering
Lead Screening
Written by Tom Armitage

Tom Armitage is a Senior Marketing Manager with

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