Virtual Offices

Virtual Offices

Office Alternatives

Virtual offices reduce costs significantly for certain types of business.

Offices are familiar places that serve practical functions: the site where employees work, a location to meet with clients, and a centralized storage space for paper files. Historically, many service-based businesses (e.g., insurance, accounting, research, finance or sales) were able to maintain bricks-and-mortar offices because they had the critical mass needed to justify the cost and overhead of commercial space.

The definition of workplace has changed considerably and continues to evolve because the nearly ubiquitous availability of portable tools and technology has profoundly changed the way we can work. The Internet is required for most kinds of work. WiFi and cellular network coverage mean Internet access is available nearly everywhere. Similarly, the portability of computers makes working from an airport, coffee shop or even a park possible. Laptops under three pounds with long battery life are readily available. You may even be able to work using just a mobile device such as a tablet, which can weigh less than a pound.

What Is a Virtual Office?

Virtual offices and office sharing are ways for small businesses to avoid the costs associated with traditional office space. Overhead such as rent, liability insurance, maintenance and cleaning services is no longer an unavoidable cost of doing business when the only space needed is the amount required for you and your laptop. In its simplest form, a virtual office provides a business mailing address and mail handling, and telephone answering services.

Virtual office services can be purchased separately or, more typically, bundled in with the cost of the virtual office. Naturally, a greater number of services will result in a higher fee, but you still only pay for what you need. This cost is often lower than the cost of maintaining a full-time staff member, especially when you do not require a high volume of administrative work. Simple virtual office companies that provide only a mail service may charge as little as $30 per month. If a dedicated number and live call answering is required, costs may rise to $70 or more.

Office Sharing

Office sharing (or co-working) services can provide a physical office space to suit your needs. These services can offer all the benefits of your own bricks-and-mortar office space without the costs associated with maintaining that space once you no longer need it. Virtual office and office sharing companies may offer services such as: 

 business address for mail and delivery

 mail receipt and forwarding 

 reception services to receive your calls 

 access to a desk, office or collaborative workspace 

 use of conference and meeting rooms

 office administration services such as data entry, faxing or photocopying 

 equipment and space necessary for presentations 

 catering, lunch, and coffee 

 secure storage areas

 phone, Internet and WiFi

The larger virtual office companies have expanded to all the major metropolitan areas. Many provide the ability to book an office or service anywhere your business may carry you. If you have to make a presentation or meet with associates in a strange city, the virtual office company may be able to provide audiovisual equipment or find you space in a hotel.

Productivity and use of time improve.

Virtual Office

There are many benefits to having a virtual office. Productivity improves. Time formerly used to travel can now be used to work. Billable hours increase as a percentage of the number of hours worked each week. Other benefits are also important: 

 Capital asset expenditures are minimal. 

 Overhead and carrying costs are almost non-existent.

 Daily travel costs are significantly reduced. 

 The bottom line improves now that more hours generate revenue.

There are potential downsides to a virtual office as well:

 A 9-5 routine in your home office can suffer from distractions. 

 Work-life balance can become a tricky juggling act. 

 Clients cannot just “pop by” quite as easily. 

 Less interaction with people can lead to “social starvation”.

Even though these negatives may seem to some a deterrent, to others they may be a selling point. Some people may see less social interaction as an alleviation of distraction, and others may find the flexibility of working from home a life-improving benefit.

Lower Costs and Better Service

The new world of entrepreneurs views virtual offices as an opportunity to provide better service to their clients without the need for administrative overhead and the stress that accompanies it.

Although virtual offices may not be a good fit for all service businesses, there is a growing number of companies that no longer require an office to present to their clients as a symbol of their success and prestige. A service business that seldom has clients “dropping in” or has clients and associates around the world may be better suited to a virtual office, not only to reduce costs but also to improve the bottom line.