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Virtual Office: Do I Need One?

Virtual office. You’ve probably heard the phrase bandied around or seen it written down when you’ve been looking into setting up your business. So what is a virtual office?

Basically a virtual office falls under the flexible workspace umbrella. It is a way for a business to have a presence in an area where they don’t want or can’t be physically located. A virtual office plan, package or subscription gives businesses an address and sometimes a phone number and other benefits, usually at a  business centre, co-working space or shared office, without paying to actually use the physical space.

Virtual offices have been an option for businesses for many years now, so they aren’t a new phenomenon. Since the rise in flexible working they have become more and more popular. With video conferencing and a work-from-anywhere mindset, a virtual office fits in nicely to help establish your business without facing the massive (and often underestimated) overheads of renting physical office space.

Types of companies who typically use Virtual Offices

Start-ups

Start-ups use virtual offices as a way to be seen to be in a city centre or cluster related to their industry.

SMEs

Companies who don’t require a physical office space but don’t want to list a home address as their business address.

Flexible/Remote Companies

A Virtual Office gives you a single location to use as your base without needing to commit to being there.

Companies looking to setup a presence in a new city/area

Rather than setting up a physical office, a VO can help you find out if there is a demand in an area for your business or give you a presence in a city before you setup a physical office

Pros and cons of using a Virtual Office

As with everything, there are pros and cons of using a virtual office which may help you decide if this really is the right option for you.

  • You’re starting up a business and you really need to prioritize what you spend your money on so a city centre office may not be on the cards. A virtual office helps you be seen to be in your desired area, creates the impression of professionalism and you become a part of a community, introducing you to new opportunities.
  • Using your home address might sound simpler (and cheaper), but there are downsides and risks associated with this. A home address may make your business appear smaller or more junior than it is and can make you feel quite exposed when all your clients and suppliers know where you live. The virtual office can add a level of protection for your home life, helping you better manage your work-life balance.
  • Most places which offer virtual office services also have onsite services which VO members can use, usually for an additional cost. These can include hot desks and Meeting Rooms which again can help support your business if you do need to host face-to-face meetings with clients or need to meet your team for a project kick-off. Some places will allow you to create a package that includes a number of meeting room or hot desking credits which often can work out cheaper overall.
  • Virtual offices over traditional office space can also help with recruitment and really support the flexible work movement. By paying for a traditional office, you will want your moneys worth, which will include needing your team to use it. A virtual office gives you more freedom to hire talent no matter where they are based rather than being restricted by location.
  • Rolling monthly memberships also allow you to amend your package at short notice. This saves on general business costs as you aren’t tied into long-term contracts, but the downside here is you don’t have a long-term guarantee. Make sure you stay in good communication with the company you take your membership out with so you don’t have any last minute surprises.
  • Depending on the package, some places may offer a mail forwarding service. This sounds great as you don’t need to make a weekly trip to check your mailbox, but on the other hand, you’re relying on another manual process to actually get your post. If it is a time-sensitive letter, you are entirely relying on the postal service delivery times for it to reach you, or if it’s a personal letter, you may feel uncomfortable with someone opening and scanning it across to you.

So, do you need a virtual office? If you’re a start-up, a small business or need a presence in a certain city, a virtual office is probably the most affordable way to do so with very low risk. They are easy to setup, easy to manage, easy to grow from and easy to move on if/when you outgrow it.

Research the difference packages and plans in the city you need before you commit to ensure you can access all the elements that will help make your business thrive.