This article is contributed by Ryan Phillips.
In tough economic times, companies are always trying to think of new ways to reduce costs. However, they are also concerned about any negative effects this may have on the growth of the business. Expanding a business, while reducing costs, has always been one of the corporate world’s biggest challenges. Thankfully, there are tools that can be used to achieve that particular goal. Virtual offices are one of these tools and here are 4 reasons why running virtual offices is in every company’s future.
1. No need to pay rent
It is common knowledge in the world of business that a company should expand whenever it gets the chance. Expansion may be necessary not only to grow the company, but to keep up with competition and survive. Advancements in communications technology means that co-ordinating between multiple offices is not a major hurdle. However, establishing a new office is a lot more expensive than you may think.
The biggest issue for any office space is the high rent. Property prices are through the roof in almost every major city in the world. A small company cannot even think about opening an office in a major city thanks to the high rents they would need to pay. A virtual office eliminates the need to pay rent for a physical location; a substantial saving for any company, no matter how big or small.
2. Significant cuts to overhead costs
Even if you do manage to afford the high rent and are able to establish an office, you cannot run away from the constant expenditure on overhead costs. The number of services and the cost required to keep an office functioning normally are quite high. From electricity bills to parking and equipment costs, just when you think you have all overhead costs covered, a new expense always manages to pop-up. By the time companies have paid the high rent and covered all the overhead costs, it leaves a massive hole to fill in the corporate profit and loss statement. Establishing a virtual office helps get rid of all these overhead costs.
3. Outsourcing business services
There are a number of companies specializing in setting up virtual offices. Fortunately, many of these companies offer additional services that make running a virtual office a walk in the park. Besides providing servers for your virtual office these companies can help setup a business outsourcing package tailored specifically to your company’s needs. From administrative duties to customer support, a number of business services can be outsourced, which enables a company to run a virtual office a lot more efficiently.
4. Increasing productivity without sacrificing flexibility
When originally faced with the idea of virtual offices, many companies were reluctant to adopt them. Though they saw the increased flexibility it offered as a positive, they were concerned about a possible drop in productivity due to this increased flexibility. However, as time has passed, it has been seen that the increased flexibility actually helps increase productivity. Research indicates that companies running virtual offices are a lot more productive and are achieving that for a fraction of the cost that other companies are spending. Increased productivity linked to greater flexibility is an offer that should be too tempting for any business to pass up.
As communication technology further improves, it is not surprising to find new companies popping up that are wholly dependent on the improved economics and productivity of the virtual office.
Author Bio: Ryan Phillips is a freelance writer. He likes to write about money saving tips for businesses and works with the team at Servcorp providing a virtual office in Singapore, thus giving you more time and money to spend on your primary business activities.
- smart phone as virtual office image courtesy of Nicolas Fleury via photopin cc
- tablet as virtual office image courtesy of Photo Giddy via photopin cc