Both national and international businesses are trying to cut costs to stay afloat, and many are coming up with unique ways of reducing operational costs by moving to virtual offices. A virtual office is an office in which there is no permanent office space. A majority of the work is maintained in a cloud, and workers generally work from home or which ever location they choose.
Virtual offices are able to create a more flexible work environment, and are also able to give businesses access to the software and hardware they need for expansion through cloud computing. Not only are they able to promote innovation world wide, but virtual offices can also greatly reduce a business’ operational costs.
A few ways a virtual office can save a company a substantial amount of money each month include:
1. Reduced Rent
Premium real estate and rental offices come at a high price – especially in major metropolitan areas such as New York, Los Angeles, and Chicago. However, an office in a great location can provide an air of professionalism which your business may need to entice higher profile clientele. To avoid paying high rent fees while still having a piece of premium space, hire the services of a virtual office.
For one low fee, employers can have access to a premium professional address, conference and meeting rooms, and even secretarial services without having to pay monthly rent or worry about long-term leases which can easily save a company a thousand or so dollars a month.
2. No Utility Bills
The cost of energy has long been on the rise, and when using a virtual office, a business can avoid having to pay for any of these utilities as they are no tied to any specific building. In addition to energy costs, employers no longer have to worry about maintenance fees when using a virtual office.
Having no utilities bills or maintenance costs can save a business hundreds, if not thousands, of dollars a month allowing employers to allocate those funds elsewhere to help business expand more rapidly.
3. Smaller Workforce
When using a virtual office, there is no need to hire a large number of workers simply to maintain or manage the office such as secretaries, receptionists, office managers or a janitorial staff. Receptionists and secretaries may be hired solely when you need them, and you do not have to pay for health insurance, workers compensation, or vacation time as these individuals are not your full-time employees.
Because workers are able to work from home, employers using a virtual office also no longer have to worry about covering travel expenses on a regular basis, and they may choose to hire employees only on a independent contractor basis to reduce additional costs and allow employees to become responsible for paying their own taxes.