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Virtual Office Versus Serviced Office

Virtual Office Versus Serviced Office

Comparison of Virtual Offices versus Virtual Offices

Setting up a small business can be expensive, if you opt for a physical office space then you can end up paying a fortune for rent, office furniture, all of the technology that you need plus all of the deposits and installation costs related to getting your internet connected, phone service connected plus all of those other services that you need to keep your business going. At the end of the day you could be up for several thousand dollars before you even open your doors. Another potential option for small businesses and startups is that you start off with either a virtual or serviced office.

Serviced Offices and their benefits over a physical office

There are many benefits that a serviced office has over a physical office. Firstly, you don't have to outlay all of that cash up front. With a serviced office you will generally just move in to a functioning office that already has furniture, electricity, internet, shared office equipment and kitchen facilities. Basically, you can mover in to your serviced office and start work on the same day.

Secondly, with a serviced office you can expand or contract to suit the size of your business. If your business grows at a rapid rate then you can swap your office for a bigger one, get yourself more offices or potentially add desks when needed. If your business is in a decline then you can generally scale things back reasonably quickly. Try doing this with a physical office.

Thirdly, with the majority of serviced offices you don't have to sign a lengthy contract. Unlike a physical office you are not locked in to a multi year lease, with most serviced offices working off significantly shorter time frames.

Virtual Offices and their benefits over a physical office

A virtual office gives you many of the benefits of a physical office without the sky high cost. You are able to make use of the address on your website, your business cards and your marketing material. You can also have your mail delivered to your virtual address and they will either keep it for you or forward it on to your regular address.

Here are a few more benefits that virtual addresses have over physical ones;

1) You are not locked in to working from a specific location. You can work from wherever suits you best at the time. For instance, in summer you may want to work from a cafe near the beach whilst in winter you may head up to the mountains and work from there. A virtual office gives you flexibility.

2) The cost is significantly less. You can get virtual offices from as low as $48 per month. This is just a minor percentage of what you would end up paying if you were to get yourself a physical office.

3) With a virtual office you can take your business national for a very small cost. Imagine having to pay out to have branch locations in different states. Not only would you be up for the office costs involved but you would also have to think about local staff. With the right virtual office supplier you can not only go national but also potentially go international.

4) With a virtual office you don’t need to be locked in to a long term lease or contract. With most suppliers you can simply go on to a month to month contract. This gives you ultimate flexibility in your business.

When to choose a virtual office and when to go serviced

Unless you have a small business or startup that needs to store a lot of equipment or stock or you attract your customers via a street frontage you are probably better off starting with a virtual office. If you have more than 2 or 3 employees and you have trouble managing them remotely then you are probably best to go for a serviced office.

For a small business that is already established and is finding it’s level in terms of employees and in terms of revenue levels I would suggest to opt for a serviced office before jumping in and taking a physical office. A serviced office can grow with you as you go through those early growth years and once you are settled at a specific level and you are relatively certain about the ability to sustain that revenue you can think about locking in to a physical space.

If you are considering getting a serviced or virtual office then it may be an idea to also get yourself a telephone answering service from someone like Ruby Receptionist. An answering service combined with a serviced or virtual office will give you a cost effective virtual experience.

Date posted: 2018-07-27 | posted by: 1232blog


Virtual offices definitely make good sense for startups and one man bands. As the article says, once you grow to a critical mass you need to work out whether it is more practical to go serviced or to get a physical office.
Date: 2017-07-27 | comment by: Sydney

I would love to be able to work out of a virtual office. Unfortunately my business has a lot of physical stock so I need to maintain a warehouse.
Date: 2017-07-27 | comment by: Hannah

A virtual office makes a lot of sense when you have a really small company that is growing quickly. You don't want to lock in to a lease and then have to move 6 months later.
Date: 2017-09-05 | comment by: Jerry

If you are not entirely sure which one to go with then you can just go with a virtual office and then move to a serviced office when you feel the need or when you have employees that you would like to have in one place.
Date: 2021-03-12 | comment by: David

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