Why Virtual Offices are here to stay

As a constituent of the fast-developing Flexible Workspace industry, the Virtual Office has been quietly growing in relevance for businesses. By offering a variety of spatial, technological, and administrative services to use, virtual office suppliers provide businesses and entrepreneurs with traditional office facilities, yet without the costs and liabilities of owning and leasing such facilities.

“In today’s transforming societies and business models, work-life flexibility is ceasing to be merely advantageous, but is quickly becoming a necessity. Consider that the opposite of ‘flexible’ is ‘rigid’ or ‘unadaptable’: two words that have largely become redundant – if not objectionable – in the relentlessly changing world of today.”

These trends pose a special significance to business suppliers of Office Space—or at least, they should: It seems that circumstances have dissuaded some business owners in this industry from enlisting and selling of Virtual Office services; and for others, they have created an air of uncertainty in their minds regarding such an offering.

Such circumstances include, to a substantial degree, the HMRC / LLA Compliance Regulations, which – since their introduction in 2007 – have produced the effect of adding cumbersome and costly procedures for businesses attempting to supply virtual office services to potential customers.

But nevertheless, these circumstances should by no means deter businesses from expanding their services into this area of the industry; because actually, the offering of Virtual services for suppliers of Office Space is a sound business move to make right now—not least because the movement towards this type of working arrangement is only going to become more prevalent.

"In other words, the widespread use of virtual offices and the compliance that comes with it, is an inevitability; and therefore the astute – if not responsible – action is to ‘stay ahead of the game’—instead of trailing behind it."

It is critical to remember, however, that the astuteness to ‘stay ahead of the game’ in any business, involves more than proactive decision-making: it involves informed decision-making.

Such informed decision-making is aided from those who have acquired the industry experience and expertise to discern particular circumstances and strategise effectively in relation to them. One of my own businesses, the well-established YourCityOffice.com, has not only set the example of this business model, but can offer tailored advice and flexible assistance to any supplier of office space interested in exploring the possibilities of expanding their offerings on the Virtual Office front.

"When approached correctly, the Virtual Office service can prove to be an incredibly profitable extension of one’s Office Space enterprise: the key is the knowledge of how to efficiently utilize technology and streamlined processes to dissolve the otherwise burdensome increase in administrative cost and time."

To be more specific: the processes and technology implemented at Your City Office has enabled us and partners that fully understand the model, to raise approximately £100,000 in revenue per 100 Virtual Office customers—i.e. the revenue obtained from the cost-per-month use of the address; and including the additional revenue earned from meeting room bookings and transitions to Office Space.

“Bottom line: Your business centres can expect an additional £100,000 in revenue per annum, once you have applied this model to each location: a substantial amount ... and a lot of that revenue goes to your bottom line, as and when you scale.”

The entry into the domain of Virtual Office supply is actually a double-sided investment: as you begin to accrue ‘virtual’ clientele, who increasingly make use of your meeting rooms and purchase membership plans for ad-hoc usage of communal spaces (co-working membership), you will find that a growing number of these clients will naturally transition from virtual to physical office space.

“As a testament to the profitbablity of this model – not merely the viability of it – City Office has now been operating successfully in this industry for 15 years.”

As the Founder and Managing Director of Your City Office, my continuing work in dealing with multiple operators has developed my unique understanding of the market that continues to serve my business, the companies we work with, and my clients well. It has also helped to direct me in finding ways to invest the company’s time and money – including the creation of advantageous proprietary technologies – which enables our administrative operations and compliance to become far more efficient.

“With regards to the state of the industry today, the message I wish to convey to all suppliers of Office Space is the following one: do not ignore the inevitable—for the future is Virtual.”

Experience in business is priceless; and my personal approach to conversation is an organic one, as I have a genuine interest in understanding the particular needs of those in the industry. So for those who are interested in my advice, or to enquire about our services, please feel free to contact me.

Until then, I encourage you to consider simply this: that the Virtual Office … is actually here to stay…