What Is a Virtual Office?

Renting a physical office space in a business district or city centre often helps to make a business seem more reputable and established. However, doing so is often a costly pursuit.

As an alternative, many businesses have begun looking into virtual offices that do away with the costs associated with renting entire offices – while still allowing them to keep up appearances!

In this article, you will learn about:

What a virtual office is
What virtual offices provide
How a virtual office works
The benefits of virtual offices
How much a virtual office costs

Let’s get into it.

What Is a Virtual Office?

A virtual office is an address that a business can use for mailing and prestige purposes without paying a lot for actual office space in the said location.

In order to appear more reputable to customers, a virtual office address can be used to create and maintain the image of a traditional, high-cost office facility.

As for the amenities, virtual offices usually come with mail scanning and forwarding, a phone number, meeting rooms, and desks that can be accessed when needed. Some even have an onsite receptionist.

How Virtual Offices Work

Virtual offices are managed by a virtual office service provider, and each space is typically used by different companies.

Each one will be given a different suite number to receive their mail, and this also serves as the business address for reputability.

Whenever mail is received, the service provider will then scan and then forward it to the appropriate recipient.

Similarly, an onsite receptionist can answer the phone, take a message, and forward calls – providing the impression of a more traditional “business number” that you can give to clients.

In doing so, virtual offices can avoid the informal (and perhaps more unprofessional) route of using mobile numbers for communication.

What Does a Virtual Office Provide?

Virtual offices provide businesses with the ability to project a professional image while operating from anywhere. Here are some key benefits that virtual offices offer:

A Business Postal Address: A virtual office allows businesses to use a prestigious business address instead of their personal or home address. This creates a positive impression on clients, partners, and investors, and can also help to establish a more professional brand identity.
Receptionist Services: With a virtual office, you can have a receptionist to manage your incoming calls and greet visitors. This helps to create a more welcoming environment for clients and colleagues, and can also provide a sense of stability and permanence to your business.
Envelope Opening and Scanning Services: Virtual offices offer a convenient service where all your mail is scanned and emailed to you, allowing you to keep up with important correspondence even when you're not physically present at the office.
Meeting Rooms: Virtual offices provide access to professional meeting rooms that you can use to hold meetings with clients or colleagues. This ensures that you have a professional space to meet and collaborate, even if you don't have a full-time office.
Phone Answering and Voicemail Services: A virtual office can provide you with a dedicated phone line and voicemail service, which ensures that your business calls are always answered professionally. This also helps to create the impression that your business is well-established and reliable.

Virtual Offices Are Ideal for Start-Ups and Small Businesses

These days, new businesses can spawn overnight with the help of technology, and running a business from home is easily a viable way to start.

For entrepreneurs, establishing their first physical business space might be a tall endeavor. But a virtual office lowers the barriers to entry by some margin. No need to be locked into a 6-month to a year-long contract.

The Benefits of a Virtual Office

Flexible Working Arrangements

Having a virtual office means you can work from anywhere without feeling as though you’re wasting money paying for an office you don’t use regularly.

However, because many virtual offices also have facilities for some onsite work, they can also be a great option in providing you access to professional, corporate spaces whenever you do require them.

Reduced Overheads and Operating Costs

Since the office space is rented by the virtual office service provider, they bear the brunt of the overhead and operating costs.

As such, the services offered by virtual offices cost much less when compared to traditional office space rentals.

Since the lease for virtual offices is typically charged on a monthly basis, you can also avoid the pressure of committing to a more permanent location for longer durations.

Professional Image and Mailing Address

Clients will more likely believe that a business is reputable and trustworthy if it has a mailing address in a prestigious location.

Therefore, using a virtual office is a convenient and cost-effective way of both providing your business with a mailing address and helping it gain legitimacy.

Access to Business Support Services

Many virtual office providers offer business support services to their users.
These services can vary between different providers, but most include an onsite IT and reception team to assist you where necessary.

Some virtual offices may also organise networking opportunities with existing clients that you can take advantage of.

Increased Mobility and Ability to Work from Anywhere

If you prefer working from a cafe – or just generally dislike working in the same space all the time – a virtual office can be a great choice.

Since you’re not paying high monthly overhead costs for your workspace, you have more freedom to work from anywhere you want.

As mentioned above, you’ll still also be able to utilise the more traditional environment of your virtual office whenever you like.

Access to Meeting Rooms and Coworking Spaces

Most virtual offices have meeting rooms, coworking spaces, and desks that you can access when the need arises.

This allows you to use a traditional office if and when your work calls for it. It also offers continuity with your clients as you can meet them at your specified business address – without having to reveal that it’s a virtual office.

Productivity

Virtual offices have often been regarded as “the key to WFH productivity”.

This claim rests on the fact that virtual offices simulate a real office environment for remote workers while still allowing them to enjoy working from wherever they like—thus combining the best of both worlds.

The result is a highly collaborative environment conducive to increased productivity that can be accessed when desired.

Improved Work-Life Balance

A study of IBM employees using virtual offices found an increase in satisfaction surrounding work-life balance due to greater flexibility, more productivity, and higher morale.

Costs of a Virtual Office

The cost of a virtual office depends primarily on your service provider and the location you’re eyeing.

Many virtual office providers offer packages with multiple features so you can choose the setup that works best for you.

Generally, you can expect to pay between £10 and £50 per month for a basic virtual office package. However, this usually just includes address use and mail management services.

If you’re looking for a more comprehensive service with a phone number and real-life receptionist to receive your calls, then you’re likely looking at a cost between £100 and £300 (or even higher).

Simply put the more features you’d like, the greater the cost.

Who Can Benefit from a Virtual Office?

A virtual office may benefit those who are looking for a reputable address for their small-or medium-sized business without having to pay too much.

It’s also a great choice for a business owner or any professional who likes working at the office sometimes but still prefers flexibility in their environment.

Somebody who travels frequently but is generally based in a single area will likely also love the convenience of having someone in a virtual office collecting and processing their mail.

The Bottom Line

A virtual office is a convenient service that allows business owners to use a certain address for mailing purposes, and also as a potential workspace that they can use for co-working or meetings.

There’s a large variety of flexible, virtual office packages available with varying features depending on your needs.

Due to their characteristics, virtual offices are best for small business owners who want the reputation of a professional address without having to be in the office all day, every day – not to mention the much lower costs.