Have you been pondering whether to lease out a physical or virtual office? There’s been a debate about which one is a better setup for certain businesses. With the growing preference for convenience, many start-up businesses choose virtual offices. However, many other businesses use the traditional office setup because of its advantages. Here are some points to consider when choosing between renting a physical or a virtual office.
- Identify your client’s needs
Convenient and customer trust are essential when choosing between physical and virtual offices. If your clients expect to meet you at a personal office, then choosing a physical office over a virtual one is better. A physical office makes it easy and possible to establish a strong brand image.
Some clients need a professional place to meet, so a traditional office makes perfect sense. The physical office makes interactions with clients seem more professional and can give your inner business working. Inviting clients to a meeting in your kitchen or living room is unprofessional.
In contrast, having a virtual office can make your business seem professional in the eyes of your customers and potential customers. Some people prefer a landmark that provides a physical address to your business.
Moreover, virtual offices in prestigious locations can uphold your brand image and retain customers’ trust. For example, a business operating in the USA can cater to clients in the UK by opting for a virtual office in UK. These services offer a virtual address for your business, meaning your virtual address in the UK will be treated the same as your actual address, making a good impression on the clients.
- Assess your business needs
Each business has different needs that can determine whether it needs a physical or virtual office. You can determine whether you need a virtual office based on how your business operates. A virtual office is better if you focus on reducing your carbon footprint and becoming more environmentally friendly. However, it may not be the right choice if you need to build customer trust and bolster the brand image. A physical office is a better option if your business depends on working face-to-face.
More efficient technology can translate to an efficient office that boosts productivity. A physical office with the latest technologies makes it easy for staff can work at optimum speed and efficiency. Offices come with dedicated IT service teams that promptly deal with any issues.
- Work out your budget
Keeping your overhead costs down is crucial when making business decisions. When deciding between a virtual and physical office, it should be on top of your considerations. Organizations spend between 15% and 46% of the total money on office rent. If renting an office will blow your budget out of the rent, you consider virtual offices. It will help forgo these overhead costs as you don’t have an office to pay rent.
Switching to a virtual office space is a great way to reduce overhead costs as you won’t have to worry about the cost of rent, maintenance, office furniture, suppliers, or other expenses. You’ll also save money on technology costs which can help the business remain afloat.
Physical officers are more expensive, and prices are only continuing to surge. You can hire a virtual office if you cannot afford physical office space in a location that suits your business.
- Consider flexibility
The work hours significantly differ between a traditional and a virtual office. Employees who work in virtual offices have the freedom to do what they want with their time as they are associated with flexible hours. Many people who work in virtual offices do so in their homes.
Maintaining a work-life balance is essential for productivity. Virtual offices allow employees to enjoy an improved work-life balance by spending more time at home. Your employees won’t have to spend more time commuting to and from work as it takes valuable time out.
Less formal workplaces give employees more freedom and flexibility. A flexible working environment motivates employees to manage their workload, which results in an efficient workforce.
- Employee productivity
Studies have shown that working from home can increase employee productivity. The virtual offices eliminate the need to commute and grant more flexibility when recruiting people from across the country.
While some prefer working from home, others work better in a physical office. For example, an office space provides fewer distractions. It can also facilitate mutual support between employees and increase morale. It also presents an opportunity to mix with other employees and share ideas. Collaborative environments in a physical office can catalyze success and generate better ideas.
A physical office can foster communication and collaboration among employees, enhancing productivity. While individuals can communicate digitally, it is not the same as face-to-face communication.
Choosing between a physical and a virtual office depends on your business needs and what you want to achieve. A virtual office is the right choice if you want to save money while planning for the future. It’s also an ideal choice for flexible working conditions. In contrast, a traditional physical office is suitable for more established businesses. Virtual offices don’t work for all business types. Hence, research your business requirements and target audience before choosing the most suitable one.