GO-Virtual News Article
Serviced Offices, Virtual Offices, Executive Suites OH MY!
16 Oct 2006
Defining the concept
There has been much “buzz” about Serviced Offices, Executive Suites, Virtual Offices, or combinations of any of these catch phrases with even more confusion about what exactly these businesses provide. This boils down the mass of information and clarifies much of the confusion.
Although the Serviced Office and Virtual Office concept has been around for decades, there have been few changes in the basic service offering with the exception of the technology offered. Communications systems and IT are generally a step above what you would expect to find in a normal corporate office and is updated more frequently. The product is more viable today than ever.
A serviced or virtual office facility provides companies and businesses, irrespective of size, with complete office facilities at a fraction of the 'go-it-alone' cost.
These facilities incorporate benefits such as a prestigious address, high-tech communications, office / meeting room facilities and receptionist services. Specifically, the services you would find within this industry are broken down as follows:
A Serviced office provides the client with access to an immediately available, fully furnished, serviced office meeting business needs for a new market entry, special project, temporary office expansion, regional or branch office in a high quality facility in a prime position.
A Virtual office provides clients with everything but a physical office: a dedicated telephone number answered in the company’s name, a prime city address for corporate identity and communications, use of office facilities, secretarial services and access to other business services as needed. In short, the complete business infrastructure package, without the real estate.
The Benefits: The benefit for users of either a Serviced or Virtual Office is a decreased cost of real estate, human resources and communications. That is, a reduction of a company's overall operating costs. What's more, the quality and image of the address is likely to be considerably better than the business could obtain for the same budget.
In addition to a reduction of operating expenses, Serviced and Virtual Office clients realise an increase in quality of resources as well.
In effect, Serviced and Virtual Office organisations function in the same way co-operatives do. A Serviced or Virtual Office operator functions as the manager of the cooperative, with each client contributing to the cost of the pool of office resources through their monthly fee and for ad hoc services as they need and use them.
The big benefit here is higher quality real estate, technology and staff than they would be able to afford if they were to lease or purchase these facilities on their own. They have no infrastructure costs, no staff to pay or manage and no maintenance cost.
Some would argue that those who use a prestigous Serviced or Virtual Office unfairly present a public image that they are larger or more successful than in reality. The true reality is that the companies who use a Serviced or Virtual office are just plain smart business people.
Why would you pay for an office if you didn’t need to have one? Why would you hire someone full time when you really only use them half the time, but you can’t pick which half? Really now, why would any of us pay more than we need to for operating expenses when we don’t have to?
I fully endorse the use of Serviced and Virtual Offices. Personally I think they are just coming into their own in the current business environment. Competing with the “big end of town" is tough business. One of my companies is run from a Virtual Office now. I was immediately able to reduce my operating costs and liabilities in making the change.
The result? The business is in a better position to deliver its core service to the marketplace at the highest level of cost efficiency, and a more competitive price.
Tammy Palmer
International Marketing Consultant
