Virtual Offices
Virtual Offices Empower Recession-Busting Mobile Workers
Published April 2nd, 2009 by Jennifer LeClaire
Virtual offices have long been the domain of work-from-home entrepreneurs and road warriors that either don’t want to invest in traditional office space or aren’t in one place long enough to justify the expense.
Leave it to The Regus Group to put a new spin on virtual offices in the face of a deep recession. Based on Regus calculations, companies can save 60 percent to 80 percent on real estate costs by incorporating flexible workplace strategies into the mix.
Regus reports that a growing number of recession-battered companies looking to save money on real estate costs are shedding traditional office space in favor of virtual offices. Rather than giving their employees an office and desk, more companies are equipping their employees with BlackBerries and laptops and dubbing them mobile workers. How does Regus know? Because it is seeing an uptick in its virtual office business from larger companies.
“During these challenging economic times, employers are embracing flexible workplace practices as a key business strategy,” says Regus Group CEO Mark Dixon. “Companies have created a new band of mobile workers who don’t need a full-time office but require a professional environment and support services on-demand. Our virtual office program is an ideal solution for this type of worker and is proving popular with businesses eager to reduce facilities cost.”
The Home-Office Balance
Companies aren’t stopping with the BlackBerry and laptop. Smart businesses understand that employees need a place to call “corporate” home and are helping them set up home offices or find otherwise less expensive alternatives to company headquarters, Regus reports. This can be a win-win for all parties: companies save office costs and employees reduce commute time and save gas. Overall, everyone benefits from improved productivity.
“Second to payroll, real estate is a company’s second largest fixed expense,” Dixon says. “Increasingly, real estate expenses will come down for businesses that adopt flexible working practices. This newly-saved capital can be re-directed back into the business.”
Regus offers up a prime example as evidence of the trend: CrowdConnect. CrowdConnect is a marketing and advertising firm based in Princeton, New Jersey. Its employees work remotely but need a centrally located facility for client meetings. CrowdConnect turned to Regus’ virtual office services to establish a professional business address and to leverage a support staff without the expense of hiring and managing a full-time assistant.
Beyond the basics of office equipment (read: fax machines, copiers and telephone systems) virtual office users enjoy access to furnished offices, meeting rooms, business lounges and videoconferencing studios without the upfront investment. They also have the opportunity to network with other professionals in a business environment, quelling the fear of isolation as they adjust to a new work style. Patrick Diogenia, founding partner of CrowdConnect, says, “Clients and interviewees are consistently impressed with the quality of our space.”
Testing New Markets
Regus is also tooting the market testing horn. When it comes to larger companies, virtual offices aren’t just for cutting traditional office costs in a down economy. Virtual offices can also help companies reduce risks in the face of expansion plans. Companies can test new markets with a virtual office before they set up shop there in a bricks-and-mortar facility.
Once again, Regus offers up an example. This time it’s Capco Health Group, Inc. a provider of healthcare services in the North American medical insurance community. Capo has been a Toronto-based Regus client since 2000 and is using virtual offices to pursue new business opportunities.
“For as little as a few hundred dollars a month, virtual offices allow us to move into additional markets such as Mexico and Central America,” says Ernie Gershon, president and COO of CAPCO. “The services, along with the office and meeting space we use, vary depending on the market and our ever-changing needs.”
Establishing a presence with virtual offices allows the company to avoid costly upfront capital expenditures and minimize our risk, Gershon confirms, and if a market is not as successful as the company had initially planned, the investment and risk exposure is minimal.
Gershon notes, “The local phone number, the recognizable business address and in-country phone answering services that virtual offices provide are also very important to our expansion into these new markets.”
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Elizabeth Sanchez April 6th, 2009 at 11:59 am
Regus is getting really agressive with its serviced office alliances. Now I see the company is also pushing its virtual office programs. Does anybody know how what Regus offers compares with what Davinci Virtual officers? These seem to be the two largest providers in the virtual office space sector.
Susan Jewell April 8th, 2009 at 1:02 pm
The Concierge Office Suites offers virtual services in Chattanooga, TN. While Regus and Davinci may be the largest providers, we have been in business since 1995. We also have private office, virtual staff, and coworking space. We aim to meet anyone’s needs, from a corporation that has a limited presence to an entrepreneur just starting out.
Our virtual clients have been very pleased to find that our services are not only comparable to Regus, but that our level of service is better. We provide more than a box with a door that can be contracted by the hour. Our clients are our guests. So if you’re out of “range” of Regus (they don’t have an office here), you should check for an executive office center wherever you are. Most likely you’ll be pleasantly surprised.
-Susan Jewell
The Concierge Office Suites
http://www.theconciergeofficesuites.com / info@theconciergelevel.com