Should my online business use a virtual office?

You’re sold on the benefits of remote work: more flexibility for employees, no commute, less overhead, and more. Yet you still see reasons to have a physical office in some instances.

Co-working spaces are certainly an option if you want to gather with your team, but they lack some things you might consider essential for your business. For example, what would you prefer to list as your business’s official address? An office address, a P.O. box, or the founder’s home address?

Virtual offices are often a budget-friendly option for startups. You can get the perks of a physical presence, but at a much lower cost and with more flexibility than a traditional office lease.

What is a virtual office and how does it work?

A virtual office is a building shared by many businesses, with access to meeting rooms, offices, and co-working space. A monthly fee — typically a fraction of the cost of office space rental — gives you access to a virtual office on an as-needed basis. Most virtual offices include a few hours of meeting space per month, which you would reserve in advance. If the company has multiple locations (as many do), you’ll have access to virtual office locations around the country or even the globe.

Virtual offices often offer other features, such as a business mailing address, package and mail handling, and phone answering via a virtual receptionist. You’ll have wi-fi access and may have other perks like IT support or access to printers. While style and atmosphere vary, many are nicely put together and professional, making them well-suited for client or company meetings.

In addition to being a budget-friendly option for startups, companies sometimes use virtual offices if they’re expanding into a new market and don’t want to commit to office space yet. They’re also frequently used by small teams, freelancers, or consultants who’d like to have occasional access to office space.

What are the benefits of registering my startup at a virtual office address?

Virtual offices are different than locations that operate solely as co-working spaces. They offer business-related features because they know clients are using the space as a substitute for a permanent office. Co-working spaces are often used more casually by people who want a change of scenery from their work-from-home life (though virtual offices offer co-working options).

If you’re considering a virtual office, here are some reasons to consider one:

Professional image. If you need a place to meet with clients that may have a more professional appearance than a hotel or home, you can reserve a meeting room in a virtual office. You can also use a virtual receptionist (if offered) to answer a private line and redirect calls.

Cost-effectiveness: Virtual offices are often in convenient locations, such as the downtown area of a city, but at a fraction of the cost of an office lease. If you and your team work remotely most of the time, it can make more sense to use a virtual office occasionally, rather than to pay for a private office that you rarely use.

Flexibility: You can use the co-working space within a virtual office or book meeting rooms throughout the month. Since some virtual offices have hundreds (if not thousands) of locations, you can work from various cities if your work requires you to travel.

Support services: If you need services like a virtual receptionist, virtual assistant, or IT support, these are included with some virtual office rentals. You wouldn’t need to hire separately for these roles.

Less overhead. While office leases vary, some require you to pay utilities and taxes, in addition to your rent. You’d also pay for insurance to protect your property within the office. With a virtual office, you wouldn’t pay for anything above the monthly rental cost.

Registered address. If you’re operating as an entity (like an LLC), you need to have a physical address for your business. You cannot use a P.O. box. You can use a virtual office as a registered address for your business and protect the privacy of your home address. You can receive mail at the virtual office location, just like at any physical address.

What are the drawbacks of using a virtual office?

While virtual offices can be a sensible option for startups, they have some limitations. If any of the following are an issue for your business, a virtual office might not be the best fit for you.

Physical space constraints. Since meeting space is shared among all businesses that use the building, you may not have access when you need it. You can reserve meeting rooms in a virtual office, but you have to plan in advance. You might not be able to schedule a last-minute meeting, or the space you need isn’t available.

Perception issues. Virtual offices are professional spaces, but if a client meets you for a meeting, it will be clear that the space is shared. If your image is important for your business, you may want to consider a private office lease.

Dependency on the service provider. If you’re using a virtual office for the business address and mail handling, it would be tricky to switch. You might start with one virtual office and then want to make a change after six months, and changing your address could be a hassle.

Limited customization. In a dedicated office, you can make your own decisions about meeting room setup or furniture placement. With a virtual office, you have to use the setup provided (although many virtual offices offer several meeting room configurations).

Choosing the right virtual office provider

Virtual office providers range from local offerings to companies with a global presence. The right provider depends on your needs, including your budget, office locations, and amenities (like a virtual receptionist).

In addition to touring the office, you’ll want to research the company’s reputation. Read reviews from other current and former customers, specifically looking for information about the amenities you’d use. If access to meeting rooms or mail handling are issues, the virtual office provider may not be the best choice for you.

Some virtual office providers offer a trial period, such as using the space for a month before locking into a contract. Take advantage of the trial period, so you can confirm that the space offered will meet your needs. This is also your chance to see if amenities (like tech support) meet your expectations. Trials are particularly useful if the virtual office provider requires a multi-month contract instead of a month-to-month contract. Have a representative explain how amenities work, like how to get a virtual office address.

Below are a few well-established virtual office providers you can consider. All of them offer locations worldwide.

Keep productivity in mind

As you’re considering virtual office locations, think about how you work on a day-to-day basis. Are you more productive when you’re in an office (versus working from home)? If you’re using the virtual office’s co-working space, can you work with others around you? Does the virtual office have private offices you can use, in addition to meeting space?

If you need amenities like access to meeting rooms or a virtual receptionist, then a virtual office makes sense even if you don’t use the co-working areas. But if you plan to work from the office, make sure the space matches your working style. Since you can’t control the desks, lighting, or noise, the virtual office’s location should feel like a productivity boost, not a hindrance.

While virtual offices are far less commitment than an office lease, you don’t want to end up paying for a space that you rarely use because it isn’t a good fit. Use the trial period to try out a few different virtual offices — something that’s impossible with office leases. Bouncing between a few offices during trial periods is worth the effort to ensure you make the right decision.