Why working out of Virtual Offices and Co-working Spaces should be your plan as against renting individual office space

If you have been operating traditionally – leasing office space to run your business, the lease rentals could be anywhere between 10-20% of your total business revenue. Particularly if you are a service-based organization, the location of your office would be vital for your business. Therefore, the office rent would be closer to the higher limit in the range mentioned.

Now, this is elementary math – if you can bring down the cost of lease rentals by 50%, that translates into 5-6% higher post-tax profitability for your company.

Good enough incentive to explore options?

Then it’s time to devise a strategy to work from virtual offices or co-working spaces. Let us look at:

How the co-working spaces and virtual office options can deliver rental cost-savings

When you decide to take office space on lease, you ascertain your business’s different requirements – the reception area, the seating space, meeting rooms, conference rooms, cafeteria, etc.

However, not all such spaces would always be utilized. For example, there could be times when your meeting and conference rooms would be empty. And yet, you must pay rent every month, regardless of how much the actual time of use of each space within the office.

Now where co-working and virtual office spaces offer an advantage is that you don’t need to pay monthly rent for the entire office space. You could pay only for the type of space you require, and that too, on an hourly basis if need be. For example, if you require only a few dedicated desks for the most part and might need to use meeting rooms for a few hours every 3-4 days, you can book the dedicated desks every month and the meeting rooms on an hourly basis on days when you need them.

If you decide to opt for a rent virtual office, there are several add-on services that you can avail of for an additional charge depending on your requirements, such as:

• Dedicated telephone line
• Branded board at the office address
• Physical Mail handling
• Virtual receptionist services to handle incoming calls

You might choose a coworking space for rent or virtual offices depending on your specific requirements. You get the chance to set up your presence in different locations by using this strategy. Moreover, because these two are cheaper options than the traditional way of leasing individual office spaces, you can also establish your presence at prime locations. This is especially important in services industries, where Place is one of the more important Ps among the 7Ps of the marketing mix. Because you have a presence in a prime location, your service brand will automatically command tremendous respect among clients, and you can get to charge a premium for your services.

There are numerous benefits to reap from exploring the co-working and virtual office options, especially when those are also going to improve the health of your bottom line.