In difficult economic times, companies need to make savings wherever possible.
The more efficiently they can operate, the larger the profit margins businesses can potentially achieve.
But finding ways to reduce outgoings can be difficult for companies at present – particularly as many have already implemented major cost-cutting plans since the start of the last recession.
One way companies may be able to reduce expenditure is by using virtual offices.
Rather than taking out a lease on commercial property and setting up a fully-operational office, small business owners can outsource many of their service and admin functions.
The day-to-day running of the businesses can take place from home or even on the move, but the company can pay for a mailbox and answering services at an elite city address.
As such, the business can advertise itself as being based in a central location, but avoid the costs associated with staffing an office in an expensive part of town.
From a customer perspective, they will assume that the company is based at the site of the virtual office.
Indeed, in the majority of cases, there will be no need to explain that the company is physically based in a less prestigious location – such as the owner’s home.
Small businesses in particular can rarely afford to pay for city offices, and by eliminating this expense from the balance sheet they give themselves the best possible chance of success.
Writing for AccountingWeb.com, Mark Lee, chairman of the Tax Advice Network, recently claimed that virtual and serviced offices can give new businesses the prestige they need to attract top-tier clients.