It was not so long ago when if you mention “virtual office,” you were most likely met with blank or even bewildered stares. Some may even ask if it’s similar to virtual reality where you need to wear those kooky headsets just so you can talk to your boss even while you’re at home and he’s somewhere else and feel like you’re in the same room together. It will probably be followed by hearty laughter, realizing the “absurdity” of such a work setup. After all, it will probably be just in the movies that something like that happens.
For most employees, working means going to the company’s office every day, braving the traffic and even the weather, and being physically present to render the tasks expected of them during office hours, which are usually from 9 a.m. to 6 p.m. That’s just how a traditional office works.
However, they weren’t counting on COVID-19 causing such a massive change in most of the world, especially in the way people conduct their business. Suddenly, employees can’t come to the office to work because the whole country was put in lockdown as the government’s response to the pandemic.
But businesses need to continue their operation, which means a new work setup needs to be established. The traditional office simply wouldn’t do at this juncture. That’s where virtual offices come in, and mercifully, without the need to wear devices similar to the virtual reality gear that VR players use.
Now that the pandemic is becoming less and less of a worry for many countries (thanks to the aggressive vaccination drives held by governments worldwide), companies are facing one important question whose answer not only impacts the organization but the employees as well. Is it time to go back to the traditional office or do they continue embracing the virtual office?
What is a traditional office?
Virtual offices in the Philippines have become a thing, especially among newly established companies, thanks mainly to the lockdowns caused by the pandemic. But even so, the traditional office still has its adherents simply because it’s been the normal way of life for most organizations right until COVID-19 hit.
A traditional office also has its advantages and benefits, chief among them is that a physical address gives the traditional office credibility and legitimacy in the eyes of clients and suppliers simply because they are able to personally interact with people representing the company.
A traditional office also gives off a stable vibe among its employees as they know that, unless something very drastic happens, they will have a company to work for every day. It also has an established structure and system that add to its sense of stability.
Other benefits of a traditional office
Promotes camaraderie
Employees working under one roof will develop a close relationship with one another not just as colleagues but even as friends. This will help in establishing a harmonious working environment that ultimately benefits the company.
Private spaces
Meeting rooms and conference rooms allow for confidential meetings between employees and management or with clients to take place without the fear of someone unauthorized eavesdropping.
Fewer distractions
A traditional office provides a professional atmosphere with minimal distractions for the most part helps employees focus on their tasks.
Controlled environment
Management can make decisions about the office without needing to ask permission from anyone else (unless they will be making major physical changes to the office located in a leased unit of a building).
Foster the company’s culture
With everyone reporting to the traditional office every day, a unique way of life among employees and management can easily develop, adding to the positive image of the company.
Why a traditional office may not be the best fit for startups today
Actually, let us refine the subtitle above: “Why a traditional office is not the best fit for startups. Period.”
One thing that startups don’t have (unless they are an offshoot of a big and established company), is unlimited funds. Most often, their capitalization comes from the pockets of their founders, their relatives, and friends. Investors are not easy to come by because, obviously, a startup doesn’t have a track record yet to entice other people to invest in them.
And so, their budget needs to be properly allocated to make sure that the newly formed company will be able to survive its growing pains, gain stability, and build a good reputation before it can even begin to expect a good return on investment.
For this reason alone, having a traditional office, whether bought or rented, is certainly not recommended as the expenses of acquiring such a place will take out a big chunk of the budget. You will then need to shell out a certain amount regularly for its maintenance and utilities such as electricity, water, and internet connection—money that could be put to better use paying the salaries of high-quality employees or for research and development.
Here are a few more counter-arguments to some of the well-worn justifications for getting a traditional office:
Having an office doesn’t necessarily mean having a culture.
Have you wondered why, even though employees spend around nine hours every workday cooped up in the office, supposedly so they can build a winning culture together, the company would still need to regularly conduct team-bonding activities?
It’s because despite working at one location, employees don’t really have the opportunity to get to know each other. After all, they are preoccupied with their individual tasks, which is what the company wants them to do in the first place in the name of productivity.
Working in an office doesn’t ensure productivity.
Even if managers and supervisors micromanage, they won’t be able to ensure that each employee would be spending all of their working hours being productive. How many office workers do you know who immediately get right down to work the moment their computers in the office boot up instead of checking the newsfeed of their social media account?
A traditional office doesn’t drive collaboration.
Yes, employees sitting for nine hours in an office will collaborate from time to time on certain tasks, but for the most part, they would be doing their respective tasks on their own. If they need something from their colleague, they’ll most likely use the email to communicate, something that you won’t need to go all the way to the office to do.
Remember, Apple, Microsoft, Google, and HP, just to name the most recognized brands today, reportedly started not in a traditional office but in home garages. We’re not saying that every startup that forgoes a traditional office in favor of a virtual office will grow as big and successful as the aforementioned companies, but a virtual office can bring most of the benefits that a traditional office has at a way lesser cost.
What is a virtual office?
At its most basic, a virtual office is a working setup where the company allows its employees to do their job anywhere because there is no physical office to speak of. It is a worker-centric arrangement since the employee can work at home and therefore won’t be inconvenienced with needing to wake up early in the morning to prepare to go to the office and then getting stressed commuting or driving there.
Without this stressful part of working, employees can focus more on their job and can work right away, at the very start of their shift, instead of needing several minutes to calm down and relax after braving the heavy traffic.
Of course, running a company is not that simple, as there are other aspects aside from employee convenience that need to be addressed as well.
For startups particularly, there’s the business registration that can be time-consuming and a general hassle, especially at this time of the pandemic when minimum face-to-face interaction with other people is the norm.
Then there’s the matter of storing company property and handling mail (for physical items received from suppliers as well as those that are sent out such as documents).
This is where business-to-business (B2B) companies like Weremote come in, making any virtual office setup practically a breeze and a godsend for startups. Not only does it provide a business address that gives a new company credibility in the eyes of its target customers, but it also offers services that make it easy and economical to run a full-fledged company.
What’s even better is the flexibility of the arrangement, as there are monthly, semi-annually, yearly, and two-year virtual office rates.
Weremote, in particular, offers different kinds of packages that would suit any company, from startups to even the fully established ones that need to shift from a traditional office to a virtual office because of the pandemic.
You can get a prestigious business address at its virtual offices in Ortigas, Alabang, BGC, or Makati. Rates range from as low as P1,500 (basic) to P4,000 (premium) per month (prices are VAT-exclusive and may vary depending on the location).
Here’s what you can expect depending on the type of package you sign up for:
BASIC
- Business Address for Registration (One-Year Contract Required)
- Personal Mailbox and Mail Handling
- Receiving Mail with Email or SMS Notification
- 30 Mail Items and Parcels per Month
- Free 30-Day Storage for Letter Items
- Free Storage for Packages (Free Days Vary by Location)
- Free Unlimited Discard Mail Items Service (Recycling)
- Free Document Shredding (10 Pages per Month)
- Consolidation of Letters into One Package for Forwarding (Postage and Handling Not Included)
- Free Document Scanning (10 Pages per Month)
- Unlimited Online Storage of Scanned Mail
- Coworking Usage and Access to Common Areas (One Day per Month)
PROFESSIONAL
- Business Address for Registration (One-Year Contract Required)
- Personal Mailbox and Mail Handling
- Receiving Mail with Email or SMS Notification
- 60 Mail Items and Parcels per Month
- Free 30-Day Storage for Letter Items
- Free Storage for Packages (Free Days Vary by Location)
- Free Unlimited Discard Mail Items Service (Recycling)
- Free Document Shredding (20 Pages per Month)
- Consolidation of Letters into One Package for Forwarding (Postage and Handling Not Included)
- Free Document Scanning (20 Pages per Month)
- Unlimited Online Storage of Scanned Mail
- Unlimited Coffee, Tea, and Water
- 1,000 Function Room Credits per Month in Any Location (Access to Phone Booths, Meeting, Interview, and Training Rooms)
- Coworking Usage and Access to Common Areas (Two Days per Month in Any Location)
- Mon-Fri 24/5 Access to the Weremote Space
- Dedicated Account Manager
- Access to Weremote Community, Events, and Trainings
SMALL BUSINESS
- Business Address for Registration (One-Year Contract Required)
- Personal Mailbox and Mail Handling
- Receiving Mail with Email or SMS Notification
- 100 Mail Items and Parcels per Month
- Free 30-Day Storage for Letter Items
- Free Storage for Packages (Free Days Vary by Location)
- Free Unlimited Discard Mail Items Service (Recycling)
- Free Document Shredding (30 Pages per Month)
- Consolidation of Letters into One Package for Forwarding (Postage and Handling Not Included)
- Free Document Scanning (30 Pages per Month)
- Unlimited Online Storage of Scanned Mail
- Unlimited Coffee, Tea, and Water
- 2,000 Function Room Credits per Month in Any Location (Access to Phone Booths, Meeting, Interview, and Training Rooms)
- Coworking Usage and Access to Common Areas (Three Days per Month in Any Location)
- Mon-Fri 24/5 Access to the Weremote Space
- Dedicated Account Manager
- Access to Weremote Community, Events, and Trainings
PREMIUM
- Business Address for Registration (One-Year Contract Required)
- Personal Mailbox and Mail Handling
- Receiving Mail with Email or SMS Notification
- 200 Mail Items and Parcels per Month
- Free 30-Day Storage for Letter Items
- Free Storage for Packages (Free Days Vary by Location)
- Free Unlimited Discard Mail Items Service (Recycling)
- Free Document Shredding (50 Pages per Month)
- Consolidation of Letters into One Package for Forwarding (Postage and Handling Not Included)
- Free Document Scanning (50 Pages per Month)
- Unlimited Online Storage of Scanned Mail
- Unlimited Coffee, Tea, and Water
- 3,000 Function Room Credits per Month in any location (Access to Phone Booths, Meeting, Interview, and Training Rooms)
- Coworking Usage and Access to Common Areas (Three Days per Month in Any Location)
- Mon-Fri 24/5 Access to the Weremote Space
- Dedicated Account Manager
- Access to Weremote Community, Events, and Trainings
Are virtual offices legal in the Philippines?
You would be happy to know that virtual offices are recognized as legal entities by the Securities and Exchange Commission (SEC), the Department of Trade and Industry (DTI), and the Bureau of Internal Revenue (BIR). It’s practically legitimate.
How do I create a virtual office?
With all this information about the benefits of setting up a virtual office and the relatively low cost of getting great services and amenities from virtual office service providers such as Weremote, the next step for startup owners is to create their own virtual office. Here is a simple, five-step plan to do it:
Step 1. Come up with a business plan
Think about your business-specific needs, then draw up your company description from there. You should also have an organizational and management structure and, more importantly, a strategy for marketing and sales as well as the budget and financial projections.
Step 2. Get the right people
Perhaps the best thing about a virtual office is you can get the best people for your needs from practically anywhere in the world.
Step 3. Set up your website and email
You would want people to know who you are and what you sell, whether it’s a product or service. A well-crafted website, one that will pop up in any Google search, will help you achieve that. And you would certainly need to be reached in the most economical and easy way, which an email address will achieve.
Step 4. Use technology
You would need to get the right software solutions for all your company needs such as invoicing, file sharing, document management, productivity management, backup and recovery. They may put a dent in your budget, but it’s worth the investment as they make running the company smoother and with lesser hassle.
Step 5. Create company culture
Yes, despite being a virtual office, you can still create the right culture for your company even if you and your employees don’t have any face-to-face/physical interaction. It’s just a matter of setting up expectations and being clear about each one’s duties and the company’s rules that everyone must abide by.
Make sure you establish virtual office hours when you expect everyone to be on board, doing their job, and easily reached every time there is a need for collaboration, notwithstanding the difference in time zones.
And believe it or not, you can still do team bonding activities even in a virtual setup such as playing online games or even having a team lunch by setting up a schedule when everyone can be available to eat lunch and share their thoughts online, just as if you were actually seated at a single table.
Is a virtual office good for business?
If you’re a startup, the answer to this question is a resounding yes. Let us count the reasons why:
- Gain credibility and legitimacy for your company at a fraction of the cost of a traditional office
- No need to worry about overhead costs such as lease, utilities, and internet service.
- Easy to scale up or down
- Gives more time for employees since they don’t have to commute to and from the office
- Improves work-life balance
- You hire the best talents from anywhere in the world
- Increased employee productivity
- Lower incidence of vacation/sick leaves
- Flexible working arrangements
- A boon to the environment since there’s no commuting or driving to the office, no additional electricity or water used, and less generated waste
Conclusion
Arguably, one of the positive offshoots of the pandemic is that employees and employers alike have realized that you don’t need to physically be in the office to keep the company’s operations humming. On the contrary, recent studies have shown that employees tend to be more productive working from anywhere else but the office because they are more relaxed and are free from the hassle and stress of commuting to work.
It’s no wonder that even as health-related restrictions have eased down in most parts of the world, a lot of companies and especially startups have embraced the virtual office setup. And with the right services for such an arrangement like what Weremote offers, it’s definitely a win-win situation for everyone involved.
