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A virtual office is part of the flexible workspace industry that provides businesses with any combination of services, space and/or technology, without those businesses bearing the capital expenses of owning or leasing a traditional office.
Virtual office services started in the 1960s as serviced offices and have evolved with technology to include a wide variety of personnel, physical space, digital storage and communication services.
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How Virtual Offices Work
Virtual offices operate as one unit to serve customers but do not exist in a fixed location. This type of set up is especially popular with startups and small businesses that want to minimize overhead. The creation of web-based office productivity software and services, such as videoconferencing, has helped drive the growth in virtual offices.
- A virtual office is a company that operates as one unit and has a physical mailing address, but does not exist in one specific location.
- The development of tools such as videoconferencing and messaging services has led to the increased usage of the virtual office.
- The costs of operating a virtual office are much less than a traditional office, and that’s why this type of set up is popular among small businesses and startups.
- A virtual office arrangement expands job options for employees and hiring options for businesses.
- While the virtual office is typically a less expensive option for business, some services, like phone answering and videoconferencing, might have limited accessibility.