The importance of a Virtual Office

For a company, regardless of its size, the initial investment in facilities is always an element to consider when adding all the necessary costs to start business.

The initial deposits of rent, the hiring of all services such as electricity, telephone and internet and the purchase of office furniture and computer equipment are undoubtedly such a considerable expense that sometimes even, you can question the start or not of the new business.

Once the company starts operations, the fixed expenses are always an important item in the monthly business budget. The rent of the offices, the payment of the different services and of course the payment of the secretarial staff make the company have the need to allocate a significant percentage of its profits to cover these expenses.

In addition to the financial aspect, it is also important to consider the legal part of being a tenant and employer of a greater number of people. As is to be expected, in this way the risks to which the company faces are greater, for example, in case the leased premises suffers an incident such as a fire, a flood or a landslide, the legal representative must demarcate the company of some responsibility, and if this could not be the case, then the company must correct the damages and losses caused, thereby generating an impact on their cash flows.

As an example of occupational risks, there may be situations in which an employee is separated from the company and he decides to initiate a legal defense, establishing a claim for compensation. With this, the business can be affected both financially and legally incurring expenses during the time the trial lasts.

The points discussed above, should not be a series of causes that discourage the entrepreneur to carry out his idea. In our task as business consultants, we help our clients in this first stage of their business, to find options to face these situations that allow them to start operations maintaining financial stability and reducing any legal risk that may exist.

How a virtual office is a great choice when starting a business

One of the options that we present to our clients, both micro and small or medium entrepreneurs, is to hire the services of a virtual office. This type of office has considerable advantages that allow a company to start in an easier and safer way.

For example, it will not be necessary to consider the expenses for the hiring of services such as electricity or telephone within the initial investment, nor will a cash flow decrease be incurred when 2 or 3 months of rent have to be used as a deposit to be used.

In the case of the staff that will answer the phones and perform some secretarial activities, the virtual offices also offer this service, with which the occupational risks and expenses of recruitment and training decrease considerably or even disappear.

To decide if it is more convenient to make expenses for the rent, adaptation and operation of the offices or hire a virtual office, it is important to know what the requirements of the new company will be in its different stages, as well as the profits that it will generate.

Our permanent recommendation to our clients who are about to start operations or who want to generate higher profits and reduce their operating costs, is to have a Business Plan, since through this tool, they will be able to know the expenses that will exist and the time in the that the company can cover them with their profits. Thus the benefits of contracting the services of a virtual office can be evaluated in advance.