The costs associated with opening a office from scratch are very high. Just finding office space can be challenging. This is why many businesses and individuals look to executive office space, virtual office space or a business center to get their work done.
What Is a Virtual Office Space?
A virtual office space or coworking space is a professional office space that includes all of the infrastructure needed to operate a business but usually does not offer a dedicated workspace for people (sometimes they do). The office will have the internet, copiers, desks, a conference room and a mailing address. This is great for people who don’t want a post office box and would rather not use their home address for business purposes. It also offers the social aspects that a lot of professionals like and that you cannot get when you work from home.
What Is an Executive Office Space?
Also called a serviced office space or office business center, with this arrangement, businesses get a dedicated office, all of the amenities offered in a virtual office space but they also get a receptionist and administrative support. There are approximately 4,000 business centers in the United States. The cost does vary depending on location and what amenities they offer but some business center space can be rented for a few hundred dollars a month (per person).
What are the other benefits of these kinds of office spaces?
For both executive office rentals and virtual office rentals, the lease terms are generally flexible. Some can be rented for as short a term as an hour or day. Others can be rented by the week or month. They also are all ready the minute a person walks in. There’s no set up to do.
Who Uses These Spaces?
- People who work for themselves. For many people, working from home sounds amazing. You can wear whatever you want, there’s no commute and your refrigerator is right there but after you’ve done it for a while, it gets old. If anything breaks down, it’s all on you.
- Small businesses: These are vital to the economy. They are one of the biggest drivers of job creation in the country — nearly 65% of jobs created since 1995 have been in small businesses. According to the Small Business Administration (SBA) any business with under 500 employees falls into the “small business” category and there are at nearly 28 million of them in the U.S..
- Start-ups: It is expensive to start a new company. According to the Kauffmann Foundation, the cost associated with starting a new business can be as high as $30,000 (as of 2009). Renting a virtual office space or an executive office space can cut down on the cost and reduce the barriers to creating a new business.
- Contractors: Some contractors — both governmental and private, need office space away from the main headquarters. Often this is for short term assignments or projects and opening a new office doesn’t make sense.
Whether a business needs temporary office space or something long term, a virtual office space or executive office space can offer flexibility and infrastructure to make doing business easier and more productive. These can also be very cost effective in cities like New York, Miami and Atlanta where traditional office space is very expensive.