A business address is the number one requirement to registering your business in the Philippines. It is also one of the most costly operational expense. But, the pandemic has shown us that Virtual Office is the most practical choice in the new hybrid work set up. However, there are policies that require a physical structure. So, the question is, which one is for your business?
A Virtual Office means that you get to customize your needs, which means you can choose from several packages from a Virtual Office provider that matches your company’s needs such as: business address, call answering, meeting rooms, etc. Also, did you know that you would need to consider 5 factors in choosing a physical office space? Such as: price, location, size, infrastructure, and the design. Now, let us go through what is the difference between a Virtual Office and a physical office space. A Virtual Office gives businesses addresses and office-related services without hiring staff, also employees may also work anywhere. While renting a physical office space – is where employees need to work in the office and the company has to pay rent for the building. Now, Let us now determine which is better between Virtual Office and a physical office space.
In order for you to determine which is better between the two options, here are the advantages and disadvantages of Virtual Office and physical office space:
Advantages of Virtual Office:
- Flexibility – You do not need to be in the office in order to work, since you do not have physical office space which means you can work remotely anywhere that you are comfortable.
- Lower cost than physical office space – Since you are just subscribing for a Virtual Office, you are not entitled to furnish the entire office or pay bills. Also, there are inclusions that a Virtual Office has that is much more expensive when having your own office space like the reception area.
- Professional Appearance – For startups, it is important to have a positive image for their clients that would make them look professional and have credibility.
Disadvantages of Virtual Office:
- Services may be limited – Sometimes when you want to use the services of your Virtual Office provider, the meeting rooms and the conference rooms are not available at times because there are other companies that are using it too. So, it is important that you plan ahead.
- Restricted Access – Of course you can only access the services of the Virtual Office during their operating hours only, once you go beyond, there are additional charges.
Advantages of Physical Office Space:
- Better Collaboration – Since all of your colleagues are in the office, it is easier to communicate with them rather than texting them (if they are working remotely).
- Company Culture – This is where everyone is equal in working conditions, where all employees have the same working environment rather than working from home, where for some they are distracted because they are too comfortable.
- Professional Development – Most especially for young professionals starting out, it is important that they get to feel what it is like to work from the office and to experience the working environment.
Disadvantages of Physical Office Space
- Higher Costs – Since you are renting an office space, you are responsible for the maintenance, bills, and the furniture which makes it expensive.
- Less Flexibility – Of course, when you are working from the office, you would need to commute to the office and have less time with personal obligations.
- Higher Payroll – Renting an office space means that you would need employees that are in the office. You would need to consider their salaries and benefits which is also the reason why it is costly to have an office space.
Now you know the difference between subscribing for a Virtual Office and renting a physical office space. Subscribing a Virtual Office may be more convenient since you can work anywhere and it has less cost since you do not need to pay the maintenance and other bills. Also, if you are a start-up business, this is the practical way to start rather than renting a physical office space. For the physical office space, it is better for young professionals to start working in a physical office space in order for them to experience the work environment and to have a feel of what it is like to collaborate with colleagues. Between the two options, it really depends on your company’s needs. Now you know the difference between subscribing for a Virtual Office and renting a physical office space, which one would you go for?