Virtual offices continue to grow in popularity for many business owners. With the workforce changing rapidly, companies are looking for new ways of evolving and expanding their operations.

In a digital-first world, many businesses are taking their work online and reaping the benefits of remote working. One of the ways businesses are doing so is with virtual offices or a virtual address.

Virtual offices allow you to register your company and be present in a location where you are not physically based. Due to this, many turn to virtual office solutions to globalise and expand their networks overseas.

In this article, we explore the benefits of expanding a business globally with virtual offices.

The virtual office market

Virtual office services have many benefits. These include saving on costs and minimising the investment of setting up a physical office in a new location or market.

Companies are choosing to prioritise digital operations and take their businesses online for several reasons. Business owners want to gain international recognition, trade in other regions, and, ultimately, increase revenue.

Virtual Office Market Value

Year	Market Value (USD)
2021	40.51 billion
2029	137.65 billion (estimated)

 

In 2021, Maximize Market Research valued the virtual office market at 40.51 billion USD. North America and Europe both saw an increase in flexible working and by 2029, the value is expected to reach 137.65 billion USD.

In the UK and the US, the virtual office market is mature. The demand for virtual business offices in these countries could be due to several factors. These may include the scarcity of traditional offices, rigid lease agreements, and the expansion of sectors such as IT.

Virtual office spaces are still prevalent in today's global market

In the post-pandemic world, the workforce has evolved and is not showing any sign of returning to the traditional way of working.

In 2022, a survey by CIPD, conducted with over 1000 senior decision-makers, found that 78% of employers can offer hybrid working models and already implement them.

Changes in remote work

The remote working landscape is ever-changing. Before the COVID-19 pandemic, remote working was gaining more traction. Between January and December 2019, 12% of the UK workforce had worked from home at least one day in the previous week.

During the pandemic, many companies enjoyed the benefits of home working policies. Now, many companies prefer a hybrid or flexible working model. These models either combine face-to-face working and remote working or opt for fully remote teams.

The ONS reported that from January to March 2022, 14.3% (2.8 million) of typical non-homeworkers said they worked from home for at least one day in the reference week.

Low price costs with workplace flexibility

For many businesses, renting traditional office space isn’t a viable option. This is due to high rental costs and rigid lease agreements. Naturally, this is especially true for smaller businesses and startups.

If a business wants to set up a virtual business address in their desired location but a traditional office costs too much, a virtual office will offer more flexibility and a more feasible option.

Expanded pool for talent acquisition

Having a virtual office address for business operations allows businesses to hire team members from that location. It does not matter if the company does not have a physical presence or a traditional office there, thanks to the virtual address.

This allows employers to recruit from a wider talent pool with varied skills, foreign languages, and valuable experience in their native market.

Employee preferences

Virtual office locations give employees more freedom over where they work. Whether they spend some days in a shared office or work fully remotely, they often benefit from a better work-life balance and save time and money from less commuting.

How can a virtual office help enter international markets?

One of the key benefits of setting up a virtual office is the opportunity to take your business international. A virtual office for rent can facilitate companies expanding overseas without taking all the risks associated with setting up a physical, traditional office in a new market.

Virtual offices can help to provide legal licenses for business activity, the ability to open bank accounts and residence visas, and permission to do business in the chosen country.

Test a new market

Businesses interested in expanding overseas can use a virtual business address service to test the waters in a new market or country. Companies can set up international virtual offices, which is quicker, cheaper, and easier than setting up a physical team in a traditional office in a new location. 

Flexible contracts and leases

When opting for a virtual office set-up, businesses can avoid committing to long-term contracts. That includes avoiding the often expensive lease agreements that come with traditional office spaces.

These benefit companies that are looking to quickly gain a presence in a new location without having to invest in expensive office real estate. This explains why virtual office leases are popular among entrepreneurs, startups, and small businesses.

Expand with minimal financial risks

Expanding business overseas is typically an expensive and high-risk venture. Investing time and resources in new territory is often too big of a risk for young, growing businesses.

Business owners can use virtual office space to break into a foreign market and expand business abroad without physically moving to that location.

Attract potential clients

Virtual international expansion allows companies to gain recognition as international business players. It also puts them on the radar of new prospective clients in the areas where they have a virtual address.

This helps to open up new opportunities to make deals, trade with new clients and partners, and make more revenue.

Streamlined communication

With a virtual business address in the desired location, the business will benefit from having a local phone number, business address, and presence in the local time zone. Potential clients are more likely to want to work with and trust businesses that have a local presence than dealing with an overseas entity.

Global recognition

having a legal address in a well-known business centre can boost a business’s credibility. By acquiring a virtual address for business operations, companies can improve their status on the international business stage. Companies with a presence in multiple countries can be more valuable as they have access to more clients, resources, and market knowledge. Also,

Business hub available 24/7

Another benefit many virtual office spaces offer is the ability for business owners and employees to rent out meeting rooms and conference rooms. This service is particularly useful for businesses to host professional meetings with clients without needing to rent out a whole office.

Find your virtual office with Regus

Ultimately, setting up a virtual office with a virtual company address can help a company achieve international reach and recognition. It is a quick, efficient, and cost-effective way of expanding a business into new markets without long-term commitment and expense.

By having a legal address in a desired location, businesses can bypass the complex processes of setting up a traditional office. They can better communicate with new local clients by having a local address and phone number, hiring local staff with language skills and native experience, and renting meeting rooms when needed.

To see how Regus can help with your virtual office solutions, get in touch and make an enquiry today.