Demand for versatile workspaces like global coworking spaces and virtual offices continues to soar. Analyst forecasts global CAGRs of 12.5% and 8.5% over the next several years for coworking spaces and virtual offices, respectively. From Mumbai to Jeddah to Los Angeles, markets continue to witness strong demand driven by growth in entrepreneurship, the shift to remote work, and the broader and perhaps permanent transformation currently underway across the global workforce.
Debates on economic fragmentation and re-globalization aside, in recent years, there has been a proliferation of solutions supporting solopreneurs, entrepreneurs, and SMEs in various growth and business development initiatives locally and abroad. Such examples are Alliance Virtual Offices, a global virtual office and coworking provider, Deel, a fully integrated global HR platform to rapidly onboard and scale global teams; or Firstbase.io, a rapid company formation solution for establishing LLCs in the world’s largest economy, the United States.
Other solutions, such as Creators Legal, provide legal solutions and standard contract formats catering to a niche customer segment, e.g., the more than 80 million content creators in the US. These solutions have all been made possible with substantial technological advancements, artificial intelligence, telecom infrastructure, etc.
Virtual offices and co-working spaces are nothing new. However, the industry is currently experiencing an upswing, given the aforementioned trends and developments. However, for many new start-ups, solopreneurs, and even more established players, versatile workspaces are an essential part of the solution architecture, providing substantial benefits. These solutions differ in use case and costs, so it’s important to choose wisely. In this article, we’ll look at which one might be right for you and highlight Alliance Virtual Offices, a company providing virtual office and coworking solutions for over 30 years.
The Virtual Office:
Virtual offices (VO) provide a mix of remote and physical office services, offering a combination of tools and services designed to provide you with all the benefits of a physical office while you work remotely. Unlike a regular office suite, you don’t rent physical working space in an office. Instead, you rent the address located at a physical office building.
Key Advantages of a Virtual Office:
- Enhanced Flexibility
- Reduced Costs
- Increased Productivity
- Access to Global Markets
- Business Agility
Access to a physical office address is one of the most important aspects of a virtual office. To fulfill many key requirements of running your business – such as entity registration, forming an LLC, applying for business licenses, and so on – you need to provide the government with a physical address. We would note that each country and city approach LLC registration with a VO differently, so it’s important to seek advice ahead of time. Most VOs given their customer base, are familiar with local regulations and can offer some guidance during the setup process.
You can always use your home address; however, the virtual office helps separate your personal and business finances, protecting your personal assets. The VO also builds your company’s credibility and branding (business cards, emails, stationary, etc.), reassuring clients, partners, and potential lenders that your company is a legitimate organization and not a fraudulent enterprise.
Coworking Spaces:
Coworking spaces are flexible working spaces located throughout the US, and globally. They provide a mix of rented desks within an open, shared office, along with designated offices for private working space. Onsite amenities usually include various meeting room types, lounges and kitchen areas, event space, a coffee station, and a receptionist desk.
Coworking spaces host a range of workers from several different organizations simultaneously – hence the name ‘co-working. The result is a collaborative, community-focused work culture. Community is the operative word, and there are definite do’s and don’ts when ensuring a productive experience within the coworking space. However, the experience can be worthwhile, allowing you to maximize productivity.
Ideal for entrepreneurs who want a supportive, amenity-rich work environment away from home, entrepreneurs can rent a desk in a shared workspace or commit to their own private office with full-time access. Coworking is useful for building connections and gaining inspiration from others.
Ultimately, a coworking space provides many of the same features as a virtual office.
- A business address
- A place to receive mail and have it forwarded
- Meeting rooms
- Shared or private workspace (often both)
- Onsite staff to offer support, greet visitors, and set up meeting rooms
According to a recent study, 74% of respondents reported increased productivity using coworking spaces. Additionally, most respondents reported additional benefits such as access to a larger business network (86%) and an increased social network (93%).
The main difference is that coworking spaces are set up to accommodate people who want a regular workplace, often on a full-time basis. This is reflected in the price. A virtual office does provide a physical workspace, but it’s accessible on an hourly or daily basis and paid for as needed. That’s why the cost of a virtual office is typically much lower.
The Alliance Marketplace
In addition to the high-quality physical and human infrastructure at VOs and coworking spaces to support growth for SMEs and solopreneurs, Alliance Virtual Offices also provides access to a robust solutions marketplace to power your business growth. Solutions can be found in a range of categories, including
- Accounting Software & Bookkeeping
- Advertising & Marketing
- Business Credit Building
- Business Formation
- Business Insurance
- Business Licensing
- Legal Documents & Services
- Payroll Processing & HR
Businesses Benefiting From Versatile Workspaces
VOs and coworking spaces benefit clients from Fortune 500 to the solopreneur. However, there are industries where these flexible solutions can add significant value. These include:
- Solo Attorneys and Small Law Firms
- Financial Advisors
- Insurance Brokers
- Real Estate Professionals
- Business Consultants
- Construction and General Contractors
- Start-Up Businesses
- Trucking and Logistics
- Media and Entertainment
- Health and Wellness
Many of these businesses consist of small teams but conduct business in multiple markets, both domestically and internationally, where a well-established presence is important.
Versatile Workspaces: No Signs of Slowing Down:
Finally, building partnerships and entering new markets remains just as important as ever. Today there are close to 600 million entrepreneurs worldwide who currently own or operate a business, according to the Global Entrepreneurship Monitor. This number shows no signs of slowing down in the coming years. Emerging markets in Asia and Africa continue their upward trajectory in development and growth. Additionally, the ease of doing business worldwide continues to improve.
In the US, solopreneurship remains a viable path to high income. The recent round of layoffs, in the tech sector most likely will add to the ranks of the more than 40 million solopreneurs in the US. As a small business owner scaling your business doesn’t have to be difficult or costly. More importantly, VO and coworking solutions should be an important component of your growth strategy and competitive edge.
To learn more about Alliance Virtual Offices and other solutions to support your local or global growth initiatives as a solopreneur or small business, head over to ClearSky 2100 Ventures to learn about our partnerships. Alternatively, feel free to get in touch to discuss.
Disclosure: At ClearSky 2100, our portfolio partly consists of affiliate partnerships. We may earn a small commission from buying links on our site at no cost to you.
