Physical vs Virtual Office: Which One Should You Go For?

For some years, experts have been discussing the advantages of virtual office setups over conventional office setups. While results are still a long way off, there have been some fascinating case studies and far more than a few perceptions made. So, let’s take a good look at the key distinctions between a virtual office and a conventional office setup.

Flexible Space vs. Physical Space

The first, and most important, distinction between these 2 office methods is physical space. After all, a typical office is just that: a real place with walls, floors, tables, conference rooms, a reception area, and so on. Physical rooms, on the other hand, are seen as secondary in virtual workplaces. Employee’s scatter, either functioning from lounge chairs or coffee shops, or occupying space in a co-working space or a space made available on a temporary basis by a virtual office supplier.

The virtual office leases a mailbox from a physical location, sets up email and phone service, and employs most of the same always-on applications as any other firm.


Communication in conventional offices is in principle, very straightforward. You’re in the same room as your co-workers and may actually ask them a question or accompany them to the conference room. Because of their flexibility and distributed existence, virtual offices operate in a unique manner.

Depending on the area, communication is mainly facilitated by technology, which includes IMs, messaging, phone calls, livestream calls, project management tools, emails, and more. Instant access is also highly valued, and all company-recommended communications systems should be properly installed and managed to keep everyone informed.


Virtual offices are less expensive, but not all expenses are eliminated. When required, some room is normally rented to act as a base camp or conference area for employees, customers, or clients. IT costs such as hardware, software, protection, and setup remain in place. The same is true for publicity, human resources, and other costs. However, reducing commercial leases, parking space costs, and utility costs will go a long way toward increasing a small business’s profit margin.

Depending on the location whether its office to rent south Melbourne or Sydney the overheads can vary.


Management can be difficult in both conventional and virtual offices. In a typical workplace, supervisors will actually look at an individual to see how hard they are performing based on how much time they work at their desks in a given week. It is essential to arrive early and leave late.

Workers in a virtual office, on the other hand, are more dispersed and clearer, over-the-shoulder supervision is impossible—which has turned out to be a mixed blessing for many businesses. Some have correctly observed that when workers work from home, their hourly productivity will suffer.

Others report great results after implementing a project management framework that acknowledges individual employees’ regular efforts toward defined goals. Team members are given goals, both short & long term, and are responsible for achieving those goals on a weekly basis while communicating remotely from wherever they are operating. This relieves stress from the 9-5 routine and recognizes productivity and performance, while also allowing workers to manage a sick kid, take a long afternoon nap, or go out for dessert with their partner.


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