Why Are Hong Kong Businesses Increasingly Using Virtual Offices?

rgqergaContemporary Hong Kong is more exciting and vibrant than ever before. In fact, it’s hard to find a city with a more diverse range of cultures, traditions, and customs. If you want to launch your business in a region that is always inspiring, Hong Kong is a worthy choice. Like all metropolises, it comes with challenges, but they’re no match for ambitious entrepreneurs.

Take rising rent rates, for example. As Hong Kong has grown increasingly popular with investors and inventors, the cost of commercial real estate has soared. In response, many entrepreneurs and small businesses are turning to super flexible, virtual workspaces.

This guide, courtesy of servcorp.com.hk, presents key features of virtual offices and explains why they’re a big hit in Hong Kong.

End of the ‘Lock In’ Lease 

Let’s face it; how many companies survive past their first year?

Given that, according to Forbes, 8 out of 10 entrepreneurs starting new businesses fail within their first 18 months, it is becoming increasingly difficult for business owners to plan for their futures. With this as one of its main contributing factors, Hong Kong is now seeing entrepreneurs be held back by a fear of failure, as discussed more thoroughly in this article by the South China Morning Post. With such a limited potential for a new venture being successful, the idea of a “lock-in” lease is no longer viable for fledgling companies.

Coupled with this, a report released in September of 2016 concluded that Hong Kong office space has maintained its title as the most expensive in the world; a whopping 76% percent more expensive than 2nd place runner-up, New York. When rent rates are as high as they are in Hong Kong, it just isn’t practical to commit to a five or even three-year lease. If you end up having a difficult quarter, you could end up trapped in a costly contract that stagnates your growth.

Virtual providers are very aware of this, and they offer tenants an alternative.

If you can’t afford or don’t want a full-time office, it’s possible to access a range of high-quality corporate resources without paying for one. Virtual offices are exactly that; they’re a remote asset. This allows business owners to place the enormous amount of capital they would have otherwise lost in rent back into growing their business.

Taking Back Control 

To be more specific, virtual offices are intended for off-site use, though most offer a selection of physical resources too. For entrepreneurs and business owners working from home, they’re a great way to grow without upgrading to a full-time, private lease before you’re ready for it.

This is also valuable for entrepreneurs that are forced to travel frequently, as it gives them a solid connection to the daily functions of their business while unable to manage workers directly. Even without visiting the physical office, you can enjoy receptionist, mailbox, IT support, and other services. These perks can be accessed remotely by logging into a central system. Using this method, you can check voicemails, track letters, and liaise with administrative staff.

Introducing Remote Work

One of the main issues faced by businesses looking for new staff is finding qualified candidates in a relatively limited geographical area. This can lead to businesses having to settle for workers that may not necessarily be ideal for the role they have been placed in, which can impact the efficiency and productivity of their team as a whole. Luckily, virtual offices are there to offer businesses a way to expand their reach in regard to finding prospective employees.

The virtual model works beautifully with remote routines and distance workers. As already mentioned, you can visit the facility both as an individual and with employees. However, the most efficient way to run a virtual company is via remote access to software and equipment.

So, if you currently rely on freelancers, independent contractors, or official employees with offsite schedules, a virtual office is a great way to support them. You can use a range of communications software to keep in touch and hire conference rooms for direct meetings.

Affordable Prestige 

Don’t forget that, just because the office isn’t a private hire, it doesn’t mean you can’t treat it as your own. In fact, virtual vendors encourage all tenants to claim the address of the facility as their primary business address, particularly if they’re currently using a home base.

The truth is that home offices don’t look as professional as dedicated, formal workspaces. On paper, they can often lose out to brands with more conventional resources. For this reason, directing corporate mail and calls to a virtual facility can really give your business a boost.

Why Virtual Offices Are a Great Place to Start 

Ultimately, virtual offices are a low-level solution, in terms of size and scale. They offer high-quality resources, but they’re designed to cater to those who don’t need a private workspace. Therefore, you’ll probably need to upgrade to a serviced or traditional lease at some point.

Virtual vendors know this, and they don’t try to lock tenants into lengthy contracts. When you feel it’s time to leave, there are no penalties and no hidden charges. In fact, the best providers will even help you find a spot in one of their managed offices if availability allows.

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