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What is a virtual business?

Virtual offices are gaining popularity globally, as they provide an opportunity to grow a business while maintaining a work-life balance. Learn what a virtual business is today in this guide which explains everything you need to know including how a virtual business works, and how our virtual office packages can help you achieve a flexible working solution for your company or working lifestyle.

Virtual Business Definition

So, what is a virtual business?

Originally, the term ‘virtual business’ simply referred to the idea of working remotely, but the definition of what a virtual business is has evolved over time. Initially, virtual companies were thought of as ‘virtual’ if they merely outsourced work to people in different cities, or had virtual teams or departments in another area or region outside their headquarters.

However, being a digital business can mean a lot more than that. In this era of increasing technological advancement, being an 100% virtual business is very possible, meaning everybody within a business has the capacity to work remotely. This can allow for nationwide – or even worldwide – employees to be part of the same business, as location is no longer a concerning factor.

How Does a Virtual Business Work?

Most of a digital business’ procedures are completed with just a computer and internet access by adapting technological innovations such as online video meetings, project management tools, messaging platforms, automation or live chatbots. This allows employees to work from home, coffee shops or libraries, thereby allowing businesses to cut their overheads as they do not permanently rent physical spaces and utilities. Instead, they can outsource their business operations and hire the best talents around the world.

This has become a common occurrence since the pandemic, with almost half of adults in the UK working from home as a result of Covid-19 – and this trend has continued well into the aftermath of lockdown. In fact, as of 2024, 26% of UK employees worked from home at some point during the working week, meaning that the concept of the remote business is here to stay.

Virtual Business Management

It’s not always possible for every role or industry to adapt to being 100% virtual. However, there are a number of sectors that could certainly adapt to working remotely for a virtual business…

  • Publishing
  • Marketing
  • Finance
  • Sales
  • Retail
  • Customer service
  • Helpdesks
  • Education

Dependent on the style and nature of your business, virtual businesses can be a great step forward in creating a diverse, flexible working community that can be an attractive pulling point for recruiting candidates and expanding your business. 

However, managing virtual employees is a completely different ball game to managing employees in a physical office. This is due to a lack of physical communication, little face-to-face interaction and an absence of physical teamwork between virtual employees. If you’re in need of a few hints and tips regarding how to manage a remote team, check out our guide.

Virtual Office Solutions

Having a virtual office can be game changing for new and existing virtual businesses. Here at Grosvenor House, we are proud to provide solutions to help you bridge the gap between traditional and virtual offices. Our range of services span from mail forwarding to call handling and meeting room hire, so whatever your virtual business needs, we’re here to assist.

Located in the heart of Birmingham’s city centre, Grosvenor House also offers modern business spaces for only £25 per hour – meaning you don’t need to compromise on location when searching for your perfect city-based office building. 

Ready to level up your business? Contact our helpful team today or explore our meeting rooms to hire in Birmingham today.