For one thing, it is extremely cheap to use a virtual office instead of physical space. By reducing normal variable and fixed costs, you will have much more capital to channel into other more important aspects of your business. Whether you have a warehouse to maintain, a kitchen or distribution point to upkeep, you do not have to worry about renting out an office to house your employees and stress yourself out on the many different rising costs that may exist. The amount of money that employers are spending on their offices is not a joke, especially for those SMEs who only realise later that their office is actually more of a liability. At the end of the day, you will be the best judge on whether or not you can shift your operations partially or completely virtual. For some businesses, the ideal arrangement is to virtualise only part of their operations in order to exploit the cost savings and increase their profits. Whatever the use, cost is a major factor in why a virtual office is a viable business solution. It is also great because they provide one-stop service solutions for you, which means less of hassle setting up telephony, email, fax and internet. Sure, they charge you a premium, but when compared to the amount you will save paying monthly bills, it is a far better solution.They also provide receptionist and even physical spaces to conduct meetings; furthermore, you will be able to use a premium business address on all your carriers.The flip side of this is that virtual offices can be seen a mile away, which means that it can either be seen as an innovative and cost cutting method, or a cheap solution to keep the business running. Sometimes, customers would like to know that you have a dedicated place where they can drop by anytime and talk to the employees or the boss. Personal contact is still important in the business world, and the virtual office, with its limited personal interaction, cannot provide for that. Even renting out the physical locations are based on availability. Also, one of the complaints commonly received by people who have virtual office is the quality of the receptionist. Often they are placed in charge of more than one company and this makes it a diluted service experience for the client. They are unable to answer the more specific questions and sometimes are at a loss, which is bad for business. But these are the risks that you have to take. It is hardly possible to get a low-cost solution for your office operations without compromising on certain aspects. It is how you choose the virtual office and control the dynamics of its operation that will ensure the success of your business. Though there are pros and cons of utilizing a virtual office, it is still a practical business solution for those looking to start cheap.