A Virtual Company: the Pros and Cons
A Virtual Company: The Pros and Cons
Applied Business Law – 34 Team Assignment – Week 7 Written and Submitted by: Renata Davis
Virtual Space or Real Space
Virtual companies (VCs) have little or no tangible presence outside of the internet. They could rightfully and insightfully be called businesses without walls. The possibilities for a VC are limitless and only bound by the limits the owner/entrepreneur puts on them. All business is conducted electronically. No need for high rents and overhead costs or buildings in which to operate their businesses. It is also important to note that virtual companies are generally service or sales oriented and are goal driven. The focus is solely on what the business has marketed and intends to provide and the ability to outsource things not directly related to those services is much easier. For example, a virtual administrative assistant whose task is to produce 30 copies of a presentation can be accomplished electronically by sending the file to the printing company via email and having the presentations ready for pick up and customer shipping all in the same day without the hassle of having to take a trip to the printer twice. In today’s busy world, coupled with the economic downturn, VCs have made it easier for businesses to get some of the services they need, i.e. secretaries, administrative assistants, bookkeepers and accountants, sales staff and even lawyers, without the overhead they would experience if they had to hire someone and provide a base salary along with benefits. Virtual businesses offer owners the infrastructure of a regular business without the actual infrastructure! VCs are becoming increasingly popular for a number of different reasons and one of the reasons is that a virtual company removes the headache of finding a location for the business and a building in which to conduct the business. The overhead costs associated with the task of finding suitable space in which to operate, equip and insure
Applied Business Law – 34 Team Assignment – Week 7 Written and Submitted by: Renata Davis
Virtual Space or Real Space
Virtual companies (VCs) have little or no tangible presence outside of the internet. They could rightfully and insightfully be called businesses without walls. The possibilities for a VC are limitless and only bound by the limits the owner/entrepreneur puts on them. All business is conducted electronically. No need for high rents and overhead costs or buildings in which to operate their businesses. It is also important to note that virtual companies are generally service or sales oriented and are goal driven. The focus is solely on what the business has marketed and intends to provide and the ability to outsource things not directly related to those services is much easier. For example, a virtual administrative assistant whose task is to produce 30 copies of a presentation can be accomplished electronically by sending the file to the printing company via email and having the presentations ready for pick up and customer shipping all in the same day without the hassle of having to take a trip to the printer twice. In today’s busy world, coupled with the economic downturn, VCs have made it easier for businesses to get some of the services they need, i.e. secretaries, administrative assistants, bookkeepers and accountants, sales staff and even lawyers, without the overhead they would experience if they had to hire someone and provide a base salary along with benefits. Virtual businesses offer owners the infrastructure of a regular business without the actual infrastructure! VCs are becoming increasingly popular for a number of different reasons and one of the reasons is that a virtual company removes the headache of finding a location for the business and a building in which to conduct the business. The overhead costs associated with the task of finding suitable space in which to operate, equip and insure
References: Roger LeRoy Miller. & William Eric Hollowell. (2011). Business Law Text & Exercises. (6th ed., pp.383-416). Mason, OH: South-Western Cengage Learning. (2004). Starting a Virtual Assistant Business. Entrepreneur. Retrieved 02/28/2012 from http://www.entrepreneur.com. www.leeclerk.org www.sba.gov (2012). Starting a Business. Entrepreneur. Retrieved 02/29/2012 from http://www.sba.gov/category/navigationstructure/s starting-managing-business/starting-business. www.sunbiz.org www.dol.gov (2012). Help Navigating DOL Laws. United States Department of Labor. Retrieved 02/29/2012 from http://www.dol.gov/compliance/audience/smallbus.ht m. 6