Firstly, it is much cheaper to use a virtual office as compared to a physical one. You cut down on more than three quarters of the normal variable and fixed costs and this leaves you much more capital to invest on other 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. Some business have taken an approach of virtualising part of their operations to cut costs and increase profit margins.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. Although they do charge you a premium, it is still a far better solution as compared to the amount you will spend paying the monthly bills for a physical office. 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. Some customers prefer to have a dedicated headquarters where they can visit and talk to the employees. 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. You cannot expect to get a cheap solution to your office problem without some drawbacks. It is how you choose the virtual office and control the dynamics of its operation that will ensure the success of your business. These are some of the pros and cons of using a virtual office, but in the end of the day, it is still a viable business solution for those looking to start cheap and build momentum from there.