Operating without an office has long been common for small businesses looking to keep overheads low as they start out, but, even as they become more established, companies are choosing to stick with the virtual office model. The employees of open-source content management system WordPress all work away from its rarely-used office, while PricewaterhouseCoopers recently reduced office space per employee by 30% to become a more virtual business.  So, is the era of the office over?  The 16 employees and 27 associates of Caffeine, a business consultancy, decide where and when they work. “I don't mind where or when you do it, as long as you deliver for the client on time and to a good quality,” says chief executive Sophie Devonshire. Employees work from home or coffee shops, and use private members clubs to meet clients.  At Sensee, a customer service provider, almost all 800 employees work from home. The company provides all the software, but staff must have their own desktop computer, phone, broadband connection and a secluded space to work. “It’s as much for the security of the employee as for the data of the client,” says Steve Mosser, founder and chief executive. “We don't do things with laptops, as Wi-Fi networks aren't secure – and we have a health and safety responsibility to the people we employ, which is limited to the vicinity of their work stations.”  Sensee employees can set their own hours. The company uses in-house software, where clients post their requirements and hours. Each employee then signs up for the client-posted hours that they want to work.  Working virtually is possible – businesses just have to give it a goSophie Devonshire, Caffeine  Those working for an office-less company can also wave goodbye to rush-hour madness and commuting costs. For the business, however, no office means lower overheads and a distributed workforce allows it to attract the best workers. “We only employ self-starters and those who can get things done fast,” says Ms Devonshire. “We need over-communicators. If you're not [physically] working next to someone, you need to update everybody regularly.”  Mr Mosser is particularly proud that Sensee has employed people who might find it difficult to travel to an office and do a 9 to 5 day, such as those who have a disability or who live in rural areas. “We have people from all walks of life, which is probably our proudest achievement,” says Mr Mosser, who adds that 20pc of his employees have a registered disability.  Developments in technology have made it possible for businesses to take their work online. Office-less SMEs rely heavily on cloud-based programmes such as Google Drive and Dropbox to store and share information. Many also use Trello for project management and PipeDrive for managing data.  To stay in touch with colleagues, video chat and conferencing applications are popular choices for video conferencing. Slack also seems to be a popular instant messaging tool. Caffeine, for example, uses a number of channels (message threads) to discuss specific projects and for more general discussions. “We had an Eighties throwback channel at one point,” says Ms Devonshire. “It becomes a simulation of the office and the chats you'd have, but it's more convenient because you choose when to look at it.”  “I probably communicate more with my staff than most people who work in an office,” says Max Robinson, who's run Ace Work Gear, a construction safety equipment and workwear retailer, from his home since 2007. “We're constantly talking on the phone or using messaging apps to make sure we're all on the same page,” he says.  But operating without an office doesn’t work for every business. Matthew de la Hey and Alex Hanson-Smith didn’t have one when they started Inploi, a jobs network for the hospitality industry. They bounced from the basement of Matthew’s rented house to coffee shops, spare rooms and co-working spaces before realising it was time to get an official space. “It was around 3am and Matt and I were sitting across the room from each other in our underwear. That's when we thought: ‘We should probably get an office now’,” says Mr Hanson-Smith.  Inploi now rents a space in Marylebone, London, but still relies on instant messaging and video conferencing to stay in touch with its new employee in Cape Town. And though the pair are happy for their two other London-based colleagues to work from home or a cafe, having an office was always going to be part of their development. It's helped them to settle down, establish a routine and be more productive, says Mr Hanson-Smith.  Even for those continuing to operate virtually, businesses need more than just the technology to make it work, says Ms Devonshire. At Caffeine, for example, employees work to a “culture of candour” – giving colleagues open, honest and fast feedback whether by recognising achievements or giving advice on things that could be improved.  For Mr Robinson, one initial challenge was getting people to take his business seriously without an office. Overcoming this required a great deal of travelling. “I was reluctant to meet suppliers in cafes or restaurants, and certainly not in my house – so I travelled all over the country to meet them at their premises,” he says. “I stayed in hotels until I had established a relationship with the supplier, then I'd feel more comfortable meeting them halfway.”  But despite the various challenges, Ms Devonshire believes working virtually is entirely possible – businesses just have to give it a go: “For years people have told me that successful businesses must have a physical presence. I just don't believe it's essential any more. Everyone from millennials to those post-retirement age are looking for smarter ways to work. Working virtually is one of them.”
The days of the traditional office may be over, but there are still many challenges to running a virtual business