Building A Successful Virtual Office Business
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1 Building A Successful Virtual Office Business Global Workplace Associa0on Webinar May 15, 2013 Laurent Dhollande, CloudVO CEO Keith Warner, Pacific Business Centers Managing Partner 1
2 Pacific Business Centers 15 locations in CA Most in 15K to 20K Sq foot range Downtown, suburban, and smaller towns Class A and Class B buildings 2
3 CloudVO is a reseller of virtual office and meeting room space Close to 400 partnering locations, and growing We are the client We add our own layer of services to your space ú E.g. Concierge Services, Live Answering, Live Chat, Corporate Accounts Copyright 2013 Cloud Officing Corporation 3
4 CloudVO: 3 Web Sites, 3 Audiences CloudVirtualOffice.com ú ú ú What: Reseller of local Virtual Offices + Cloud support Who: Freelancers, virtual companies, branch offices When & Where: Repeated use at a specific location CloudTouchdown.com ú ú ú What: Network pass for day offices and meeting rooms Who: Highly mobile workers, enterprise users When & Where: Frequently, in multiple, often undefined, locations CloudMeetingRooms.com ú ú ú What: Online booking of meeting rooms Who: Credit card buyers When & Where: Occasional use, anywhere 4
5 What Is A Virtual Office? Business Address Mail Service Local Phone & Answering services Access to Day Offices & Meeting Rooms 5
6 Most Common VO Plans Description Regus Terminology Pacific BC Terminology CloudVO Terminology Mail Service & Business Address Mail Plus Mail Plus Mail Only Local Phone Number & Live Answering Live Answering Live Answering Live Answering Mail + Live Answering + 16 hours meeting rooms Mail + Live Answering + 40 hours meeting rooms Virtual Office 1 V- Office 2 Cloud Office 2 Virtual Office Plus 1 V- Office Plus 2 Cloud Office Plus 2 1: Day Offices Only, in 8- hour increment 2: Day Offices & Meeting Rooms (largest boardrooms excepted only), usually with 1 hour minimum) 6
7 Who Buys Virtual Offices? Home- based Professionals Virtual Companies Highly mobile workers Large Companies 7
8 Why Buy A Virtual Office? Establish business Identity Meet Clients & Business Partners Private & Professional A supplement to Telework Price & Convenience 8
9 Why Building a Virtual Office Business? Growing Demand Minimal Resources Extremely profitable Seed & Grow That s your Future! 9
10 GWA Survey: 2011 Revenue Growth 30.00% 25.00% 26.3% 20.00% 15.00% 17.2% 10.00% 8.4% 6.8% 5.70% 5.00% 2.10% 0.00% All Centers High Profits Centers Total Revenue VO Revenue Growth Meeting Room Revenue Source: 2012 GWA Industry Survey 10
11 VO as a % of Revenue in 2011 (based on all respondents that provided data for 2011) 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 15.1% 4.7% 10.4% 8.6% 3.7% 4.9% All Centers Building Owned by Operators 27.4% 3.4% 24.0% Pacific Business Centers Meeting Rooms Virtual Offices Source: 2012 GWA Industry Survey & Pacific Business Centers 11
12 VO As a % of Total Revenue (Based on 246 centers that provided apple- to apple data since 2007) 28.0% 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% 21.7% 22.8% 23.7% 19.2% 15.7% 12.9% 8.0% 9.1% 5.9% 6.1% 6.8% GWA Average Pacific Business Centers Source: 2012 GWA Industry Survey & Pacific Business Centers 12
13 Why This Trend? Virtually unlimited capacity Small foot print Most profitable Line Of Business Diversified Effective channels (e.g. CloudVO, DaVinci) Corporate Accounts 13
14 Meeting Room & Day Office Usage (per Client Type) Walk- ins 26% Full Time (4 hrs free) 17% Other VO Users 5% V- Office+ (40 hrs free) 34% V- Office (16 hrs free) 18% Source: Pacific Business Centers 14
15 Pacific Business Centers Centers % of Center Footprint VO 1 as % of Total Revenue Company Average 5.9% 27.4% Cupertino 5.4% 34.9% Sacramento 5.1% 24.8% Bakersfield 5.7% 12.2% San Francisco 5.9% 38.7% 1: includes Meeting Room Revenue Source: Pacific Business Centers 15
16 Why is Pacific Business Centers Outperforming? Focus Long term VO Prioritized in Sales Process Support & Encourage Channels ú Early adopter of DaVinci ú Early lab for CloudVO and CloudTouchdown 16
17 Typical # of Meeting Rooms & Day Offices per Center # of Meeting Rooms/Day Offices All High Profits Pacific Business Centers Source: 2012 GWA Industry Survey & Pacific Business Centers 17
18 Most Common Add- ons to Mail & Biz Address Packages Bundles of conference room Hours ü ú 16 hours ú 40 hours ú 10 hours Lobby Directory Listing East Coast to West Coast Live Answering 18
19 How to Grow your Virtual Office Business? Invest in your Meeting Rooms & Day Offices ú Capacity ú Amenity Don t over- price your VO Plans Ask your channels for guidance (e.g. CloudVO, Davinci Virtual) 19
20 How to Price a Virtual Office? Know your Usage Data 100% % of Clients who use zero hours of free meeting room time in any one month (2012 average) 80% 60% 40% 59.8% 50.2% Used Zero Hours Used Some Hours 20% 40.2% 49.8% 0% V- Office (16 hours) V- Office Plus (40 hours) Source: CloudVO & Pacific Business Centers 20
21 How to Price a Virtual Office? Know your Usage Data Hours /Month Meeting Room Hours Consumed Monthly per V- Office Plan (16 hours free) Lowest Month Average Month Highest Month Unused Consumed Source: CloudVO & Pacific Business Centers
22 How to Price a Virtual Office? Know your Market! CloudVO Tracks Prices of 2,617 local providers and resellers of Virtual Offices ú Per Region ú Per Provider ú Per Type of Plan Come to the GWA Conference in Atlanta for more or contact Laurent@CloudVO.com Source: CloudVO & Pacific Business Centers 22
23 The New Frontier in Virtual Offices: The Network Description Access Card to a Global Network of Meeting Rooms & Day Offices Regus Terminology Businessworld Cards 23
24 The New Frontier in Virtual Offices: The Network Description Regus Terminology CloudVO Terminology Pacific BC Terminology Access Card to a Global Network of Meeting Rooms & Day Offices Businessworld Cards CloudTouchown Cards CloudTouchdown Cards 24
25 Your Virtual Office Business Grows Global! CloudTouchdown TM Office Cards by CloudVO Mar 1,
26 What is CloudTouchdown TM? ú A pass for access to a network of day offices and meeting rooms ú Via online reservation on CloudMeetingRooms.com ú For teleworkers & highly mobile workers 26
27 Complements Local Telework Program Customized Supports Mobility 27 27
28 CloudTouchdown TM VIP Card ú Co- branded cards & flyer ú Local service, global reach ú Free collateral ú 10% off anywhere to Your clients ú We pay you our discounted price when other clients use your rooms 28
29 7/21/13 29
30 7/21/13 30
31 In Summary VO = most profitable part of the business Quasi- unlimited capacity Know your data - Price to Usage Work with your channel 31
32 Questions? Laurent Dhollande Keith Warner 32
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