spacer spacer spacer
October 1, 2006
dotted line
Consider a virtual company to get a flexible work life

While everyone was watching for the telecommuting trend to explode, something else exploded right next to it: The virtual company. The business with no office to telecommute from.

These companies give new opportunities to entrepreneurs to get started with no money down. But a virtual business also gives people the opportunity to create the personal life they want. “The future is likely to be the age of virtual businesses,” writes Anita Campbell, founder of Small Business Trends. “Forget three guys in a garage that was your father’s startup. Today it’s three people spread out across the country or even across continents, each in their home offices or back porches with laptops, mobile phones, and WiFi.”

Pamela Slim, who blogs at Escape From Cubicle Nation, says there is a “perfect storm” of factors converging to make virtual businesses more popular, and easier to start:

1. Workers will quit regular jobs to get control over their time.
Both men and women are increasingly willing to leave the work force to create personal time and family time, according to Jacqueline Luffman, a labor analyst for the government of Canada. In light of that, a virtual office ends up seeming like a compromise rather than an extreme solution.

2. Technology levels the playing field.
It has become so cheap and easy to use that someone who doesn’t have a lot of resources can create a web presence that looks established and professional.

3. Retail businesses can be virtual.
Of course, there’s always eBay. But you can also set up a shop with Amazon, where you create a storefront (which could even be a blog) and Amazon handles all inventory and fulfillment issues — and then sends you a check for the sales you make. Or you can work with a slew of smaller online wholesalers the same way.

4. The rise of telecommuting.
Established companies such as Sun Microsystems realize that telecommuters are happy, appreciative and cost-effective, so they encourage people to telecommute. Smart companies provide essential training and support so workers are productive at home from the start. The side effect is that location-based companies are training workers on how to set up their own virtual companies.

This trend means that it’s easier for you to have a work life that you can control - whether you’re working at your own virtual company or at someone else’s. The benefits are flexibility, efficiency and little overhead. The drawback is that time management is difficult, and not everyone can adapt.

Dennis Yang works at Techdirt, a virtual company that provides daily news and analysis to corporate clients. While Yang does not sit with co-workers, he is never lonely. He typically has about seven conversations going on at any one time on his computer screen, and he can work anywhere he wants — for example, his grandmother’s living room.

A typical day involves constant instant messaging, occasional emails with clients, and Skype for Internet-based phone calls, which are free - though Yang adds, “We don’t like to have phone conversations because it’s difficult to have more than one at a time.”

Techdirt’s 14 employees hang out in a virtual conference room, which is really a chat room, and when the once-a-week phone call happens, someone types in the chat room that it’s time to move to the conference call.

Not surprisingly, members of Generation Y populate many of the virtual companies. “The younger generation is very attracted by the virtual companies because they are used to it. Skype and IM are normal to them, and it is not weird to work with people you rarely see when most of your friends are people you rarely see.” says Chris Yeh, co-chair of the Founders Forum for entrepreneurs, and founder of his own company, Targetfirst.

But virtual companies have a lot to offer Generation X as well: “We want a career that gives us control over our schedule and our life,” says Yeh. “I want a work environment where I can also focus on my kids. Working from
home is not a panacea for everything because the kids take time and they are always calling for you, but at least there’s no commute time.”

The virtual business community is huge, so there’s room for everyone. In fact a whole economy has developed in which virtual companies do business with other virtual companies. Sharon Sarmiento, founder of Streamline Virtual Office Solutions, offers project-based, administrative assistance to companies that do not need a physical presence. So it is no surprise that a major client is Andy Wibbels, the king of promoting blog-based businesses.

For some people, such as Yang, virtual companies present a continual mix of work life and personal life where neither begins or ends. For others, such as Yeh and Sarmiento, a virtual company is a way to discover optimal methods for dividing a day.

Last week Sarmiento was experimenting with a four-hour workday. “I’m trying to be really productive,” she says, and then defines what she means by that in a blog post aimed at helping other virtual entrepreneurs manage their time. “You cannot work harder,” she advises, it’s more about prioritizing. “Just turn off the computer at the end of four hours. This experiment is almost entirely psychological.”

It might seem that in the land of virtual companies, in a virtual economy, there is virtually no work getting done. But Yang and Sarmiento both exemplify the work ethic that typifies virtual offices.

“In a small company where people know each other and are dedicated to a cause or a calling, you can count on everyone to be productive,” says Yeh. But even a technology cheerleader such as Yeh doesn’t foresee a workplace devoid of stupid meetings and wasteful schedules. “The virtual office can cut down on the BS,” he says, “but BS is part of human nature.”

grey line


Sign up to receive blog posts via email




If you enjoyed this article, consider reading “Going Bedouin” at

Nice article. Don’t forget Starbucks. It’s a “free” office to meet people or just to work for a few hours if you want to leave your virtual office to interact with other human beings. :-)

Great point, Jeff. I think this is especially true in cities like New York City where people cannot afford enough space in their home for a decent work area. In the Starbucks where I set up my own little portable office there were many others like me and we were completely regular and felt more like office mates than some people I’ve worked with in physical, cubicle-laden companies.

What is the best way to get setup with a company to start a job from home with a virtual company?

* * * * *

Unless you start your own virtual company, getting a job in a virtual company is not easy. You can’t know beforehand if the company is virtual unless you know people at the company before you apply. Most virtual companies are small. This means that your best best bet is probably to find someone in your network who knows about a virtual company and can recommend you.



as you stated in your article, “a virtual business also gives people the opportunity to create the personal life they want”. This is the great aspect of having the virtual company, it provides time for anyone who has a family. It allows parents to tend to their children, manage their homes and all their other day to day affairs without having to leave the home.

In many cases most individuals are now placing more value on the “time” they can spend with their families, and thus moving toward changing their lifestyle of the daily drive to work, to the prefered method of working online from their homes.

In continung on, many individuals are now creating their own businesses and making a sizable income online. And the possibilities of generating good income is now very reachable to all individuals because of all the consumers now accessing the internet and looking for new products.

In conslusion, the online world is a huge market place and any person willing to put forth the effort of establishing a business has the opportunity of creating a profitable home based business.

Ivan - A free resource to learn how to start a business with Wholesale dropshipper vendors.

A lot of small net businesses are pretty virtual already, with the whole team working from home and meeting face-to-face only intermittently. In fact, even a bunch of large outfits like FedEx are turning to virtual phone services like GotVMail or onebox to slash overhead costs. Sooner or later, we’ll be hard pressed to find an “undistributed” office.

RSS feed for comments on this post

Leave a Comment

Buy the Book

Wired Magazine

dotted line
Or enter your email address:

About Me
dotted line
Penelope Trunk is a columnist at the Boston Globe and Yahoo! Finance. She has launched three startups and endured an IPO, a merger and a bankruptcy. more >

Email me >

View Penelope Trunk's profile on LinkedIn

Popular Posts
dotted line

dotted line

Search this Blog
dotted line

Recent Posts
dotted line

Recent Comments
dotted line
  • Justin: Brilliant post, Penelope. I’m in my final year of a joint degree in Anthropology / International...
  • Alli: Anyone who reads your blog is likely curious and ambitious and would be best served by putting thoughts of a JD...
  • Anibal: Penelope, I agree with most you said. Plus, I’d Like to know how all this apply to physicians’...
  • Retail Drone: Oh yes, I meant to address the Hanukah issue. It isn’t insignificant to all Jews, I don’t...
  • Retail Drone: Jeremiah, more Christians know about this than you think, I believe. Most I know do, anyway. But it...

Blog Statistics
dottd line
Technorati logo Blogs that link here

Number of Subscribers:

Top Commentators
dotted line

Guest Bloggers
dotted line

dotted line

© 2007 Penelope Trunk, All Rights Reserved

Sitemap (XML)