Virtual Corporations are Accepted Practice in the New Economy
September 8, 2009 1 Comment
We were meeting with a new client this week discussing how we cost effectively deliver products and technology. Low overhead is a key part of our strategy along with near-shore resources for development. We’re a virtual corporation and that means our work force is distributed. Office space is limited, and we use other strategies to achieve collaboration and a sense of company. We explain our strategy in our post on being a green company.
We did not take any initial investment to start the company and that mandates we watch our expenses fastidiously. In an upcoming post reviewing our predictions for 2009, we think our prediction about back-to-basics business principals has proven true in the new economy. Young companies that thrive in 2009 are often profit drive and bottom line focused. Open Mountain is no different.
That said, there is a risk staying virtual. Will customers be more impressed if they walk into a well decorated office with large conference rooms and amazing views of the San Francisco bay? Or will they understand if we meet using rented conference room space that is nice but not part of our headquarters? Does this really matter?
The good news is more and more of our customers understand the virtual concept. Customers are in fact virtual themselves including the new customer we met with and many of our existing customers. We no longer have to explain that working remote and having a work-space only head quarters does not hinder our ability to deliver.
A virtual company structure is becoming a sign of forward thinking and smart money management. Companies grow more cost effectively and avoid the risk of expensive leases or even worse having to move. This approach beckons back to the original Silicon Valley garage start-up and the lore that turned the garage of Bill Hewlett and Dave Packard into a historic land mark. Spend your money where it matters and preserve your cash until you have money coming in. As developers, we like working for smart companies as that increases the chance the fruits of our labor will live beyond the challenging launch phase.
I’ve spoken enough in the past about remove collaboration strategies like this post. I thought I would add some other ideas to help create a sense of company for people who primarily work together yet separate.
Meet periodically face-to-face
We try to meet once a week in a common location. When we do, we often include lunch, dinner or social activities. If our near-shore developers come to town, we do our project work in-person as much as possible even if it is not necessary.
Become friends on facebook
Sharing photos, links and comments on facebook is like putting a picture or comic outside your cubicle and having people stop by. My business partner posts his runs and other actives online and in my mind I hear him telling me I need to exercise. Sharing life experiences contributes to the sense of company and community.
Use video conferencing
I’ve talked about the benefits of using video in collaboration often enough. Next time you have a remote Skype session, fire up that Web cam that probably came free with your laptop.
Send weekly status reports
A great way to keep everyone connected is to send and read status reports from everyone in the company. Reading status reports takes the place of weekly or monthly company meetings and creates a more effective way for employees to feel part of a larger whole.
As you start your company or plan your growth, we highly recommend you consider a virtual strategy. The cost benefit is significant. Online tools, status reports and other techniques help you ensure your work force is connected and engaged even if you can not see for yourself. Interestingly, we are seeing the same evolution with online computing resources. Companies are saving the cost of building expensive hosting infrastructure by deploying applications on virtual resources in the cloud. While you are at it, how about considering a virtual development team too!
