Virtual businesses are brilliant because they employ freelancers…and stuff. A virtual business can be defined as any business that is online and doesn’t have a permanent physical base – and they can be maintained from any location with an internet connection.

A new survey has revealed the extent to which virtual businesses are fuelling the UK economy and how business owners benefit from a no-bricks no-mortar set-up. With the help of lithe freelancers of course.

As part of the report by Office Cavalry, business owners identified the key advantages of going virtual as being:

Productivity – Work schedules becoming more focused and result orientated; meanwhile time wasted on the commute is substantially reduced.

Work culture – Is easier to create and maintain. As work is often performed with minimal face-to-face communication, staff tend to use this time wisely and there are fewer opportunities for personalities to clash.

Communication and collaboration – The rise in cloud computing and low or no- cost software like Skype and Google Docs allows people to realise the chance to share ideas and work together. Projects can be planned precisely and resources allocated according to skills, experience, availability and ‘chemistry’.

Access to highly skilled freelancers – In virtual businesses highly skilled freelancers are brought together for a reason and with a remit. Freelancers offer specialised skills and can get tasks completed with minimal fuss.

Profitability – Without the big office expenses and overheads that are characteristic of traditional business frameworks, profit is easier to deliver.

The nature of virtual businesses means that they are less reliant on a sizeable permanent workforce and so will often require the services of skilled freelancers and contractors to get specific tasks done, as and when needed. Over 50 per cent use freelance workers to address specific business requirements which cannot be performed by existing staff.

The rise in virtual businesses has gone hand-in-hand with the increase number of UK freelancers. According to Office Cavalry, UK virtual businesses contribute approximately £3bn to the UK economy each year. The majority (78 per cent) comprise of between 2-5 core permanent staff.

The industries which thrive under the virtual business model include new media (36 per cent), sales (27 per cent) and marketing (25 per cent).

According to the report, the UK could save £15m over the next 10 years by staging virtual meetings instead of taking business trips. However, they may have 20 per cent less fun – and yet more of their life will be spent looking solemnly at a computer screen.

Andy Turner, co-founder of freelance portal OfficeCavalry.com looked on the bright side: “There is little or no physical infrastructure in support of virtual businesses; instead there is a heavy reliance on hiring skilled freelancers, as and when required to address specific needs. The majority of virtual businesses we interviewed use skilled freelancers who come together for specific projects or tasks and then disband, ready to reunite when another suitable job comes along.”

Commenting on the rise of virtual businesses in the UK Andy added: “By going virtual, businesses are saving money as well as having a more flexible approach to staffing requirements, especially in hard times such as this period of recession recovery.”