December 12, 2007 - BusinessWeek
calls them “location-independent” and “office-agnostic.”
They are part of what demographers and futurists term the
“distributed workforce,” employees who have no permanent
office at their companies. Their numbers represented 40
percent of the workforce at IBM and nearly 50 percent of
employees at Sun Microsystems, the magazine reported.
The Work Design Collaborative
estimates that by 2012, 40 percent of the American workforce
will be distributed. How and where people work – whether as
a corporate employee, home-based professional, entrepreneur,
consultant, mobile worker or sales representative – has
changed forever and that delights Scott Rae Buono, president
and CEO of YourOffice USA.
“The way the world works is
changing dramatically,” Buono said. “It’s creating a huge
demand from both corporations and even home-based businesses
for remote workplaces. People now have choices in how they
work.”
Three years after purchasing the
franchisor of serviced office centers and having already
doubled the size and revenue of the company, Buono, a
longtime industry veteran, is using new leadership, a new
vision and a controlled expansion strategy to position
YourOffice as the emerging brand and cost-effective leader
in premier-quality virtual and fully serviced office
centers, meeting and workplaces.
“What we have to offer franchisees
is phenomenal,” says David L. “Larry” Barton, vice president
and director of operations for YourOffice. “We are on the
cusp of an industry that is going to expand explosively over
the next 10 years and beyond.”
YourOffice is uniquely positioned
to lead the tremendous shift in the work environment by
providing adaptable, affordably priced business centers
featuring the technological sophistication that today’s
“information age” workforce demands. Clients gain access to
all the benefits of a full-service office environment
without the capital costs associated with traditional
offices, sometimes trimming costs by 50 to 70 percent.
Clients can simply walk in, sit down and get to work.
At the same time, YourOffice
provides small and home-based businesses cost-effective and
efficient support through “virtual” offices that are
available by the hour, day or month – “as they need it, when
they need it” – while also supplying necessary tools such as
a professional business address, personalized telephone
answering, private mailbox service and more that support
clients who want to look, act and operate with an advanced
business image.
Current YourOffice locations
include a flagship 19,000-square-foot new corporate
headquarters and executive office suite facility in “The
Plaza,” downtown Orlando’s new premier mixed-use
development, along with business centers in Charlotte (three
locations), Denver, Atlanta, Philadelphia, Raleigh, N.C. and
Birmingham, Ala.
Projections call for more than 100
new business centers to open during the next five years in
Florida, the Southeast and other targeted U.S. cities,
including those where YourOffice has existing locations.
YourOffice is the only franchisor
of large-scale serviced offices, with its centers typically
occupying 10,000 to 30,000 square feet. It’s a shift from
the company’s previous business model when the concept was
introduced to the U.S. from Europe, launching its first
franchise in Denver in 1998. The focus was on smaller
centers occupying 8,000 square feet of space or less.
Expanding the size of its business
centers allows YourOffice to provide a much higher level of
service to its clients because of the efficiencies of scale
of the larger footprint, while at the same time generating
much stronger revenues and profit. Combining that strategy
with the commitment of dedicated owner-operators at each
business center who are deeply invested in providing a great
working environment for their clients, results in a win-win
environment for business.
The insight and expertise that
guides YourOffice comes from the decades-long industry
experience of the 45-year-old Buono and the other members of
his executive team – Norman Fox, Christopher Willingham and
Barton – who have collectively developed, opened or operated
more than 100 business centers under other brands during the
past 20 years. Buono is the co-founder of two other
serviced-office companies.
“I’m a big believer in the
franchise model. The scope of management really works if it
is distributed with vested owners,” Buono said. “The office
footprint that YourOffice previously used was too small. I
knew we would be successful if we changed the model and also
brought some depth of experience to the company’s core.”
Located in central business
districts as well as secondary, suburban and rural
communities, YourOffice offers investment opportunities for
single-site operators, but the majority of growth is
expected to come from area developers who will typically
operate three to five business centers or “market clusters”
in exclusive metropolitan territories.
“We would like to strategically
grow around a cluster program where every market that we
enter would grow into a cluster of three to five locations
instead of an isolated center,” Buono said. “You really
build synergy from that local network as well as the
national network that we are building.”
YourOffice franchisees typically
have strong professional backgrounds, but have ambitions for
a more fulfilling career that lets them control their own
destiny while continuing to work with a professional
clientele. The mid-level estimated initial investment of
$107,200 to $506,650 not only affords them the opportunity
for top-level returns, but also gives them the satisfaction
of growing a business that helps other professionals grow
theirs. YourOffice owner-operators employ a small number of
professional employees – usually three to five – and work
regular business hours.
“I believe the lifestyle afforded
by owning a YourOffice franchise is unique when compared to
the spectrum of other franchise opportunities that are
available,” said Buono, who added that the concept would be
a good fit for investors interested in restaurant and hotel
opportunities. “This is an executive’s franchise. It’s a
very clean, professional office franchise that’s pretty much
9 to 6, Monday through Friday. There really aren’t that many
franchises that fit the same bill while also providing a
strong return on your investment.”
YourOffice business owners are
typically hands-on operators who handle both day-to-day
operations and marketing responsibilities until the business
matures and they are able to hire managers for those areas.
A program is also available for investors who prefer to have
a vested manager handle operations under the tutelage and
guidance of the franchisor.
Barton, YourOffice director of
operations, is co-owner of the YourOffice business center in
Birmingham, Ala., along with wife, Maleah. She handles
day-to-day operations while Larry handles sales and
marketing, in addition to his responsibilities as a member
of the corporate management team.
“This is a great business for
couples and women, too, since we work banker’s hours,”
Barton said. “A single mother can successfully run the
business and still have time for her children when compared
to being a hands-on owner in the restaurant business where
the hours can be brutal.”
With the exception of one major
international brand, the serviced-office industry is highly
fragmented and comprised primarily of independent operators.
However, Buono foresees tremendous consolidation and says
YourOffice is well positioned for long-term success.
“Right now we are a small,
early-stage concept but one that is run by deeply
experienced veterans of the industry,” Buono said. “We think
there will be tremendous consolidation within this industry
and it is ultimately going to grow up under a unified brand
and unified operating system that gives clients a consistent
package of quality services they can count on. A franchise
proposition is perfectly situated in that type of
environment and our local, vested ownership will make a big
difference.”