Running a Business Remotely: Strategies, Benefits, and Challenges

In the 2020s, remote work has become increasingly common — but that doesn’t mean running a business remotely comes without its fair share of challenges. 

Remote businesses have several advantages, like access to a wider talent pool, flexible work schedules, and 24-hour customer support coverage. Still, you may encounter some unique problems that in-office businesses simply don’t face, like: 

• Lack of face-to-face interaction
• Timezone differences
• Scheduling issues
• Language barriers
• Less team building 

If this list seems off-putting, don’t be discouraged. In the long run, running a successful remote business can save you $11,000 per year per employee. It’s also a great way to attract new talent, as 95% of employees want to work remotely in some capacity. 

Whether you’re already running a remote business or planning to start one, we’ve got you covered in this detailed guide. But first, let’s explore what running a remote company means. 

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What does running a business remotely mean?

Remote businesses (or virtual businesses) are managed entirely outside of a traditional, physical office space. They rely on technology and often a global network of workers to carry out the business’s day-to-day operations. Employees can work from anywhere in the world with the right remote working tools and an internet connection. 

Fully remote vs. hybrid business models

By true definition, remote businesses are still relatively rare, with only 16% of all global businesses operating fully remote. 

You’ll often hear the term “remote business” used to refer to any business where employees operate outside of a traditional office setting, even if it’s not every day. To be more accurate, businesses that have a traditional office but allow employees to work remotely at least once a week are generally considered hybrid offices. 

Pros and cons of running a business remotely

Like any business model, remote work has both pros and cons. If you’re considering a remote or hybrid business model, here is a list of the benefits and challenges of running a remote business. 

Benefits of Running a Business Remotely

As a company operating fully remote since its inception, we’re a bit biased about the advantages of remote work. We could go on and on about the benefits of remote work, but we’ve narrowed it down to five key advantages: 

• Cost Savings on overhead. No office means no lease. And no lease means no utilities, office supplies, and other expenses. Businesses can save about $11,000 per employee annually. Employees see even more savings at over $12,000 annually from cutting down transportation, buying lunch, and other costs.
  
• Access to a global talent pool. The lack of a traditional office is an advantage that can’t be overlooked. With no on-site location to report to, you can employ talent from anywhere in the world — and even find favorable exchange rates in other countries.
  
• Flexible work arrangements. Remote work and asynchronous work often go hand-in-hand. With team members around the globe, you can bend the rules of the traditional 9 to 5 with flexible schedules. It’s a perk that’s sure to help retention and talent acquisition.
  
• Scalability without physical constraints. When you work without a dedicated office space, there’s no need to buy out of leases, search for a new building, or jump through other hoops to scale quickly.
  
• Increased employee acquisition and retention. According to Robert Half, nearly 50% of job seekers seek hybrid work, while 26% seek a fully remote model. Remote work can also reduce turnover rates by up to 25%

Challenges of Running a Business Remotely

Remote businesses come with their fair share of challenges, too. If you’re planning to start a remote business, here are a few challenges you will likely face to be mindful of: 

• Communication and collaboration hurdles. While tools like Slack and Zoom help remote teams function without face-to-face communication, you’ll still face challenges with misinterpreted tone, response times across time zones, and a lack of spontaneous collaboration you might find in an office setting.
  
• Ensuring accountability and productivity. 40-50% of managers have expressed concern over remote productivity. Without the right tools, ensuring remote workers are working efficiently can be challenging. If managed effectively, remote workers eliminate about 62 wasted hours a year compared to their in-office counterparts. 

• Managing time zones and cultural differences. The downside of a wider, global talent pool is the vastly different hours each team member works. You’ll need to implement communication channels and guidelines and ensure each team member sets Do Not Disturb settings on Slack, Teams, and other communication tools.
  
• Building company culture remotely. Team building can be a challenge for remote teams. It’s not as easy to plan a company outing, happy hour, or team-building event. If you’re creative enough, there are ways to build chemistry from afar.
  
• Tech reliance and security risks. With the ability to work from anywhere, remote teams are more at risk for security breaches, power outages, and Wi-Fi issues that in-office teams don’t have to worry about as much. 

How to run a business remotely

Now that you’ve weighed the pros and cons of managing a remote business, it’s time to take the necessary steps to capitalize on the positives and address the negatives from the start. Let’s explore some of the basic building blocks for establishing a remote business. 

Building and managing a remote team

You can’t run a remote business without building one first. As previously mentioned, this is an area where you have a huge advantage over your in-office competitors. 

Think outside the box on LinkedIn, UpWork, Fiverr, and other hiring channels to find the best talent from around the globe. Follow these tips to write better remote job descriptions that will help you attract high-quality talent and find candidates who are the right fit for your team.

If you’re concerned about managing global teams, look to tools like Hubstaff to ensure timesheets are accurate, teams are productive, and admin time is kept to a minimum for maximum efficiency. 

Creating clear processes and expectations

Without face-to-face interaction, there’s no room for vague communication like “by the end of the day” or “tomorrow morning.” Each individual has different cultural values and schedules, so it’s important to make clear policies that remove the guesswork from remote collaboration. 

At Hubstaff, we created our own communication manifesto to ensure we’re on the same page with deadlines, technology, response times, and other factors that may arise when working remotely. 

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The manifesto is not a one-size-fits-all solution to remote collaboration. Welcome feedback from your team, make changes unique to your business and iterate on it regularly to make it the perfect fit for your remote business. 

Setting up the right tools and technology: Tools to help you run a business remotely

A remote business is more profitable, flexible, and appealing to new hires, but it’s also more difficult to manage than a traditional business. But with popular remote business tools, you can find sustained success. Here are a few examples: 

• Communication tools. As a remote business, you’ll need to get more mileage out of tools like Slack, Zoom, and Teams than in-office teams. Huddles, video conferencing, and messaging will become your primary form of communication.
  

• Project management tools. Project management software can help you collaborate asynchronously, automate workflows, and visualize work better. Pair Hubstaff with project management tools like Asana, Jira, and Trello, or try our Tasks add-on to see real-time hours and spending for better project budgeting.
  
• Payroll. Paying a remote team can be challenging due to different labor laws, currencies, and hours. Hubstaff’s time tracking with payroll features allow you to pay freelancers, contractors, and remote employees on PayPal, Deel, Gusto, Wise, and other payroll apps in their preferred currency from one central location.
  
• Time tracking. Time tracking tools with built-in productivity features help balance workloads to prevent time theft and employee burnout. Idle timeout features and built-in timesheets ensure accurate, timely payments. 

Remote business ideas and examples

If you’re unsure if your business translates well to remote work, let’s look at some examples and see what businesses are working fully remotely and how. Here are some examples: 

1. Software as a Service (SaaS) companies

• Examples: GitLab, Zapier, Basecamp
  
• Cloud-based software allows developers, DevOps, and product teams to work remotely relatively easily. 

2. Advertising, digital marketing, and content agencies

• Examples: Animalz (content), Growth Machine (SEO), Buffer (social media)
  
• When working remotely, advertising, copywriting, email marketing, and search engine optimization (SEO) are easy job responsibilities. 

3. E-commerce & Dropshipping

• Examples: Many Shopify/Dropshipping stores, Beardbrand
  
• It’s easy for remote teams to put the ‘e’ in e-commerce with effective third-party logistics, product sourcing, web development, and digital storefronts.
  

4. Consulting & Coaching

• Types: Business, financial, executive coaching, career coaching
  
• Consulting firms operate well in a fully remote capacity with cloud-based document storage and video calls. Although they may spend considerable time working on-site at clients’ offices, there’s no need for an office of their own. 

5. Customer Support Operations

• Examples: Help Scout, Doist
  
• Remote customer support teams also function well because they can use tools like Zendesk to provide extended, 24-hour coverage across multiple time zones. 

Still not convinced? Check out our case studies page to see how teams have increased productivity and their bottom line by working remotely with Hubstaff. 

FAQs About Running a Business Remotely

Can a business be fully remote?

Yes. 16% of global businesses are fully remote with no central office. Digital tools like Slack, Hubstaff, and Asana simplify remote communication, time tracking, and project management. Companies like Atlassian, GitLab, and Dropbox have found prolonged success functioning entirely remotely. 

What types of businesses work best remotely?

Businesses in the e-commerce, digital marketing, advertising, support, and SaaS space often operate fully remote to great success. As long as there is no need to interface directly with customers, any business can operate in a hybrid or even fully remote capacity. 

How do you manage employees in a remote setup?

Managing remote employees starts with creating a culture of trust and transparency. A remote team will need to rely heavily on software to manage day-to-day operations, so getting buy-in from your team is crucial for better employee engagement. Keep an open dialogue on what tools you plan to use and how, and invite continuous feedback to optimize processes and increase employee satisfaction. You’ll likely need a primary communication tool, a project management platform, and a time tracker to be a successful remote business.