Virtually There: Small Businesses Look Far Away for Help

July 31, 2007 — -- When Chicago-based executive coach John Mitchell was planning a recent trip to Colorado, he did what many executives do — turned to his assistant for help with travel arrangements. But his assistant, Sue Kramer, wasn't sitting outside his office. She was miles away, in her home, sipping coffee.

Kramer is a "virtual assistant." She helps Mitchell with everything from research to coordinating meetings and screening clients. She has his credit cards and access to his e-mail and phones. Yet Kramer only sees her about twice a year.

"I needed an intermediate solution," Mitchell said. "My business was growing fast and I was doing too much administrative details and that was wasting my time. At the same time, I wasn't ready to commit to a full-time employee."

So he did what thousands of businesses are doing each year: hire a virtual assistant. A VA performs routine or specialized tasks remotely, using the phone and Internet to exchange data with clients. VAs can cost from $35 to $75 an hour, depending on the services performed.

The explosion of high-speed Internet set the stage for VAs. Though no one tracks virtual assistants, the International Virtual Assistant Association, a trade group, has seen its membership grow nearly 40 percent since 2004.

"This is a phenomenon," said Steven Gordon, a professor of information technology at Babson College in Waltham, Mass. "The advances we have seen in technology in the last five years are making this a very viable option and it is only going to keep growing."

Virtual assistants are especially appealing to small-business owners dealing with financial constraints. Beverly Williams, author of "The 30 Second Commute," says she sees more and more home-based businesses relying on VAs.

"A lot of these owners can't have people in their home. Some are women alone all day and the idea of allowing strangers in is not an option," Williams said. "Having a VA allows you to send work over the Internet or use the phone. It's a great tool for small businesses."