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January 25, 2023

Agility in Virtual Worlds Can Protect Your Company from Recession

Recent economic reports show opportunities are still available even amid a recession. The Metaverse can help you capitalize on them.
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You don’t have to look far to see tech budgets are in flux. While Bloomberg reports mass firings, Yahoo Finance shares insights of global business leaders from the World Economic Forum stating opportunity is out there—if you know where to look. Meanwhile, Harvard Business Review reports a slew of new technologies will create tipping points for the economy. The collective takeaway is that targeted efficiency is more important than ever. 

Corporate leaders can use this period of time to build operational efficiencies that deliver high value with streamlined costs. Virbela provides Metaverse solutions that can balance global collaboration needs with external pressure to manage cost across fiscal years and protect companies from widespread volatility. 

In Virbela, virtual campuses emulate the physical office, encouraging openness, collaboration, trust and a sense of belonging in remote-first environments. They give dispersed employees a greater level of presence and transparency across teams, as well as access to leadership by means of casual run-ins that fall outside of traditional scheduled meetings. This also helps to attract a pool of workers who demand office culture and togetherness, but with the freedom to work from anywhere. 

The Operational Efficiency Ratio

The operational efficiency ratio is a business metric that lets you gauge how efficient your company is at minimizing costs while earning income. It compares total expenses with net sales or revenue.

A decreasing operational efficiency ratio means that your operating costs have gone down. Lower operating costs and similar or higher revenue indicates that you’ve improved financial management strategy and tactics. Typically, you want your ratio to be at 50% or less. Here’s the formula:

(Operational expenses + Cost of goods sold) ÷ Net sales

For companies that want to explore how the Metaverse can improve their operational efficiency ratio, reach out to sales@virbela.com 

Managing Expenses in the Metaverse

Your operational expenses may include a wide variety of items, including payroll, vendors, taxes, interest, equipment, materials, supplies, and maintenance. For many enterprise companies, one of the larger line items is commercial real estate. JP Morgan notes in a late 2022 report that commercial real estate is up 7.5% YOY from October 2021 to 2022.  It also cites a Moody’s Analytics report that says U.S. commercial real estate vacancy rates are below pre-pandemic Q4 2019 levels. 

The uncertainty around these spaces can create financial instability, including higher costs than you actually need to pay to run your business and an inability to forecast with accuracy or confidence. 

By comparison, the Metaverse provides an always-on workspace with no high utility or maintenance implications. Costs are fixed, like commercial real estate, but far lower. Staff can collaborate globally. Everyone can have their own office, due to the quick and low-cost scalability of virtual worlds. For companies managing sustainability programs, the climate impact of the Metaverse can be attractive, too. 

At many companies, reducing physical footprint in favor of Metaverse space can do more than improve operational efficiency. It can help preserve the ability to spend on things that are a priority for profitability, like staff headcount or client-focused conferences. 

Lowering Office Costs

If you’d like to learn more about how the Metaverse can help you improve your company’s finances, reach out to sales@virbela.com. We’ll help you figure out how to calculate ROI on virtual tech investments and how much you could save by making the switch to your own private Metaverse space. 

For more on how the Metaverse is changing business globally, follow Virbela on LinkedIn

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