We've been running our web design company full time now for about 2 months, although part-time before that for about 4 months and prior to that I've been doing the odd bit of freelancing for many years. It's been going really well and we have a steady stream of work and clients at the moment.

There are 2 of us in the company, myself and my girlfriend. We work from our small flat which can be quite cramped and I sometimes don't see the light of day! However are these really good enough reasons to justify spending 500/month on office space!?

The miser in me thinks that we should just stick it out here for a bit longer, go out for lunch more often (I live in a pretty cool part of town anyway with bars , pubs, cafes etc) then use the money to save up and get a bigger flat in a year or two, however another part of me thinks we should just spend money getting an office...

Another idea is to re-locate our entire company lol to a nice wifi enabled coffee shop/pub for a day. 500 buys you a lot of beers ahem coffees I mean.

1. More space
2. Exercise (getting to work every day)
3. See people other than on a computer screen lol
4. Possible room for expansion of the company - although we have no intention of doing this anyway...!

1. It costs 400/month + we'd have to get broadband + phone
2. Responsibility of having equipment in another location
3. Stress involved with arranging to rent out the other desks in the office - although this would bring the cost down a bit.

I guess I'm not sure if it would really be worth it, we are thinking of perhaps having a weekend away at a 5* hotel once a month instead!

I'm sure this is something people have considered, so I'd be interested to know your views... If you aren't planning on expanding your business and are happy just providing a high quality web development service to your clients do you really need expensive offices!?