If your small business is outgrowing your physical space, one way to save money may be to allow select employees to telecommute instead of investing in more office space. With new technologies, it's not only easier but more secure than it once was to let workers log onto the company network from home. Having fewer people working at the office can also save money on your energy bills. One option is to shut down the office completely one day per week and have everyone work from home, so that you can also shut down the heating or cooling system.
Telecommuting costs less for the employees themselves, too. Not only do they save money on gasoline (a savings that is becoming more and more significant as gas prices rise), but they may also save on the cost of clothes, lunches, and other incidental costs associated with working in an office environment. And they also save the time that it would take to drive to and from work -- which can be as much as two or more hours per day. Because telecommuting has so many advantages for workers, they may accept a lower salary, in turn saving your company more money.