Whether it's due to companies downsizing, former corporate workers receiving redundancy packages or someone simply deciding that now is the right time, more individuals are increasingly deciding to become entrepreneurs and go into business for themselves. One of the early challenges small business owners and entrepreneurs face is establishing a professional image to help get their burgeoning business off the ground. Of course you can establish a home-based office, but what do you do when you need a more professional environment to meet with a prospective client, or have to deal with every day distractions like kids, barking dogs or television?

When looking for office space there are some common pitfalls that small business owners should avoid. To reduce expenses and secure room for future growth, the workplace experts at Regus encourage small businesses to use the "SPACE" test below to help ensure they're getting the right office at the right price before they sign on the dotted line:

S - Savings
There are ways to limit upfront costs and save money beyond the price of rent. A traditional lease, which typically lasts five to 10 years may make sense for you. Try negotiating a smaller upfront deposit, which usually consists of six months' rent or up to half of the total cost of the lease. Businesses also can save up to 60% on office space costs by using ready-to-work space that includes furnishings, most office equipment and maintenance.
ask your potential landlord about what options exist to expand, or shrink, your space should the need arise

P - Productivity
Many business owners still want all employees to work in the same place at the same time, but the best office space is structured to help employees be more productive - which may mean not working in an office at all. Review which employees really have to be at a physical office, and which members of your team can telecommute from home or a shared office space location. This can help save on overheads by reducing the amount of space needed.

A - Address
Having a Berkeley Square address in London, working on King Street in Manchester or even the Chrysler building in New York can add a level of prestige to your business that's hard to calculate in pounds. But leasing traditional space in those key business addresses may still be cost prohibitive. Consider using a virtual office instead of leasing physical space to obtain the correct location for you near your home or even abroad.

C - Clauses
Not understanding the fine print in your leasing contract could mean unwelcome and unexpected fees at a later date. Clauses in your leasing agreement dictate everything from when rent is due to limitations of use and your maintenance obligations. It's important to read and understand all clauses before signing your lease.

E - Expansion
If your business changes drastically, will your space change with you? Ask your potential landlord about what options exist to expand, or shrink, your space should the need arise. Consider exploring other leasing options, such as subleasing or shared spaces. Adding or contracting space as needed prevents business owners from paying for space they aren't using at startup or cramming into a small space when growth exceeds expectations.

Property is the second highest outsourcing cost any business will face, therefore minimizing your property costs is essential. By looking at a range of options it is possible find cost-effective solutions that can help small business owners establish the professional presence they need. The ‘SPACE' test will aid any business to secure a suitable work environment both in the present whilst being flexible enough for future growth.

For more information please visit www.regus.co.uk