There are negatives associated with retaining a formal office space. The most obvious downside is the issue of cost. Rent isn’t cheap and when retaining office space an upfront deposit as well as a long-term commitment (usually one year) is required. It should be noted that for communal office spaces the need for a long-term lease is often waived, giving them an advantage over more formal set-ups.
Another negative related to retaining formal office space is the issue of convenience. When luring employees to a new venture, the idea of working from home is a major attraction. If employees are self-driven and motivation is not a problem, working from home may be an appropriate solution.
Try This: Be realistic about how, when, and where you (and other employees) will be able to work from home. Do you (and they) have enough space to create a dedicated office in the place they live? Do they have the right resources to succeed at their job?