5 Types of Offices for Startups

List of Office Types for Startups

If there’s one thing that can keep a budding entrepreneur up at night (other than endless cups of coffee), it’s finding the right office. The place where dreams transform into reality. Setting- up an office is a crucial investment for your business. Let’s deep-dive into the top 5 types of offices for startups to find that perfect backdrop for your success story.

There are 5 main types of offices: Home Offices, Virtual Offices, Co-working Spaces, Rental and Leased Offices.

Startup offices

Home Office

For new businesses or startups, having a Home Office is the easiest and cheapest way to start and operate a business such as admin support, or setup an online shop. You can turn your home, apartment or rooms, and even garages into an office. The space might be limited and cramped and you might be a bit distracted with roommates or kids. But for those who just started out their own business, and still seeking funding from banks, investors, and Venture Capitalists (VC), this is the most practical way to start working on your business. You can also register your physical office at your home address. Popular and global companies such as Apple, Facebook, and Alibaba began with the Home Office type.

Benefits Of a Home Office

  • Increased productivity. One of the most significant benefits of a home office is increased productivity. With fewer distractions and a quieter environment, employees can focus more on their work and get more done in less time.
  • Flexibility. When working from home, employees have more flexibility to manage their schedules and balance their work and personal lives. This can lead to greater job satisfaction and better work-life balance.
  • Reduced costs. Home offices can save employees and employers money on things like commuting, parking, and other work-related expenses.
  • Improved health and wellness. Home offices can be designed to be more ergonomic and promote better posture, reducing the risk of back pain and other musculoskeletal issues. Additionally, employees may be able to incorporate more physical activity into their day by taking short breaks to stretch or go for a quick walk.
  • Reduced stress. Home offices can also help reduce stress levels, as employees can avoid the hectic and stressful environment of a traditional office. This can lead to increased job satisfaction and better overall mental health.

Overall, the benefits of a home office can lead to a more productive, flexible, and healthy work environment, which can benefit both employees and employers.

But remember! The bed’s seductive calls, neighborhood, Netflix, and perhaps a cat walking on your keyboard. Distractions galore!

Virtual Office

When you want a formal office in a prime business district in your city, but without the hassle of being physically there every day, you can opt to have a Virtual Office. When you want your business to be registered in a prime, sought-after and known district with less cost or expenses, then a Virtual Office is the best option for you. It is becoming more popular with businesses that want to have a flexible way to work and operate internationally with a presence in various countries outside the US.

Benefits Of Virtual Office

Cost Efficiency. Virtual offices eliminate the need for renting physical space, utility bills, and in-office amenities, allowing businesses to allocate funds to other essential areas.

Flexibility and Scalability. With no binding leases or physical constraints, businesses can easily adapt to growth, shifts in demand, or changes in operations.

Professional Image. A virtual office often provides a prestigious address, phone services, and sometimes even virtual assistants or receptionists, enhancing a company’s professional appearance.

Work Anywhere. Team members can work from anywhere in the world, allowing businesses to tap into global talent pools and cater to international markets more effectively.

Environmental Impact. By cutting down on daily commutes and the need for office utilities, virtual offices contribute to reduced carbon footprints and a more sustainable work model.

Shared or Co-working Spaces

Shared or coworking space is gaining more popularity nowadays. Co-working spaces make you feel like you are working at a coffee shop where you can lounge much longer, enjoy a cup of coffee and a good ambiance while working day or night. It is the most popular setup for new businesses or startups, with one or more than one team member such as freelancers, and specialists. The term “co-working space” applies to sharing workspace with workers or business owners and startups with various backgrounds and companies.

Benefits Of Co-Working Spaces

Flexible working time. This means that you can go there anytime and work. You can also get to meet new people, network with these startups and business owners, and learn about their experience and expertise. Who knows, you can get a thing or two, about how to succeed in business, how to get new customers and potential investors or expand to new markets, from other specialists and entrepreneurs like you.

Comfortable and beautifully-designed spaces.  It’s like an enclave to shut out the noisy world outside where you can focus on the work that truly matters to you, and also create products and services, that will positively impact people’s lives and make a difference.

Fully furnished and ready. Another advantage is that you don’t need to buy office furniture since co-working Spaces are complete with amenities such as Wi-Fi internet, tables and chairs, printers, telephones, faxes and coffee dispensers. Plus, if you’re located in metropolitan cities, you’ll pay a fraction of the cost with co-working spaces, rather than having to rent an office.

For those who have just started their own business, and has small funding or no- funding at all, you can start working at Co- working Spaces.

Rental Offices

When you decide to have your own physical office, you can choose to rent a large space or unit where you can work, operate, or manufacture your products and services. Rental offices are often on a monthly basis to the landlord. Depending on the location and size, Rental Offices can be more expensive compared to other types of offices and also imply costs on your part.

Benefits Of Rental Office

Professional Environment. A rental office offers a structured and dedicated workspace, free from the potential distractions of home or public spaces. It’s designed for productivity and often comes equipped with all the amenities needed for day-to-day operations.

Networking Opportunities. Sharing a building or office complex with other businesses provides ample opportunities to network, collaborate, or simply interact with professionals from various fields. This can lead to partnerships, client referrals, or even friendship.

Physical Presence. Having a tangible office space can enhance a company’s credibility in the eyes of clients, partners, and stakeholders. It gives a clear location for meetings, showcases stability, and offers a venue for branding your business.

Resource Sharing. Many rental offices, especially those in business centers, offer shared resources such as receptionists, meeting rooms, and IT support. This means reduced overhead costs as businesses can use these amenities without individually investing in them.

Flexibility in Commitment. Unlike purchasing an office space, renting allows businesses to choose shorter lease terms. If a company outgrows its space or needs to relocate, it’s often easier to move from a rental than from a purchased property.

Having a rental office can be a boon for many businesses, especially those looking for a balance between flexibility, professionalism, and cost-efficiency.

If you’re looking for an office for the short- term or just testing the waters whether the location suits your business, the best option you can have is the Rental Office type.

Leased offices

On the other hand, leased offices come with a fixed term usually six- months, one- year or five- years contract with the landlord or company owning the unit or building. The contract in leased offices, compared to rental offices, are more fixed and binding.

Benefits Of Leased Office

Long-Term Stability. A lease, especially a long-term one, offers businesses a stable location without the worries of sudden rent hikes or eviction. This stability allows for better long-term planning and reduces the hassle of frequent relocations.

Cost-Effective in the Long Run. While purchasing property might seem like an attractive idea, it requires a significant upfront investment. Leasing often means you can acquire a more prime location or larger space for a fraction of the purchasing cost, which can be crucial for expanding or well-located businesses.

Maintenance and Upkeep. In many lease agreements, major maintenance and property upkeep fall on the landlord’s shoulders. This can mean fewer headaches and potential savings for businesses, allowing them to focus on their core operations.

Flexibility in Design. Many landlords allow tenants to customize or retrofit the leased space to suit their business needs. This means that businesses can create an environment that aligns with their brand image and operational requirements without the constraints they might face in shared spaces.

No Property Value Concerns. Leasing means you’re not tied to property value fluctuations. If the property’s value decreases, it won’t impact the business’s assets. Plus, businesses won’t have to deal with the challenges of selling a property if they decide to move.

Leasing an office space provides businesses with a balance of stability, flexibility, and financial pragmatism, making it a preferred choice for many enterprises.


How to Choose the Right Office Type for Your Business

Choosing the right office type for your business is like picking the right foundation for your dream house. The choice can affect your team’s productivity, your company’s image, and even your operational costs. Here’s a guide to help you make an informed decision:

Understand Your Needs

  • Team Size: If you have a small team or are a solo entrepreneur, a home office or co-working space might suffice. For larger teams, a dedicated rental office would be more appropriate.
  • Nature of Work: Creative agencies might want open spaces for brainstorming, while a software development team might prioritize individual quiet spaces.

Consider Your Budget

  • Compare costs between co-working spaces, virtual offices, rentals, or even purchasing an office space.
  • Factor in other costs: utilities, maintenance, furniture, internet, and any additional amenities you might need.

Think About Location

  • Accessibility: Choose a location that’s easily accessible to your team, clients, and suppliers.
  • Brand Image: Being in a posh business district might elevate your brand image, but it’ll also come with a higher price tag.
  • Nearby Amenities: Proximity to banks, eateries, public transport, and other essential services can be a bonus.


  • Do you need short-term leases because you’re a startup and anticipate growth? Co-working spaces or rental offices with flexible terms might be best.
  • If you’re more established and foresee staying in one place for the long haul, consider a traditional lease or even purchasing office space.

Consider Operational Needs

  • Technology: If your business relies heavily on tech, ensure the place has reliable internet and tech support.
  • Meeting Spaces: If you have frequent client meetings, ensure there are meeting rooms available.
  • Storage: For businesses with physical products, storage space can be crucial.

Seek Feedback

Involve your team in the decision-making process. After all, they’ll be working in the space too. Their insights and comfort can be invaluable.

The right office type is a blend of practicality, budget, and needs. By carefully assessing each factor, you can find a space that’s not just an office, but a place where your business can thrive.


Choosing the right office is like choosing the right pair of shoes. It’s got to fit well, suit your style, and not give you blisters (or burnouts). Evaluate what you need, check your budget, and go snag that dream office!

Got any cool startup office stories or tips? Spill the beans in the comments below!

To read more, here’s a comparison of different types of offices: How to Choose an Office for your Business

Founder's Guide
A licensed financial advisor, a former bank manager with more than 10 years of experience in financial & global market. Passionate about fitness, businesses, stock trading and investing, the economy and how it impacts our lives.