Location, location, location is important, important, important. And so are the qualities of your facility. Even if you still haven't grown out of your home office, the suitability of the physical environment of your business should be re-evaluated periodically in terms of image, overhead costs, and efficiency.
Outgrowing a facility is a pitfall that's easily remedied with some careful planning. And it's kind of a nice problem to have. Apart from the traditional relocation options, here are a couple you may wish to investigate.
If you're a non-retail small business in search of a new home, consider an "incubator." Small business incubator centers are sponsored nationwide by universities and economic development agencies. These centers rent space at very reasonable rates to emerging companies. Support services are shared by all tenants in a center, yielding significant savings. And the success rate for incubated businesses is an astounding 80 percent in the first five years.
Many growing service businesses do well in an executive office center. These privately operated centers rent you office space and provide a pool of clerical personnel for you to use on an as-needed basis at a much lower cost than you could obtain on your own. You usually get conference room privileges and answering services as well.