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In today’s challenging economy, it is more important than ever for small businesses to keep a lid on costs. Office space is one large expense for many small businesses. For some businesses having an office is essential. However, for others it is a luxury that they cannot or don’t have to afford.

Given the Internet and other contemporary communications tools, working at home productively and efficiently is easier than ever. Sophisticated telephone systems can keep employees connected as if they are in offices just down the hall, rather than in different towns or even different states. Teleconferencing allows show-and-tell calls that can be as productive as face-to-face meetings, and emails and texting make instant communication simple.

If you are looking for ways to slash businesses expenses, you might want to consider whether some or all of your employees can work from home. Your business might be a candidate for employees to work from home if it has certain characteristics, including the following.

First, you have a limited need for an office where you can meet with clients, vendors and other business associates. For some businesses, such as law firms, an office may be essential. Others may have an office simply for the proximity and interaction it provides for employees. If yours is in the second category, then perhaps you can find new, equally as productive ways for employees to interact while they work at home.

Second, some or all employees are comfortable working independently and their work easily can be completed in a home office. For example, if much of your business’s work is accomplished on computers or on the Internet, then it should be relatively easy to do necessary tasks outside an office.

Third, your employees are enthusiastic about the opportunity to work at home.

Fourth, you and your employees are comfortable using new technologies, such as teleconferencing, to stay in touch.

Fifth, customer service won’t be negatively affected by a move out of a centralized office.

If you are seriously considering allowing employees to work from home, do some serious planning first. Issues to consider include:

Policies for work-at-home employees, such as their hours, home office arrangements (those who speak to customers and vendors on the phone may need to have a private office space free from household noise), how they should handle company information and files in their home offices and so on.

What equipment and tools will be provided by the business for an employee’s home office and limitations on personal use of business property.

Proactive communications strategies to ensure that at-home employees aren’t isolated from the business’s day-to-day operations. For example, you might consider having regular conference calls with employees (daily or at least weekly) who work at home for them to update you on their work and for you to keep them abreast of developments in the business.

Allowing employees to work from home is a big step for your business. One way to approach it is to make a gradual transition. This strategy has several advantages.

First, it will allow you to work out any kinks related to communications, information handling and other issues.

Second, it will enable you to identify any issues you overlooked when evaluating the work-at-home option and to address them.

Third, it will give you a chance to evaluate the effect of working at home on employee satisfaction. Some studies suggest employees who work at home, as a group, have higher morale.

And fourth, it will allow you to make a fact-based decision on whether letting employees work from home makes sense for your business.

More from this contributor:

First Person: Simplify Your Business to Become More Productive

First Person: Earning Respect as a Young Entrepreneur

First Person: Separating Business and Personal Finances when Starting a Small Business