Successful PI firms use many different location models. There is no one right or best model, so choose the one that's right for you — home, public, or virtual office.

Home Office

Benefits abound for those who enjoy working from home. Low overhead and tax benefits allow the investigator to retain more profit while finding time to be closer to family. Many who work from home boast of doing some of their work in pajamas. The Small Business Administration reports a record number of business owners working from home, along with employees of larger businesses.

You can establish an office with all the resources you need wherever you feel most comfortable.

Disadvantages are not absent, however. Your home is an inconvenient place for meeting clients and lacks the professional atmosphere of an office. Besides, some clients will not be as fond of your children and pets as you are. A distinct disadvantage of the home office is distraction. Everywhere the business owner looks, he's reminded that he's also the homeowner. A pile of laundry screams for attention, neighbors and delivery people ring the bell. If he has children, interruptions can be constant.

There's also the irritating fact that friends and family feel at liberty to impose. Many home workers have heard, “Since you're free, can you pick up Tommy?” or some other request from seemingly busier persons. Well, you're not free — you're working, but it can take a while to convince others that you expect to be afforded the same respect for your time as others are at their day jobs. Ultimately, for those who can manage distractions and attend to business, home is a great place to be based.

Public Office

Locate near your target clients or in a location frequented by them. If you are in a shopping area, a center with a large anchor store such as Target or high-end department stores will draw customers who will see your business.

Check foot and vehicle traffic around the area before choosing a location. Walk-by or drive-by traffic is a gift to retailers. It provides many eyes to view your signage and decreases the need for heavy advertising. If you sell products or provide home security in any manner, a retail location may be a good choice.

Parking is another consideration, especially for retail locations. Clients will go elsewhere if getting into or out of your location is too difficult or time-consuming. Consider a location with parking in the rear for clients who are wary of being seen around a private investigation office. This is not a must, as you won't encounter shy clients as often as you might expect, and you can always arrange to meet elsewhere.

Also, consider that many public locations require a build-out, meaning that you are provided a shell and will need to build any inner walls or offices you need. You'll also be responsible for the costs of flooring, counters, and security systems, and less often, for air conditioning systems, lighting, wiring, plumbing, and other essentials. Many times, skillful negotiation will keep some of these costs in the landlord's pocket and out of yours. Read your contract carefully before signing.

Locating your public office may take some research. While it's true that retailers benefit from a high-traffic site, investigators may not need so much. When you offer only services, a lower overhead location may be preferable. With the savings, you could add or improve services or save your clients some money. Yet if you decide to go the lower-priced route, you must still locate in a convenient, clean, well-lit, well-maintained section of town. Importantly, check out the area's history of break-ins, robberies, and vandalism. Don't neglect this aspect of location research for the protection and safety of clients and employees.

If you have very little startup capital, you may decide to offer investigative work to an attorney or another owner whose business is compatible with yours, with the qualification that you be allowed to use part of his space. Investigators have gotten started this way; however, you must be sure that a written, signed agreement outlines the responsibilities of both parties. Include the number and type of work hours required for your use of space. Otherwise, the agreement can become confusing.

Before deciding on your public location, return to your business plan and the demographics of your target market. If you don't intend to specialize, this may not matter, but if you plan to work with attorneys, for example, look at their income, age, and lifestyle before determining your location. Be sure that you'll be in the right place to attract and service them. Attorneys' offices tend to cluster in or near urban areas because of the proximity to courthouses, police departments, jails, and centers for records. Yet this depends on the type of law the attorneys practice. You may also find them in small commercial and even residential areas.

Look for good schools, clean and well-maintained property, adequate transportation, and convenient services. New commercial or residential construction is a good sign, as is the movement of large companies into an area. You can also look into incentives for business development in disadvantaged areas. Some cities offer this as part of inner-city revitalization plans, often with lucrative incentives. If this is attractive to you, be sure that the businesses who will locate near you are to your liking. Look hard at restrictions, transportation, parking, lighting, security, maintenance, and convenience. If it's all up to par and you can handle the risk, go for it; many businesses have been successful doing so. Just be sure the area is truly in revitalization.

Virtual Office

Somewhat on the order of executive suites, virtual offices are set up to fit the needs of those who cannot or will not expend the cost of regular office space. Executive suites provide short-term leases complete with a telephone and receptionist, common area privileges (bathroom, kitchen, conference room), and mail service. Copy/fax machines and other services are available for a fee. Executive suites are attractive to those who require services sporadically, paying only for what they need when they need it.

Virtual offices are fairly new arrivals on the scene. A virtual office isn't physical space. The purpose is to provide everything the business owner needs while saving the costs of space. This allows the small business owner to be based at home or in an inexpensive space but still show an upscale address to his clients. Services can be added according to the owner's budget or preferences, but the basic virtual office is an address in a prestigious area, with mail receipt and forwarding, discounts on supplies and couriers, and low-priced leasing of offices and meeting rooms for short periods of time. Other features, such as a telephone receptionist, a fax and phone redirection service, and more, can be added. While you work affordably from home, no one will ever know, because you schedule meetings in this sumptuous conference room.

Virtual Assistants

A virtual office assistant works much as a regular assistant — only from her home. She answers your phone, takes messages, types reports, and if you want, acts as the face of your business. However, if you only need an assistant for certain hours or certain days, she's there for you. While there will be no office space in which to meet clients, your virtual assistant will provide the image of an office setting. Many clients look for this.