The co-owner of a 12-employee asphalt restoration firm with $1.2 million in revenues in 2006 works out of a small space -- her bedroom's walk-in closet. When the company, Atlantic Infra-red, turned a profit after four years in business, the owners, who had run the business out of their home, had California Closets come in and renovate the 40-square-foot closet to fit a desk and shelves. "But I don't care," says Marilyn Grabowski, "it's cheap! Why waste money on office rental?"

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