Me and my Co-Founder decided that since we don't like to be in offices, everyone that works for us (Ripe Apps Inc.) don't have to either.
We've let go of the the physical space, we collaborate by Skype, IRC, e-Mail, Google Docs, DropBox, once every week or two over burgers/lunch, and if we need to convey something that is not coming trough the line with contractors we meet at a cafe for an afternoon.
We also don't hire manager, we only deal with people who can self manage.