A lot of virtual offices will act as a mail drop for you, be your business address and also provide meeting room facilities so you can entertain clients and host meetings.
Then when you are ready, you can move to a physical office, knowing you have a growing business and can justify any extra expenses. Some small businesses now even prefer virtual offices, or have staff based at different business centres that utilise hot desking, ie a single fee for a workstation access, tea coffee, meeting rooms etc.
There are so many options now and the stigma of virtual offices and staff is a thing of the past, its all about flexibility and keeping costs down and profits up 
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Thank you so much for responding, what you've said is exactly what I wanted to hear! It's nice to know I'm on the right track! I don't really know anyone else running their own business in my social circle - thank goodness for forums!
I've been doing a bit of looking around at companies that provide virtual offices because I want to get started as soon as possible, and now I think I'm struggling because there's just so many companies! I was checking out some blogs about how to get a Virtual Office quickly, and these guys kept showing up http://www.msoworkspace.com/ , are they any good?
It's a shame I can't give more than one "Thanks" on a comment, otherwise I would give you all the Thanks! 
