Startup culture is at its peak nowadays. In a country like India, with innovative ideas, young mindsets, talented youth, and a supportive environment, startups in Bangalore are increasing at a fast pace. The city is often called the “Silicon Valley of India” because of the number of startup companies in Bangalore, especially in IT, SaaS, fintech, and other industries.
However, there is another side to it. Many of the recent startups in Bangalore are burning out. In fact, some of the best startups in Bangalore and even well-known software startups in Bangalore are struggling to survive. And the most common reason for this situation is office space.
In this blog, we will discuss key reasons why startup companies in Bangalore are struggling and practical solutions to deal with them. Let’s get started.
5 Reasons Why Startups in Bangalore Burn Out
Many times, the reason for a startup’s failure is not the business model but other factors. And office space is one such factor that directly hampers growth for many startup IT companies in Bangalore. Here is how:
1 Non-Strategic Location
Bangalore is a hub of office space. Wherever you go, you can find offices for rent. However, the cost at premium locations such as HSR Layout, Indira Nagar, Richmond Road, or Koramangala is significant. Thus, many startup companies in Bangalore for freshers end up renting a space in a low-demand area.
Searching for an office space near at off-centre locations may look good in the short term, but it’s not suitable for long-term growth. Lack of proper connectivity and transportation shifts clients and employees to other companies. This is one reason why even some of the top startups in Bangalore lose out on business opportunities.
2. High Rents & Hidden Costs
In metro cities, even renting a 500 sq. ft. office space can cost a significant amount. Now office space is not only about desks, it’s about ambience, lighting, comfort, and an overall attractive environment.
And all these facilities make an office space expensive. Also, there are hidden costs for lease agreements, maintenance, parking, security, and others. For startup companies in Bangalore, such high rents make business expense management extremely difficult.
3. Poor Infrastructure
Most recent startups in Bangalore make a common mistake while selecting an office space. They go for a fancy infrastructure that only looks good. However, they forget about comfort. Comfort is most important in Bangalore, where people spend hours in metros and traffic.
An ideal office space should have proper seating, breakout zones, comfy furniture, relaxed lighting, and cosy corners. An office space that only looks good will not work for Bangalore people—or for software startups in Bangalore that require long working hours and creativity.
4. No Brand Representation
An office space is where you can represent your brand vision, mission, and goals. Your office walls should speak about your business. Especially if your startup is in the creative field, the office should be inspiring.
For many best startup companies in Bangalore, office design plays a big role in building brand value. A well-designed office fuels creativity, freshens up moods, energizes employees, and attracts clients. Ultimately, it helps boost productivity and sales at the same time.
5. Hiring Challenges
An employee will join you if you are offering a good package or if your office environment is good. Your office is a representation of your environment.
When candidates enter your office, they see cabins, receptions, meeting rooms, and the overall ambience. For startup IT companies in Bangalore, office space also signals financial stability and growth potential. A poor office environment creates barriers to hiring the right talent, especially for startup companies in Bangalore for freshers who expect an inspiring workspace.
4 Solutions to Fix Startup Burnout in Bangalore
The startup survival problem is real. Founders need to be cautious while making business decisions to avoid such circumstances. Here are some solutions:
1. Go for Coworking Space
A coworking space is where many companies rent their space in a building. A startup should choose a coworking space instead of independent offices.
In coworking, multiple startup companies in Bangalore run under one roof. You can get premium facilities such as game zones, breakout and chill corners, top amenities, parking, and robust connections. Also, as companies are paying collectively, the rent will not cost much—making it the best solution for recent startups in Bangalore.
2. Focus on Location and Accessibility
Select an office location strategically with proper transportation and connectivity. An office space for rent in a prime location may cost a significant amount.
However, the hidden cost of being in a far-off location is even bigger. It creates barriers during client meetings, hiring, and even startup events in Bangalore. Having your office in a prime hub like HSR, Koramangala, or Whitefield ensures accessibility for clients and talent.
3. Flexibility
Startups can choose flexible and hybrid workspace models. In the beginning, flexibility will help you to survive in Bangalore.
Going for a flexible workspace option lets you rent an office space with the necessary features. With time, you can upgrade as per your needs. This approach works particularly well for software startups in Bangalore that grow in phases.
4. Have a Good Office Environment
If your startup is burning out due to a lack of proper human resources, work on the office environment. Go for an office space that has plantations, open and green areas, breakout zones, game zones, gyms, and relaxation areas.
A good office space reduces employee stress, enhances productivity, and boosts creativity. As a result, employees avoid switching, and new candidates—especially freshers who want to join startup companies in Bangalore for freshers—get attracted.
Wrapping Up
Starting a startup and surviving in the market are two different things. These days, many founders are facing survival problems. Managing business expenses is a must when you are new in the market.
Office space is a non-negotiable factor. You cannot compromise with its quality. Also, you need to take care of costs. At Workie, we understand the challenges faced by startups in Bangalore. We offer premium coworking spaces at an affordable cost in prime Bangalore locations. Reach out to visit and book your dream office.
Struggling in Selecting a Perfect Office Space In Bangalore
Workie, being a leading office brand, can help you out. We strive to provide our client with top most satisfaction by understanding their needs.
Our ready-to-move office space is now available at Koramangala, Vista Pixel, and Condor Mirage. And that’s not it, we are all set to launch our new projects at HSR Layout, Jayanagar, Hebbal, and Whitefield.
Feel free to connect to discuss working space requirements or to visit our office space locations.
FAQs
The office space rent and maintenance are the biggest killers of startup companies in Bangalore.
Indian startups are struggling due to high rent, a competitive market, low support, and a lack of resources.
Because of its startup-friendly ecosystem, investor network, and talent pool, Bangalore attracts some of the best startups in Bangalore and continues to host numerous startup events in Bangalore every year.
High office space costs, lack of support, retaining talent, and a competitive market are key challenges for startup IT companies in Bangalore and across India.
The average rent of a 500 sq. ft. office in a prime location is around ₹1,00,000—making it tough for recent startups in Bangalore to manage costs.