Gurgaon-based Brij Mall, a seasoned entrepreneur, recently voiced concerns regarding India’s startup industry. He cautioned in a LinkedIn article that early rental of pricey office space can lead founders to prioritise property administration over business development. His counsel is relevant now since many financially challenged companies take on expensive real estate commitments.
Startups Now Take Up 19% of Major Urban Office Leases
It is cited recent data showing that startups occupy roughly 19% of all major office leases in India’s top cities, totaling an estimated 24.8 million square feet. This trend reflects founders associating swanky offices with success, even before their products are market-proven. That swift scaling, leads to dangerously high fixed costs and eventual cash strain.
Coworking Spaces: The Leaner Alternative
Post-pandemic, coworking has gained popularity: around 60% of startups now favor flexible, shared spaces over long-term leases. Mall even took a founder touring a ₹50 lakh lease in Gurgaon to a coworking site in Bengaluru, highlighting empty desks and cautioning him: “This is your competition’s graveyard.” Unfortunately, the founder ignored the advice and ended up subletting the space a year later.
Why Ego Can Be a Startups’ Biggest Expense
Mall said: “Ego is the biggest expense on a founder’s balance sheet.” He underscored that lavish offices often serve more as vanity statements than functional business tools. With most Indian startups failing within five years, due to premature scaling and poor financial foresight, Mall’s message is clear: growing the office does not equate to growing the business.
Takeaways for Founders
| Mistake | Risk | Leaner Option |
| Leasing luxury space pre-revenue | High fixed costs and low flexibility | Opt for coworking or smaller offices |
| Confusing “image” with “impact” | Burn cash without traction | Prioritize product development and team growth |
| Ignoring scalable expenses | Hinders pivots and agile decision-making | Keep overheads tied to milestones |
About Brij Mall
Brij Mall is a Gurgaon-based angel investor and entrepreneur. On LinkedIn, he offers frank guidance on common startup mistakes. His posts paint a vivid picture of startup culture by fusing data-driven insights with personal experiences.
Final Word
Brij Mall reminds us not to let status get in the way of common sense. Leasing large office spaces may seem impressive, but without enough revenue, it can become a problem or even lead to failure. Coworking and flexible spaces provide adaptability, cost savings, and smarter growth options for founders who are just starting out.
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