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M.Sundar Rajan

The Startup Sojourn: Scaling up with Satellite Offices


Scaling up with Satellite Offices

The Startup community is going through a transformation in the job market. The pandemic has shown the world how startups with smaller teams have managed to carry out business even in tough times. With success stories of staying sustained during the pandemic, startups have scaled higher. Startups have been defying myths about virtual work even before the pandemic. However, the pandemic has done them a favour and opened up the possibilities of working out of satellite offices.


Hiccups Startups Face

  • Competition

Competition motivates startups, thereby encouraging innovation, focus, and perseverance in startups. However, with niche ideas in the startup market, it is challenging to scale fast without the strength of having one’s team together.

  • Finances

Startups face the initial crunch of finances. The lucky ones may get investors or instant cash flow from the business. But with startups, finance is always an uphill climb. Progress isn’t easy with a weak financial situation. So a startup always ends up trimming costs to prioritise its energies elsewhere.

  • Hiring a Team

To put together a successful business proposal forward, every startup requires its complete team. Therefore, a skilled workforce is essential to help the business thrive and grow. Startups tend to face hiring difficulties due to various reasons. Growth for any startup becomes stunted without a skilled team.

  • Cyber Security

Having the proper cyber security in place is crucial to avoid data breaches and tampering with confidential business information. According to the IBM Cost of A Data Breach Report 2021, the most common initial attack vector, compromised credentials, was responsible for 20% of breaches. Additionally, more breaches occurred when remote work was a factor, compared to those where remote work was not a factor.


Satellite Offices for Startups

Startups have the perfect features to fit into a satellite office. Their small size and capacity don’t demand significant infrastructure. Startups have low operational costs, and a satellite office is more accessible for a company to set up than a large office. Here are a few reasons why a satellite office is apt for a startup.


Benefits of a satellite office

  • Less Travel

Employees can reach satellite offices easily due to their accessibility. As a result, travelling to work becomes more accessible and thus cost-effective.

  • Quick Scaling

A startup in a satellite office has more opportunities to expand. An office in another region can increase customer reach by targeting a different client base. Setting up in multiple areas allows businesses to grow and improve their footprint locally and globally.

  • Talent Pool

Expanded presence in multiple regions allows a broader recruitment pool in smaller cities. In addition, employees who live and work in the same area will have the ability to connect to work quickly.

  • Cost-effective

A vital benefit of satellite offices is the cost. As a startup, prioritising costs is essential. A satellite office cuts down costs and is a sustainable model of operation.

Building Company Culture in a Startup

A startup's success requires a strong work culture. The principles are designed to create a work environment that attracts and retains the right people. Balancing performance with sustainability, learning a lot as they scale, and empowering employees to think individually during the initial growing years.


As a startup, the work culture is established with the initial employees. Growing organisations require spaces that help them connect with clients and employees. Satellite offices are generally small, making communicating and cultivating a work culture easier.


Accessibility to Leadership

The formative years of a growing organisation require constant communication with senior management. Access to leadership roles in bigger corporations is not an easy task, whereas it is easier to approach seniors in a satellite office for a startup. The communication channel is direct and doesn't break down or lose information in the process.


An Address

Great ideas are the seeds of a startup. Therefore, startup companies with a physical address, a meeting room, and a basic office space are preferred to those working out of a garage.


Choosing the right satellite office is key to establishing itself as a startup. Here are a few points to consider before doing so.


Understanding Startup Needs

Every startup needs to consider what they expect from the office space. Choosing the right location will ensure that the space is worth its cost.


Budget

As a startup, spending on an office by compromising on the product or service may not be wise. Instead, moving into an office after the budgets are in place is the best way to go.


Plan Ahead

Starting up requires a certain amount of space. As startups scale, the space necessary may increase, which requires planning.


Office space will impact a startup's success, even if it doesn't determine its success or failure. Satellite offices are secure spaces for startups. Startups starting their operations and expanding their businesses to tier 1 and 2 cities across India hugely benefit from a satellite office.


Looking to startup in an office with a workforce? Mikro Grafeio’s workspace solutions will help build your office based on your enterprise’s needs. Visit Mikro Grafeio’s website for more details.

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