Your office deposit vs your runway: do the math
Founders obsess over CAC and burn multiples, then sign a lease without running the simplest calculation of all. Let's run it.
Runway is just cash divided by monthly burn. Anything that takes a big bite out of cash, or permanently raises burn, eats runway. A traditional office does both at once — and the deposit does it instantly, on day one.
A worked example, Hyderabad edition
Say you've got ₹12 lakh to start. You sign a small HITEC City office: roughly 600 sq ft at about ₹85 per sq ft is ~₹51,000 a month, with an eight-month deposit of around ₹4 lakh. Add ₹2 lakh for fit-out and furniture and you've committed half your capital — ₹6 lakh — to a room before you've shipped anything customers will pay for.
| Item | Cost | Effect on runway |
|---|---|---|
| Deposit (8 months) | ~₹4,00,000 | Gone immediately |
| Rent | ~₹51,000/mo | Permanent burn increase |
| Fit-out + furniture | ~₹2,00,000 | One-time hit |
| Virtual office instead | ~₹1,599/mo, ₹0 deposit | Negligible |
Runway is the only deadline that matters
Every extra month of runway is another shot at a working product, a closed customer, or a stronger fundraise. Spending it on a deposit just buys a nicer place to fail. A virtual office keeps that capital working in the business.
Spend on the office later, deliberately
This is pro-sequencing, not anti-office. Get the legal address sorted cheaply now — you need it for incorporation and GST anyway — and graduate to real space when headcount and revenue justify the fixed cost. The wider case is in why so many Indian startups die from high office rent.
The quick formula
Before signing any lease, calculate: (deposit + fit-out) ÷ monthly burn = months of runway you're spending up front. If that number makes you wince, you have your answer. A virtual office makes it close to zero.
Set up lean, the right way
Our in-house CA & CS team handle your virtual office, company registration and GST in Hyderabad or Vizag end to end — ₹19,188/yr, no deposit, no lease.
💬 Talk to our team View plans →Frequently asked questions
How do I calculate my runway?
Divide available cash by average monthly burn. Anything that raises burn or drains cash up front (like a deposit) directly reduces it.
How much runway does an office deposit cost?
Take (deposit + fit-out) and divide by your monthly burn. In the Hyderabad example, ₹6 lakh on a ₹12 lakh balance is a large share of the runway.
Is a virtual office really enough early on?
For a registered address, GST and banking, yes. Add desks via coworking or a small office only when the team needs them.
Does this apply outside the metros?
Yes. Even in affordable cities like Vizag, a deposit and fixed rent still eat runway — the maths is universal.
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