This topic is very close to my heart. One of my online articles recently went viral and I got tons of mails from entrepreneurs to speak more about this prospect in detail. So here it is:
I have seen entrepreneurs bleeding and startups shutting down just because they did not have enough capital to work in Tier 1 towns. Naturally...Tier 1 town are three times more expensive than Tier 2 towns, if not more. So why this madness?
It is not the 80s or 90s or even 2Ks. We are in a digital era with 4G network and internet spreading to grassroot levels. Even villages have started getting connectivity (No kidding!). Tier 2 towns are the best and most optimum startup battlegrounds these days. And I will tell you why in a series of articles. Today I shall take the discussion more around financial gains and next week we will talk about strategic benefits.
Guess how much a decent flat in a bad location at Bengaluru or Delhi costs? 15K for 1 BHK and 30K for 2 BHK! Oh and don’t even ask me about the costs in Mumbai! It would be too heavy for our pockets to hear! Compare this with the rent at a prime location in Tier 2 towns! I work out of my Jabalpur office in one of the best and most developed areas of the city and the rates there are Rs 5,000 for 1 BHK and 10,000 for 2 BHK! That’s a whooping Rs 10,000 to Rs 20,000 saving right there!
And did you wonder what’s the cost of food in these cities? A simple breakfast at Bengaluru would cost you a minimum of Rs 50 (and I mean just one Dosa and one chai at a random Sagar). Compare that to a Rs 10 poha/samosa full plate and Rs 5 chai at Jabalpur! A fulfilling lunch/dinner meal is at least Rs 100-150 in Bengaluru at a decent hygienic place. The same you will get in about Rs 50 in similar Tier 2 towns restaurants. Now multiply that with 30 days and thank me later for this advice!
Ever fell sick in a Tier 1 City? Did the doctor charge you Rs 300 for just seeing if there is anything wrong with you? Oh and medicines? They were another Rs 200-Rs 300 for a mere cough and cold. Tier 2 towns have good clinics that offer you consultation for just Rs 50. And yes they don’t require you to sit in a cab for 30 minutes just to reach there!
If you have any queries, write to Rajeev@TBSPlanet.com
Rajeev Tamhankar
Twitter@rajeevtamhankar
Rajeev Tamhankar is IIT-R Alumnus, Entrepreneur of The Year’17 (Print Business) and the Founder of TBS Planet Comics