Until very recently, entrepreneurs and startup founders were turning to San Francisco as the best location for starting up a new company. This is especially true with tech startups, mainly because there are already so many companies established in the area. Connecting with the best investors and gaining access to essential resources was relatively easy, making the whole process of setting up a new operation easy.
Today, however, that approach is no longer used; newer startups are taking various aspects into consideration to determine the best location for their businesses. We talked to a number of experts and founders and found the best tips to keep in mind when choosing the best location for your startup.
Access to Human Resources
Employees remain a startup’s most valuable asset in many situations. A strong team can make or break a startup in the early stages. After all, it takes a strong team to turn ideas into products that customers or users actually love.
Fortunately, more places now offer access to amazing human resources. You don’t even have to stick to big cities in the United States to find capable tech specialists to support your business ideas. Larger companies are starting to recruit experts from all around the world; you can take the opposite approach and set up your business close to where the best tech specialists are.
There are several ways you can get a clearer picture of the available human resources in a particular area. Let’s say you want to establish a business in the UK. You can take a closer look at the job market in cities like Norwich to learn more about the available talent.
Costs
Cost is another factor to consider when trying to decide on a location for your startup. For conventional businesses, cost elements such as the cost of getting raw materials or supplies delivered to the premise are calculated before a business is established. For startups, there are two cost elements that are essential.
The first one is operational cost. How much will it cost to set up a business and keep it running? How much do you need to spend on rent and other amenities? These costs will greatly affect your new business’s bottom line, which is why they are worth considering.
The second one is living cost. Your team members – and yourself – will have to live close to the office, making living cost an important factor to consider. Some cities are more affordable than others. Lower living costs also mean lower overheads for your business.
Network
Technology is on your side when it comes to getting connected to the right parties no matter where the business is based. You can still get in touch with the best investors. In fact, you can now connect with investors from Asia and Europe from anywhere in the world.
That said, some cities offer support for local businesses through various regulations. The attention of city officials and the relationships you develop with local communities will also transform your business and increase its chances of success. Good networking along with the previous factors we’ve covered in this article will act as a strong foundation for your business.