Although we live in a digital age, one in which businesses have access to a global market, geographical location still plays a significant role. Though you may be able to sell your product or service online, you still need to consider everything else that goes into running your startup. Some locations are not suitable for doing business, so making an informed decision as to where you choose to operate is essential.
Choosing the right location can have a considerable impact on the success of your startup. Here are some of the main factors to consider when deciding where to base yourself.
Cost of living
If you want to be a success and turn your startup into a fully-fledged business, consider the cost of living in your desired location. Knowing this information will affect all aspects of your business, including operational costs and rent, staffing, and even office supplies. On top of that, you’ll be able to set realistic goals based on how much you need to make for your business to survive. If you are selling a product or service locally, you can price yourself accordingly to ensure a price point that your clients will be able to afford.
Funding opportunities and incubator programmes
As a startup, you’ll rely on funding opportunities to get your business off the ground. Ideally, you want to research and locate potential investors and place yourself near them. While you can secure investments from sources that are not near to you, it’s much easier to obtain local support. You’ll also want to look out for incubator programmes that can help get you set up and make sure you have all the resources you require. Poor management is often the downfall of many startups, and having access to everything you need from the get-go is the best way to set yourself up for success.
Unless you plan to run your startup out of your own home, you’ll likely need an office space. Office costs can vary from city to city, so depending on how much space you need, or how much you want to expand, you’ll need to consider your location. The best site for your office will also depend on what resources your business needs access to. Ideally, if you require specific materials or tools for your daily operations, you will be closely located to the supply or have a cost-effective means to transport them.
Staffing is one of the most important reasons why your chosen location is so important. Access to high-quality and proficient staff is the foundation for your startup success. The few key employees you start out with will help in the development phase of your business, which is the most pivotal part. Depending on your industry, you want to be in a location that offers all the staff you need, or your business will struggle. Rural areas are not ideal for startups for that reason, but large cities can have a high cost of living. It’s essential to strike a perfect balance that works for your business in order to make it successful.