strategyI am evaluating possible locations for our start up. The founders do not live in the same location. We have two candidates as a location for our start up. The first is in an incubator near one of our industries bigger players, lots of know-how and infrastructure as well as coaching programms ect. The drawback is that is a little remote compared to the other location, which could hinder some of our future potential talents form working with us. It is in a beautiful mountainous area tough. The second location is the biggest city in the country, the start-up scene there is ok, lots of money around there also and very attractive for talents. Taxes are a little better on the countryside and the salary and rental costs are also better on the countryside. So first part of the question: What other factors would you consider? Second part: What do you think is more important, industry relation, know-how and lower cost OR beeing in a more attractive and more prestige location?
Side info we are a tech company and plan to produce 3D printers.
You still need to consider your location, at least for networking and economic purposes. But nowadays as long as you have a reliable laptop, and a high-speed Internet connection, you can work from almost anywhere. Remote working has become much more common, but one thing still hasn’t changed= when it comes to tech startups, choosing the right “home base” makes all the difference in the world. Success doesn’t grow in a vacuum — yours will ultimately depend upon the quality of advice you receive, the amount of capital you generate, and the level of talent you attract.
Regarding to your 3D printers startup, these (from highest to lowest) should be your priorities=
1. Funding & Mentorship
A startup’s journey can’t really begin until you can secure a certain level of funding. While all major cities make great locations to work from, very few make great locations to find funding. I had flights from London to USA to Ireland to Luxembourg to Belgium to secure the first funding (a grant) for my green electronics startup. The more VCs in the vicinity, the more meetings you get, the more likely you are to find someone who ultimately gets your vision. Though technology has made online networking a wonderful possibility, most deals are still closed face-to-face. Remember, your network is your net-worth. Good networking will act as a strong foundation for your business. Thus, initially choosing a location with an abundance of investors who match your industry is paramount.
2. Your core team
A strong company is only as strong as the people behind it. Without a doubt, you want to hire the best of the best. It means choosing a work location that is already attracting young, talented, tech professionals. Many of emerging tech-forward cities are extremely affordable, and some offer co-working spaces.
Which one is more important?
I think it depends on your current stage. Which phase of startup are you at? Concept? Prototype? Market research? Marketing? Only you can answer.
Godspeed!
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