It is a common belief that location does not have any impact on a startup and employees and consumers can be reached at all times through email, video or voice. However, location does play an important role in a startup’s success.
The following are 6 things you need to consider when a startup’s location is chosen
1. Be around the Mother companies- A pillar or mother company provides the start up its capital and the employees and buys their services too. The profits of your new startup can be boosted by locating your company close to the pillar company. By placing your office close to the pillar company you can hire engineers or other necessary personnel who are well experienced and have led the company in many situations in the past.
2. Search local educational institutions- Good ideas and talent are required to boost your startups market share. To get some employees with good talent and fresh ideas, it would be good to locate your company close to educational institutions. With good talent your start up will get all the necessary boost that is required. If you are starting up a fashion business, it will be ideal to locate your office close to a fashion university or college. If it is not possible to locate your office close to a university or college and you cannot outsource your work, then consider a location at which your employees can be educated.
3. Locate your startup where its value can be shared- Usually the entrepreneurs choose to locate their business at a place where they reside or want to reside. That choice depends on whether its value is shared by the community or locality where your startup is placed. Submit your startup here, It would be better to choose a place with good diversity.
4. Locate your company at places people reside mostly- It is important that the headquarters of your company are located at a place that is easy to commute. This way, it will attract all the necessary employees which is required. To attract good talent locate your headquarters at a place employees will be ready to work. This way, you can persuade the talented people to join your company without having to change their commute.
5. Be close to your investment sources- It is natural for your startup’s investors to be located in close vicinity close to the company they have invested in. Therefore, it would be good if you are placed close to the office of your capitalists. When you are located close to your venture capitalists, you can interact with their executives and arrange meetings etc. If it is your intentions that an investor should invest in the startup and help in its growth, it helps to be close to your investment source.
6. Be close to your mentor- As you are new to the business, you will need someone to mentor you and help you with your new startup. Therefore, stay close to the mentors who will guide you in your business and help it grow. It would be easier for your mentors to give you advice if you stay close to them and can meet them often. You can understand and share their visions and market analysis which will help you with your business. They will be of help to you whenever a problem arises with your startup, but some mentors might be busy and have only limited time, therefore it would be best if you stay close.
These are 6 factors that a start up owner needs to consider when choosing a location for their startup.