Location is the key for a successful startup company. That is a principal that every new entrepreneur or startup owner needs to keep in mind. Because of the fact that we live in the information era, most people do not pay such strong attention to location any more. It is a common belief that everyone can communicate with everyone and do anything as long as they have access to the internet.
Startups need physical interaction
Although that might be true in many cases, it does not apply to every social or business interaction. And it definitely does not apply to startup companies or all kinds of companies for that matter. The location of a company can influence its success or failure level.
The reason why location matters is because of the people themselves. People that can provide the company with resources. Resources like the human capital, revenues, talent and many more. And the only people that can offer these to a company are real people. Not names and pictures on a screen.
Build your professional relationships
Building and sustaining relationships with your customers, your suppliers, your employees and basically everyone that can influence your company plays a crucial role. To do that you must meet with people in-person, over and over again. Therefore there is no doubt that the location is indeed a key factor for every startup.
Choosing the location, depends on many things. You need to be close to your customers and far from the competition. Below you will find certain criteria that will help you choose the right location for your startup.
- Choose a location near pillar companies
Although moving away from the competition is recommended, locating your company close to the major pillar companies of your field can be of great benefit to your company. The human capital pool is usually much bigger there and you will have many choices when hiring your staff.
- Choose a location near the human capital’s preference
People tent to gather in places, based on their personal preferences and their professional expertise. Locating your company to a location preferred by your targeted human capital will service your enterprise and bring in a lot more profit.
- Choose a location near universities and educational foundations
Startups are always looking for new talents and new ideas. Universities and foundations have the biggest pool of people with talent and ideas. Locating your company close to a university will certainly provide you with the ability to choose between talented people with great ideas that will bring profit to your startup.
- Choose a location where your services are wanted
A startup is born out of an idea. And ideas are needed in every occasion. You startup could help many people in so many different ways. You already know what your startup is offering. Find places where your services are needed and locate your startup there. Soon your company will start to grow and evolve into something a lot bigger and a lot more profitable.
The criteria mentioned above are the most common criteria to help you choose the right location for your startup. You can add your own criteria to find a location with authority, prosperity and profit. Remember, face-to-face meetings with the people will take your startup a long way and the better the location, the easier the access to the people.