A variety of factors affect what makes an area appropriate for a startup, and a smart entrepreneur will inspect all the factors prudently before coming to a decision.
Over the last few years, secluded working and operations have become much more common, but one thing still remains unchanged - when we talk about tech-based startups, picking the right ‘home base’ marks all the difference. In this age of virtualisation and globalisation, the topographical area where one chooses to work can still lead to a make-or-break situation for one’s startup business.
Although almost every major city makes a great location to work from, very few make great locations for funding. Metro cities tend to attract startups because of market access, audience recognition, and pool of talent. With these benefits, Bengaluru, Delhi/NCR, and Mumbai have been recognised as the trio of economic cores that have held up the fort for India in its startup ecosystem.
More the number of VCs in the area, more the access to meetings; the more meetings one gets, the more the possibility of finding someone who eventually gets one’s vision. Although technology has made networking a delightful opportunity, most deals are still sealed face-to-face.
How advantageous is your city?
Over the last two years, Delhi/NCR has been dominating funding in terms of contracts and deals – covering approximately 33 percent of the total deals. Bengaluru is still leading with 40 percent of the total funding in the Indian startup ecosystem. Most cities have something or the other that they are predominantly good at.
What sets one’s business apart?
It is important to figure out how one can create that edge in business. When one is in the right location it helps to maintain that pace – the clear reason being access to trained and experienced people. Being close to one’s clients, merchants, or even contenders can make all the difference.
Geographical locations can also regulate the legal and monetary impact on one’s startup. Government incentives are mostly grounded on startups operating within certain topographical areas. Revenue and sales taxes are also influenced by the place one chooses for doing business. It is sensible to check the regions around where one wishes to establish a company.
Is funding accessible?
Location is an important factor to give an entrepreneur a close propinquity to possible financiers and mentors. It may be possible to lure investors who are not near one’s business, but it is definitely easier to secure individuals who are acquainted with the area or market and who can ensure how one will be performing in business. As an added advantage, one’s location will govern the network that the startup establishes. By joining a grid of similar companies, one can take the advantage of training and maintenance that the startup will need.
Approach to the incubator programmes
As an entrepreneur, it can be tough to find obstacles like rules, startup expenses, marketing, and just the simple vital details that are needed to run a business. Localising the startup in a region that is rich with incubator programmes will contribute in making sure one has all the resources. Many startups fail in the starting years – not because of their services or products, but because of poor management and organisation. Starting the company in an area that has all the resources one needs helps maintain success.
The quality of life in the region one has chosen is just as important. While startup owners think that company’s ideas and work are enough to lure people to a town, the fact is that people have an existence outside of work. The region that a startup is established in can be either a benefit or obstacle – appealing quality personnel is easier when the area of business has high excellence.
A variety of factors affect what makes an area appropriate for a startup, and a smart entrepreneur will inspect all the factors prudently before coming to a decision. Though it is good to think, “If I build it, they will come!” the startup motto should be, “If I build it where they are, they’ll come faster.”
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)