It seems like more people than ever are launching startups. Many of these businesses will fail, but some of them will go on to take their places in the future of the global economy. Perhaps you are planning a startup right now. Perhaps you already have one in the works. You may even have your start-up off the ground and turning profits already. No matter what stage your startup is in, you want it to have the best possible chance to succeed. There are many different factors that control how well a startup survives its first year, and the most significant factor is location.
Launching your business in the right place can offer you a lot of early advantages. The place you choose to found your startup will determine what you’ll pay for office space. The location will also determine your access to quality employees and infrastructure. Naturally, some cities offer you a better environment than others. There are three cities in particular you should consider when deciding where to launch your startup.
San Francisco, New York, and Seattle are all popular options, and we’ll give you the pros and cons of each location.
San Francisco
San Francisco is one of the most beautiful cities in the U.S. and it is known for being one of the biggest hubs for new startups. Is San Francisco the right option for you? Take a look at the pros and cons and decide for yourself.
Pros
San Francisco is widely regarded as one of the best environments for startups, and there are many different reasons that it has proven so popular. First, the weather is mild and warm with a vibrant social scene all-year round. The city is celebrated for the strength of its culture and vibrant diversity. Overall, it’s just a pleasant place to live, and a perfect place to start a life and a business.
San Francisco also has one of the best mass transit systems in the U.S. This is an important consideration if you want to save money on transportation, and also if you want access to the best modern broadband speeds that are essential to running businesses online.
Anyone starting a business in San Francisco will also enjoy the access to the people around the Bay Area. The population is highly educated and there are plenty of people qualified for any technical position. San Francisco is also close to the legendary Silicon Valley, which is filled with very experienced mentors and venture capitalists.
San Francisco should be one of your top picks for your startup if you want to focus on technology or social media.
Cons
Most of the cons associated with San Francisco have to do with the price. The price of living is simply very high. The housing is very expensive, the offices are very expensive, and general commodities are very expensive. Outside of these costs, the state of California also has a very high income tax and many different corporate taxes. Despite the prohibitive prices, the real estate in San Francisco is very competitive. Finding options you can afford for both housing and commercial use will be tough.
New York
No list of cities in the U.S. would be complete without some mention of New York. As it so happens, New York is also a popular city for startups. We’ll give you some pros and cons to help you decide if New York is the right home city for your startup.
Pros
It’s hard to start a list of all the things that New York has to offer to startups. The city is a shining beacon of culture and innovation. Both of these features offer a lot to anyone looking to found a startup. You will be able to find almost any kind of business, any kind of customer, and any kind of employee in New York. You will also be in a city that attracts some of the best marketing talent available on the globe.
New York is also developing a culture that specifically serves the startup community. You can find job fairs, focus groups, and conventions all aimed at catering to people who want to start their own businesses. Most experts agree that New York is the place you want to be if you want your startup to be based around marketing or mass media.
Cons
There are some cons that you need to be concerned about if you are looking to found a startup in New York. Like San Francisco, everything is going to be very expensive. You will have to pay a heavy premium to rent office space or an apartment. Unlike San Francisco, New York will test your resistance to the elements. The weather can be very dramatic in the winter with powerful storms that shut down traffic and cause power outages.
Seattle
Seattle is a city that has only started to become competitive within the past decade, but it is asserting itself in a big way. It is now a very popular place for startups, and for many good reasons.
Pros
Seattle is now home to the headquarters of many successful internet businesses. Amazon is probably the most famous. Seattle is also the long-time home of the massive Microsoft Corporation. It is very easy to find people in Seattle who are highly-trained in technology. The city is also a major hub for medical research and development.
Seattle also has an enviable location that allows it mass-transit access to both the north and south segments of the west coast. Vancouver, San Francisco, and Portland are all within easy reach of Seattle.
Cons
Seattle is a fine choice for cities to found your startup, but it’s not going to be a great option for everyone. Compared to San Francisco and New York, the infrastructure in Seattle is very outdated. Moving around within the city is difficult without a vehicle, and the property prices are high. Seattle also has very high levels of depression. The constantly rainy weather of the Pacific Northwest can wear some people down over time.
About the Author: Simeon G Howard, born in Hampstead London, started his first business at age 21. By age 25, this serial entrepreneur had founded Your City Office Ltd, a Virtual Office and Office Space brokerage firm. Drawing from his past experiences, he and his partners have quickly built and developed one of the UKs leading organizations in this industry.