When it comes to creating your own startup, there’s obviously a lot to consider and a lot of risk involved. Venture capitalists in the United States invest up to $100 billion in startup companies annually, however, 70% of all tech startups will eventually fail. Risk and reward are obviously key here, and while that large percentage only covers one type of new business, it doesn’t take a genius to know that creating a business and maintaining success, is quite difficult.
A major factor to all new startups that most don’t think about too intensely is the real estate component. Even if your business isn’t a retail environment that depends upon customers coming into your space everyday, the location still matters and there’s a lot of factors in regards to that, that one must consider before choosing the right spot to jump start your company.
Obviously the specific location of your business is important, but outside the realm of the most ideal cities and states to work in for your particular startup, there are some general things that every new business owner should keep in mind before signing that new lease. Accessibility to prime employee’s who have either been in your same position, have the experience for the specific type of employment you’re looking for, or have networked connections within the area your business will reside in, is important.
You want employee’s that don’t only check-off all the logistical aspects of what it takes to run a startup, but are also creative enough to take new ideas and turn them into successful business ventures. Obviously, choosing a location doesn’t seem like it would coordinate with finding an individual whose creative and smart in terms of business. However, you need to think to yourself, are you about to rent a space in an area that’s relatively suburban and therefore most of the young entry level employees are likely still away at school or pursuing other endeavors in the more metropolitan area a few miles down the road, where older more experienced employees also likely reside? You need access to a pool of talented, creative, and young individuals who are ready to learn, but also thrive and help you.
Along with access to a pool of talent, you need access to other businesses as well. Every business owner knows that any social outing you endure is an opportunity for networking and making new connections to help advance/grow your startup. Are you in an area where networking events or meetups might occur? Are you in a business ecosystem in which there’s an overall sense of community amongst each owner and company? Or does it feel more competitive? If that’s the case, you might want to avoid planting roots there and find a location that seems it’s built on comradery and connection.
Regarding being located near a pool of young and creative entrepreneurs, consider moving in the proximity of any learning institution that offers programs regarding business and entrepreneurship. While entry-level workers never seem like the ideal for new companies especially, think of it this way; hiring someone who freshly graduated from an established business program means that they have all of the new-age information still fresh in their minds. Running a startup is a completely different ball game compared to what it was even five years ago, so hiring those young and creative minds while they still have all the knowledge from school at the forefront of their minds, just makes sense.
The last real estate thought you should keep in mind when it comes to where you should open your business is an obvious one; the cost. Location and spatial logistics will determine how much you’re paying monthly for running your business. Luckily, since it’s 2020, there’s a ton of office rental companies that offer affordable solutions for startups especially. Do your research and contact local agents who have experience with finding offices for startup companies specifically, as they know more than anyone the best places in your given area to succeed.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at firstname.lastname@example.org.