I talk to ALOT of entrepreneurs and for some of them it seems as if they can’t make progress where they are. For some, their idea needs more work, for others their not focused, but for a few, they’re simply not in an environment that understands their vision. It saddens me to see an entrepreneur feel locked into the confinements of where they grew up or what they know. Business is about RISK and if you really plan to be successful then you must be uncomfortable oftentimes to get the results you want.
What does a conducive environment contain?
In order to get to a place where you can be most successful, the environment must contain the following things:
- Similar Ideas
- Capital
- Skilled Workforce
- Strong University Base
- Social Activities
There is a reason that certain places are more likely to produce a certain type of professional. They have people there with similar ideas, investors with access to capital, a skilled workforce, universities with similar interests and social activities to relieve you from your business.
Silicon Valley
Many people don’t even know this but the valley’s technological entrepreneurial revolution started way back in 1937 with William Hewlett and David Packard. Today the valley is packed with technology companies large and small. There are investors all over Sand Hill Road waiting for the right idea to come along and all of it revolves around Stanford University. I had the pleasure of working out in this area for a short while and I can tell you that even at a bar on a saturday, people are talking about and starting internet companies.
Wall Street
The financial capital of the world is one of the most highly concentrated places in the world for all professions financial. Investment bankers, portfolio advisors, hedge fund managers and the like all populate this area immensely. People on Wall Street understand and love finance. The New York Stock Exchange is there and all the world’s top investment banks. Columbia University which is an Ivy League institution is right up the street as well. I’ve worked here as well and even on a Thursday night out on the town, bankers are talking about money and how to make more of it.
Hollywood
“Tinseltown” as they call it has been the center of the motion picture industry since it’s very existence. The majority of the companies out there including Miramax, Sony and Dreamworks all are headquartered and employ thousands of people here. Even though competition is steep, a good actor has a much higher chance of getting a break because they are around industry coaches, other actors and big companies who pay already successful actors. It doesn’t hurt that USC and UCLA have some of the top film schools in the country.
So What Am I Saying?
The point of this posting is to simply state the fact that just because you’ve called somewhere HOME, doesn’t mean that it’s the best place for you or your business. Look to see if home has all the things you need to be successful, including positive people that actually know your industry.
If the answer is YES then continue to make yourself at home. If the answer is NO, then get out while you still can!
Great read Dezmon.
There are also some basic regulatory issues that can really put a damper on entrepreneurship such as:
Number of Steps Required to Start a Business/No. of Days Required
Low Marginal Tax Rates
Legal Framework- Intellectual property protection, contract enforcement, ease of settlement of disputes.
Most of these apply at the macro (national) level, rather than the state, but should all be factors in considering where to set up shop.
Comment by John — February 5, 2009 @ 11:28 am
Hi Dezmon,
Very relevant posting and something I had not seen addressed until now. I have found this personally in my life as I have moved to different places for different reasons - depending on the inspiration needed. This past year I had moved to Cape Cod for the very reasons you stated in your article - not necessarily for all the reasons, but mainly the inspiration. The main point is that my former locale was not cutting it and a change of scene gave me exactly what I needed. I actually documented this in a recent article on my blog (http://capecodbranding.com/blog/2009/01/28/how-to-beat-the-recession-part-i-move-to-cape-cod/). This was a three part series but I thought I would only include the first part for you or anyone else who may be interested as you can easily find the other two parts if interested.
Again, great article and I completely agree with your assessment!
Best,
John R. Sedivy
Comment by John R. Sedivy — February 5, 2009 @ 12:50 pm
Dezmon…This is a great blog. I preach this same message to people all the time. I always say that if I had to move to Alaska for business, I would. People lack the “work now, play later” attitude. Sometimes, you gotta do what you gotta do to get ahead.
Comment by Dante Lee — February 5, 2009 @ 2:50 pm
I think this was a great blog. However, I think the first step is to research the area in which the business may already exists. Although one may understand that their business could possibly blossom in another place, there may be a greater opportunity in the current area under different circumstances. Not only does one have to look into regulations, but also different partnerships and funding that may be available that your business has not yet tapped into. Because of the cost effective issues that may come up with moving a business or starting a business in another place, it is in the best interest for the business owner to try everything in the location in which it already exists.
Comment by E.Young — March 18, 2009 @ 2:46 pm