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According to CB Insights, in the first six months of 2014, Silicon Valley companies raised more than $ 11 billion through more than 800 different investment deals.
As the main hub for tech startups, aspiring entrepreneurs all dream of moving to the West to rub shoulders with angel investors, venture capitalists and future Mark Zuckerbergs. While the ecosystem is one of the best places for tech companies, it’s not the only area that deserves to start a business. Cities like Denver, Washington, D.C., Austin, Chicago, Salt Lake City and Boston are emerging centers for startups. Internationally, Berlin, London, Paris and Vancouver are also notable examples. Here in Phoenix, AZ, businesses are also thriving.
Despite the fact that most unicorn companies thrive in the valley, success is possible everywhere. To develop a business outside of Silicon Valley that helps thousands of other businesses or millions of individual consumers, here are four important tips to remember.
Prioritize the development of people.
In Silicon Valley, employees of startups have extremely competitive resumes. An internship at Google can give a recent graduate an excellent job in a company of their choice before officially entering the full-time job market. A Stanford degree, too, places a candidate for a position at the top of the list.
While the local market in which you operate may not have candidates with the same background or pedigree as a newbie to Facebook, you’d be surprised what people can do with the right advice, resources and support. .
To build a successful business anywhere in the world, you must prioritize the development of your employees’ skills and abilities. The ambitious college dropout that you hired to work in customer service may in fact one day be able to lead the entire department, if you invest in providing the tools and knowledge that help it do it better his work.
Related: 25 Ways to Lead, Inspire and Motivate Your Team to Greatness
Take advantage of the lower cost of living.
Employees of Silicon Valley startups receive generous compensation, in part because of the absurdly high cost of living in San Francisco. Some spend up to $ 1,800 a month on a bunk bed in a shared room in a shared home. For a T2 in the city, the median rent price is $ 3,460. Elsewhere in the United States, $ 1,500 a month can buy a 3-bedroom home.
This means that people can live happily with much less, saving you on wages. According to Glassdoor, software developers in San Francisco earn an average salary of $ 94,482, 8.7% more than the national average of $ 86,226. In Austin, Texas, people with the same title earn $ 76,552 each year, 11.2% below the national average. With the difference, you can put away money for a rainy day or invest in perks that will keep your team members happy, healthy and productive.
Related: Need a software engineer? Here’s how much you can expect to pay. (Infographics)
Be the big fish in a small pond.
Large companies in small towns have an almost monopolistic advantage in developing partnerships with local suppliers, seeking talent and attracting favors from local government.
By supporting the local economy with jobs, entrepreneurs in quiet cities can create brands that every resident admires. Businesses who consider small towns to be their home tend to play a vital role in improving their local community and, in turn, find it easier to hire exceptional employees, obtain business licenses and sell their goods.
Keep a positive and profitable cash flow.
One of the pitfalls that new startups fall into is relying on investors to finance their operations. For startups outside Silicon Valley, money is much more difficult to find. Instead, entrepreneurs should focus on creating businesses that don’t consume a lot of money. Most new businesses should operate on a shoestring budget for a few months until they are positive. Then they can use the small profits they generate to reinvest in growth.
A new business can thrive anywhere. With enough courage, persistence and skill, entrepreneurs can strategically leverage local resources to win.
Related: Israel Has Become An R&D Alternative To Silicon Valley