4 Tips for Launching a Successful Midwestern StartupWant lower costs, a stronger community and a higher profile for your great idea? Quit flying over the newest startup hot spots.
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在今年的全球创业峰会,咕狗万官方gle co-founder Sergey Brin cautioned entrepreneurs thatstarting a company in Silicon Valleymay no longer be the best idea. The region's cost makes building a "scrappy initial business that's self-sustaining" difficult, if not impossible.
Related:The Simple Trick to Winning Funding From Midwestern VCs
Instead, Brin and other business leaders are advising young entrepreneurs to flock elsewhere. While cities likeNew YorkandMiamiare gaining popularity with startups, the most advantageous locations may actually be more centrally located.
Medium-sized cities throughout the Midwest are becoming go-to spots for young entrepreneurs looking to start businesses. Great ideas stand out more, and startup costs are typically lower in nearly every aspect,making the area a better betfor entrepreneurial success. But, how can entrepreneurs be sure their companies will see the success that others have found in the so-calledSilicon Prairie?
Medium-sized cities stimulate entrepreneurship.
The Midwest'slower cost of livingmeans more affordable labor, office space and retail space. The ability to spend only one-third of what other cities average per square foot leaves more money to run your company during the early stages, when a business is most vulnerable and cash is king.
LockerDome, for example, an internet-based social media platform, expanded from a small company in St. Louis to its currentmultimillion-dollar expansion phase, which will reportedly create 300 new jobs. Other players in St. Louis' influx of tech startups such asHatchbuck, whichwas awarded best CRM software of 2015and grew more than 200 percent between 2014 and 2015, have helped cement the Midwest's reputation as a viable tech and startup hub.
Related:3 Reasons Why Startups Should Consider Launching in the Midwest
For companies that ship to consumers, more manageable shipping costs translate to more competitive pricing. These lower costs also mean it's possible to attract top talent while keeping costs down from Silicon Valley levels. The recent startup boom in Midwest citiessuch as St. Louisalso encourages collaboration among young companies, which can lead to highly beneficial relationships.
Ensuring entrepreneurial success in the Midwest
Business atmospherediffers across regions, so building a startup there requires a different approach from starting a company elsewhere. Stick with these four basic steps for Midwestern startup success.
1. Embrace the community.
Networkwith other local entrepreneurs and find neighboring startups with unique strengths. Chances are that different startups possess different skills, which provides the perfect environment for collaboration. Start or find a community that hosts startup-geared monthly events, which can be instrumental in forming these key relationships.
My company,Metabolic Meals, has enjoyed a number of competitive advantages by being located in St. Louis. From the beginning, the community embraced the unique nature of a healthy meal delivery company and took pride in it's being an exclusively St. Louis business, rather than a franchise.
The city's support made it possible for us to expand and begin delivering meals nationwide, which brought even more pride to the community.
2.停止等待最佳时机。
Successful entrepreneurs know there is no perfect time to act. Don't be reckless and forget to create a strategy, but do have thecourage to commit and persevere. Be willing to react and improve your plan along the way in order to move the business forward. The Midwest may not have as wide a variety of resources as Silicon Valley, but true entrepreneurs still see opportunity.
我的公司的成功将have been much more difficult to achieve in a bigger city. Developing a nutrition company in the middle of an agricultural hotbed provided easy access to high-quality meat and produce that allowed for a greater product. Rather than waiting to relocate to a city with a bigger potential clientele, my team recognized that it made more sense to build the company up with the resources around us.
3. Be wary of bad deals.
Early on, nothing stops a startup in its tracks faster than bad deals, from poorly structured leases, to low return on advertising, to inefficient hiring. Nobody possesses the ability to run a business without making a mistake, but everyentrepreneur needs flexibilityto prevent disastrous fumbles. Avoid committing to extensive leases, expensive advertising and hiring directors, until the business is well-defined and its needs are clear.
Luckily, the lower costs of the Midwest can provide a cushion for financial mistakes. More and more companies are starting up in centrally located cities, thanks to the fiscal opportunity a smaller home base provides. Some even believe theMidwest will soon house more startupsthan Silicon Valley.
4. Don't try to be the next Facebook or Uber.
Self-awareness is as important as ambition, and the idea that any company will be worth $10 billion in three years is almost laughable. Unicorn startups like Uber are becoming even more rare asoverall startup growth is in decline. But leading a startup outside of Silicon Valley increases the chances of financial success even without creating the next Airbnb.
While residents of San Francisco must makeat least $238,855to be in the top 10 percent of earners, the national average for the same rankingis $100,000annually. But nothing's wrong with making a solid living below that benchmark, and that'smuch easier to achievesetting up shop in the Midwest. Starting a business is hard work, and to be successful, entrepreneurs need to be ready to settle in and put in some serious time.
Related:The Great Midwestern Tech Startup Surge
Unlike the typical, larger startup cities where the atmospheres are often cutthroat, Midwest communities have more cooperative approaches. After all, when local companies grow successfully, their communities prosper, too. That shared success is what makes a future in the Midwest worth building.
