Business

5 Advantages Of NOT Locating Your Startup In Silicon Valley

5 Advantages Of NOT Locating Your Startup In Silicon Valley Leave a comment

This post was written by a guest author, if you are interested in contributing on Opportunities Planet visit the write for us page!


NOT locating your startup in Silicon ValleyCompany ABC in Menlo Park just got invited to Y Combinator. Company XYZ In San Fran just landed $2.6 mil in Series A funding.

Company QRS in San Jose just hit 8 gazillion users (with 23 bucks in revenues). Blah, blah, blah.


If you’re a startup that resides anywhere outside the anointed zone of Silicon Valley, you might as well not even exist, right?

-You certainly don’t have access to the best base of programming talent.

-You will never have the opportunity to clink overpriced glasses of Cab Sauv with the Internet’s taste making media.

-And you certainly will never sashay into a glass-enclosed conference room to cleverly pitch your idea to 12 mega-millionaire VCs who, if your idea is a good one, will secretly plot from day one to steal your company from you.

Of course this sounds like sour grapes, but it’s what many entrepreneurs who live outside of Silicon Valley feel every time they read another article about some 3-month-old company with a recent cash infusion started by a 23-year-old Stanford grad who created a site where other people can finish your sentences for you (oh, wait a moment, that’s what spouses and girlfriends/boyfriends are for). Sometimes life just isn’t fair.

But hold on, because there’s a silver lining for all you entrepreneurs and small startups who don’t live anywhere near the 94025 zip code (which is Facebook HQ, BTW). In fact, there are five distinct ways in which working in Boise or Kalamazoo or Kissimmee can put you at a decided advantage.

1. Your expectations and ego are kept in check

Let’s face it. Creating the next Google or Amazon is a total crapshoot with odds exponentially worse than any game in Vegas (and that’s saying a lot). There are thousands of social media sites and apps out there, and only a few have any real value (and even that can be debated, as many large sites have fairly flaccid revenue streams compared to the number of users they boast).

But, there is a decided need for products and offerings for tons of other industries and niche audiences who are currently underserved. And although you may not sell your company for tens of millions, there are still lots of opportunities to make a good living on the Web; it just takes some work, some cajones and a tad bit of luck.

In addition, keeping your ego in check can keep you open to new ideas. Something about money and influence makes some people think that every idea they have is brilliant and that everything they touch is golden. By staying humble, you keep your options open and are willing to admit when you don’t know something or aren’t sure, motivating you to find a better solution.

2. Less groupthink

Groupthink often happens within companies, but it can also happen in concentrated populations of professionals and even in entire industries. It’s what pushes industries to throw vast resources at coming up with the next Facebook (and isn’t one Facebook really enough) instead of spreading the wealth around to develop products in a number of deserving (and potentially profitable) sectors.

Granted, I’m painting with broad strokes here, but there is more than a morsel of truth to this. Being outside of an industry microcosm like Silicon Valley gives you a different perspective and opens you to influences and ideas that you would never have had if you only associated with industry people and only read TechCrunch and Mashable.

3. Underdog cache

Rocky. The Miracle on Ice. Seabiscuit. Luke Skywalker. Atticus Finch.

Everybody loves an underdog. In fact, according to the book Made To Stick, one of the ways to get people to remember an idea is to frame it within a story. And one of the most iconic and memorable plot archetypes is the challenge plot. This is your typical David vs. Goliath where the protagonist overcomes a formidable obstacle or challenge to win the day. People are fascinated by those who persevere and display undaunted courage in the face of insurmountable odds, which is why every other Hollywood movie offers up some hybrid of the challenge plot.

Being outside of a hotbed like Silicon Valley makes you an underdog because you are a small and scrappy company that has the disadvantage of not being located in High Tech Mecca. And if you start to make a name for yourself, your story is thereby naturally more compelling for the sheer fact that you aren’t like everyone else.

4. Less expensive labor

On a more practical note, good programmers who reside outside the confines of northern California, although harder to find, aren’t nearly as expensive as their Golden State counterparts. I’ve read more than a few horror stories about California tech companies dying on the vine simply because they couldn’t afford to pay the going rate of programmers.

Here in the relative boonies, a good programmer still commands a decent salary, but it’s much more in scale with the local economy and is much less likely to tap you out.

5. Heightened focus on profitability

Most of us don’t have the luxury to build a business that may take years to turn a profit (if ever). We have mortgages. We have kids. We have cars and motorcycles to pay off and golfing habits (or worse) to support. We need to make money sooner rather than later.

Moreover, many entrepreneurs first got their taste of running a business by having a paper route (for Gen X and older) or shoveling snow for the neighbors (a business that will never go out of style). They ran businesses in which they were accustomed to seeing a reasonably quick return on their investment, and the memory of this still resides deep inside of them.

This focus on profitability is a healthy thing. It makes you seriously consider actions before you take them and can help you weed out ideas that, although interesting, simply aren’t the foundation of a thriving business.

Yes, sometimes we need forward-thinking organizations that turn a blind eye to profits (see NASA) because this can lead to innovations and discoveries that can result in new, profitable products and an even higher standard of living and being. But, when it comes to the individual entrepreneur trying to make it in the world, it’s healthy when your dream is accompanied by a plan for profitability.

Besides these five advantages of living outside of Silicon Valley, what others can you think of?

This post was written by a guest author, if you are interested in contributing on Opportunities Planet visit the write for us page!

Leave a Reply

Your email address will not be published. Required fields are marked *