Four Truths All Startups In Large Cities Need To Know
On one hand, companies luck out being immediately located in a big city. A large city means more possible investors, more people in the field of the startup, and more events to allow for marketing. On the other hand, startups may not be able to afford things like business space and new employees given the high cost of the new city. As a consultant for startups, here are four truths that you will need to lay on all startups in large cities.
You may work out of someones home for a while
In a city with plenty of business spaces, a startup may not be able to afford any sort of business space. Until investors are secured and there is income coming into the company, there may need to be alternative work arrangements. if possible the startup may need to work out of someone's home until you are able to collect enough money. If you no longer fit inside of someone's personal space, you may have enough to rent out a shared office space short term.
Restructuring will happen often
It is important for startups to be flexible in the organization of the company. There may be positions that need to be consolidated, while others have too much responsibility and need to be shared. As you grow, some departments may need more attention while others can be part-time contract positions. Make sure that all startup owners know that they will need to switch around the company's positions at some point.
They may be better suited for other metro areas
Have a talk with the current leadership of the startup so that they know that they may have to relocate. Some tech companies will do best in the Western region while companies that focus on information dissemination and publication perform better for the Northeast. If you have done the research and found marketable areas for the startup, let them know that they may need to set up part-time offices in another area or fly out often until they can relocate.
Help create a marketing plan
The most underdeveloped part of most companies is the marketing plan. Marketing plans need to include getting consumers to purchase their product or service along with getting investors to buy in. A marketing plan with the help of a seasoned consultant can come across as more appetizing to all customers. Marketing plans that are comprehensive can save a company from becoming cash poor, especially in a large city with opportunities.
For more information about launching a start-up company, contact consulting companies like MU-OP LLC.