Minutes after I write a post about brain drain to New York, San Francisco, etc. the phone rings. The caller says Hi, do you remember me? I’ve quit my job and I’m creating a startup! Uh, ok. I’m not going to go into details about how they plan to survive financially for the next 12-24 months, but I will point out that this person went into detail about how he is considering a move. As a startup founder you have no doubt thought about making a move to a place that is cheaper, more likely to be good for your adventures in entrepreneurship, close to your friend who is also a founder, etc. But you should THINK BEFORE YOU MOVE. And I don’t mean give it a passing thought, I mean that you should really take some time to consider the pros, cons, and research all of the unintended things that could come up. Moving before you start-up is a lot like launching a product, getting it on some big name blog, then getting a million hits before testing it or making sure that it is secure. There is a lot that can go wrong and there are a lot of side effects that you may not have considered.
Let’s consider a few of the reasons why you should think before you move.
#1: Your network is here, not there and it will take years to get to the point there where you are here professionally.
#2: Your cost savings due to a reduced cost of living may not actually be a net savings after you consider the cost of your move, the costs of visiting and researching the new city, and how much money you are going to spend getting to know a new city.
#3: Is the grass really greener? Sure there are people hyping the new place – people who you just met or know casually, but what is the reality?
#4: Who will your peers be? Are there people founding, running, funding, etc. companies just like the one you are starting?
#5: What is the talent pool like there? Sure there are tons of engineers in the Bay Area, but how many of them aren’t trying to launch their own company? How many people there have worked for companies like yours? Building a website or a wordpress based blog for a restaurant isn’t anything like building a website for millions of consumers around the world.
#6: There are lawyers, accountants, recruiters, and social media consultants there just like there are here, right? Wrong! Vendors are like people. They know what they do on a regular basis. Make sure there are vendors where you want to go who know your space well.
#7: Money is money, right? Yeah, it seems like that would be the case but if you assume this then you may have some major regrets later. A real estate developer might not get the web on the same level as an investor who has been in the software business.
#8: Moving is a lot of work. You have to plan your move, make arrangements to move, pack your stuff up, unpack your stuff, get yourself and your business re-registered, etc. These are all hours that you could be putting into your project.
#9: Doing business there will be easier. Yeah, this is good reason to move if you live in DC. DC is always at the bottom of the list of business friendly towns. If you have thick skin and pay attention when and where you should you may be able to live with this. If not then there are plenty of suburbs who will welcome you with open arms.
#10: This just isn’t my scene. Ok, so you don’t like it where you are. Try hanging out in a different neighborhood or suburb. Even better, discover Baltimore! In a few years we will have higher speed rail than we have now connecting the two cities. For now you can live somewhere in the middle.
Whatever you decide to do, think before you move and you will be a lot better off.
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