I came across this article on Venture Beat and really thought it was worth passing on. It’s about how to run / work in a start-up out of the “Silicon Valley” – the hub of all start-ups.
There are a few reasons why I enjoyed this article so much. Recently, I experienced the inaugural Silicon Cape initiative launch event. The Silicon Cape is a vision which looks to “attract and bring together local and foreign investors, the brightest technical talent, and the most promising entrepreneurs, to foster the creation and growth of world-class global IP start-up companies in an environment that competes with other similar hubs around the world against the backdrop of one of the most beautiful settings and pleasant places to live, work and play on the globe.”
Back in 2004, I was lucky enough to accept a job from Vinny Lingham & his co-founders (Charlene Lingham, Eric Edelstein & Llewellyn Claasen) and have the opportunity to join an amazing team and be a part of the early stage of a startup myself a few years ago (Clicks2Customers (incuBeta back then), where I still work 5 years later). This was an amazing time for me, I learnt a huge amount and it’s been so exciting to see how a start-up has grown into a successful, global company and be a part of it all. I’ve also seen a few very successful colleagues & friends that started at Clicks2Customers during it’s early stages, that then went on to start their own start-ups. So the effects of having worked in a startup are definitely infectious. So, in many ways, I can relate to this article, although I’ve never actually started a startup, I’ve been a part of one, so I found this article to be very true & relevant.

The main points taken directly from the article are as follows below. One of the points that stands out for me is, “your talent is your business.” In a startup environment, the staff need to be as passionate as the founders. Yes you need an ‘idea’ but at the end of the day, your talent IS your business and can make or break the idea.
1. Avoid the “Valley premium” – Startups that set up shop in the Valley fork over a premium for the exclusive location. As one of the most expensive urban areas to live in nationwide (according to ACCRA), the Valley drives up basic costs, ranging from salary and benefits to rent and utilities. This means the $5 million in funding your Valley-based competitor receives may barely keep the lights on, while a smaller round of funding could mean major growth for your firm. Leverage this fact with investors that are interested in hearing about how you can do more with less.
2. Be the local rock star, instead of a dime a dozen - The Valley is like a modern day Gold Rush: the possibility of striking it rich draws the masses and every tech company wants a piece of the action. As a result, it’s easy to get lost in the crowd. (And, to add insult to injury, there are no economic incentives or tax breaks for your business.) In contrast, local governments outside the Valley bubble often give entrepreneurs the star treatment and big cost-savings— such as tax breaks or subsidized health care—to stimulate growth.
3. Recruit Valley ambassadors - An industry influencer or PR agency based in the Valley can serve as an advisor, champion your technology and help you penetrate the exclusive bubble – giving you a “physical” presence despite being geographically removed from the Valley. They can also teach you the lay of the land, arrange networking meetings, alert you to local events and help fine-tune your Valley strategy.
4. Don’t be a stranger - Travel to the Valley at least once a quarter, timing your visits around major conferences/events to maximize in-person meetings and networking opportunities. Regular face time ties a personality to a name, which ultimately may be all people remember about your company. It’s also a key ingredient for maintaining relationships.
5. Be a joiner - Participate in local industry and entrepreneur groups – not only will they help you build a stronger presence where you’re based, but they can connect you with sister organizations or other entrepreneurs in your industry that are based in the Valley.
6. Give your startup space to stretch its wings - The Valley offers a high concentration of opportunities, but niche industries often struggle to get even a sliver of that pie. Consider opting for an area with a concentration of companies in your space that can help nurture your startup with good talent and resources. Colorado, for example, has a strong portfolio of UI and design startups and Canada is known for its video gaming industry.
7. Take advantage of the talent - When you are a company of 10, your talent is your business. Without resource-wealthy giants creating silos for incoming talent, startups outside of the Valley have a fighting chance to recruit and retain great employees without having to resort to alternatives such as outsourcing – an option that has become less cost-effective in highly-skilled industries. Target areas with academic institutions that groom the type of talent you seek or governments that allow you to import talent without heavy regulation.
8. Take advantage of the upcoming economic turn - Historically, investors have had a primary focus on the Valley, but with Bay Area deals falling by a much faster rate than the rest of the country last year (57 percent according to Dow Jones) investors are now more willing to look outside the bubble for innovation