Moving is hardly an easy task, even as part of a semester of study abroad or a long-term business trip. When it comes to relocating a business, you have an even greater responsibility as a founder: for your own mental health, for the wellbeing of your team, and for the company’s overall success.
Here are 5 universal tips by Valeria Kogan, co-founder & CEO of Fermata and Smartomica that can help you decide exactly where to relocate or evaluate the place where you are growing your business now with greater fairness.
Support measures that a particular city or country can provide
While choosing between different cities or countries for business relocation, it’s wise to focus on support measures for innovative companies provided by that city or country. Calculate your budget in a country, region, or province taking into account tax benefits and state support in general.Â
Right now, there are support programs for technology businesses everywhere. Nevertheless, depending on your company’s stage and staff distribution (especially, share of R&D), the programs can have their advantages and disadvantages. Considering them thoroughly, you can make a great difference in the lifetime of your company with the same investment budget.
Availability of employees & interest of investors
When planning a move to another city or country, it is worth doing research on centers of attraction for specialists in specific fields and investors who may be potentially interested in your company.
For example, Riga is considered the most favorable place to develop fintech startups and establish connections with venture funds in this area, Berlin investors look with great interest at e-commerce and delivery services, and New York funds are interested in agritech startups since 20% of the state land is farmland.
Availability of educational hubs
If you are developing a startup in science, it is critical for you to find a city where many people from your relevant field study or work. If you develop a medtech startup, it’s better to look for the cities with a strong medical school; if your company specializes in hardware solutions, you will definitely need employees with an outstanding engineering background.Â
Yes, on the one hand, you are likely to face high competition in hiring candidates, but on the other hand, you will have access to the most qualified specialists. You won’t have to settle for less or transfer a suitable employee from another city or even a country. Moreover, collaboration with universities, built on the recruitment of their graduates or students, will help increase the credibility of your academic brand both from HR and investment perspective.
Mentality
Before making the drastic decision to move, it is crucial to visit the city for a couple of weeks or a month and spend time there not as a tourist, but as a local.
Make an assessment of how comfortable you are with people, how well the city’s rhythm of life suits you. For example, in Munich, despite the fact that it’s considered one of the European startup capitals, most residents prefer to speak only German, and the city itself has a very relaxed vibe. Berlin, on the contrary, has a more energetic and dynamic life and more international culture, therefore, most communication takes place in English. So, it is essential for you as an entrepreneur to choose the microclimate that best suits your business and your current and future team.
Family opportunities
Often moving becomes a team effort, so when choosing the best location for your business, for your team, and for you personally, it is also important to consider the interests of your family members who will be changing their location with you.
Are there suitable facilities for your child in the city? Is it possible to have the same hobbies, to continue learning languages as before? Will your partner be able to find a job without a long period of integration? Is it easy for him or her to get a work permit after moving to another country? Make your own extensive list of personal questions and find answers to them before taking the final decision. Good luck!
