Whether you are an up-and-coming credit card processing company that relies extensively on technology development or a social networking company looking to create a new niche market, there are several common traits about the Silicon Valley that allow it to stand out from other geographical areas as a leader in business creation.
Brain Power to Spare
One of the first and perhaps most obvious benefits for start-ups in the Valley is the tremendous amount of human capital that gathers to the area due to world-class universities and the promise of lucrative jobs following the completion of undergraduate or advanced degree programs. Universities such as Stanford and Cal Berkeley have reputations for developing some of the most creative and forward-thinking business owners in today’s market. Their graduates not only understand the importance of daily business functions, like correctly handling their merchant accounts, but also recognize the importance of continually searching for new ways to improve their processes to create new and better products.
Competition Fuels Innovation
Silicon Valley is famous for the number of companies that strike it rich every year, but also sees many companies fold due to the tremendous amount of competition in the Valley to create the products that consumers will demand. It is this competitive nature and survival of the fittest aspect to the Valley though that allows many start-ups with amazing ideas to strike it big. If you are an upstart credit card processing company, for example, you will be required to be innovative, flexible and highly-performing from day one. If not, it is highly possible that a second mover will enter the space and try to steal market share. This continuous pressure from all fronts is great for a start-up managed by the right visionary though since it forces a company to make good decisions daily that contribute to a better business model.
Access at Your Fingertips
A final feature about Silicon Valley that allows start-ups to flourish is the synergies created in the area due to the amount of unique firms that operate in the space. You can find suppliers, people to manage merchant accounts, seed money and so much more right in your back yard. This cuts down on the costs of doing business and allows a young, growing company to commit resources to areas that can generate a higher return on investment.