Taking the huge risk of quitting your job and starting your own company is pretty scary in itself. Add to that the worries of how you’re going to pay the rent and how you’re going to pay off your debts, and it’s enough for some people to give up on their dreams altogether. But it is possible for your startup to make it without giving up any of the company to investors -- and while still having enough money in your savings account to rely on for all of life’s expenses. Startup costs are actually lower than ever before. This is why I highly recommend bootstrapping your startup.
I want to share with you something that can really make bootstrapping your startup much easier, leaving you with enough cash left over to invest back into your company and allowing you to live a financially comfortable life.
If you want to bootstrap your startup, do this one thing: Live in a cheap place.
Live In A Cheap Place To Bootstrap Your Startup
You’re probably under the impression that to be successful with your startup, you have to be in a major city, close to the hustle and bustle and big players in the tech industry. But many startups are moving away from these metropolitan areas and choosing to live in cheaper towns with populations between 20,000 and 100,000. Could it be that startups make more sense in a “startup” (i.e., smaller) town?
There are many benefits to building your startup in a small town, but the big one is having a lower cost of living compared to big-city life, which allows you to save money while getting your business off the ground. Some small towns will even offer you free land or free money to move there. For example, the town of Camden, Maine, offers business owners free property if they hire 24 employees locally, and Harmony, Minnesota, will give anyone who builds a new home in town up to $12,000.
In my case, living in Gastonia, North Carolina, has made it much easier for me to take risks in my career. And since our company operates remotely, we give our employees the option to decide where they want to live and work, too. With the advancements in technology and the internet that we have today, there’s no need to worry about not being able to find employees in small towns. You can hire talent from anywhere in the world, and it’s simple to manage them by implementing basic project management tools like Slack and Asana.
By creating a virtual workplace for your company, you can reinvest the money you would normally spend on expensive rent for a traditional office. All you need is a fast internet connection, and you’re all set.
Revitalize A Community
Startups are typically founded by innovative people who love to make a difference. Not only will building your startup in a small town benefit you and your wallet, but you could actually help revitalize the entire economy and create a huge presence for your business in the community.
Helena, Montana, which boasted a population of 28,190 in a 2010 census, was completely revitalized by a startup company called SoFi. SoFi is a contemporary finance company that offers low rates for mortgages, student loan refinancing and personal loans. A few years ago, the company contracted a programmer based in Helena to help them build their platform. That programmer, David Thompson, had no interest in moving to the tech city of San Francisco, so he convinced SoFi to start an office for their programmers and engineers in Helena. Thompson now manages over 100 employees out of two offices in Helena. The little town was revitalized and now even boasts two coworking spaces where new startups can be born.
Another notable startup to mention is AppHarvest, which is based in Pikeville, Kentucky, with a population of 6,903 as of 2010. AppHarvest is developing large-scale, high-tech greenhouses to grow fresh veggies for communities across the U.S. The company's mission is to bring Appalachia into the next generation and employ the hardworking people in the region. Eastern Kentucky has experienced a crippling economic decline due to the decline of coal and has an unemployment rate of nearly double the national average. The founder of AppHarvest knew that in addition to this small town being a great place to base their startup, it’s also an area where the company can really make a difference.
Just because you’re in a small town doesn’t mean you’ll stay a small company. After all, Twitter co-founder Evan Williams grew up in a town with a population of only 369 people as of 2010, which proves big ideas can come from little places. Bootstrapping your startup in a small town will save you money and ease your stress so that you can spend more time working on making your tech company giant success.
