When you have a company that is valued at almost $1 trillion, there are plenty of lessons from Amazon for entrepreneurs.
Why were these places chosen?
It comes down to costs, taxes, transportation infrastructure, excellent universities and the overall value of the area. Both of these areas have a high concentration of talented people, in an area of so-called “vibrant entrepreneurial ecosystems”.
What are some indicators of entrepreneurial vibrancy?
- The density of new and young firms, the number of shares of employment in those firms, along with firms in the industry sector.
- The fluidity of the population, labor market reallocation and the amount of high-growth firms.
- The connectivity of the area, with its networks for entrepreneurship programs, the spinoff companies, and dealmakers in the area.
- The diversity of the area, especially in when there is specialization in multiple economic areas.
There is a term known as being in an “industry cluster”, which increases the productivity and competitiveness of that business.
Industry clusters and great entrepreneurial ecosystems attract the right people who want to start a business. Go where there is a better chance to prosper. Although if you are just starting out it might be a little intimidating when big companies like Amazon are around. These experienced entrepreneurs just have an easier time accessing money, while the new guy figures it out. But Amazon too had to start from somewhere.
Amazon is now planning on hiring 50,000 high-paying new jobs at their new headquarters.
Each is expected to be payed around $100,000.
If Amazon can do it, so can you.
If you’re looking at starting your own business, start it where it makes sense. Remember; to succeed, you’ll need credibility and the means to get good talent. It may take you a while to steal talent from Amazon. That saids, even many of their cast-offs would likely be near top-tier. Just be careful.
Keep in mind that your business might not need to start off in one of these great entrepreneurial ecosystems.
It might need to be where there is a lot of foot traffic, a shopping mall, and restaurants. Wherever there is a large concentration of potential customers. And what if you hire lower wage employees? They might not have a car. You might benefit by having your business near public transportation.
You can start a business in one of these prime ecosystems but most first time entrepreneurs already have had years of executive business related experience.
So what lessons from Amazon should you get out of this as an entrepreneur?
Take where you are going to start your startup very seriously. Your location doesn’t have to be far away from home and family. You might need that good support system close. Also, it will be less stressful. Also being on home turf you will have a pretty good idea where you will get the most exposure.
It is about location, location, location.
Lessons From Amazon
Sonia Rina Landry is a passionate entrepreneur, speaker, author, and personal development coach. She is an outspoken advocate of the free market economy and has helped countless clients identify their core values, envision and realize goals that resonate with those values. She oversees several businesses online and offline.