Factors to consider | Why |
---|---|
More and more selling can be done remote. There is less need to be located in an "expensive" city. As a startup, you should not open in a city for prestige reasons especially as your prospects are spread out. | |
(although this should not be a driver) + payroll taxes (state + city) (State individual income tax rate: California: 9.3%+ / Texas: 0%; Corporate income tax rate: California: 8.84% / Texas: 0%) | |
(Do not) believe that US culture is the same everywhere: north/south, east/west. The culture of the East Coast is closer to that of Europe than that of the West Coast, even though it is the same country. If we compare the coasts, there is more traditional business on the East coast than the West coast. | |
Don't think that a 6 hours or 9 hours time difference is the same thing. This can make the relationship with the HQ very difficult. East Coast (Boston, New York, Miami) gives you 3 additional hours of working-day overlap versus the West Coast. | |
Ideally, you should not impose a precise city for the General Manager. People are always more important than location and they need to embody the development project. Moreover, it is this person who will live there on a daily basis (take into account family constraints too). If a CEO imposes a location, he risks losing his General Manager very quickly. | |
For example, the Boston airport is a few minutes drive from downtown, allowing you to reach Paris in 6.5 hours and is the closest to France. Miami, on the same coast, adds 2 hours of transportation. | |
What is the availability of GTM hires you need – inside sales, enterprise sales, partnerships, growth? Where will you find executives with proven scaling experience for your business model and sector? NY is known for its digital talents. Boston is home to universities like Harvard and MIT attracting many digital talents. | |
You must be able to be in contact with them and even meet with them. | |
Salary and rents are extremely high in New York, and even higher in the Bay Area. Using cost as a proxy for talent retention makes this even more critical. For example, NY is more expensive than Boston (+30% to 40%). | |
Tech is focused in the Bay Area, whilst Finance and Media are big in New York; Boston is known for Biotech startups. |