Whether you have launched your startup or you are planning to launch, you might want to put into consideration the location of your startup business. Why? Because you will have better chances to succeed in a location that is suitable for your online venture.

When I founded StartupsNigeria.com, I was living in a small town called Montreuil in France about 25 minutes from the center of Paris. Upon return to Nigeria, I had to decide where the ideal location for a startup company for startups should be. After much strategic thinking and planning (as I always do), I settled for Lagos for several reasons.

Like me, you may have launched your startup before moving to another city, it is critical to consider choosing a city that will provide your business better chances of succeeding. There are a few factors to consider when deciding in what city to create and build your startup business.

Here are top 5 factors to consider:

Potential Clients

You should find out where your potential customers/clients are located. Who is your target market? Who will your product/service appeal to? Of course, your startup business is online, but you also have business to do offline. If your potential customers or target audience are mostly located in a particular city or area it seems natural to get an office space in that particular area.

Office Space

You may not have the money to set up an office now, especially as your startup business is self-funded and the chances of getting VC-backing is slim. Besides, the cost of office spaces in a choice area in Lagos is very high, not to talk of the utility bills, transport costs, and other overheads. Don’t be heart broken. You can still run your startup from your living apartment, University hostel or a decent Internet cafe.

If, however, your startup will eventually require an office space in the nearest future, it could make a lot of sense to move to a smaller city where real estate is cheaper. I assume Nairaland.com is based in Ogun State, so may be you could get a cheap office space or two-bedroom apartment at Mowe, Ofada in Ogun State. You can use the living room as your office and the other rooms as your living room and bedroom.

Software Developers

You will need people who are skilled in software/web development to join your team. Although you can hook up with any of these people online, but what happens if they must be at your office location? Will they be willing to move?

If you want to build a team around your startup, then you need to make sure the city where you live has the right combination of software developers, graphics designers and other highly specialized skills. You might want to consider moving to a larger city or a city with a nearby local university where you can find your team.

Startup Hub

Perhaps you don’t live in the Silicon Valley-like city that offers special programs and assistance for startups. In the United States, most cities have special programs and assistance for startup companies. In fact, large technology companies such as Microsoft, Sun Microsystems and others have special startup competitions for startup companies.

There are also angel investors, incubators such as Y Combinator as well as Venture Capital firms that provide assistance to early stage startups. Sadly, Nigeria doesn’t have a stable system that supports startups either with funding, infrastructure or technical/training support.

Like I suggested in my previous article about creating a Silicon Valley in Nigeria, it will require a concious effort from everyone including the government, companies and private individuals.

Travel

You should consider travel when you are choosing your startup city. If you will be having a lot of customers coming for meetings, then you should be located in a city that is easy to get to via major airlines. That means that the city should be accessible from other cities within the country. If your customers will be coming from abroad, then you must be located in a city (or nearby city) that has access to an international airport.

Again, your startup business should be located in an area that can be easily assessed via the available transport systems. You should locate your startup in an ideal area where your customers would not experience huge traffic issues.

What are your thoughts about choosing a city for your startup business? Are you planning to move? What are your challenges?

Photo Via Flickr by Benajose

If you have any questions or would like to discuss with me further, you can simply send me an email via loy (at) startupsnigeria.com