Location vital for successful entrepreneur

Everyone knows that if you're going to make a real estate investment, whether it is for residential or business use, the three main factors to consider are location, location and location. This cardinal rule applies to every entrepreneur whether he/she plans to eventually have only a handful of employees or several thousand.

If you reflect upon the history of economic development in the United States, you'll find that during the 18th century entrepreneurs were leading business development in the coastal regions of the Eastern states. During the 19th and early 20th centuries they were busily engaged along the major waterways and near the railways. During the early 20th century entrepreneurs continued their development along the railways, and later, they followed the interstate highways. During the last half of the past century they have insisted on locating near major airports.

The entrepreneur who utilizes any form of technology in the 21st century will most likely settle along the information superhighway, where truly high-speed broadband telecommunication services are readily available. Communities like Provo with its municipally owned fiber optic network and many other Wasatch Front cities that will be served by UTOPIA's fiber optic infrastructure will flourish as they draw these creative business leaders like a magnet.

These fiber optic networks provide triple play services (voice- telephone, video-TV and data-Internet) at data rates up to 100 mbps. These services are 25 to 400 times faster than traditional broadband services, and they actually cost less!

The foresight of these cities will provide continued improvement in quality of life, more employment opportunities, a broader tax base and population growth that will promote higher property values. If you are an entrepreneur in any field that is even remotely related to technology, you should insist on the availability of very high-speed broadband service in your chosen community.

There are several other basic characteristics that will help you select the right location to assure your success. For example, if your creative idea is related to solar energy, you'll likely be more successful if you locate in the southwestern United States. Or, if your idea combines a new chemical compound that increases the melting capacity of salt to clear ice from highways, you should locate in the upper Midwest or New England.

There are many other underlying factors that are rather obvious but are often overlooked. For example, there are significant tax advantages in such states as Nevada, Texas and Florida. Many communities offer tax incentives for which you may qualify after your company is well established.

It is also wise to consider the availability of a labor pool that will serve your needs. If your success is dependent upon creative, knowledgeable workers, then you should locate near a university that will provide a continuous flow of talent. You should also consider cultural factors such as the work ethic and the lifestyle of the work force.

Since employee retention is dependent upon much more than the success of your business, you'll need to consider the overall quality of life that is available for the families of your employees. This means that you should evaluate such things as the quality of schools, the availability of shopping as well as leisure and recreational activities. These items are all on the list of factors that are attracting entrepreneurs and their economic development away from the big metropolitan centers and toward smaller communities.

Before you invest your time, talent, fortune and future in a new venture that could be the biggest investment of your life, make sure that you have the right location, location and location!

David M. Brown is affiliated with the BYU Center for Entrepreneurship. He can be reached via e-mail at cfe@byu.edu.

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