Starting an IT Business and Why It’s Not Necessary to Go to Silicon Valley


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The field of information technology (IT) has experienced exponential growth in the past decade. With the rise of the digital age and the increasing importance of technology in every aspect of life, IT businesses have become one of the most promising areas for entrepreneurs. While Silicon Valley has long been known as the epicenter of the tech industry, it is no longer necessary to move to California to start a successful IT business.

Many people assume that to be successful in the IT industry, one must move to Silicon Valley. This belief is perpetuated by the fact that some of the biggest names in tech, such as Google, Facebook, and Apple, are headquartered in the Bay Area. However, this is no longer the case. In recent years, IT businesses have sprung up all over the world, and many entrepreneurs have found great success outside of Silicon Valley.

In this outline, we will explore why it is not necessary to go to Silicon Valley to start an IT business. We will also look at some of the advantages of starting a business outside of Silicon Valley and provide some examples of successful IT businesses that were founded outside of California.

Advantages of Starting an IT Business Outside of Silicon Valley

Lower Cost of Living: Silicon Valley is known for its exorbitant cost of living, including high rent, expensive real estate, and high salaries. By contrast, many other regions offer a lower cost of living, allowing entrepreneurs to stretch their funding further. This is especially beneficial for startups that may not have secured significant funding yet. Lower costs mean less financial pressure and more time and resources to invest in growing the business.

Availability of Talent: While Silicon Valley has a highly skilled workforce, it is also highly competitive. Many talented professionals prefer to work outside of Silicon Valley, where the cost of living is lower and job opportunities are more abundant. By starting a business outside of Silicon Valley, entrepreneurs can tap into a larger pool of talent and often find highly skilled workers who are passionate about their work.

Government Support: Many regions offer government incentives and support for new businesses, such as tax breaks, grants, and funding programs. These incentives can help new businesses get off the ground and provide a competitive advantage in a crowded marketplace. Additionally, local governments often provide resources such as business incubators, networking events, and mentorship programs, which can be invaluable for entrepreneurs looking to build their businesses.

Less Competition: With so many businesses vying for attention in Silicon Valley, it can be difficult for new businesses to stand out. In other regions, the competition may be less intense, allowing new businesses to gain traction more quickly. Additionally, new businesses outside of Silicon Valley may be able to target underserved markets or niches that are overlooked by larger, established businesses in the tech industry. By focusing on a specific area of expertise, entrepreneurs can differentiate themselves from the competition and build a loyal customer base.

Steps to Starting an IT Business Outside of Silicon Valley

Conduct Market Research: Before starting any business, it is essential to conduct thorough market research to determine if there is a demand for the product or service being offered. Entrepreneurs should research their target market, competitors, and industry trends to identify gaps in the market that can be filled with their business idea. It is also important to research the best states to start a business to identify regions with strong economies, business-friendly policies, and supportive communities that can provide resources and guidance.

Develop a Business Plan: A solid business plan is critical for any startup, as it outlines the company’s goals, strategies, and financial projections. The plan should include a description of the product or service, the target market, marketing strategies, financial projections, and any necessary legal and regulatory requirements. Entrepreneurs should also consider seeking guidance from professionals such as lawyers, accountants, and business coaches to ensure that their plan is comprehensive and viable.

Secure Funding: Starting an IT business often requires significant upfront investment, so entrepreneurs need to secure funding to cover expenses such as product development, marketing, and salaries. There are several options for funding, including angel investors, venture capitalists, and loans from banks or the Small Business Administration. Entrepreneurs should research and compare funding options to determine the best fit for their business and develop a strong pitch to attract investors or lenders.

Create a Strong Online Presence: In today’s digital age, having a strong online presence is essential for any business. Entrepreneurs should invest in creating a professional website that showcases their product or service, provides information about the company, and includes a clear call to action. They should also establish a strong social media presence and develop a content strategy to engage with their target audience. By building a strong online presence, entrepreneurs can increase brand awareness, attract customers, and establish themselves as leaders in their industry.

Overall, starting an IT business outside of Silicon Valley requires careful planning, research, and execution. By following these steps and leveraging the advantages of other regions, entrepreneurs can build successful businesses in the best states, such as those with strong economies, supportive communities, and business-friendly policies.

Examples of Successful IT Businesses Outside of Silicon Valley

Zoom – San Jose, California: Zoom is a video conferencing software company that has gained widespread popularity due to the pandemic-driven rise in remote work. The company was founded in 2011 by Eric Yuan and is headquartered in San Jose, California, which is part of the larger Bay Area region but not considered part of Silicon Valley proper. Despite being founded outside of Silicon Valley, Zoom has become one of the most successful companies in the tech industry, with a market capitalization of over $100 billion.

Mailchimp – Atlanta, Georgia: Mailchimp is an email marketing automation platform that helps businesses of all sizes to reach their customers via email. The company was founded in 2001 by Ben Chestnut and Dan Kurzius and is headquartered in Atlanta, Georgia. Mailchimp has grown to become one of the largest marketing automation platforms in the world, serving over 14 million customers globally.

Basecamp – Chicago, Illinois: Basecamp is a project management software company that was founded in 1999 by Jason Fried and David Heinemeier Hansson. The company is headquartered in Chicago, Illinois and has become a leader in the project management software space, with over 3 million users worldwide. Basecamp has also been a vocal advocate for remote work and has been instrumental in advancing the concept of “work from anywhere” culture.

GitLab – Amsterdam, Netherlands: GitLab is a web-based Git repository manager that provides source code management, continuous integration and deployment, and collaboration tools. The company was founded in 2011 by Sid Sijbrandij and Dmitriy Zaporozhets and is headquartered in Amsterdam, Netherlands. GitLab has become a leading player in the software development space, with over 30 million users worldwide.

These successful IT businesses are proof that startups can thrive outside of Silicon Valley by leveraging the advantages of their respective regions, such as lower costs of living, access to talent, and supportive government policies. By following their examples and utilizing the best resources available in their communities, entrepreneurs can build successful businesses in any region of the world.


In conclusion, starting an IT business outside of Silicon Valley is a viable and increasingly popular option for entrepreneurs. By leveraging the advantages of lower costs of living, access to talent, supportive government policies, and less competition, startups can thrive in regions outside of Silicon Valley. However, success is not guaranteed, and entrepreneurs must carefully plan, research, and execute their business ideas to build sustainable and profitable companies.

The steps to starting an IT business outside of Silicon Valley include conducting thorough market research, developing a comprehensive business plan, securing funding, and creating a strong online presence. By following these steps and utilizing the resources available in their communities, entrepreneurs can build successful businesses in the best states, such as those with strong economies, supportive communities, and business-friendly policies.

The examples of successful IT businesses outside of Silicon Valley, such as Zoom, Mailchimp, Basecamp, and GitLab, demonstrate that startups can thrive in any region of the world by leveraging the advantages of their respective regions and building strong, innovative, and customer-focused companies.

In summary, entrepreneurs should consider starting IT businesses outside of Silicon Valley and follow the best practices and examples of successful companies to increase their chances of success. With dedication, hard work, and the right resources, they can build thriving businesses that make a positive impact in their communities and the world.