Informal network critical to starting business
Question: I have an idea for a business, but I’m wondering: Do you think Phoenix is a good place to start a business?
Answer: I have conducted business in various states across the U.S., and I can say emphatically yes!
Every year various periodicals make lists of the “best places to do business” based on criteria such as business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. Arizona usually ranks in the middle of the pack. But the criteria considered by the editors of these lists miss some important considerations.
One of the most often overlooked factors is barrier to entry and ability to get assistance: the degree of business friendliness. Let’s say you have an idea that you want to convert into a business, but you need some support and advice. In most cities, there are formal and informal networks that can connect you to the people and organizations that provide this assistance. Those networks can be difficult to crack, particularly the informal ones. In mature communities often there are social and political barriers that can be hard to overcome. Because we are a young metropolitan area, business people are willing to help newcomers. If you have an idea and you are willing to work hard and engage the community, people will take your call and meet you for coffee or refer you to a more knowledgeable contact.
The first step is yours. Cold calling isn’t easy, but this is where that business-friendly environment is so important. Call someone you read about doing similar work. Join a professional trade group. Become involved in groups like Valley Partnership, the Arizona Chamber of Commerce and Industry or the local chamber. Engage in your community beyond your company. Ask your attorney and your accountant to recommend someone.
Starting a company is risky, requires constant attention and effort and impacts your personal life. Despite your commitment, failure is always a possibility. For these reasons, an informal, highly supportive network is critical. The ability to meet, collaborate and learn from others will increase the probability of success. You will find that helpful community in Phoenix.
The people you meet in the Phoenix business community can become your unofficial board of directors. These trusted advisers will give you good advice and ensure that you maintain the right perspective. This is just crowdsourcing — the practice of obtaining needed services, ideas or content by soliciting contributions from a large group of people.
As the city matures, Phoenix has been creating formal networks as well. We have more business incubators than we did five years ago. We have co-officing, and “maker’s spaces,” where you will have access to equipment to make a prototype. Look into places like SEED Spot, Gangplank, Arizona Center for Innovation, Arizona State University’s Venture Catalyst and others.
These are important resources, but creating that informal network and board of advisers will prove to be invaluable in helping you achieve your goal of creating a sustainable company.