August 6, 2015 | 3 minutes

Top 3 Cities for Startups

By Nathan Strum

Sitting in my marketing class, I remember being told at least a handful of times about the 5 Ps of Marketing. My instructor would sit there and chant, “Product, Place, Promotion, Price and Profit!” When creating our business plan we had to come up with the perfect location for our startup and then justify to the class why it was a valid location.

Now, why is “place” so important? Where you are located can be a huge factor on whether your company succeeds or fails. Research is needed in order to make sure that your business is in the right location.

For example, there is this huge shopping center near my home where no cars pass by and no houses are near. It is a weird location that is unknown to many people. I stopped by one of the clothing stores earlier this week and asked the manager how much traffic they received. She went to complain about how boring her job was because hardly anyone ever comes in because no one knows it exists. The company isn’t making the profits it hoped for because their location is inadequate to their type of business. There is no traffic near the place; although near a residential area, there are no major streets nearby or any form of visibility that the store is there.

When looking to setup a new business or relocate, business owners are quick to jump to common cities like San Francisco or New York. Don’t get me wrong, these are great, but there are other cities at a fraction of the cost, that business owners tend to overlook.  Here are the top cities for startups that business owners are missing!

Salt Lake City

The software industry is booming in Utah, and many startups are turning to Salt Lake because the city is known for being an enormous tech powerhouse and is cheaper to run businesses in as opposed to other big named cities. Well known companies like Novell, Word Perfect and Altiris are top companies that have thrived in this city.

Salt Lake City may not be the first location that comes to mind when thinking about the medical field, but they are actually recognized for their medical school and medical devices as well.

Kansas City

Kansas City is another overlooked city that has a lot to offer. The city consists of many different industries that are encouraged to succeed. Kansas City makes it easy for entrepreneurs to be born. It also nurtures an environment where many entrepreneurs give a helping hand to other entrepreneurs which creates a very uplifting business environment.

Sprint’s world headquarters are located here. Currently, the mobile industry, the construction industry and the delicious food industry is popular in Kansas City. There are many breweries and bakeries. The food industry is so big that over the past two years over 70 new companies were introduced to Kansas City.


This area specifically ranks as one of the top areas in Washington for startup companies. It is constantly being classified as one of the best cities in the nation for a variety of different things. Their tech industry is on fire leading them to have the most patents per capita. Bellevue for many means having the perfect play and work life.

The location of your business does make a difference, and these cities help you save money on many fronts if you are not quite ready for the big cities.

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