Jasz
VIP Contributor
If you're thinking about starting a business, it might seem like a good idea to do it in an area where you already have strong connections. Whether that means building your business in the same city as your alma mater or opening up shop somewhere near family so they can help you out, there are certainly some advantages to doing this. You know the area, and you probably have friends and acquaintances who could give you some help, or at least provide valuable feedback.
But there are also some important things to consider. Your local connections mean that people close to you will have access to information about your company—information that could be sensitive or confidential. Hiring friends and family can complicate matters even further. If they don't perform well on the job, can you really let them go? And if they do perform well, how do you manage to pay them what they're worth while still turning a profit?
It's not always easy to keep relationships with people when money is involved, but starting a business is going to be hard enough without having those extra complications. Weigh the pros and cons of starting in an area where you have connections before making your decision.
But there are also some important things to consider. Your local connections mean that people close to you will have access to information about your company—information that could be sensitive or confidential. Hiring friends and family can complicate matters even further. If they don't perform well on the job, can you really let them go? And if they do perform well, how do you manage to pay them what they're worth while still turning a profit?
It's not always easy to keep relationships with people when money is involved, but starting a business is going to be hard enough without having those extra complications. Weigh the pros and cons of starting in an area where you have connections before making your decision.