Location for your business matters: Not just in terms of where you're able to operate, but what laws you need to respect. Public CEO recently reported on a law in San Diego that hinders some smaller startups. However, the city is also considered to be an encouraging place for young companies to develop. Good startup CEOs understand and follow the restrictions.
According to the source, home-based businesses can only include one employee, with a maximum of two allowed if the business has a permit. Some have interpreted this as a strike against up-and-coming businesses that need to rely on close quarters and home resources to get on their feet.
However, the ordinance's true purpose is to place a higher standard on professionalism and is similar to policies in other startup-friendly cities like San Francisco. The source quotes one of San Diego's deputy COO's, David Graham, on the targets of this zoning policy. He says it isn't startup businesses they're concerned about so much as enterprises that are posing a huge drain on local resources and communities.
"Those most likely to get cited usually have a significant impact on a neighborhood," Graham said. "Often it's a business with a high volume of products out of the home. People get concerned when there are a bunch of cars taking up parking or deliveries occurring at all hours of the night."
Earlier this year, Forbes ranked San Diego as the single best city to launch a startup in, beating out Austin, Portland and San Francisco. Clearly, the city is still favorable despite local regulations, and businesses with strong and active c-level staff are in a better position to take advantage of that.
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