How to Start a Business in Seattle
Surviving as a small business owner alongside the likes of Microsoft, Amazon, and Starbucks isn't as impossible as it seems.
Much like Google and eBay are synonymous with Silicon Valley, Seattle has long been known as the company town that launched the likes of Boeing, Microsoft, Amazon, and Starbucks. But, while these companies have employed quite of few of Seattle residents, Seattle also has a strong and growing entrepreneurial community that has contributed greatly to the profile of the city within the past decade.
While there may appear to be a significant divide between the larger public sector and the small private sector in Seattle, there is actually a good deal of camaraderie between start-ups and their bigger brothers, according to local entrepreneurs. In short, Seattle is a great place to be an entrepreneur, and the bigger companies have much to offer start-ups in the way of resources and even ideas. We've gotten tips from Seattle-based entrepreneurs on how to navigate the business climate of the city, and benefit from the presence of your bigger neighbors.
Starting a Business in Seattle: Identify Needs That Larger Companies Might be Overlooking
Eric Best, the founder of Mercent, a provider of online marketing technology designed to help retailers with e-commerce strategy, hit on the idea for his company while working on a business-development project for Amazon in Seattle. While Amazon excelled at becoming the preeminent online shopping platform for consumer retail, it wasn't focusing any efforts on helping the retailers navigate the increasingly complex electronic selling marketplace, Best noticed. Best determined that most retailers selling products through e-commerce platforms could benefit from marketing tools that would increase their business opportunities online.
"In starting Mercent, we were validating those customers needs by looking at what established players like Amazon are focusing on and then figuring out where they might not have the agility or bandwidth to solve a particular problem," says Best. And, because of Amazon's size in the market, Best says they are actually creating a sense of urgency around Mercent's online marketing services.
Locating a hole in a particular market and then finding a way to fill it may seem like common-sense advice to any entrepreneur, but several software and technology start-ups in Seattle have emerged as a result of observing needs that the larger, Seattle-based companies in that field have created. Beside the big three anchor companies – Microsoft, Amazon, and Starbucks – Seattle is home to many sought-after global brands including retail outfitters REI, K2, and Nordstrom, as well as engineering giant Boeing. And while a good majority of Seattle entrepreneurs have gained experience by matriculating from those companies, you don't have to be a former insider to benefit from the presence of these businesses.
"These companies are here in the region and they're investing in research and pursuing exciting new areas in innovation, which presents a lot of opportunities for entrepreneurs to build a complementary business," Best says. So, start thinking like an entrepreneur and look for ways that the big guys can be an asset to your start up.
Dig Deeper: Making a Point of Being Small in Seattle
Starting a Business in Seattle: Find Groups That Offer Support and Inside Knowledge
One of Seattle's unique characteristics is that networking can actually be intimate. Often in bigger cities, there can be an overwhelming number of entrepreneurs trying to meet each other and make connections, and a small business can often get lost in that maze.
"One of the great things about Seattle as a city, and especially within the entrepreneurial community, is that it's without pretention," says Dave Hanley, the co-founder of Banyan Branch, a social-media consulting firm based in the Fremont neighborhood of Seattle. "The business community here is very open and they just let you in," Hanley says.
So, if you're an entrepreneur that's just getting your feet wet, or even if you've started your company and you're seeking some specific advice, chances are you can find a local networking group or organization where you can get personalized attention from more established entrepreneurs, and even the investor community. The more you put yourself out there, the better, says Hanley, and there is no such thing as an "in group" that wouldn't welcome you to join.
Here's a list of local organizations to check out, and what they have to offer for entrepreneurs:
Washington Technology Alliance: A statewide non-profit made up of leaders in a variety of technology-based businesses. The group holds educational and policy events that entrepreneurs can attend and get to know other business leaders working in the technology space.
Alliance of Angels: One of the programs of the Technology Alliance, this non-profit organization is made up of angel investors that focus on funding early-stage technology companies in the Pacific Northwest. The group holds regular pitch clinics for entrepreneurs to help prepare those who are planning to seek out venture capital for their company.
Best pitched his idea for Mercent at a meeting of the Alliance of Angels, and as a result of the positive feedback he received, he had a better idea of the path he wanted to take when it was time to pursue capital for Mercent. "I leveraged the program in getting some early feedback on my business plan, which is probably those most valuable thing an early stage entrepreneur can do," says Best.
