Geographic Arbitrage

While discussing with Greg Gianforte, founder of RightNow - it became evident how up and coming high tech companies are using “Geographic Arbitrage” to their advantage. This has happened before in the Call Center industry – including US – where call centers started popping up in the small towns keeping the operating cost structure down.

Maturity of the technologies and competitive environment is helping the same trend support more high tech ventures in remote, small town that are close to universities. It support the cost structure needed but also provide work-life balance desired by the talent pool – stimulating the economy of small towns. RightNow, a successful, up and growing, hi-tech SaaS venture started out in Bozeman, Montana – a town probably many people may not have heard. It is a key employer in Bozeman and contributor to the local town growth.

In some sense - similar reasons that benefit an outsource operation several time zones away are being applied to the small town tech ventures in closer time zones.

Moderating an exciting Panel

Many of us who either moderate a session or be on the panel – I like the following two recommendation from Guy. Here is the one if you are moderating a session and this is another one if you are one of the panelist.

Bootstrapping

Entrepreneurs alike who are either looking to bootstrap their business or work with an investor will find reading “Bootstrapping” book by Greg Gianforte helpful. Greg is a serial entrepreneur and currently the founder, CEO of RightNow – which is a SaaS/CRM play in the enterprise arena. Although the book is written in the context of bootstrapping – but every entrepreneur should find it helpful.

Not having much to spend and being frugal teaches key life lessons. It forces an early startup to focus on the true priorities – taking care of customer, sales, quickly adjusting to the “need”, etc. Also, it takes away the general distraction that comes along with any investors and the need to keep them happy.

Bootstrapping is a harder run and not for the faint of an heart – but so is true about a persistent entrepreneur.

Check it out for yourself…