100 GREAT BUSINESS IDEAS • 49by locating near the studios. Further north there is the example of
Silicon Valley—a cluster of technology companies benefi ting from
the pool of talent in nearby universities.
Although clustering raises a number of challenges for any business
to overcome, an innovative, effi cient, and dynamic company will be
able to turn these challenges into unrivaled advantages.
In practice
- There are often a number of industry centers for a particular
product; use careful research to decide which one best suits your
business. - Ensure your customer offering is truly competitive—the direct
contrast with rival companies provided by clustering will only
benefi t companies with genuinely superior products. - Highlight where you are and emphasize how your products are
superior. - Take advantage of the increased access to cutting-edge industry
information—this can range from regional publications to
“neighborhood gossip.” - Remember that clustering is not suitable for all companies—
consider your overall business plan and the nature of your
business before deciding where to locate.