Another exodus east: Why Bay Area businesses are moving to Utah
When the Silicon Slopes efforts began a few years, there was an explosion of technology startup companies both homegrown and from out of state that flocked to Utah to take advantage of what the state has to offer. That burst of new business for the Beehive State hasn’t really abated – and in fact its gaining ground even in this unsettled time for the economy.
Recently, Utah Business took a closer look at the reasons why more Bay Area tech companies are moving to the state in another wave away from California. The reasons have more to do with the people and talent of Utah than factors that may seem more obvious – although clearly there are economic factors that make Utah a better choice than Silicon Valley at the moment.
Support is important when it comes to boosting new businesses, and First Utah Bank is helping to promote an effort to help take businesses to the next level through capital and education programs.
Tapping into Utah’s great talent
The article on Utah Business points out one aspect of the latest exodus that’s interesting: companies from California are keeping their business there as well, but also starting to expand into Utah for satellite businesses or offices. This is because Utah is starting to cater to the marketing and sales perspective of these businesses and is complementing the tech-center reputation of the Bay Area.
“It has the type of talent that it takes to sell, market, implement and support,” said Jordan Staples, direct sales of Paystand, about Utah. The company’s VP of Marketing, Mark Fisher, also agrees: “While talent and diversity are important, acumen is also important. As a fintech, we want to tap into that community.”
Another company called Degreed flipped this on its head, though, with marketing and sales staying in the Bay and engineering and product being built anew in Utah. Jonathan Munk, who is Degreed’s Head of Corporate Development Strategy, said that the varied backgrounds that Utah staff bring to the table is a value asset and distinguisher for his business.
“If you have a lack of diversity in that candidate pool or a lack of backgrounds and interests, then you are limiting who you are going to be able to speak to,” Munk said. “You are limiting who you’re going to build your products for. You are limiting how well you can tell your story to those audiences.”
A great mix of lifestyle and low costs
The changes in general lifestyle from the Bay Area to Utah is also a deciding factor for companies. In Utah, the commutes are short, natural beauty is closer, prices in general are less expensive, and an emphasis on family life appeals to many of the leaders and staff of companies making the move.
“If they’re always in front of their computer, if they’re always in traffic, they don’t get time to step back, zoom out, look at problems, and bring new perspectives,” Fisher said. “It does play a part and it actually makes a difference in terms of long-term health and sustainability of a company. It’s really key for how we think about building a really healthy organization.”
Bringing these attributes to what is in essence two employee bases in two different time zones means that costs have to also be kept in check. Utah is ideal for that compared to the Bay Area. “I do believe that the cost-of-living equation and the value to the business of having a large-scale team based here in Utah is critical to us solving our long term profitability, and thus, our ultimate success,” said Evan Torrance, Vice President of Bungalow. “I don’t believe we would be able to grow or scale as effectively if we were based solely in California.”
Utah’s continued and growing reputation for providing these kind of elements to help businesses thrive means we might see more leaders deciding to make the move to the state. Two of the leaders from the Utah Business article definitely were encouraging others and clearly are sold on the area.
“Utah is a phenomenal opportunity for the right reasons,” Fisher said. “You have to understand how to make cultures work between offices. So, understand why you’re doing it and what the key drivers are. And if you do, then you can make the right decision. For us, Utah was a no brainer.”
“If you don’t know about the Utah tech scene, take a deep look,” Staples agreed. “Take a look at that spirit of entrepreneurship and what has taken place. Incredible things are happening.”
Big efforts for small Utah businesses
Finding opportunities for businesses to continue to grow is what being a community bank is all about. To that end, First Utah Bank is helping get the word out about an effort from Goldman Sachs called 10,000 Small Businesses.
This effort is a nationwide program to provide better access to education, capital and business support for entrepreneurs who are seeking to create jobs and better economic opportunity for their communities. So far, 9,700 business owners have taken part in these programs.
There are two efforts to apply for in Utah: one for programs at Salt Lake City Community College and another for capital funding for any Utah small business. You can apply by Jan. 7, 2021, at this site. To learn more about what First Utah Bank can offer businesses, go to our website.