Here is the backstory:
I am a struggling entrepreneur based in India. I have been watching startups all my adult life. A few years ago a friend (an American citizen with American parents) of mine who is based in the US started a consulting/client service company and within a few months he was drawing a monthly salary that I estimate is around 5000 USD.
5000 USD just about what a software engineer would make in India in the first year of his job. It’s a lot. Most startup founders would be happy if they can draw that money as their first year annual salary.
I don’t know if this is a normal situation. But I have noticed that many startups here run on survival mode (making just enough to get by). I have worked in the same domain as my friend but I never got to a point where I could draw such a fine salary.
I have heard that “Attitude determines altitude”.
I wonder if this has to do with the geo location.
Some observations. I am looking for someone to correct me or support me and help me find more perspectives.
- Startups in countries with higher cost of living tend to make more revenue because the pressure to survive is higher.
- Many clients in the US prefer to work with companies from within the US. Access to better clients means more money in the bank.
- The clients who look to outsource their business to Asia are usually in the lookout for cheaper services. If they have to pay a premium, they would rather do the job in their home country even if the quality of work is the same.
- When I traveled the US last year I realized that people grow up in a lifestyle of abundance. I am not saying that everyone is rich but kids grow up having choices. Kids in many eastern countries grow up being okay with what was given to them. This mentality of abundance helps with growth.
- Technology works in the US. Stable internet and stable power. Phone plans with unlimited international calling was easy. I don’t remember how many days I had to close down my office because of power failure.
- This creates a mentality of possibilities? A feeling that anything is possible?
- More social support and lesser criticism to failure? Entrepreneurs have no social value until they are successful here in India.
- The US Dollar being a stronger currency than many other countries help them spread globally more viably?
- Cheaper labor and lower cost of living leads to lower financial goals?