[glynjackson]

It all depends on the type of business you are in and at what stage your company is at. I'm a freelancer but I have staff. My office is based outside the city, but all my work comes from clients in Manchester and London, UK. The major cities are where the opportunities, networking and money comes from. My sacrifice for cheaper living means higher travel costs, longer work hours and in some cases less credibility. For myself, the offset of living in a low crime area with better schools works for me. But, I can understand why startups decide to work in expensive areas. Wealth breeds wealth.