Starting a small business is a challenge, make sure you find out everything you need before you do it
In today’s world, a substantial number of people choose to work for themselves instead of working for an employer.
Making the decisive step to start a business is not easy, nor is it always rewarding. Coming up with smart, lucrative, and unique business ideas is getting harder and harder every day.
However, one of the most crucial factors that will determine the success of your business is the location.
If you ever asked yourself what the best places in America to start a business are, here is your chance to find out!
How to choose the location?
Being your own boss is fantastic.
Nevertheless, to succeed in the harsh world of competition and dominate the ever-changing business market, one has to know how to make important decisions.
Learning essential tips and tricks before starting your own business is a good start.
However, one of the first choices you’ll have to make is where to start your business.
But, how to know which city is perfect for a startup company?
Many people are looking for a dream job, and it just might be they were waiting for your startup.
By observing essential metrics, we can acquire a general picture of the best places in America to start a business.
The crucial factors are:
- length of the average workweek
- five-year business-survival rate
- variety of the industry
- job growth
- access to resources
- human capital availability
- affordability of the office space
- labour costs
- taxes and the cost of living
This looks like a lot to process, and it is.
Nevertheless, analyzing these metrics is of utmost importance for the success of your business.
Small town vs. a large city
When picking the location, it is essential to choose the right city for your business.
Both small and large towns have pros and cons, and you must know them before you decide.
Pros and cons of a large city
The first thing that comes to my mind – a large potential market!
The biggest advantage of a large city is the proximity to customers and suppliers. And not only that, but you also have better chances of hiring qualified employees.
Many talented and educated people are looking for work. You are exposed to younger people as well.
The downside is the competition.
It is much higher than in a small town.
With so many companies in each sector, you’ll constantly have to battle prices and clients.
The quality of your services will have to be exceptional if you wish to survive the first five years.
While it can be challenging, it is also good enough motivation to develop your startup company.
Also, running a business in a large town is exponentially more expensive due to the higher cost of living, and due to how MTD and taxes affect your business.
Understand the difference between starting a job in a small town and a large city
Pros and cons of a small town
Let’s observe the same situation when living in a small town. First, you won’t have as many options for hiring qualified personnel.
Next, fewer people means fewer customers. Also, it is a known fact that people move to bigger cities, looking for a better career.
However, where large cities struggle, small ones shine!
The most important factor is that there is less competition. The chances of starting something unique are much higher.
Also, the cost of living and transportation is lower, which means you’ll have more money to invest in your business. Furthermore, salaries are smaller, which will result in lower expenses.
The best places in America to start a business
Now that we know what the most crucial factors are when choosing the best location, let’s observe them and find out what the best places in America to start a business are.
Average growth in the number of small businesses
An excellent way to find out what the best places in America to start a business are is to observe the average growth rate of startup companies.
The leading cities in this area at the moment are Charlotte NC, Austin TX, and Orlando FL.
1. Charlotte, NC
Charlotte has become attractive to entrepreneurs all around the US, and not just because of the sunny weather.
The city is experiencing growth not only in small startup companies but in population as well. The growing rate suggests that the population will double in size in the next 10 years.
On a side note, the headquarters of The Bank of America and Duke Energy, among many others, are located here. With so many new potential customers, an opportunity like this shouldn’t be missed!
2. Austin, TX
The growth rate in Austin, TX is so substantial that we expect over 100,000 new residents in the next two years. Austin and Charlotte are almost tied in start-ups per capita.
The most promising sectors for starting a company are healthcare, technology, education, and data science. However, a small hiccup, so to say, is the cost of living.
The housing prices are above the national average, which can deflect potential home buyers. Still, there is no personal or corporate income tax in Austin.
Furthermore, state and local tax rate is much lower when compared to other regions.
Austin in Texas is one of the leaders in the growth of small business companies
3. Orlando, FL
Another giant in small business growth in the US is Orlando, FL.
With an array of opportunities for startup companies in retail, fitness, and recreation, distribution and advertising sectors, the potential for success is huge.
However, Orlando has the lowest availability of human capital.
If you take the number of job openings per the number of civilians, and you subtract the unemployment rate, you’ll find out that the numbers are not good.
With that in mind, you might want to consider relocating your business to Sanford.
A smaller city, as discussed earlier, has many advantages that increase the chances of successfully growing a business.
The most accessible financing opportunities
Financing is a crucial aspect of every startup company.
Today, the most affordable way of financing is bootstrapping. In other words, starting a business with what you have, without seeking financial help. It is a harder way, but a more secure one.
However, investors are a necessity in many cases. The cities with the most accessible financing opportunities are Lubbock TX and Lincoln NE.
Finding investors for your business can make a substantial difference.
1. Lubbock, TX
A stable economy is the key to starting a small business. If you are looking for investors, Lubbock is one of the best places in America to start a business.
Known as the Hub City because of its vital role in the economic health of the area, it is a perfect place for any new entrepreneur.
With affordable housing and a low cost of living, it offers a solid chance for a new start. That’s why the unemployment rate is so low.
The leading sectors are healthcare and agriculture. Furthermore, many colleges offer business research and funding to their students. That’s the right way to build a better future!
2. Lincoln, NE
Lincoln’s economy mostly focuses on public administration, tourism, and commerce. If you are looking for a financial shot to give life to your business, you’ll find many investors looking for entrepreneurs.
Another essential factor that puts Lincoln on the map of the best places in America to start a business is the low cost of office space.
If you combine that with the financial help you can receive, your business is off to a good start.
The lowest labour cost
Saving money is crucial for the success of any business, especially if you are just starting your company. Avoid unnecessary expenses at all costs.
However, paying your employees salary is unavoidable. That’s why many new entrepreneurs look for cities with low labour cost, like Detroit MI and Cleveland OH.
1. Detroit, MI
Once a paragon of stability, Detroit has struggled in the past decade. The auto industry slowly lost its spark, and many people moved.
However, that opened an opportunity for new entrepreneurs moving to Detroit. Lots of open space, affordable housing, and low labour cost provide a strong base for any new startup.
That’s also due to the fact that education in Detroit isn’t as high as it is in other regions. Nevertheless, people are eager to work, so you’ll find plenty of motivated, hard-working employees.
Detroit offers low labour cost and excellent opportunities for growing a business
2. Cleveland, OH
A city of business opportunities, Cleveland has it all.
Skilled labour, affordable housing, and an open market. Due to the small number of startup businesses, the proximity to potential clients is great.
Whether you choose to ask for financing assistance or try to make it on your own, the potential to grow and expand your business is huge.
The most educated potential employees
Qualified and educated labour is the bread and butter of every startup company.
Finding skilled employees increases the chances of successfully running a small business. Cities that excel in this sector are Irvine CA and Oklahoma City OK.
1. Irvine, CA
If you are looking for an ideal business environment, you’ll find it in Irvine, CA. Small businesses and industries are booming in this region.
There are good transit connections with Los Angeles and San Diego counties, and many new entrepreneurs choose it as its startup destination.
The University of California offers higher education and possibilities for research and development. In addition, taxes are low, and rent is affordable, which makes it a fertile ground for small startup companies.
High education, states support, and low living expenses in Oklahoma City are excellent for starting a company.
2. Oklahoma City, OK
To conclude this list of the best places in America to start a business, I take you to Oklahoma City, OK.
It ranks high among all cities in the US, offering fantastic opportunities for new entrepreneurs.
Low local and state taxes and a reasonable energy cost look promising for anyone starting a small business. Highly educated employees are in abundance.
Furthermore, the state offers tremendous support to all new startups, giving a 5% cashback on the payroll in the first five to seven years for anyone looking to start or expand their business in Oklahoma City.