Certain cities – and states – are much more favorable places for the establishment of a new enterprise. Starting any new business is expensive, and keeping costs low in the initial stages can make it possible for a small business to survive this stage, and become viable. Costs associated with corporate taxes, real estate, and the necessary equipment and materials, as well as marketing and payroll will consume the majority of any investment, whether your own money, bank loans, or funds provided by an investment partner. Choosing the right metro area to get established is an important decision. There are five places that Forbes Magazine reports as offering the greatest advantages.
Raleigh, NC tops the list, due to low business costs and an educated labor pool, according to Forbes. The news source reports in its evaluation of cities that the area has business costs that are 18% lower than the national average, and the labor pool is far more educated than the national average of 30%, standing at 42% of adults with a college degree. Des Moines, Iowa also ranks highly, with a much lower cost of living, standing at 6% below the national average, with the business costs at coming in at 17% lower. Utah has traditionally been a favorable state in which to do business, and has three cities in the top ten metro areas most favorable for business, with Provo coming in third in the list issued in the Forbes report. Colorado has two metro areas that come in fourth and fifth in this list, with Denver in fourth place and Fort Collins listed as the fifth most favorable.
USA Today used a different set of criteria to come up with the top five cities most favorable for starting a business, listing Shreveport, LA, Tulsa, OK, Springfield, MO, Chattanooga, TN, and Jackson, MS. The criteria used in naming these areas did not take into account the education level of the area, which may not be important, depending upon the type of enterprise. This list measured costs of office space, cost of living, and access to resources.
Choosing the location for business requires that you weigh all the factors that will have a potential impact upon the success of your venture, but there are other factors to consider. Your family and “roots” may be in a state or metro area that is tough for business, but your connections and quality of life are not something you are willing to sacrifice. Your new venture may not require that you have a manufacturing facility, in which case a more expensive metro area may not be such a concern, particularly with regard to the cost of real estate. The most expensive cities in which to start a business in the USA, according to USA Today, are Anaheim, CA, San Jose CA, Santa Ana, CA, Oakland, CA and Ontario CA. In fact of the top ten worst cities, six are in California.
Starting any business takes determination, money, and the willingness to devote the time to get the enterprise off the ground and into the black. An interesting fact is that the success of any enterprise is in large part the direct result of the actions of the owners, and the ability to overcome challenges. Corporate structure is a critical point, and ensuring that your new enterprise is legally protected from threats, and that the corporate structure suits the type of enterprise early in the process also gives a new business a better opportunity to become a success.
