Last updated on December 28th, 2020 at 04:08 pm
Starting a new business is no walk in the park. In fact, data from the U.S. Bureau of Labor Statistics suggests that more than 20% of all new businesses fail within one year of launching. Additionally, data shows that only about half last at least five years.
However, there are still a significant number of businesses that succeed and thrive. As an entrepreneur, you have to be smart about making business decisions, including where to open your new venture.
Texas’ economy has been on a continuous incline—making it one of the top 5 states with the most Fortune 500 companies—and this is in no small part due to the many small business programs that the state government has in place.
One of these programs is the Historically Underutilized Business Certification Program (HUB), which requires all Texas businesses to commission HUBs for construction services and commodity purchases. To be considered for a HUB certificate, the company must be at least 51% owned by an individual belonging to a specified minority. Another initiative in the state is the Skills for Small Business Program, which offers financial aid for tuition for community and technical college courses. Programs like this and HUB allow a more level playing field for entrepreneurs, which gives them more room to flourish.
Utah is one of the most affordable places to do business in; it’s 2.2 percent below the national average cost. This is an important consideration especially since startups don’t have the luxury of sizeable funds. Utah also ranks third for energy efficiency among the U.S. states, so power consumption is something you can worry less about too.
In addition, the well-structured tax system in Utah has landed it the 8th spot on Tax Foundation’s 2019 Tax Climate Index. While the state does continue to collect taxes in all major categories, the rates are considerably lower—specifically its flat five percent personal and corporate tax rate.
One of the expenses that must be paid when starting a business is the filing and registration fees. For instance, for small businesses looking to become an LLC each state will have its own set of fees and requirements. Forming an LLC in Georgia is a simple and reasonably priced process, and will cost you between $100 and $145—filing and registration fees included. And for a small fee of $50 a year, you can file your annual report, making Georgia one of the most convenient and affordable states to start a business in.
Several resources are also available to startups in Georgia, since there are many Georgian angel investors looking to fund local businesses. These investors, or Community Development Financial Institutions (CDFI), even have lending portfolios that offer different loans to small businesses, and startup entrepreneurs have access to these resources.
According to the Opportunity Index, North Dakota is among the top 5 states that offer economic, education, health, and community opportunities. This has caused an unprecedented influx of millennial professionals in the state. The state is particularly attractive with programs like the Entrepreneurship Centers of North Dakota, which provides access to more than 20 financing programs, as well as a network of organizations providing counseling, training, and assistance to entrepreneurs.
There’s a wealth of young and talented workers, as well as opportunities for new businesses in the state. So while there are still more opportunities than there are grabbers, you might want to make your move now.
The local community undoubtedly plays a big part in your business’ success. This is why several new businesses in Oklahoma have prospered. Co-founder and CEO of a local firm, Datebox, Inc., Brett Kolomyjec has said “I immediately felt a sense of community and passion from the people of Oklahoma City. The creativity, talent and care that the community gives to local businesses is unbelievable.” He started his business in 2016, and has since gone on to hire 16 employees.
On top of that, the state has a Business Incubator program dedicated to diversifying the industries within it by providing financial resources, aids, and the community support that startups need. Plus, Oklahoma’s cheaper cost of living, as well as its central location, can be massive advantages for new companies.
Funding your business is one of the first things you need to take care of when you’re starting a business. The next thing you need to consider is finding creative entrepreneurs that you can work with. Learn more on our “3 Tips to unleash the creative entrepreneurs in your community” article.