[This article was written by Steven Kazinsky.]
Maximize Your Potential
On average, about fifty percent of businesses are going to fail inside the first five years. There are a lot of factors that feed into that. Mismanagement is one. So are things like regulations, taxes, competition, common mistakes, hiring bad employees, hiring poor managers, making a poor merger decision, and the list goes on.
If you’re going to be successful as a business, it is fundamentally imperative that you do all within your power to reduce operational expenses as much as possible. You want to cut all the fat, and one of the best places to start doing that is your state of operation. Some states have issues which hamper businesses extensively.
It’s also essential to establish operational optimization going forward, and streamline where possible. You’ll likely need the internet, and probably use Wifi to some degree. However, all businesses, practically, do that these days; and the signals can be reduced in effectiveness through interference. It can be very important to overcome this with Wifi network analyzers.
Where Should You Start Your Business?
Let’s start with an easy example: California. Unless you’ve got enough money to fail for five years, barely breaking even at your best, then you should really think carefully about starting a business in California. There are high taxes all over the place, and employment idiosyncrasies which can force you to keep a bad employee with your organization.
That said, if you’ve got a business model that’s sound enough, you could flourish there. For example, getting involved in the burgeoning “recreational herb” market has its positive benefits.
But even this industry is highly (no pun intended) regulated, and there are plenty of small operations that quickly implode owing to the legal minutiae involved. So with these things in mind, following we’ll briefly examine a few states where starting a business is most affordable.
States To Consider
Fortune.com lists the ten best states to start a business as Texas, Utah, Georgia, Montana, Oklahoma, Florida, North Dakota, California, Arizona, and Colorado in that order. We’ve already briefly examined a few reasons California might be ideal, and a number of reasons why it isn’t. Colorado is likewise similar right now owing to a “cannabis rush”, as it were.
Arizona, between California and Colorado, is a better choice in terms of stability for starting a business, but you’re going to have high utility costs owing to the extreme heat. You’ve got to have AC. It’s not a matter of comfort in most Arizona, it’s a matter of survival. That kind of cool is going to cost a lot of money to maintain.
What will make sense in a state like Arizona is seeking energy solutions that are going to save you the most money while being dependable over the long run. This can be complicated, here’s a very commendable resource that concerns how to write and compare business energy rates.
North Dakota is fine for energy. There were, at one time, more millionaires per capita in that state than elsewhere in the country. There’s also a very small population in that state, and their winters are deathly cold. However, if you’re in the energy industry, North Dakota can be a great state to base your operations.
Florida, Oklahoma, Texas, Montana, Georgia, And Utah
Florida is hot, humid, and full of industry. It’s also incredibly cheap. An area like Tampa Bay offers the advantage of tropical sunshine, endless humidity, and pretty good economy. But you will deal with hurricanes at least once a year, and that can be costly in terms of infrastructure.
Oklahoma has relatively low taxes, considering other states. There are a lot of ups and downs in Oklahoma. While everything’s pretty affordable, there’s a reason for that: a lot of people can’t even afford discounted options. So if your business is national, centering it in Oklahoma can save money. If it’s local, consider carefully.
Texas is booming like crazy, and there are a lot of opportunities there. The same is true of Georgia and Utah. Utah has the added benefit of industrious local populations who have a very strong business ethic, while Georgia has a long history of excellence in business.
Still, Texas is leading the charge nationally right now, as it’s an industrious state with comparatively low business regulations. Lastly, Montana has a lot of opportunity, and no sales tax; but it’s remote, so a national enterprise is often recommendable over a local operation.
Starting Your Business Right
Whichever state you choose to start your business, you’ll want to weigh factors like those touched on in this writing very carefully to know your best options. Look into internal and external factors, like Wifi and energy. Consider taxes, location, local economy, and whether your business is national or local.
Steven Kazinsky is an IT consultant with dailycupoftech.com and altitudebranding.com who helps digital businesses reach their full online potential. Steven is passionate about programming and IT consulting. His current focus is helping SaaS businesses create a better world for our kids. He frequently writes about the latest advancements in the digital and tech industry.