Opening your own business comes with a lot of concerns. You need to find a physical location, hire a few employees, and make connections with vendors and other suppliers. Before you become too involved with these decisions, don’t forget to take time to evaluate where you should launch your startup. In the following paragraphs, you’ll find five important factors to consider when making this crucial decision.
Some US states have adopted a friendly position toward businesses, while others make it difficult for entrepreneurs to launch a startup. Whether it is a paperwork burden or stiff taxes for the business, there are states that prefer to establish a muddy road for entrepreneurs to follow rather than paving the way with smooth asphalt. Before you establish your startup, investigate the level of bureaucracy in the states and localities you are considering.
How much money will you need to launch your new startup? This amount of money can vary from one state to another, sometimes drastically. Capital requirements include the actual cost of incorporating in a particular state, as well as the cost of purchasing a physical location, sustaining your supply chain, and paying for utilities. Some states operate incubator programs that help startups tackle some of these costs, making it easier to launch a new business from a financial standpoint.
Venture Capitalist Funding Opportunities
Believe it or not, the location you choose can impact the ability to easily raise funds for your company in the future. If your business operates within close proximity to potential investors and venture capitalists, it is easier to work with those in the same area as your company. Venture capitalists from your local area have a better understanding of the demographics in the area, the market, and can also see the impact your business has on the area firsthand.
You need to keep three important taxes in mind: state taxes, sales taxes, and property taxes. States such as Washington and Nevada have no state income tax, putting more money in the pocket of your business and your consumers. Sales taxes vary wildly from one state to the next, and even from city to city. Sales taxes impact the pricing of your goods and the profit your company keeps. Property taxes are important if you plan to operate a brick-and-mortar location. Property value and the level of taxes impact the finances of your business.
Quality of Employees
Last but not least, you need to analyze the quality of the employees in the areas you are considering for your startup. What percentage of the local population has high school diplomas? What about a Bachelor’s degree? How many have advanced degrees (Master’s or PhD)? The education level of your employees can make or break your company.
If you take the time to consider the factors covered in this post, you’ll find it much easier to select a location for your startup that positions your business for success in the future.
Reviewing your business vision can help you make the final call about where to it should be. If you are interested in moving your Startup to the US please feel free to contact us for a free consultation.