Is it possible you have thought about starting your own business? If you have then hopefully you've thought about the type of business you want to start, startup costs and your target market. Whatever the impact you hope to have in the world, your location will be a significant factor.
Last year we wrote a blog about 2018's Ten Best Cities to Start a Business using Wallet Hub's data and research. Recently, WalletHub updated their information listing the best and worst small cities to start a business in 2019.
- 1st Holland, MI = 60.68
- 2nd St. George, UT = 60.44
- 3rd Fort Myers, FL = 58.83
- 4th Redmond, OR = 58.32
- 5th Cheyenne, WY = 57.19
- 5th Huntsville, TX = 57.19
- 7th Bozeman, MT = 57.06
- 8th Aberdeen, SD = 56.86
- 9th Bend, OR = 56.61
- 10th Wilson, NC = 55.52
To view WalletHub's article and more about the top ten cities, click here: https://wallethub.com/edu/best-small-cities-to-start-a-business/20180/
To decide on the best small cities to start a business, WalletHub compares more than 1,200 small cities based on 18 different criteria.
Business Environment: 50/100 points
- Average Length of Work Week
- Average Commute Time
- Average Growth in Number of Small Businesses
- Startups per Capita
- Average Revenue per Business
- Average Growth of Business Revenues
- Industry Variety
Access to Resources: 25/100 points
- Financing Accessibility
- Investor Access
- Human-Resource Availability
- Higher-Education Assets
- Workforce Educational Attainment
- Working-Age Population Growth
- Job Growth
Business Costs: 25/100 points
- Office-Space Affordability
- Labor Costs
- Corporate Taxes
- Cost of Living
A small city means a population of 25,000 to 100,000 residents and excludes the outskirts of the town. The 18 different criteria are placed into three categories: business environment, access to resources and business costs. Business Environment is worth the most at 50 points out of 100. Business Environment includes factors such as the average work hours per week, commute time, startups and growth in business revenue. Access to Resources, worth 25 points, covers accessibility to financing, human resources, and the working-age population. The last 25 points come from Business Costs such as your cost of living in this city, office-space affordability and taxes on your new business.
At the top of the list is Holland, Michigan with a score of 60.68. With just over 33,000 residents, the small town of Holland sits next to Lake Macatawa near Lake Michigan and is less than an hour from Grands Rapids, Michigan. Holland's average cost of living is less than the Nation's average, and the town offers many activities to keep residents happy which is why it is named the 2nd Happiest City by the Gallup Poll. While this is a small and connected community, a new business would need to compete with the other small business startups. However, because of the community support and economy boost from small businesses, this city might be the best place to start your new adventure.
Second on the list is St. George, Utah, a city that has shown continuous growth in population over the past two decades, located on Interstate 15 between Las Vegas, Nevada and Salt Lake City, Utah. St. George ranks 8th on the list for Business Environment. While St. George has many provoking factors that could convince you to move there and start your business, the scenery motivates most people to move here. St. George is surrounded by red rocks with many trails making it an easy place to explore by foot or bike. St. George is near the Grand Canyon, Las Vegas, and has beautiful year-round weather. You can enjoy the summers with the mild heat and embrace the snow in the winters.
A new business is an exciting adventure; however, it should be planned very carefully. While networking, inventory, pricing and so much more are important, your location could make or break your business in the first year. If you have thought of a city for your new business, check its rankings on WalletHub's list so you can be more prepared for the environment, resources, and costs you are about to encounter.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.