Where Should Entrepreneurs Start Their Businesses: 7 Criteria
Here's your situation: You already know what you want your business to be.
You know what you want to sell, how to create it, how to market and sell, and how to deliver it.
But, what you don't know is where to set up shop.
With the world at your feet, how do you decide? If you haven't stake your claim yet on a piece of Mother Earth, then these seven criteria will help you to decide where to pitch your tent.
1.
Where will your living expenses be the lowest? Although many big cities may be the most appealing, there are often suburbs that are less than one hour's travel time away that are as good or better.
2.
Where will your taxes be the lowest? If you're in the US, then you'll have a choice among states.
Some have income tax, while others don't.
Make sure you a state that will help you to keep your profits.
3.
Where is the cheapest office space? Science and industrial parks can be attractive, but usually deep pockets are needed if you can get in.
There often is a waiting list for such locations.
4.
Where do venture capitalists make the most investments? Granted, those locations with the greatest number of IT startups may also attract the most venture capital; but apart from them, where else are significant business investments made? What do they know about a particular location that you've overlooked? 5.
Where are there tax breaks for business startups? Some years ago, the Republic of Ireland gave companies that located or relocated tax breaks and incentives for putting their businesses in that country.
If you're in the EU, then you have a host of countries to choose from.
Unless your business is aimed only at potential customers in a particular area, there's no reason to stay in one place when there's another that would be just as suitable and give you financial support as well.
6.
What is the education level of the workforce? Whatever doubts some people have about the value of education, there's no denying that those with university degrees have developed their minds to a greater extent than those without for the most part.
If your business needs smart people who can learn quickly, then this is something you'll need to consider.
7.
What government grants are available? The eligibility for many grants includes where you reside.
This is true for US states and EU countries.
You know what you want to sell, how to create it, how to market and sell, and how to deliver it.
But, what you don't know is where to set up shop.
With the world at your feet, how do you decide? If you haven't stake your claim yet on a piece of Mother Earth, then these seven criteria will help you to decide where to pitch your tent.
1.
Where will your living expenses be the lowest? Although many big cities may be the most appealing, there are often suburbs that are less than one hour's travel time away that are as good or better.
2.
Where will your taxes be the lowest? If you're in the US, then you'll have a choice among states.
Some have income tax, while others don't.
Make sure you a state that will help you to keep your profits.
3.
Where is the cheapest office space? Science and industrial parks can be attractive, but usually deep pockets are needed if you can get in.
There often is a waiting list for such locations.
4.
Where do venture capitalists make the most investments? Granted, those locations with the greatest number of IT startups may also attract the most venture capital; but apart from them, where else are significant business investments made? What do they know about a particular location that you've overlooked? 5.
Where are there tax breaks for business startups? Some years ago, the Republic of Ireland gave companies that located or relocated tax breaks and incentives for putting their businesses in that country.
If you're in the EU, then you have a host of countries to choose from.
Unless your business is aimed only at potential customers in a particular area, there's no reason to stay in one place when there's another that would be just as suitable and give you financial support as well.
6.
What is the education level of the workforce? Whatever doubts some people have about the value of education, there's no denying that those with university degrees have developed their minds to a greater extent than those without for the most part.
If your business needs smart people who can learn quickly, then this is something you'll need to consider.
7.
What government grants are available? The eligibility for many grants includes where you reside.
This is true for US states and EU countries.
