The Best State to Start a Business
For the 1 reader who lives in South Dakota, you’re in luck! According to CNN’s 10 Best States for Starting a Business, it costs the least to start a business in the bustling state of South Dakota. South Dakota, with a population of - uhmm… five… apparently has the cheapest property tax, utilities costs, and minimum wage! Screw outsourcing - employ in South Dakota!
Hmmm - this list seems a bit wrong to me. Many of the “best states,” such as South Dakota, Wyoming, Alabama, Virginia, and (my state) South Carolina seem a bit misplaced. It would seem that the best place to start a business would be a state with a population. This doesn’t go to say that South Carolina doesn’t have its Columbia, Virginia doesn’t have its Richmond, or Wyoming have its… have its health (don’t worry, I still love you Wyoming… and South Dakota)? Let’s think in terms of big cities, though. To maximize your opportunities, big cities with the most businesses and people are optimal for startups! How many people have you heard start their business in Spartanburg, South Carolina? Oh, I’m sure there are some, but let’s get real - just because the state doesn’t tax as much doesn’t mean it is the best for your business!
What kind of businesses would be good for South Dakota? It is safe to say that anything that doesn’t involve active human contact, like most internet businesses or a manufacturing facility, would be the best. Restaurants? No way! Magazine? Nope. Art? Well, you get the point. So what would my suggestions be? Atlanta, Silicon Valley, LA, Seattle, New York, or any other giants. The point is that the money that you would have saved from the overhead is more than compensated with the extra growth from being around exponentially more clients.
Figuring out trade-offs is an art. It is something that requires a lot of planning, numbers, and other nasty math that is better left untouched. CNN’s article looked at the numbers per state, but there is a reason… sorry, there are hundreds of reasons why you will not see big businesses stationed in South Dakota. Can you think of a few?
Tags: cnn, entrepreneurs, internet_businesses, startups.-best_states_for_businesses, start_a_business, state_of_south_dakotaRelated Stories
POSTED IN: Young Entrepreneurs
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