Starting a new business can be both a very exciting and stressful process. The key to having a successful small business is finding ways to mitigate risk. Studies show that over 80 percent of small business failures are caused by cash flow problems.
This is why having a budget is one of the main things you need to focus on. If you are looking for a way to save money and give yourself the best shot at being a successful business owner, choosing the right state to set up shop in is vital. Rather than rushing through this important decision, take some time to weigh all of your options before making a selection.
The following are some of the most affordable states to start your new business venture in.
The Great State of Texas
When people hear the state of Texas mentioned, they immediately think about things like large cattle ranches and downhome people. However, in the past decade, Texas has developed into one of the biggest small business communities in the country. The government of Texas revels in the fact that they pass laws and regulations designed to help foster free-market opportunities.
If you set up your new business in Texas, you will not have to worry about paying corporate or income tax on your new venture. This state has the second-highest number of small businesses in the country, which means there are a lot of networking opportunities for new entrepreneurs.
Once you have found and invested in a commercial building in Texas, your next goal needs to be finding the best price on energy. Be sure to check out the Texas Electricity Plans site to find out more about the rates in the area. With the information from this website, you should have no problem getting the best price on the electricity you need in your new commercial building.
Florida is a Great Place For Entrepreneurs
Did you realize there are over 2.5 million small businesses in the state of Florida? Not only is Florida one of the top areas for small businesses, the lenders in this state also grant a lot of business loans. In 2018, over $5 billion worth of small business loans were granted to Florida entrepreneurs. The corporate tax rate in the state of Florida is 5.5%. This means that new business owners get to keep more of the money they earn.
Another benefit that comes with setting up shop in Florida is the low cost of living. When compared to other states like New York or California, living costs in Florida are extremely low. This state is also known to be a hotbed of tourism. This is particularly good news for new business owners who will have to depend on high levels of traffic to make a few dollars.
Colorado is Where Small Business Dreams Can Come True
If you are looking for lower than normal startup costs and affordable corporate tax rates, then starting a business in Colorado is a great idea. Most new business owners choose Colorado because it has one of the most educated workforces in the country. The state of Colorado has a large number of residents with a bachelor’s degree, which provides new business owners with a great pool of talent to use.
With world-famous events like Denver Startup Week and various accelerator programs, entrepreneurs can find out just how beneficial starting a business in this great state can be. Colorado features a close-knit and lively bunch of business owners. This great atmosphere harbors creativity and allows new entrepreneurs to network with other like minded individuals.
Make Missouri the Home of Your New Business
The average business survivability rating in the United States is around 80 percent. Missouri has a business survivability rating of around 86 percent. The vast number of resources available for entrepreneurs in the state of Missouri allows them to thrive and grow. Not only does this state have a low corporate tax rate, the cost of living is also quite low. With all of the attractions in this state, business owners can also strike a great work/life balance.
Don’t Rush This Important Decision
Taking the time to research all of the states on this list is vital before choosing one to start a business in. The time and energy invested in this process will be worth it in the long run.
Author: Ashley Lipman
Content marketing specialist
Ashley Lipman is an award-winning writer who discovered her passion for providing knowledge to readers worldwide on topics closest to her heart – all things digital. Since her first high school award in Creative Writing, she continues to deliver awesome content through various niches touching the digital sphere.