Many people want financial independence in their lives. Therefore, instead of working in a private company as an employee, they prefer setting up their own business. Due to the ongoing pandemic, many are either considering launching or have launched their own businesses to enjoy financial independence. Furthermore, it also removes the fear of job security. In many states, the business opportunities are plenty as compared to some states where the situation isn’t that great. Read about the best as well as the worst states to start a business on the basis of recent surveys. Also consider the factors that can help you launch a successful business.
The Best States to Launch a Business
If you land a good job by touching base with a good staffing agency that ensures job security, then you are set for a smooth career progression. However, if employment is not your strong suit, then it makes sense to invest in a business. The best states for businesses currently are:
- North Dakota
The Worst States to Launch a Business
On the other hand, certain states do not prove favorable for new businesses and startups. Make sure to avoid investing in the following states:
- West Virginia
- New York
- New Hampshire
- New Jersey
- Rhode Island
What Affects the Rankings?
There are many reasons why certain states are ideal for businesses whereas the others are not. The factors that affect the ranking of the states depend on labor costs, office prices, education level of employees, the population growth rate of states, availability of human capital, and total state expenditure on business promoting incentives. All of these factors play a vital and active role in determining the success of businesses in a particular state.
How to Make a Business Successful?
If you want to understand how you can launch a successful business in any state then read the passages below. These tips will enable you to start a business set up by lowering the risk involved.
Consider the Factors
There are many reasons why a business may fail and another one may succeed. The reason is that there is not a single method or formula to make a business successful. Many startups on the West Coast are doing better than the ones on the East Coast. However, the reason for this is quite unclear. It seems that utilizing the same management tools or software does not have a direct impact on a business. Many factors such as the geographical location, customer interaction, average wages, and financial condition of the states contribute to the success of a business. If you select a certain state for business activities, then make sure to consider all these factors before making a final decision.
Hire Good Employees
Another factor that affects small businesses and startups is the talent they have access to. Small businesses that have invested a good amount of money to hire better employees with a good skill set can experience better growth. On the other hand, companies that do not have sufficient capital cannot hire qualified employees. Consequently, they will not be able to have a stable business graph.
Manage Income Taxes Effectively
Corporate income taxes are different in different states and they can have quite an impact on new businesses and startups. Most new businesses lack in financial resources. Income taxes further aggravates the situation and makes it difficult for such businesses to invest in hiring good employees, business facilities, and inventory goods.
Outsource if Necessary
For new business, it is very important to ensure that the growth is exponential from the word go. By outsourcing certain departments to companies that have good abilities to do bookkeeping and manage accounting affairs, companies can enjoy great business benefits. If your company does not have a qualified accounts department, then make sure to outsource.
Launch Your Business in a Conducive Business Environment
Another key factor to determine the success of a business is the location where it is based. It is very important that you launch your small business initiative in a place that has a business supporting market, availability of labor, lower cost of production, and ample investment opportunities. Furthermore, you should be able to touch base with similar thinking business partners who can invest in your business to promote the growth of the business from the very start.