If you are thinking of opening a new business, one of the hardest decisions that you will need to make is where to locate your business. There are several factors that you need to consider before you arrive at a final decision.
Big City Potential and Problems
You will encounter many experts who recommend that every business should open in a city of 100,000 people or more. There is no doubt that you can find a reliable workforce in a big city, the infrastructure is better, and you will find more to do in your off-time. Operating a business in a big city, however, also means that you will have more competition. You are also more likely to pay a higher rate to get good employees because they have more choices. You may also discover that urban business areas that you can afford are at the upper end of your price range.
Rural Communities Want Businesses, But…
You may also want to consider opening your business in a rural community of fewer than 50,000 people. When you choose the right rural community, you may not have any competition. Business space is often much more affordable, and economic development committees within rural communities may help offset those costs. You may also find that you are in a low crime area and that the community works together often. There are also special loans for rural community businesses. Depending on your industry, you may be faced with training most of your workers. You may also have higher transportation costs. There may also be less to do after you get done working for the day. Popular locations to hang out at may include the local youth sports field or the local cafe.
Mid-Sized Communities Think They Are the Answer, But Are They?
You will hear many people saying that mid-sized communities of between 50,000 and 100,000 residents have all the answers. There are definite advantages to opening a new enterprise in a mid-size community. You are likely to have better infrastructure in a mid-sized city, and you may find a location that is reasonably priced. Property taxes and other tax complications are usually higher than in a small community. You have more options to pursue after work. You may also find that you have to pay almost big-city salaries for your top employees, but you are less likely to have to train them.
There are advantages to starting your own business in every size community. Start by asking yourself where you will be the happiest living. Then, move forward to pursue business opportunities in communities that you want to live in the long term.