Many startups are established where the entrepreneur lives, and little thought is given to the idea of relocating to a more business-friendly location. After all, you may think that you would have the same overall business experience regardless of where you run your company. However, as your business grows, its location can play an integral role in profitability and overall success. In fact, your business’s location can be impactful in each of these important ways.
Local Business Incentives
In smaller and larger communities alike, local governments offer incentives for businesses to relocate to the area. Commercial activity provides local residents with jobs, and they can bolster the local economy. Because of this, many local governments are focused on creating an attractive and even profitable environment for new businesses to lay down roots. Researching different business incentives available in prime areas that you may be considering relocating to can open your eyes to the many financial benefits that may be available to your business.
Local Tax Rates
Each community has different tax rates for commercial activity, property taxes, income taxes and more. Some areas, for example, derive a substantial amount of income from a high property tax rate and a low income tax rate. Other communities have an opposite taxation structure. Each unique tax format can impact your business in different ways, and you will need to analyze the options so that you find the right environment to keep taxes as low as possible. The tax structure in a specific community can also play a critical role in your personal finances. While it may be financially unattractive to live in areas with a high tax rate, remember that taxes may pay for improved infrastructure, more law enforcement, better schools and more. Finding a balance is important. These are factors that could also affect the availability of skilled talent to hire.
An Improved Living Environment
The location of your business can affect your personal living experience as well as the quality of life for each of your employees. Living conditions are based on the cost of living, the climate, the availability of recreational and entertainment options and more. When you and your team have an improved overall living experience, you may find that mental and emotional health could be improved. During work hours, focus and efficiency may be easier to attain when your team is otherwise content with their lives. Look at location pages like this one from Xyngular Utah that list the benefits of any location you’re considering. This can play a direct role in the overall success of your business.
Access to More Skilled, Experienced Labor
Some larger or smaller cities have a more educated workforce than others. You can review census statistics to learn roughly how many working adults have a college education. However, it is often not enough for the labor force to be educated. They also need to have education in a relevant field of study as well as experience. If you want to learn more about the type of labor available to you in a specific community, consider researching competing businesses in the area and even resumes that job seekers have posted online. Remember that the individuals who you choose to join your team can affect customer service levels, productivity and more.
At first glance, it can seem like the location of your business is simply a superficial matter that has little substance to actually running a successful business. However, each of these location-specific points is critical to the overall success and profitability of your business in different ways. Your current location may have ideal conditions, but you cannot know this for sure without researching other markets. Through research, you may discover that there is an even more advantageous market to run your business in.