The Best States for Business
Should you really go west, young man (or woman)? Several news sources claim that they have found the best states for business development by constructing clever point value ranking systems. We analyzed them and figured out the top five states that are truly the best of the best to start a new business in.
- Virginia. Virginia is possibly the number one state on so many lists because it's right next to the nation's capitol. Virginia is also ranked highly because it has several pro-business laws. One drawback to consider is that the cost of living in several areas is high.
- Utah. Ding dong! Have you heard about the new city that is taking the world by storm? It’s Salt Lake City and it has a huge workforce ready to work for you, as long as you replace the coffee machine with a soda fountain. In a CNN Money graphic, Salt Lake City emerged as one of the best cities to start a business in the entire world. Utah's businesses-friendly laws for large and new businesses and its business tax laws were ranked in the top 10.
- Texas. It’s a big state with a lot of big deal cities. Namely, Austin which is bizjournal's #1 place to start a small business. Austin has seen 1.5% growth in the number of small businesses. That is an amazing amount of growth considering no other city broke .6%. If you’re thinking of starting a business that has anything to do with music, definitely start there. Texas is great for franchises with a tax spend of .5 - 1% for businesses earning over 300k. Another interesting factor, CNBC ranked it #1 for infrastructure and transportation. So, go look around Texas and enjoy the smooth ride on the road to your new business.
- North Carolina. This state isn’t just nice to small businesses, they have several institutes devoted to fostering new businesses. The Raleigh Business & Technology Center offers several services to small business owners from equipment to a 10 month program that provides essential courses on running a successful business. There are also a slew of tax breaks and incentives for starting businesses. Raleigh and Charlotte both ranked in the top 10 places to start a business. The regulatory environment is also good. How good? The state ranked #1 on Forbes list.
- Colorado. CNN included Colorado in a story last year about businesses in beautiful places all over the world. So, is Colorado paradise? Possibly. It’s home to the#1 city to live in the country and ranks within the top 5 states on several lists as best to start a business in. There’s a flat tax for business of 4.6%. If you're looking to start a completely new type of business it's perfect because it ranks second in innovation and has a large pool of talented workers you can poach for your new venture.
Sue Funke is a comedic writer with a background in e-commerce. She studied writing at Hofstra University and writes for several online publications. You can see her performances on YouTube or learn more about her online store at http://FunkeIndustries.tumblr.com
DOs and DON’Ts for Prospective Franchisees
Of course, new concepts and geographically-focused concepts may have no or only a limited number of franchisees. These opportunities should not simply be avoided wholesale; however, in these cases it will be particularly important to have candid and open discussions with the franchisor’s owners and representatives.
The Importance of Setting Clear Expectations
So my recommendation is as follows: As early in the relationship as possible, invest the time necessary to clearly describe the shared expectations for how you will work with your customers and, and how you will work with your employees. If you do this well, everyone will be on the same page and when you deliver something a little bit better than they expect, the will see you as someone they trust, like and want to be loyal to – a strong driver of success for any business.
Capital Formation Strategies For the Growing Franchise
One of the most difficult tasks faced by the leadership team of a growing franchisor is the development and maintenance of an optimal capital structure and access to the resources that the franchisor will need to stay strong and maintain its growth plans. Access to affordable debt and equity capital continues to be a problem for the growing franchisor even though franchising has matured as a viable method of business growth.