When starting a small business, it is important to capitalize on every advantage available. Often this means finding an efficient provider of goods, utilizing some industry-specific knowledge you may have or finding a growing niche. Another important way to get a leg-up is to find the best place for your company.
Sometimes this can mean moving your fledgling business to another side of town to reach a new market. Sometimes, bolder steps are necessary, and moving out of state is the way to go.
A new study by the Kauffman Foundation and Thumbtack.com researched how amenable all 50 states were to small businesses, providing a valuable resource to help entrepeneurs pick the right state.
The metric for determining this was based on the responses from over 6,000 small business owners on a range of criteria including health and safety, taxes, licensing and zoning.
"Six thousand small business owners have told an unusually nuanced story about what they value in their state or city government," Sander Daniels, co-founder of Thumbtack, said on the company's website.
The study asked the business owners detailed questions about state tax codes, licensing requirements and other economic factors affecting their operations. Additionally, questions such as "Are you aware of your state or local government offering networking programs for small business owners?" gave the professionals an opportunity to discuss some more general questions about the corporate climate.
One factor that turned out not to be as straightforward was size. Although many might assume that it might have a huge effect on how a company was treated, it turned out to have little correlation to the state's overall rating.
In fact, the two top-ranking states, Idaho and Texas, are almost polar opposites in terms of population. Large states such as Texas have advantages in the services and support can be provided, but smaller states have their own unique advantages.
"We were surprised at how friendly the smaller states such as Idaho and Oklahoma were, because they typically don't get much publicity for it," Daniels told Inc. Magazine.
Picking the right environment for your business could help it thrive, and getting to the new location doesn't need to be a hassle. Using relocation movers to assist in the process can get you started in a business-friendly region in time to capitalize.