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Small Business: CNBC's Top 5 Metro Areas in America for Your Start-Up

Small Business: CNBC's Top 5 Metro Areas in America for Your Start-Up

(Dollar Photo Club)

By    |   Monday, 22 August 2016 06:41 AM

 

Small business can be similar to real estate. Three of the most important factors are: location, location and location.

 

Small-business start-ups have always flocked to San Francisco and New York City, but these cities didn't make CNBC’s recent top 20 list.

Not only are they among the most expensive U.S. cities in which to live but their states offer small-business owners 2 of the 3 worst business tax climates in the country, according to the Tax Foundation (New Jersey is the third state).


“There are areas that are emerging as small-business hot spots, offering entrepreneurs a vibrant, educated workforce, low cost of living, a business-friendly tax climate and a great quality of life,” CNBC reported.

The top 5:


5. Charlotte, North Carolina

The unemployment rate is 4.9 percent, a little below the national average, but the average salary is slightly above, at $48,290. Charlotte had the 10th-largest population growth last year among big cities, according to the Census Bureau, with 828,000 residents. "The city's nonprofit Business Innovation and Growth Council works to foster entrepreneurship and connect small-business owners with the resources to help them grow," CNBC explained.


4. Denver


The local economy has expanded since residents voted to legalize recreational marijuana in 2012. The Denver metro area has a low unemployment rate, of 3.1 percent, which helps explain why the average salary is $53,060, well above the national average of $47,230. "Businesses looking to set up shop in Denver will find a well-educated workforce. The University of Colorado and the University of Denver are located here and help turn out graduates needed for the thriving aerospace, biotech and telecommunications industries," CNBC explained.

3. Washington, D.C.


Accounting firm PricewaterhouseCoopers said venture capital firms pumped more than $700 million into new DC-area tech companies last year. That cash infusion is balanced by above-average wages and a 6.1 percent unemployment rate, higher than the national average. "The tax climate in D.C. can be a challenge for businesses just starting out. Individual income-tax rates range from 4 percent to 8.95 percent, and the general consumer tax rate is 5.75 percent. But with a steady economy, thanks in large part to the federal government, and lots of government agencies as potential customers, small businesses can find a solid business environment in the Washington, D.C., metro area," CNBC said.

2. Provo, Utah


The metro area prides itself on being start-up friendly. "The city's entrepreneurial hub is called — what else? — the Startup Building and rents desks and other co-working spaces to spur collaboration and innovation among freelancers, small-business owners and inventors," CNBC said.

1. Austin, Texas

The Austin metro area is especially small-business friendly. "There's a young, educated workforce (the University of Texas is based in Austin), no state individual or corporate income taxes, and enough different industries represented to offer an array of opportunities for start-ups. It ranked No. 1 on our list for the highest number of small businesses created, as well as the metro area with the fastest population growth. Technology is a key driver of small-business growth," CNBC explained.

Finding the appropriate location for your start-up is just one of the challenges budding business owners must overcome, which experts say can be done with the proper planning and due diligence on your part.

Planning may be tedious, but without a solid plan for your business that includes business idea research and market potential, you will be operating in the dark, said Alyssa Gregory, a small business information expert, thinks there are some common mistakes small business owners make over and over.

The most important things to consider include a business plan, financial plan and marketing plan, she told the Cape Cod Times

"You can start with the Business Model Canvas (www.strategizer.com) and graduate to a full blown business plan (www.seedcorp.com) is you need outside financing. What the BMC does is allows the small business concept to be validated. In planning you need to detail your SMART goals that are: Specific, Measurable, Achievable, Realistic and Timely. Your goals should also consider crawling first (going slow), then walking (moving a little faster) then running to assure that you are validating every step in the launch."

 

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Small business can be similar to real estate. Three of the most important factors are: location, location and location.
small business, start up, metro, cnbc
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2016-41-22
Monday, 22 August 2016 06:41 AM
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