Are you looking for the best place to open a business? If you are new to business world, then you need a place that promises stability and low cost, right? A Business News website recently posted an article on the most affordable and most expensive cities for startups. Generally, most businesspersons perceive that cities in the southern part of the United States are the best places for startups, because of low startup cost. Of course, big cities (particularly business hubs) still rank first in the list of cities with highest startup costs.
The Most Affordable US Cities in Business News
The startup costs are generally influenced by several factors, including rental costs for office building, gas and electricity costs, filing fees, payroll costs and legal and accounting fees. As reported by SmartAsset in business news online, the following are 10 best places for startup of the 80 largest cities in the United States:
- Chattanooga, Tennessee; this is the most affordable cities for startup business, thanks to low rental costs for office space and low employee payroll. Here you can open a business with average costs of $225.442
- Wichita, Kansas, with average startup costs of $232,057
- Greensboro, North Carolina, average startup costs of $232,326
- Columbia, South Carolina, with average startup costs of $232,541
- Knoxville, Tennessee, with average startup costs of $232,620
- Little Rock, Arkansas, with average startup costs of $233,877
- Memphis, Tennessee, with average startup costs of $234,524
- Lexington, Kentucky, with average startup costs of $234,945
- Orlando, Florida, with average startup costs of $236,513
- Winston-Salem, North Carolina, with average startup costs of $237,983
Those are estimated one-year costs for a new business with 5 employees and 1000 square feet office. The startup costs are estimated to increase by 2% every year.
The Least Affordable US Cities in Business News
What about the places with the highest startup costs? High operational costs are the most prominent problems in the big cities. If you are about to open a new business, you should consider avoiding San Jose, California. In this city, you will need a startup cost of $439.831 for the first year, thanks to the high payroll rate and accounting costs.
San Francisco ranks the second in the list of least affordable cities for new enterprises. As reported in business news, opening a new business costs at least $422.455. Washington DC, New York, Boston, Bridgeport, Oakland, Seattle, Trenton, and Newark are other cities you need to avoid if you have limited budget to go into business.