As an entry-level entrepreneur, you’re hoping to open up a business. Perhaps you know exactly what you want to sell. Or, maybe you’re still figuring that out. Either way, you are curious to understand the best location to set up shop – somewhere your business is sure to be successful.
Before we tell you about the best cities in which to start a business, its important you understand the criteria for such classifications. When moving your company to a metropolitan area, you want to consider why it’d be good for business. These cities are based on 10 categories that influence desirability for rising entrepreneurs:
- Startup density
- Rate of new entrepreneurs
- Opportunity shares of new entrepreneurs
- Venture capital investment in the city
- Tax friendliness to small businesses
- Business as the primary source of income for local entrepreneurs
- Infrastructure and pollution
- Annual payroll
- Number of firms with paid employees
- Number of Non-employer firms
So, with this in mind we can tackle the best cities for your startup. Here’s a list of the five best cities to start a business in 2018:
- Miami
Miami is the top choice because it beats out other cities in eight of the categories listed above. The city rates number one in rate of new entrepreneurs and second in startup density. For every 1,000-employer business in the city, 108 are employer startup firms that are less than a year old. Furthermore, Miami’s infrastructure and pollution levels are among the best in the country.
If you’re looking for a warm climate, consider starting your business in Florida. It could be the perfect place to sell your product or service, especially if it’s good for hotter locales! Just make sure you look at a business insurance quote prior to opening up shop. That way, you’re sure to minimize risk in your venture.
- New York City
It’s no surprise New York city made the list. The big apple has long been known as the land of opportunity. With its multitude of people and compact streets, it’s the perfect place to open up a small business.
The city shells out the highest employee payroll: $531.9 billion per year. Furthermore, it has a lot of money to spend as it runs second in VC investment and is home to 410 new entrepreneurs out of 100,000 adults every month.
- Los Angeles
Expecting L.A. to make the list? Well, you’re in luck. Los Angeles is a major hub for entertainment. But the area is also flush with money and ideas, which makes it a great place to open up a business in 2018. In fact, its rate of new entrepreneurs is the highest in the country. A shocking 560 out of 100,000 adults become entrepreneurs every month.
- Houston
Yes, it’s Houston, baby. The city lands at number four, soaring in the rankings in six categories. The metropolis is great in terms of tax friendliness and has a high annual payroll. Additionally, it’s a good hub for entrepreneurs, with 400 new ones each month.
If you’re looking for a place that’s warm and home to amazing food and culture, then Houston is your best bet to start your business.
- San Francisco
Another great city to open your company in is San Francisco. The beautiful landscape isn’t the only reason why. The rising tech industry in the area is great if you’re looking to open up a tech business, but it’s also great for so much more. If anything, it’s more of a talent hub than anything. From startups to long-standing companies, the city is center to so many different professions.
Like New York, the VC investments transfer to high employee payrolls. Not to mention, it’s one of the happiest cities in the U.S., with an average of eight out of ten homeowners in the region claiming it’s the best city to live in in the U.S. So, if you’re looking to be happy and be surrounded by talent, SF is the way to go.
Depending on what kind of business you want to start, these locations are some of your best options. But even if you don’t live or work in one of these areas, don’t fret. There are always opportunities to go after if you have the drive to achieve. Best of luck!
