When it comes to building your business, looking at low start-up costs is a great way to help you find your feet. Starting a business in general isn’t cheap, so looking at a cheap, but promising location is always a good idea, to help you keep the costs down as much as possible. Costs tend to accumulate from utilities such as gas and electricity, rent of an office or building space, legal and accounting fees, filing fees and payroll costs. Whether you are looking for a barber shop for sale in a certain city, or you want a brand new office, we’ve put together a list of the cheapest cities to build your business.
Phoenix, Arizona
Arizona was once a state build on mining and agriculture, but since then it has grown to include health care, financial services, transportation and manufacturing, among other industries. The big cities are the most profitable which makes Phoenix the perfect location for a business, while keeping start-up costs low. Phoenix has a high number of residents, as well as having some of the highest average revenue per business. On top of this, it is a great destination for tourists who are visiting the dude ranches and saloons dotted around the area. Phoenix is home to over 1,473000 people and the average revenue per business lays around $1.5m.
Columbia, South Carolina
The lowest costs in America come from the South, with nine out of ten cities with the lowest start-up costs being located there. Southern cities tend to have low commercial office rates, and relatively low labour costs, which leaves Columbia, South Carolina as one of the cheapest cities to build your business. The city is home of University of South Carolina’s main campus, which means that Columbia has a fairly well-educated workforce – a key draw for businesses. Legal and accounting costs in the first year according to some studies indicate that Columbia is 26% lower than the national average.
Wichita, Kansas
Wichita offers some of the most affordable office space available in any U.S. city, making it a key player in the cheapest cities to start your business. Renting office space is important, and finding the best deal is vital in order to keep your start-up costs down. According to Reis, Inc., the average square foot of office space in Wichita is just $14.55 per year. At that rate, a business could lease a 1,000 square foot office for $14,550 annually. In New York City, this same size office would cost around $66,110.
Orlando, Florida
Orlando might not seem like the cheapest destination due to the high density of tourist population in the area, but it actually is a great place to register a start-up company. There are number of resources that entrepreneurs look for, and Orlando seems to have them all. Orlando Tech can help start-ups in technology to grow and connect, and the Creative Village Orlando provides a home for high-tech and digital media companies. In addition, start-ups in Orlando can benefit from some of the lowest start-up costs of any major U.S. city. Start-ups that file as an LLC won’t have to pay any state taxes on their profits too, as Florida does not have a personal income tax. This is why Orlando reaches the title of one of the cheapest cities to build your business.
