How to Start a Small Business: Where to Operate

Cityscape w Locations


You’ve decided to start a Small Business, but where are you going to operate it?  Determining where to locate your business and what kind of office space to use is one of the most important decisions a new Small Business will make.  Your location influences the employees you attract, your company culture, and your marketing strategy and lifestyle.

When choosing the perfect city for your headquarters, as part of learning How to Start a Small Business, you’ll want to take a variety of factors into account, such as:


  • The market for your industry.  Before choosing a space, you’ll want to do market research to learn where your services are in the highest demand.  Certain industries have high demand in many different urban, suburban, and rural communities, but others tend to have the highest client demand in very specific parts of the country.
  • Where your competitors are.  An important consideration when evaluating How to Start a Small Business is that, even if a location has high demand, it might not be the best location for your company if several of your competitors are already working in the area.  Established competitors already have a base of customers, making it more difficult to develop your own clientele.  Generally, it’s ideal to work in an area that has a good balance of high demand combined with a lower number of similar businesses operating.
  • Business formation costs.  The costs to start and maintain a Home Business or Small Business vary dramatically from state to state.  For example, it costs only $100 to form LLCs in Idaho, with no annual fee, while California LLCs need to pay $800 a year to maintain their business.  Certain states, such as Nevada, only require you to file federal taxes, while New York, California, and Illinois have some of the highest state tax rates in the US.
  • Cost of living.  The cost of living also fluctuates significantly in different parts of the US.  In general, trendy large cities have much higher daily expenses, such as personal and business rent and employee minimum wage.  However, they also often command a larger base of customers and higher prices than cheaper and more rural areas.Cityscape w Locations
  • Availability of suitable space.  Depending on the type of business you run, you’ll need a suitable facility with the correct licenses and zoning, or the space to build your own.  Considerations to keep in mind include parking and public transportation availability, vacancy rate, and any specialty needs, such as state or county rules related to heavy machinery or equipment.


After choosing a city, you’ll need to lease space for your Small Business.  Three of the most popular spaces for Small Businesses are home offices, co-working spaces, and traditional office space.  Here’s a brief introduction to the pros and cons of each one:

  • Home office.  Home offices work well for Sole Proprietors and Small Businesses where all employees work remotely.  The advantage of this set-up is the lowered cost, and Home Business owners can even receive a tax deduction for using a home office.  However, with larger teams, communication can become a challenge, and many Small Business owners prefer the change of scenery that comes with working in another location.
  • Co-working space.  In a co-working space, your Small Business will work in a shared commercial space with other businesses.  Most co-working spaces come with a variety of options, such as sitting at communal tables, renting your own desks in an open room, and private, enclosed offices on shared floors.  Co-working is a great way for Small Businesses to save money and network with other companies, but these spaces can be noisy and difficult to work in at times.
  • Private office space.  Traditional office space is the best option for larger businesses and companies that need a lot of space.  Private offices have a much greater number of conveniences and amenities, but tend to be significantly more expensive, and thus are NOT necessarily a good option for Small Businesses.


For more information and other business advice on How to Start a Small Business, visit us at OmniTech Enterprises, LLC today:  We offer education, training and assistance to Home Business, Small Business and Online Marketing entrepreneurs.  We look forward to assisting you in your business ventures.


Marv Wells

Marv Wells & Logos


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