To start a new business you’ll need a lot of patience, understanding, determination, and resources. As a new business owner, you’ll need to embrace the fact that for some period of time your business won’t generate a lot of income.
During this time you’ll need to rely on a helping hand of mentors and crowding funds to overcome this inconvenience. Luckily almost every bigger city in the US now has some kind of program that supports startups.
Naturally, some cities are more suitable for startups considering they can offer you more resources and financial support but there is a significant drawback. They are very expensive for living, especially for those people who need to invest every dollar in their growing business.
For all of you who are still brainstorming this idea, I wrote the list of the best growing cities for startups based on their supporting programs and cost of living.
Top Metropolitan Areas With Lowest Startup Costs
The most important aspect of creating a successful startup besides an innovative idea is choosing the right city for it. Remember that you’ll need to find an office or workspace that fits your budget, to pay utilities, legal fees, and workers.
This is why coastal cities such as New York City, Boston, San Francisco, Washington, and Seattle (which are considered significant hubs), are not a good idea. These cities are home to some of the most successful companies in the world.
Yes, the big city is a great place for generating new and creative ideas, and it will give you access to a large number of customers, however, all those benefits will cost you way much more than you can afford.
Think about the difference in a tax fee for a startup in NYC and in Detroit for example? The most common reason why startups fail is a lack of resources as a consequence of choosing the wrong city for a beginning.
Best cities for startups
Atlanta is also known as the home to companies like Coca-Cola and Delta Airlines, but if you didn’t visit it in a long time you will be pleasantly surprised. Over the years Atlanta has become one of the top tech towns. Software development and computer support technology are blooming in this city.
Atlanta is like a big tech incubator, almost 90% of startups founded here are still in the business. The city generously supports startups by connecting them with resources like Atlanta Technology Angels, Atlanta Technology Village, EO Atlanta, and Advanced Technology Development Center. But a great thing is that startups also have an access to talented graduates from Georgia Tech and Emory University.
Most importantly Georgia isn’t so pricey to live in. Life here will cost you a bit over the national average, but housing is pretty reasonably priced. The median rent for a one-bedroom apartment is around $2,000. In case you are looking to buy a house, the median listing price is around $395,000. For a city with a booming tech industry, this is not expensive at all.
Minneapolis has a significant number of resources for startups. Moreover, they are so startup-oriented that they even host a Twin Cities Startup Week. Here entrepreneurs can connect with investors, and mentors and get much-needed support. Companies like Techstar and Matchstick Ventures are known as big supporters of local talents and their projects.
Minneapolis and St. Paul are easygoing and very affordable areas for living and business, considering the index score is slightly above the national average. The median home price for the purchase is around $325,000.
On the other hand, rents vary greatly depending on which part of the city you choose. For instance, a one-bedroom apartment in the Uptown neighborhood will cost around $2,000 per month. If that is too much for you to handle, in neighborhoods like Stevens Square and South St. Paul rent for a one-bedroom apartment goes from under $1,000 to $1,400.
Miami is home to universities like the University of Miami and Florida International University, which are crowded with talented people and innovators. These universities have their own accelerator programs and provide support to startups projects of their own students. Also, Blacktech Week Conference is an event you as a startup owner should visit for sure.
It is great to know that organizations from Silicon Valley help to support 500 startups, and upgrade fledgling to the next level.
You might be thinking that Miami is too expensive to live in, but in reality, life in Miami costs only 11% more than the national average. For a one-bedroom apartment, you’ll need to pay around $2,500 per month. If you want to live in downtown Miami, that will cost you around $4,000 per month.
If you think for a moment, the most reasonable thing to do is to buy a house if you can afford it. The median price is approximately $400,000, this way you’ll save a lot of money in the long run.
Seattle is the home of big companies such as Amazon, Microsoft, and Starbucks, so you might be wondering why I would want to start something here? But for the past decade, this city was among the fastest-growing cities in the US. That clearly means there are a lot of free places and territories that need to be claimed.
Some researchers predict that in the next 20 years at least 200,000 people will move to Seattle for work so that is your chance. This city will need a lot of new offers in all fields, from the tech industry to exotic restaurants, innovative shops, boutiques, and anything that you can think of.
Seattle is a startup-friendly city, it has a lot of capital end economic development programs that offer advice and full support to startup companies and small businesses. On the other hand, the University of Washington is a great source of a young and talented workforce that can help you grow your business. Also, companies like Amazon and Microsoft provide support for new and existing companies.
Seattle is much more expensive to live in than any other city on this list, but in his defense, this city will offer you much more opportunities as well.
The cost of living is 28% higher than the national average, and the lowest rent for a one-bedroom apartment is around $2,000 per month. However, in case you wanted to buy a house, you’ll need at least $750,000 which is something that many people can’t afford.
Austin is known as a great city for startup companies. According to some research from 2016. Austin grew its startups by 81.2 percent, the only cities that could match were Seattle and Washington. The main reason is the University of Texas and the Austin Technology Incubator.
Both employers and employees people are drawn to this city, considering it offers a lot of opportunities for developing careers and companies as well. This is an incredibly innovative city with a lot of hardworking and talented workforce. Austin developed a lot of programs and incubators that help startup companies to grow.
Austin is also a very affordable place for doing business. Texas has no personal income taxes or corporate tax, this is what every small-business owner will appreciate a lot. So all that money you save on taxes you can invest in your business. This is a great way to support new businesses and make growing a bit easier.
The overall cost of living in this city is 9% higher than the national average, but don’t forget that you don’t pay taxes here. The median rent is somewhere around $1,600 for a one-bedroom apartment. On the other hand, buying a house is a big investment here. The median house price in Austin is $600,000, which is double the national average.
Denver is ranked in a high tenth place on a list of US cities that are most suitable for startup companies. This should be more than enough to make you consider starting your company in the state of Colorado.
There is one more great reason why you should start your company here – the workforce. Denver is known as one of the most educated cities in the US. So there is no surprise why it ranks as the first choice for highly educated people from 25 to 45 that are in search of a job.
This city recorded a major growth in the tech field, so now it is considered one of the major tech hubs in the US. State fees and corporate income taxes are the lowest ones among all the startup-friendly cities.
The median rent for a one-bedroom apartment in Denver is $1,600 per month which is close to the national average standard. The cost of living is 14% higher than the national average, but you’ll have the opportunity to live in one of the fastest-growing cities in the US. In case you are interested to buy a house in Denver, depending on the location you’ll need at least $550,000.
Portland is a great place for both employers and employees. This city is relatively close to Seattle, however, a marketplace for startups is less saturated so it gives you more opportunities to get the adequate support you need, and you’ll have a fewer competition.
It is good to know that almost 11% of the population in Portland is self-employed, that only shows you that people there have an entrepreneurial spirit, a lot of creativity, and high-risk tolerance. This is mainly because Portland startups have access to more angel investors.
The cost of living in Portland is 20% higher than the national average, but their utilities are 13% cheaper than the national average. The median rent for a one-bedroom apartment is $1,450 per month which is a great compensation for the higher expense of living. The median house price is around $500,000.
Top Raising Cities For Entrepreneurs
Owning a small business is not easy as it may seem, but with a good idea and reliable support system, you can grow a great company and career. If you have already started your little startup project but you want to relocate, or maybe your little startup is ready for expansion, you’ll need our help.
Moving office is nothing like moving home, the future of your business is at the stake, and you don’t want to risk that! Prevent accidents and unnecessary postponements by hiring our team of professionals that are specialized in commercial moving.
For all additional questions contact us here.