Thinking about starting a new business? Geography is going to play a key role, and doing your homework to find successful areas for your business can save a lot of trouble and bankruptcy in the end.
While both coasts are already chock-full of almost anything you can imagine, the central U.S. is seeing a lot of economic growth right now, therefore offering a lot more opportunities for start-ups. Then again, since some of those coastal towns already have a reputation for specific business, they attract people seeking those places out - both customers and workers. Of course, it all depends on what kind of business you’re planning to open, as not every company does well in every town.
If You’re Opening a Restaurant:
The kind of restaurant you want to open is going to be key in picking a city or town. Keep in mind that cities with culinary schools are going to offer a nice size pool of workers to choose from.
For fine dining, you might do well to open one in a city acclaimed for its selection. New York City, New York; Panama City, Florida; Bend, Oregon; Salisbury, Maryland; and Juneau, Alaska have the highest count of restaurants per capita in the nation, according to the NPD Group’s most recent survey, which suggests their residents appreciate a good meal.
On the other hand, New Orleans, New York City, Chicago, San Francisco, and Portland are five of the cities most acclaimed for their food selection, meaning everyone knows that if you want good food, you ought to head to one of those places.
Fast food places do better in high traffic areas, close to highways and interstate exits for people who need a meal on the go. They’re also often very successful in underdeveloped, rural areas.
If You're Opening a Tech Company:
Admittedly, technology has not gotten everywhere just yet, but it is booming in a few locations. Silicon Valley still takes the cake as the most tech-savvy city in the U.S., but California isn’t everyone’s cup of tea. Other places boasting a plethora of technology-based careers, and therefore a magnetism for techy employees, include Boulder, Colorado; Huntsville, Alabama; Durham, North Carolina; Washington, D.C.; Manchester, New Hampshire; Colorado Springs, Colorado; Austin, Texas; Melbourne, Florida; and Albuquerque, New Mexico. According to experts, these cities have the most tech jobs per capita.
Cities that saw the most growth in the technology jobs in the past few years also include Austin, Texas; Raleigh, North Carolina; Houston, Texas; Nashville, Tennessee; Salt Lake City, Utah; and Seattle, Washington, showing that Texas is quickly catching up to California in being a leader of tech-inclined cities.
If You’re Opening a Retail Store:
As with restaurants, not all retail categories are created equally, so not every business is going to do well in the same place. Finding areas known for their shopping is a good place to start: New York City, Chicago, Minneapolis-St. Paul, Los Angeles, and Boston are all travel destinations for serious shoppers.
Conversely, areas that retail workers flock to include Austin, Texas; Atlanta, Georgia; Boulder, Colorado; Baltimore, Maryland; and Columbus, Ohio, so your workers are already there. San Francisco made both lists, making it a top pick for a retail company.
Keep in mind that the choice to open something brand new and yours alone versus franchising an already-existing business is going to change things; while franchising comes with some huge benefits, it also means you’re better off looking to open up somewhere the company hasn’t already established itself.
If You’re Opening a Factory:
Despite the dip in the economy, the past couple of years have seen a resurgence of American manufacturing. Again, the kind of factory you’re looking to start can change everything. One very important facet of factory work is that it can offer a lot of jobs to struggling cities with unemployed workers, especially since it often offers positions that don’t require extensive training or education. Yuma, Arizona; Atlantic City, New Jersey; and cities all over California have the highest unemployment rates right now. But Seattle, Washington; Oklahoma City, Oklahoma; Salt Lake City, Utah; Houston, Texas; and Warren, Michigan are all leading cities in the manufacturing revival, showing these kinds of companies are already doing well in those locales.
