Startups Don’t Necessarily Start in Wealthier Cities

If you are wanting to pursue a startup, you have to first consider the right location. Most people automatically turn their attention to large cities, but there are a number of reasons why smaller cities could be more beneficial. Consider the benefits of putting your startup in a smaller city and remember that when it comes down to it, customer service will ultimately determine your startup’s success.

More Focused Customer Service

Good customer service is the foundation of every successful business. When you are giving your customers what they want, they are more likely to keep returning. In a smaller city, it is easier to get to know your customers and develop relationships with them. This goes a long way in building a client base and when you have a steady client base, this works to ensure a stronger flow of cash for a business that has the potential for stronger profits and growth.

Different Tax Requirements and Regulations

When it comes to taxes, they tend to be lower in smaller cities. This is why a number of movie production companies are taking their filming to cities like Cleveland, Ohio instead of Los Angeles and New York. Regulations may also be less strict in smaller cities, allowing you more freedom when it comes to opening and running your startup.

Cheaper Real Estate

You will need a building to house your startup, and in most cases, commercial real estate is less expensive in smaller cities. You can often find a spacious building for considerably less money, whether you want to buy it or simply rent some space. It can also be less expensive to make any necessary renovations and customize the space to what your startup requires for efficient operation.

Reduced Inventory and Overhead Costs

When you are in a smaller city, just about everything is less expensive compared to cities like Chicago, New York City and Los Angeles. This means that when you are acquiring your inventory, if you can utilize local vendors, you will likely save some money. The same is true for other services that you might require for your business, such as cleaning services, maintenance services and transportation services.

As you can see, putting your startup in a smaller city could benefit you in a number of ways. It allows for more focused customer service to help you establish a loyal client base. It might also be helpful when it comes to things like taxes and regulations.


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