Starting a small business can be exciting and challenging at the same time. But, where you choose to base your new company plays a big role in just how complicated the beginning process can be.
The best place for budding entrepreneurs to go is southwest. Texas welcomes hard workers who want to find their own success.
Here are the top five reasons why the Lone Star State is the best place to start a small business:
1. Entrepreneurship is encouraged
It's always easier to start a small business when there are resources to help with the endeavor. Texas is one of the best in this arena. The Thumbtack Small Business survey, ranked Texas as one of only three states to earn an A+ overall.
The survey takes into account factors like tax code, regulations, ease of hiring and, of course, ease of starting a business, and gives them number grades. Some of its top marks came in the categories of:
- Ease of starting a business (A+)
- Employment, labor and hiring (A+)
- Tax code (A+)
- Ease of hiring (A)
- Regulations (A)
- Licensing (A)
2. Strong economy
Texas is consistently ranked in the top 10 strongest economies in the U.S. WalletHub's analysis of the nation's strongest state economies placed Texas as No. 9 with a score of 58.74. It was also ranked third for economic activity and second for GDP growth. The state tied for first place in most exports per capita, along with Washington and Louisiana.
Texas' GDP is $1.65 trillion, the second-highest in the nation.
3. Low costs
When first starting a business, cost is among the most important factors. Luckily, Texas is one of the least expensive states to live or do business in. The cost of doing business is 8 percent lower than the national average. It also has some of the lowest business taxes in the country and no state income tax, which certainly helps entrepreneurs realize their dream.
4. Sunny climate
Naturally, weather can play a big role in seasonal success. While snowy weather in the northern states may hinder business for many months of the year, Texas faces no such problem. January is typically the coldest month of the year. Even so, the average low is just 44 degrees and the average high is 62 degrees. The rest of the winter months have average highs in the mid-60s and low-70s. These climates make for comfortable shopping year-round - a boon for any business.
5. Population growth
Texas is the proud home of many of the nation's fastest-growing cities. Houston came in No. 2 in terms of year-over-year growth on the U.S. Census Bureau's list, trailing behind New York City. The total population came to 2,296,224 at the end of 2015, a whopping 40,032 more residents than the year before.
Fort Worth and Dallas took the sixth and seventh spots on the list, respectively, each adding more than 19,000 between July 1, 2014, and July 1, 2015. Their populations came to 833,319 and 1,300,092, respectively. With so many people moving to Texas, budding businesses will have a better time bringing consumers through their doors.
Getting your new Texas business up and running involves some preparation. Find out more information about how Gexa Energy can power your business.