Where To Start A Business?
There is a saying:
The three most important things in business success is LOCATION, LOCATION, LOCATION.
Let me explain.
Choose The Right Country.
You could start a business in the wrong country. Are you aware that corruption in some countries is so prevalent that you could lose you business or even lose your life. In some countries you do not start a business without choosing which local mafia you are going to pay protection money to be able to operate. Sometimes you need to be connected politically to survive.
On the other hand some countries are stable politically and your property is protected legally. A country like Israel is helpful in promoting new business by backing early-stage companies with venture capital.
Canada, United States, Australia and others are also good counties to start a business. The reason is they are democracies. The assets you create or buy are registered yours to keep. Your property is protected by a solid legal system. Not like a country that I know of in which people had to flee for their lives and leave their coconut farm when local criminals showed up with guns to take over. The police were no help.
The World Bank puts out an annual ranking of countries with the most business-friendly climates for ease of starting a business. It measures four components: number of procedures, time, cost a percent of income per capita, and minimum capital required.1. New Zealand 2. Canada 3. Singapore 4. Australia 5. Hong Kong 6. Lithuania 7. Ireland 8. Netherlands 9. Malaysia 10. Taiwan 11. U.S. 12. Chile 13. U.K. 14. Portugal 15. Korea
Find the right State, Province or District.
Why is location so important? Well how about high business taxes and licenses. How about stringent environmental regulations that strangle company profit.
In some states, provinces or municipalities it takes over 600 days to overcome the government red tape and detailed procedures to try to get a new business off the ground.
There are regulations in some cases that were intended solely to raise revenue, without considering efforts to improve the business climate, economic growth or handle better job creation.
I encourage all entrepreneurs to compare corporate tax rates, check out the different types of business taxes that business have to pay. Also it is important to find out such things as Workers Compensation costs and compare the Health and Welfare safety regulations.
Boil it down and here is what you get. The higher the taxes the lower the bottom line profit. The lower the profit the greater will be pressure from competition. The more detailed the bureaucratic rules and regulations the more time is consumed to fill out the forms and comply. The more time it takes to comply the less time is spent on management and marketing. So, you get the picture.
Launching in the right City is important.
How about trying to start a business in a city that has high unemployment and the people are leaving. There is a city in the United States that lost two thirds of it population and growth is not only stagnant by dying. Do not try to start a business in this environment or you will be frustrated for years without seeing the success results that you work so hard to attain.
It is easy to check the unemployment stats and the population growth or loss. Just to a government website and get a comparison.
Check out the industries that employ a large percentage of the locals. Are the industries dying or growing? What products are being manufactured in city and how much is being exported? How many new companies have been successfully started in the last five years?
Try to decide from wherever you can pull the stats if the economic forecast is for steady growth over a period of 10 years. This should give you a good overall picture.
Would you choose a Mall or Big Box location.
Where will your store front be? Will it be a big mall, box store area, retail street drive by or just an anyplace commercial area?
If you want lots of walk by traffic and chose a mall you will be faced with high or very high lease cost and a costly store front renovation every three to five years.
If you can promote or advertise effectively bringing lots of traffic to you, you can choose a less expensive rental location that still has fair drive by customer base you can definitely keep your lease cost more reasonable.
With high lease rates, high traffic, high costs, you are faced with more staff, more pressure and more risk.
A “Home Based Business” may be the answer.
A Home Occupation is commonly referred to as a home-based business. Home occupations are small-scale businesses that operate out of a home in a residential neighbourhood.
Home based businesses require a city license or permit and should be acquired before starting a business or fines could be levied. If you are renting and do not own your home you will have to get permission from your landlord. If you will have customers coming to your location, this is another story and neighbors will have to be notified.
The standards for home based businesses are intended to seek a balance between supporting a quiet, safe residential environment while supporting the aspiration of the entrepreneur. Business activities which pose a threat to the maintenance of a peaceful neighborhood are not permitted, and must locate in commercial or industrial areas.
To find a lot of information on
how to start a business you can go to the eBook
Company: Business Resource Canada