One of the biggest decisions most startups make is where to start their companies. Although larger cities have amenities that smaller communities don’t, you may be surprised to learn about the benefits of starting your company in a small city.
Reduced Commuting Times
One thing you may not think about when you start your business is how long you and your employees will have to commute to work. Because the cost of living and crime rates are lower in smaller towns, potential employees tend to live in these areas. In addition, suburban areas or small communities tend to have ample housing, and many have land or commercial properties available for new businesses. In these communities, you and your staff will have little to no commuting requirements, which encourages a greater work-life balance.
Additional Business Incentives
Small cities desire new businesses. They understand that small business is the lifeblood of their economies. Therefore, many of these areas offer incentives and perks to entrepreneurs who start new businesses in their communities. Tax breaks are a significant perk you may encounter.
Better Retention Rates
The larger your pool of talented employees, the greater your competition for said talent. For example, although hundreds of thousands or millions of people live in large cities, they are also home to thousands of businesses. In smaller communities, you can still find the talent you need without having competition for that talent.
Building a company in a smaller community is especially beneficial when you are the only business in your industry in the area. Then, the talent that is most valuable to you has fewer options for exercising that talent. This increases your talent acquisition and retention rate. However, you should increase your retention probability by paying a competitive wage and treating your employees like valued customers.
You Can Drive Development
Smaller communities often look for ways to improve their business environments. These cities search for ways to expand their economies. As a startup in the area, you are on the ground floor and can have a significant impact on the development of your city. You can also become a major contributor to the local business community. Often, these communities create professional organizations and networks that offer unique benefits. They keep you at the forefront of the business environment, whereas you may be lost in the crowd in a larger city.
The location of your business has a significant impact on your growth and success. Like other startups, you may be considering a large city. However, consider the benefits of locating your company in a small city.