If you are considering opening a business, it can seem as though the odds are against you. The harsh reality is that about 20 percent of new businesses nationwide do not even make it long enough to celebrate a one-year anniversary. Far fewer make it to a five-year anniversary.
There is something to the old cliche about "location, location, location." One of the most common reasons for a new business's failure is a bad location. The state where a business launches can make a big difference. According to a study from WalletHub, Texas is the second best state for new businesses.
How Were The States Ranked?
Texas came in second in the study, just under North Dakota.
The study looked at three areas: business environment, access to resources and business costs. Each area was ranked separately based on a variety of factors. For example, factors included in the business environment ranking were average length of the work week and five-year survival rate, among others. The access to resources ranking included financing access and several other factors, while the business costs ranking included labor costs, corporate taxes and more.
In addition, the ranking took into account input from noted professors and thinkers in fields like economics and business.
Does This Mean All New Texas Businesses Are Destined To Succeed?
While Texas may be a great place for starting a business, the success of a new venture cannot be taken for granted. Care must be taken every step of the way. Owners must be diligent in choosing between entities like limited liability company (LLC) or partnership, when creating policies and procedures, when drafting contracts, and when determining who to team up with along the way.
The best way to set your business up for success is with a good idea, thorough planning and hard work at all stages of the process.