Big City or Small Town? Choosing the Best Location to Start Your Business

As an entrepreneur or business owner, you understand better than anyone that location is extremely important. Not just the real estate location within your local market, but geography in general. In particular, there are major differences between establishing a business in a small town and a major city. By understanding the benefits of each, you can make a better decision in regards to where your business would be best suited.

The Advantages of Big Cities

Huge cities like Los Angeles, Chicago, and New York City are sizable for a reason. There are things that draw people and businesses and keep them there for years. And when you look at it from an entrepreneurial or business perspective, it’s clear that some of biggest advantages are: 

Access to resources. By definition, a big city has a ton of resources that smaller cities don’t have. Whether it’s investment groups, venture capital funds, entrepreneurship centers, or ample suppliers and contractors, big cities tend to have more to offer to growing businesses and their owners.

While access to resources may not be as essential as it once was—thanks to the growth of the Internet—there’s still something to be said for being able to walk a few blocks and meet with someone face to face.

And along with increased access to business resources comes more personal access. For wealthy entrepreneurs and their families, there’s simply more availability in big cities. Take Las Vegas, for example. In Las Vegas (which has a thriving startup scene, by the way), you can find luxury living just a few blocks from the center of the city. However, there is also affordable family housing just a short drive away. You can choose which lifestyle you want. In a smaller city, you may not be able to find such a variety without having a long commute to work each day.

Deep talent pools. As you could probably guess, larger cities have deeper talent pools. This is a result of two factors. First off, a larger population means there are more people looking for jobs; as a result, your chances of finding someone to fill a role greatly increase, Secondly, large cities typically have a number of universities nearby, which means recent college graduates are always nearby.

Take New York City, for example. There are dozens of colleges in the area with thousands of young, eager millennials graduating each quarter. Some of the top schools include prestigious colleges and universities like Cornell, Columbia, NYU, Yeshiva, and Fordham. By developing a pipeline with programs at these schools, you can find some pretty fantastic talent.

Social/networking advantages. If you’re going to talk about big city living, you have to mention the social and networking advantages that can be gleaned. Not only are there advantages for you to personally meet people and grow your professional network, but—piggybacking on the last point—large cities actually draw in more people with “social intelligence skills.” And according to one study, the representation of social intelligence skills actually increases with the size of the city.

“Social intelligence skills in particular are found in the largest cities and metro areas,” writes Richard Florida, director of the Martin Prosperity Institute, referring to a 2010 study on the topic. “And the largest cities have increased the proportion of social intelligence skills they account for over the past decade. Larger cities not only draw more educated and innovative people, but more people with the critical social skills required to turn new ideas into successful enterprises and industries.”

The Benefits of Small Towns

While there are plenty of benefits to living and working in a big city, you have to realize that this is not the only option for success. Benefits for starting a business in a town (or smaller city) include:

Less competition. Perhaps the biggest benefit of smaller towns and cities is that there’s less competition. Fewer people means there are fewer businesses, which means there’s a better chance for you to dominate the market and carve out a niche.

Lower cost of living. You may have more access to real estate diversity in a large city like Las Vegas or New York City, but the cost of living is much friendlier in a small town. Not only are real estate prices friendlier in less developed areas, but you’ll also find tax benefits, fewer restrictions, and better rates.

Closer community. While there may not be a ton of Fortune 500 businesses in small towns, there are a fair share of small businesses. However, those who live and work in these environments say this is a positive, not a negative.

“There are often more small businesses in a concentrated area that support each other and the community around them,” says Lisa Bobulinski, the owner of a Texas-based architecture firm. While it may seem cliché, this is true across the board. Small towns have a closer feeling of support, which can lead to more trust with customers and peers.

One Size Doesn’t Fit All

From Las Vegas, Nevada, to Charleston, South Carolina, there are cities of all sizes and flavors that are perfect for starting and growing businesses. However, it’s important to remember that one size does not fit all. Some businesses are better suited for sprawling urban areas, while others are best reserved for smaller towns.

Get to know your business and study some specific traits of different cities. What you discover may surprise you. While you may assume that your organization is a good fit for a big city (or vice versa), the opposite may be true. You’ll never know until you open your eyes and start looking.

The post Big City or Small Town? Choosing the Best Location to Start Your Business appeared first on AllBusiness.com

The post Big City or Small Town? Choosing the Best Location to Start Your Business appeared first on AllBusiness.com.