If you’re thinking of starting a business soon, then know that it’s a really good time to do so despite current circumstances. Rieva Lesonsky, a writer for the US Chamber of Commerce, highlights that today’s “new normal” has brought new customer demands and improved business technologies that you can take advantage of. In fact, many of the most successful businesses in the world, like Microsoft and Netflix, were created during an economic downturn.
But this begs the question: where should I launch my startup? And while plenty of wealthy states like New York and California continue to be ideal business locations, another state is fast becoming a business hub: Utah. Here’s why you should start your business in Utah.
Growing economy
A bustling economy means that business is thriving in the area. And according to a Wells Fargo report, Utah is the third-fastest growing state in the country. Utah specializes in two fields— aerospace and life sciences. Yet recently the state has shown an increasing presence in business tech sectors, such as cloud computing and software development.
This all started when the state launched its Utah Engineering Initiative back in 2001 to increase engineering slots in local colleges and universities. As a result, a lot of tech leaders are formed in and attracted to Utah. There’s even a place called the “Silicon Slopes” between Salt Lake City and Provo. A lot of tech startups and young entrepreneurs are building their headquarters there.
Lower costs
As a new startup, the last thing you want to do is shell out a lot of money for rent, electricity, taxes, and other fixed expenses. Fortunately, this won’t be a problem in Utah. The cost of doing business in Utah is at least 2% below the national average. There are plenty of factors that contribute to this number. For example, Utah is the third most energy-efficient state in the country, allowing startups to save on utilities. Additionally, Utah ranked 8th on Tax Foundation’s Climate Index last year because of its well-structured tax system. Taxes in the state don’t scale based on income, so startups can keep contributing 5% of their revenue even if they start making more money.
Startup support
Forming a business is difficult if you don’t have the resources or knowledge to get things started. This is especially true if this is your first venture. The good news is that the Utah government and other entities are very supportive towards new businesses. For example, the government has an initiative called the OneStop Business Registration System for aspiring sole proprietors. It contains everything someone needs to start a sole proprietor business, from licenses to registration documents. Meanwhile, newly formed LLCs in Utah are given free management consultation by the state’s Small Business Development Center. Professionals provide them with functional expertise in specialized areas such as strategy, strategic leadership, risk management, and other fields.
Other organizations like the South Valley Chamber and Zions Bank also offer training, free classes, and other resources startup owners can take advantage of.
Is Utah a good place to start a business? The answer is yes. From a robust economy to several free resources you can use, there are a lot of reasons why businesses choose to stay in Utah.
If you’re ready to take the next step in your business journey, here’s an article from David Berube on how you can test and validate your startup ideas.
