There are many important factors to consider when choosing a location for your small business office. This process involves investigating a location’s demographics, potential competing businesses, state laws and taxes, how it fits in your budget, proximity to your supply chain, and more. After considering your business’s needs, the next step in the process is to evaluate your finances. Before you can figure out just what kind of space is in your budget range, you need to take into consideration a few other financial factors:
- Minimum Wage – many states have a higher minimum wage than the federal minimum wage. You can check out the minimum wage rates by state on the Department of Labor’s website.
- Hidden Costs – keep in mind that most spaces are not business ready. You will have to factor in costs of renovation, IT system upgrades, decorating, and other things along those lines.
- Taxes – make sure you know the sales tax and income rates for the state, as well as property tax rates. Find out if moving your business across a nearby state line could lower your tax rates.
- Government Economic Incentives – the location of your business can potentially make you eligible for government economic business programs, giving you access to state-specific loans for small businesses or other financial opportunities.