Individuals looking to start a small business here in Texas may find a report from earlier this year quite encouraging. The report points to the state being a great place for startups.
In fact, the report, from WalletHub, ranked Texas the No. 1 state for starting a business for 2018.
In ranking the states, the report looked at three main categories of factors: business environment, access to resources, and business costs.
In all three categories, Texas ranked within the top 20. However, there was one that the state did particularly well in. This was the business environment. Texas did better in this category than any other state.
The business environment category involved 12 different factors. These factors covered a wide range of things. Some examples include: industry variety, business revenue growth, entrepreneurship, startups per capita, business survival rate and job growth.
Industry variety can provide a broad set of resources from a diverse customer base, range of supplier needs, or even just different experiences to learn from. The Dallas area has seen tremendous growth in our population which has led to surging demand for products and services across the metroplex. Our available land and low cost of construction provides plenty of office space and affordable housing for these new employees as well.
What are some of the best things Texas has to offer startups?
Of course, what particular opportunities and challenges a given place would present for a startup depends on many factors. These include what type of company the new business is. The most common concerns for a startup include financing, operational control, contract review, and compliance. As a company grows, it requires diligent use of capital and if that capital comes from an outside party, you need a thorough review that will stay in your budget. Employee duties and ensuring that contractors stay within their scope is also key to focusing your company’s time. Clearly describing what you can and cannot control will promote a common understanding of the goals and direction of the employment. Finally, compliance with state and federal law is one area that can quickly sink even the most profitable startup. Knowing how the regulators will view your activity and what steps you need to take to avoid liability is essential to growth in a world with government regulation.
Just as every new business is different in the opportunities and challenges it encounters out in the market, each new business has its own unique legal needs. Ensuring these needs are properly met during the startup process can be very important. Skilled business law attorneys can help startup owners with addressing their company’s particular needs.