Do some of your clients want to start their own business? As a financial advisor, you may be tempted to warn them away from such a risky move.
One-fifth of all startups are closed within a year of being created and half do not make it to five years. But an advisor may want to take the client’s location into account before rendering advice—in some locations the chances for success are better than in others.
Some places have better access to financing and to a skilled workforce, cheap office space and incentives for new business owners. Others leave the potential business owner scrambling for resources.
According to WalletHub, an online finance and data resource, these 10 states provide the best chance for a new business owner to be around years after starting the enterprise. Following are the states in ascending order that give a startup company a fighting chance of success. The entire report is available here.
10. South Dakota
This northern state has some of the cheapest business costs in general, and office space cost in particular.
9. Missouri
The Show Me State has a good overall business environment and low business costs.
8. Georgia
Peaches and businesses thrive in Georgia where there is a large available workforce.
7. Colorado
The Centennial State has the second-highest educated population.
6. Florida
This southern retirement paradise also has a good business environment and the fourth-highest average growth in the number of small businesses.
5. Nebraska
Although known for corn and farms, Nebraska also has inexpensive office space and the fourth-highest incentives for small businesses.
4. Oklahoma
Another state known more for farms (an oil rigs), Oklahoma also has a good business environment and ranks first for low business costs.
3. Utah
Utah has the third-highest average growth rate in the number of small businesses and is second in the accessibility of financing.
2. Texas
The Longhorn State provides good business incentives and ranks second in the highest average number of small businesses.
1. North Dakota
North Dakota comes in first for both availability of financing and the highest average number of small businesses to earn the number one overall rating.
