Location and geography are intangibles in the world of franchising that end up having a huge effect on an entrepreneur’s ability to start and maintain a profitable business. Small businessmen and women are facing enough challenges at the moment, so navigating the pressures of geography in starting a business is a prerequisite.
Truly mobile franchisees and franchisors should take note of the Small Business and Entrepreneurship Council's Small Business Survival Index for last year. The SBE ranks from one to 51 the best and worst states (with Washington DC included) to operate a small business. The index was created by tabulating a number of factors including taxes, various regulatory costs, government spending, property rights, health care and energy costs.
The most entrepreneur-friendly states are South Dakota, Nevada and Wyoming, while New Jersey, California and Maine are the three most difficult states to make a living as a small businessperson.
Anyone in the franchise industry considering uprooting to level the business playing field at this difficult time should spend a few minutes analyzing these statistics. Relocation might become a necessary move for entrepreneurs in the coming months, and it's important to know the best places to invest.