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One of the first issues you're likely to come up against when looking for the perfect location to buy or start-up a business is the size of the nation. Most states—in terms of land-mass—are equivalent to smaller European countries. And—just like Europe, there's a tremendous amount of diversity.
So, if you’re looking for businesses for sale in the US, it’s probably wise to hone in on potential states in which to set yourself up.
While San Francisco and New York might be considered the most popular destinations for entrepreneurs, they might not be right for every business.
Think about it: Setting up or buying a business in a city of millions of other competitors plunges you head-first into immediate anonymity; struggling to be heard against the noise of established companies.
There are plenty of other cities around the US that offer the same welcome, funding opportunities, and open market as San Fran and New York.
What should I look for?
There's a variety of things to look out for, and we'll be exploring those in this short article. Some states have particularly favorable tax breaks for businesses, and some states have a strong workforce with high educational attainment.
So, without further ado, we’ll furnish you with the information you need to make an informed decision about where to look for businesses for sale in the United States of America.
The Best State for Tech Start-ups
It won't surprise you to discover that California — the home of Silicon Valley and Apple — is high on the list of the best states to either set-up or buy a tech business.
But it's far from the only state that has an effective support network and a robust infrastructure that favors tech businesses, helping them to thrive.
According to TechRepublic, the 10 Best States for Tech Start-Ups are:
- Massachusetts
- California
- Colorado
- Washington
- New York
- Utah
- Virginia
- Maryland
- Oregon
- Texas
Yes, Massachusetts has jumped into the lead as the state with the most significant venture investment potential, with $5.2 billion in 2018; around 15% higher than New York City.
The Best State for Agriculture
Agriculture is big business in the US, with a never-ending demand for affordable food and plenty of arable land to cultivate crops and rear herds.
This Top 10 relates to the most food (by value) produced each year in each respective state.
- California - almost $45 billion a year
- Iowa - almost $32 billion
- Nebraska - $24.5 billion
- Texas - $22.7 billion
- Minnesota - $20.5 billion
- Illinois - $19.6 billion
- Kansas - $16.2 billion
- Wisconsin - $12.1 billion
- Indiana - $12 billion
- North Carolina - $11.7 billion
When identifying a suitable state for starting or buying an agriculture business, you should consider the real estate costs as well as the potential income to maximize your profits.
The Best States according to USNews
It's wise to keep abreast of the USNews Best States rankings - A yearly assessment of economic growth and standards of living.
They assess each of the 50 states of the US for:
- Healthcare functionality and employment potential
- Educational Prowess
- The strength of the Economy
- General Opportunity
- Infrastructure
- Crime & Corrections
- Fiscal Stability
- Quality of Life
According to the USNews 2018 rankings, these were the Best States in the US based on the above metrics:
- Iowa
- Minnesota
- Utah
- North Dakota
- New Hampshire
- Washington
- Nebraska
- Massachusetts
- Vermont
- Colorado
Amazingly, some of the toughest competition faced by US businesses doesn't come from the developing world, but from the other 50 states.
Tax laws are different for each state, and some are particularly favorable to business—especially start-ups.
The Best States for Business Taxes
Some states offer much better tax breaks, and others provide more favorable land and real estates costs. These metrics should be taken into consideration when you explore the potential for investing around the US.
According to the Tax Foundation, the 10 Best States for Business Taxes are:
- Wyoming
- South Dakota
- Alaska
- Florida
- Nevada
- Montana
- New Hampshire
- Utah
- Indiana
- Oregon
Conversely, it's worth knowing the worst states according to business taxes, which are:
- New Jersey
- New York
- California
- Vermont
- Minnesota
- Ohio
- Connecticut
- Maryland
- Louisiana
- Rhode Island
If you're on the search for businesses for sale in the United States, you should turn to Franchise Direct: The nation's most comprehensive database of businesses for sale and franchise opportunities for those planning to start up a new company.