There are many challenging aspects to consider for those think they want to start a business. Market need, financing and personal time investment are just a few. In many cases, the best laid business plans fail to get an entrepreneur to the next level. For those considering embarking on their own endeavor, it’s wise to look at what contributed to the success of the ten percent of businesses that celebrate the 5th anniversary. According to a recent report from Insider Monkey, location plays a 9 percent role in startup success. Among large cities in the United States, Austin was deemed the easiest city to start a business.
Why Businesses Fail
New businesses can be an exciting way for investors to earn a return on an investment into a future product or service that could make an impact on an industry or society. CB Insights provides potential investors with a tool that helps them to make predictions in the market. CB Insights recently analyzed failed businesses to determine why new businesses fail. According to the entitled ‘The Top 20 Reasons Startups Fail”, location played a 9 percent role in why a business failed within the first 5 years.
Although the primary reasons the respondents’ businesses failed included “Not the right team” and “Ran out of cash,” “bad location” accounted for 9 percent of the reasons why startups fail. All of those factors, including other factors considered by sources such as Forbes, WalletHub and Startup Genome were included in developing the Insider Monkey rankings.
Austin Startup Scene is Best for Success
Insider Monkey described Austin as “one of the fastest growing cities in America. It boasts highly educated labor force and is one of the most successful places in attracting and retaining talented professionals.” The report also revealed that $600 million worth of venture capital slowed into 75 Austin startups last year. In the last six years, the Austin area startup community benefited from an average of $700 million each year.
Austin also ranks fourth for startup density, which means that a new business owner will have plenty of people to relate to in Austin. Austin also has the second highest index of growth entrepreneurship in the USA. That means that fresh businesses in Austin are very good at making money and creating new jobs.
New businesses also need to consider the future of their venture. As a business grows, it will need to add employees to accommodate growth. A local talent pool is necessary for a startup to be able to make it to the next level. Austin provides a steady supply of college-educated talent from the University of Texas at Austin and other area universities. No wonder it’s one of the best places to attract and retain talented professionals.
Over the past several years, Austin has been experiencing unprecedented population growth, lending an air of excitement and energy to the city. Many of the features that make Austin a great place to start a business also make it a great place to live. For example, the lack of corporate and personal state income tax. A growing population can allow business owners to take advantage of a growing local consumer base to market their product or service.
In addition to the amazing startup environment in the Texas Capitol, there’s also a lifestyle advantage. The cost of living is still relatively low in Austin compared to other popular large cities. Housing is still a great value, too. There’s also a plethora of outdoor entertainment and world-famous music scene to help new business owners blow off steam.
If you’re considering making a move to Austin to start a new venture, there are a number of resources in the Austin area, including:
AustinTexas.gov – This city-run service is a great way to meet with business professionals who can provide you with basic information and guidance at no cost to you.
AustinStartUps.com – News and information about the Austin startup scene.
Capital Factory – Providing opportunities for fundraising, business development, mentorship, recruiting with personal attention as well as free rent and hosting.
SCORE – Get free mentorship from experienced entrepreneurs, corporate managers, and executives representing a diverse set of industries and specialties.
Built in Austin – A startup hub for tech and other startups in the Austin area.
Giving City Austin – Providing free resources to Austin entrepreneurs.
To get help with relocating to the Austin area, contact David Brodsky Properties to speak to an experienced real estate strategist. We’re happy to share our extensive knowledge of the Austin area to help you coordinate a smooth and stress-free transition to the Austin area. Our consultation is free and can save you thousands on your move.
Read more about the Austin economy.