Regardless of whether a business is onsite, remote, or a combination of the two - with a 90% failure rate for startups, it’s easy to understand why people are hesitant to start their own business. Even with a shockingly high failure rate, entrepreneurship is alive and well in Indiana and other parts of the nation. When considering the type of business you want to start, recognize the benefits and the risks associated with the location, cost, and quality of labor.
Examine Geographical Risk Factors
Businesses have many types of needs, and not all businesses are suited for the same geographical area. When deciding where to open a business, it’s important to examine the environmental and geographical risk factors you might face. If you’re looking to open a small business in Indiana, you should know the economy is highly reliant on the manufacturing industry. According to the Bureau of Labor Statistics, around 17% of our non-farm workforce, or roughly 175,000 employees, are part of the manufacturing industry.
It’s also important to recognize where your talent shows up geographically.. With a combined 808,000 people in the Indiana workforce, you’re likely to find a qualified and motivated team amongst the manufacturing, healthcare, food services, retail, construction, professional, scientific and technical industries.
Cost can be an enormous obstacle to any startup's success. When business owners are able to pick a location with the right resources, it leads to a higher return on investment. Founders often mismanage capital, which can derail the overall financial objectives of the business. Allowing a third party to help manage your capital and help find investors for your business can benefit you exponentially in the long run. At Transworld Business Advisors of Indiana, we work with many business owners who look back and wish they could have started differently to better set themselves up for success during the sale or transition of their business later in life.
There are some crucial costs businesses must look into when thinking about owning a business. Finance factors like cost-of-living expenses, taxable income rate, etc. In Indiana, small business owners can take advantage of the tax laws which allow small businesses to claim business expenses as tax deductions or write offs on individual income tax returns.
Invest in Entrepreneurs
Investing in talent to create a thriving ecosystem is necessary for startups. Success begets success, and aspiring entrepreneurs crave success. Entrepreneurs are great at doing whatever needs to be done to spread the word about their business. They involve themselves in the community to help guide future entrepreneurs, organize events and meetups, and lead support networks with other small businesses and like-minded entrepreneurs. Small businesses in Indiana created over 37,000 jobs in 2019 alone and they have experienced a steady, continual growth since then.
These factors, as well as others, can make or break the success of a business. The spirit of entrepreneurship is pulsing in Central Indiana and the surrounding localities. By examining risk factors, considering your start-up costs, and investing in entrepreneurs, startup owners can ensure that long-term, they are set up to benefit from a successful transition.
At Transworld Indiana, we love nothing more than to see businesses thrive, and sometimes that means thinking with the end in sight. It may be odd to have a business brokerage share content regarding the start of a business; however, if we could come alongside each of the business owners we represent during their transition from owner to retiree, or owner to founder, we could offer additional guidance that leads to a better return on investment.
If you are looking for advice on how to best open your business, where to locate your business, or simply things you should consider for the long run, give us a call. We are happy to provide consultative services that will lead you down the right path.