The State of Massachusetts is home to over 615,000 small businesses, and Boston is home to about 40,000 of them. Small businesses in Boston account for $15 billion in annual revenue, and approximately 170,000 jobs!
If you are thinking of joining the ranks of small business owners in the Boston Metro, there are some advantages and challenges to consider. Here they are, according to a survey of Boston small business owners, conducted by Business News Daily.
Pros of starting a business in the Boston Metro:
A vibrant economy. Boston has a rich startup culture and a diversified array of industries. Consumers are willing to spend money, and businesses are willing to invest in products and services.
A strong educational system and a well-educated workforce. There are over 100 colleges and universities in the Boston Metro, with more than 250,000 college students in Boston and Cambridge alone. This provides a large talent pool for Boston Metro employers.
A strong tech industry. Technical companies produce new, well-paying jobs, which provide buying power for their employees. Tech companies themselves also consume goods and services, boosting business-to-business sales opportunities.
Community support. Buying local is a common practice in Massachusetts. There are also numerous small business resources and networking opportunities for entrepreneurs.
Cons of starting a business in the Boston Metro:
The cost of commercial real estate. Rising property values, and a healthy demand for commercial real estate has driven up the cost of buying and leasing Boston Metro office space. Small business owners and startups should use professional tenant representation when seeking a new location.
Competition for employees. While our talent pool is large, some industries have a high demand for certain areas of education and expertise. Small businesses can offer internships and flexible hours to attract college students and recent graduates, but large businesses can offer higher wages.
Taxes and regulations. Massachusetts currently has an 8% corporate income tax rate, a 5.1% personal income tax rate and a 6.25% sales tax rate. Yet it isn’t the cost of doing business that small business owners find daunting. Instead, it’s the degree of record-keeping, the complexity of tax filing, and compliance with numerous regulations that pose a challenge.
All considered, the Boston Metro offers one of the best areas in the country for starting a business! Good planning and preparation, along with the advice and guidance of experienced professionals, can help you succeed.
Ready to begin, relocate or expand your business? Team up with an experienced commercial real estate broker at Jay Nuss Realty Group, LLC! Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you find the ideal property. Please contact us today for expert guidance!