Starting a business in the Golden State? For new enthusiasts who are just starting a business, as the home of Silicon Valley, California sounds like a promised land. But is that really the case? Together with NYC and Massachusetts, California is one of the three focus states for U.S. venture capital investment. Most of the investments go to Silicon Valley, San Diego, and LA, which makes them great startup California cities for entrepreneurs.
Good research is the key!
Before starting such a venture, you have to make a good business plan and strategy. Inquire which industries have more chance of success, based on the area they are situated. It can be very hard to succeed in the city with a lot of competition, but then again, you want to be in the center of happening. Usually, these places can offer a lot to help you grow your company, like conventions, promotions, and investor focus.
But that shouldn’t be the only deciding factor. Make sure to do research about state, federal, and local opportunities each of these top California cities for entrepreneurs can offer through the California Business Incentives Gateway.
Los Angeles, the entertainment capital of the world
When we think of the City of Angels, the first thing to occur in our mind is Hollywood, right? Well, think again, because L.A. has the hottest fashion industry! It can offer you much bigger spaces and cheaper rents than in NYC. Did you know that one-third of the U.S. textile manufacturing jobs come from L.A.? The Fashion District can offer you an inexhaustible pool of fashion talents and entrepreneurs.
Another thing that draws young businesses here is the fact that the workers aren’t unionized, and therefore, the labor costs are much cheaper compared to any other metropolises. This kind of entrepreneurship requires large storage and office spaces. In such cases, you will need efficient and responsible people relocating your inventory. Our partners from SOS Moving Los Angeles can help with that. Have a stress-free and cost-effective transfer of your working and living space, without having to lift a finger.
Sacramento, the future of our Planet
The “Cow Town” has the incubator space for life-science startups. This region is known for its 18 food technology and agriculture startups. Taking into consideration the popularity of today’s foodie culture, the sector is growing faster than ever. The conventions held in Sacramento, bring over 175 000 conventioneers, spectators and earn over 50 million in generated economic impacts annually!
Speaking of Sacramento’s economy, we can’t skip mentioning its thriving Clean Energy Sector. Smart grid tech and a high concentration of electric-vehicles give this city great potential in becoming a Mecca for the renewable energy industry.
San Francisco and the surrounding Bay Area, most famous tech giants
When talking about the best California cities for entrepreneurs, we can easily expect that the “Fog City” will be mentioned. Unlike other cities with focus industries, San Francisco has it all. The principal industries are diverse, like its residents. If you are trying to make it in shipbuilding, food processing, electronics, aerospace, or textile industry, Golden Gate City is the place to be.
In the Bay Area, the leading industry is manufacturing, but the other leading industries have their place here too. We cannot skip mentioning one of the most famous entrepreneur areas – Silicon Valley. No one can argue that Silicon Valley hosts world-renewed tech visionary companies. Apple, 23andme, Spotify, Uber, Twitter, and Facebook are just a few of the enterprises that were created here. Who wouldn’t dream of starting their business here?
Sunnyvale, a lot of possibilities for startup companies
In Sunnyvale, the tech industry is going strong. Lots of data engineers, software engineers, and project managers are coming here to start their job and businesses. Also, the Sunnyvale Cares program can help you with that. All kinds of donations, federal stimulus funds, and also money funded from the city, will help your startup a lot if you are NGO.
San Diego, an incubator of life-science and biotechnology industry
America’s Finest City is very popular with businesses that require a lot of conventions and conferences. The City can offer a lot of programs to help you launch, develop or grow your company. These types of things attract big minds and great people to start/move businesses to San Diego. Your company can have the financial incentives from the City of San Diego if you have at least one of the named criteria:
- you have been induced to relocate from San Diego, by other jurisdictions,
- your company promotes the growth and stability of City taxes,
- if you can provide significant revenues or job openings,
- constructing development in old parts of San Diego.
Some of the biggest incubators for startup companies are located here. That way, the entrepreneurs have the opportunity to work here collaboratively. It is the second-highest concentration of science and engineering professionals in California. Most successful businesses are to be found in Carlsbad Area.
When moving your business to a different city, make sure you work with experts that will help transferring your inventory safely and carefully across California. A lot of people forget how stressful the relocation be. Having to think about your business future, your new place to live, and many other things is never easy. Especially when moving to Californian cities for entrepreneurs.
Even with a lot of possibilities, there are some downsides
High life standards and costs of living can impact greatly founders’ decisions when choosing a region to start a company. Also, state tax rates may make you reconsider moving to Golden State because it’s no secret California has some of the most oppressive taxes in the US. Not many small businesses can sustain themselves here, considering harsh onerous business regulations. CA businesses must pay both federal and state taxes. Makes you wonder, are you really up for it?
All these things might scare you, but still, no beginning is easy, especially going big in these top California cities for entrepreneurs. These cities and their companies have shaped our everyday life, our work, and our way of travel beyond imagining. You will be operating surrounded by similar-minded people, have the advantage of clients with constant income. Not to mention the possibilities in the diverse industry. This kind of entrepreneurship is what makes California thriving.