Chattanooga is least expensive city for startups
Chattanooga continues to be the lowest cost city in America to start a business, according to a new study by the online personal finance website SmartAsset.
With relatively cheap office space, wages and legal and accounting rates — combined with the least expensive gigabit-per-second Internet hookup connections in the country — Chattanooga boasts the lowest overall startup costs for businesses of any U.S. city. The estimated first-year costs of starting and running a business in Chattanooga are 18.5 percent below the U.S. average and only half of what it costs to start a business in Silicon Valley, SmartAsset said.
Chattanooga has been the cheapest city for startups among the 80 major cities studied by SmartAsset in each of the past four years that the annual cost analysis has been conducted. Tennessee boasts three of the top 10 lowest cost cities for starting a business, making the Volunteer State "plenty affordable" and the lowest cost state, according to Derek Miller, a mortgage retirement and budget expert for SmartAsset.
The initial costs of starting a business are often key to its success, Miller said.
"To create a successful company, you need some money to pay for office space, employees and everyday bills from utilities to legal fees," Miller writes in a new report on the comparative costs of cities. "This can dampen entrepreneurs' ability to bring their business ideas to life, especially if they don't have much capital in their savings account. Imagine trying to start a new company in San Francisco with its exorbitant cost of living."
By Dave Flessner, Times Free Press Read More