Michigan, one of the biggest and populous states in the US, has also become one of the best states for business. From the economy to the taxation, there are a million reasons why Michigan is a great place to start a business.
Michigan is one of the most popular places in America, with various tourist attractions. Thousands of tourists flock to the Great Lake State every year, and over 193,000 jobs are dependant on the tourism industry.
Be it a small business or a big scale industry that produces in mass, Michigan is the right choice for your business. Given the huge population and the tourists that visit the state every year, the consumption of various products is high.
Business in Michigan is booming and can provide the right launching platform for your entrepreneurial dreams. Michigan boasts over 1,043 large businesses and thousands of medium and small businesses, and also startups.
Here are some things you should consider if you want to invest your entrepreneurial skills in Michigan.
Reasons why Michigan is a great place to start a business
1. Economy
The economic growth in Michigan is tremendous. In 2018, the seasonally adjusted unemployment rate was only 4%. The number of people joining the workforce has been increasing exponentially. Michigan also has top universities which contribute talents to the country’s economy.
2. Taxation
The personal income tax is 4.25% which is 16% below the national average. This makes conducting business in Michigan favorable. The business taxes in Michigan are also below the national average. Low taxes are a crucial factor when establishing a business.
3. Real estate
The rental space in Michigan is huge, making the prices low. You can buy office space or rent it at lower prices compared to other states in the country. Spending lesser money on rental and more on the business helps with boosting the company in the initial stages.
4. Cost of living
The cost of living in Michigan is low, making people want to migrate and settle in the Mitten State. The taxes are moderate. With low real estate prices and lesser tax compared to other places in the US, business in Michigan is financially easier. Consumers also have a lower cost of living, which makes it easier to sell your product.
5. Tourism
Michigan is one of the most popular states in the Great Lakes region. It attracts several thousand tourists who contribute to the economy. Most tourists also have great spending power and thus help in boosting many businesses which work closely with the tourism industry- F&B, hotels, and transport.
Michigan also has an excellent import and export system. This provides small businesses with certain leverage over larger businesses. It also helps small businesses by reducing their taxes.
Best places to start a business in Michigan
1. Traverse city
Being a major tourist attraction, this city is one of the best places to start a business in Michigan. The wineries and vineyards are visited the most. Agricultural-related businesses flourish in Traverse city. Some of the popular businesses to conduct here are related to F&B, wineries, and microbreweries. With golf courses and natural attractions- profitability and exposure are massive in this city.
2. Troy
Typically a favorable place for finance and tech businesses, this city is a dream for engineers and entrepreneurs. It is one of the most populated and wealthiest cities in the state. These are the two factors that contribute to the success of a business venture!
3. Marshall
Marshall is located in the southern part of Michigan. This city is known for its industries. Home to companies like Tenneco – which manufactures auto parts, and Progressive Dynamic Inc – which manufactures power converters, the city of Marshall has a lot of jobs and businesses for anyone in the manufacturing line of work. Related industries are also booming- so, if your business idea revolves around automation and manufacturing- you know which is the best spot to head to!
4. Auburn hills
This is the best city in Michigan to establish a business. The high average revenue per business and a cusp of residential, industrial, and commercial areas make Auburn hills better than any other place in Michigan. Both global and local businesses are taking off here.
5. Plymouth
A place with scenic beauty and numerous concerts and festivities, Plymouth is also a tourist’s favorite city in Michigan. One of the best places to start a business in Michigan, Plymouth also has independent business owners. Not only a tourist spot but also frequently visited by students from the University of Michigan.
6. Detroit
A place filled with tourists and recreational activities, this city is also one of the best places to start a business. If your business is mainly focused on tourism, Detroit is the place for you. With numerous bars, gaming centers, arcades, and gambling resorts, tourists spend extravagantly in Detroit.
If you are a tech wizard and fan of the Wolverines- then starting an online casino can prove to be a worthwhile effort. With the signing of the Lawful Sports Betting Act and Lawful Online Gambling Act in 2019 by Governor Gretchen Whitmer, a huge surge in Michigan online casinos has occurred. So, this might just be the launching platform for your entrepreneurial ambitions!
Why choose Michigan over other states in the US?
- Resources in Michigan are better and bigger than in most states of the US. Providing raw materials for your business is much easier in Michigan with a great import and export system.
- The government support and policies in Michigan are better than anywhere else in the country. Lower taxes for small businesses and grants for renewable energy-related businesses.
- If you go to places like New York, the rental costs for office space are very high. Michigan provides low rental prices, saving your investment. You can use the savings and boost your business.
- Michigan has one of the most talented workforces. Be it agriculture or tech; you’ll always find people to hire, people who are skilled and well equipped with industry-related knowledge. With all these factors, doing business in Michigan is easier.
