The world is a big place, but getting smaller at the same time. Globalization has enabled entrepreneurs to establish their startups almost wherever they please. Furthermore, growing incentives provided at the state and local level creates a buyer’s market for new companies looking for a location to base their operations. The short of it is that the world’s startups have a lot of options to choose from, and a variety of avenues through which to travel from the start.

Where a startup decides to settle down matters in many ways. For instance, depending on the industry it may be advantageous to crop up in a particular part of the world; think tech startups and the San Francisco Bay Area. However, such “capitals” of a given industry can also be prone to overcrowding on the business side while remaining dry on the available workforce side. This leads to difficulty hiring top talent without shelling out big salaries, not an easy feat for startups.

Private sector advantages and incentives for startups vary from state to state, city to city. For example, Dallas electricity is deregulated in accordance with state law. Naturally this extends to every city in Texas. Companies are thereby able to pick and choose their electricity provider and the most optimum plan for their specific needs. This is also the case in Oregon and most of New England. The benefits to startups are obvious: shopping around for electricity can lead to significant savings, depending on the energy needs.

Tax rates, rebates, and credits at the provincial, state, or local level can obviously have a tremendous impact on the cash flow of a startup. States like Wyoming, South Dakota, and Nevada are consistently cited as being  “tax friendly” for businesses. However, there’s usually a catch: the aforementioned states are thinly populated and therefore finding staff and steady lines to resources is harder, depending on the nature of the startup.

The leasing of commercial space is another area where consideration is key to success. Be certain the agreement with the landlord covers sublease, exclusivity, and co-tenancy. This may require the help of a commercial real estate attorney. Additionally, it’s important to ask about maintenance fees, parking, security, and waste removal to factor these potential add-on costs into your budget before making the final decision.

When it comes time to set up the new office or factory, arrangement matters. Where the desks, workstations, meeting rooms, and coffee pot are located will make a difference in the lives of staff. For instance being able to look up and see out of a window provides a much more positive work environment than looking up to see a blank wall. We won’t call it feng shui per se, but it’s something close to that concept.

Small businesses just getting started have many decisions to make in a short amount of time. One of the most important of these upfront choices is where to base the startup. The answer depends on the industry, workforce needs, and the sorts of local tax incentives and other perks which appeal to the entrepreneurs at the helm. Whatever the decision, it ought never be taken lightly from start to finish.