California is a gargantuan state, with a diverse landscape and incredible people. In many ways, it’s ahead of the curve introducing legislation to improve the health and wellness of its people long before other states were ready to do the same.
California is a great state in which to start a business, with 3.9 small businesses in the state serving almost 40 million people. The economy tends to move a little slower in California, making it an easy place to enter the market. Here’s why you should start a business in California this year.
Small Business Lending Opportunities
In recent years, the Small Business Association (SBA) has taken a keen interest in developing businesses in California. In 2016, over $5 billion was given out by the SBA in the form of small business grants and loans.
In partnership with the Milken Institute, the SBA successfully launched the PLUM initiative in a few pilot states, including California in the past two years. The PLUM initiative stands for Partnership for Lending in Underserved Markets. This initiative increased spending to assist minority-owned small businesses that are often overlooked for lending as a result of cultural bias.
The launch was a roaring success that resulted in advanced learnings for the SBA that will shape their future lending strategies. One of their main takeaways is the importance of expanding opportunities in the marketplace for small businesses, making this a prime time to start a small business in the Golden State.
It’s Simple to Get Started
Unlike in some states, starting a business in California is a straightforward and simple process. If you decide to start a Limited Liability Corporation (LLC), which is what works for the majority of small business owners, you can quickly file all the paperwork you need within the span of a couple hours with the assistance of an agency.
To start an LLC, you need only find a business name, file paperwork with said name and a street address, assign a Registered Agent, file the Articles of Organization with the California Secretary of State, apply for a Federal Employment Insurance Number (EIN), and voila! You have a business. Many would-be entrepreneurs are too intimidated by the concept of registering a business to get started. All you need to do is put together an effective business plan, and you’re on your way.
Home of Silicon Valley
If you’re in the tech industry, then you’re already aware of Silicon Valley, a moniker referring to the southern region of San Francisco where the silicon chip was created and corporate giants in the tech industry call home. This region encapsulates the importance of a modern entrepreneurial spirit and fuels the minds of inventors and entrepreneurs alike.
The notoriety associated with this region is the reason many choose to form startups and chase their entrepreneurial dreams in this great state. If you’re in the industry, you have ample opportunity to breathe the rare air in Silicon Valley and start a business of your own. Even if you aren’t in the tech industry, those who flock to this area still need to eat, be entertained, and pull from other industries to support their lifestyles.
If You Won’t, Someone Else Will
No matter what state you start a business in, it always comes down to this: if you don’t live your dream, someone else will. If you don’t start your own business, you’ll work hard to support someone else’s dream. The economy is shifting to a consumer-led market, with people creating side hustles to live the life they want rather than slaving away at someone else’s corporation. With California being the land of innovation and exploration, it’s not a matter of whether or not you can afford to start a business; the question is, can you afford not to?
This year is the prime time to start a business in California and make your dreams of entrepreneurship a reality. The economy continues to grow, and spending on small business initiatives is increasing. What are you waiting for?