The idea of starting a business in NYC can be intimidating. Still,it would be best if you didn’t let the fear of competition stop you. NYC remains the business capital of the world, and if you can identify an underserved market and serve it properly, then you could become very successful, very fast there. The local and state government also offer tons of different benefits to business owners, which is one of the reasons why the city is so economically vibrant. Let’s take a look at some of the pros and cons of starting a business in NYC.
Pro – Large Population
One of the most significant benefits of starting a business in NYC is the large population and the quasi-infinite number of business opportunities in the city. The best part is that many people in the city have lots of money to spend, so that you can go both for a high-end or low-end demographic.
A large population also means that you’ll have a much larger pool of people to hire from, whether dishwashers for a restaurant or administrative staff for a boutique hotel.
Con – Lawsuits
If you’re doing business in New York, you have to be ready to deal with lawsuits. People file suits like it’s a sport in New York, and there are plenty of lawyers to accommodate everyone, so you have to protect yourself and do everything you can to prevent getting hit.
Everything starts with getting NY business insurance. This will cover you against most liability claims. NY business insurance can also protect you against property damage and theft, which are two other things you have to be ready for when doing business in the city.
Pro – Networking
New York attracts the best of the best from all over the world, and you get the chance to be around very important people when you’re a business owner in New York. There are networking events happening in the city literally around the clock, and you’ll be able to find a space no matter what type of business you’re in or how big your business is.
Con – Security Issues
As we mentioned earlier, property damage and theft are serious issues in the city. Unfortunately, this means that you may have to spend more than you wish on things like physical protection, professional security, and loss prevention.
Pro – Access to Capital
Suppose you have a very promising startup idea and see venture capital in your future. In that case, there aren’t many better cities to be in than New York right now. New York companies receive a whopping 28 billion in venture capital funding in 2021, which puts the state at number two on the list, right after California.
Something about being based in New York makes you more credible and makes your business look like it’s more likely to succeed. So, if you want to present a better image to potential investors, setting up your business in New York would be a great strategic move.
Now that you know some of the benefits and disadvantages of setting up shop in the Big Apple, you can decide whether it’s the right option for you. Of course, it would help if you scouted the city before you jump and try to contact like-minded entrepreneurs who chose the city as their headquarters.
