The Top States for Starting a Business May Surprise You
If you’ve ever wanted to start your own business, you’ll be interested to know that there are certain states that are better and more accommodating to do so. That said, the top states for starting a business, according to experts, may surprise you. Starting and running your own business isn’t easy, so you want to make sure to be in an area that supports what you’re trying to do.
The Top States for Starting a Business
The experts at CNBC.com have a new story about about the top states for starting a business. As for methodology, they explain that, “to rank America’s Top States for Business in 2024, CNBC scored all 50 states on 128 metrics in 10 broad categories of competitiveness. Each category is weighted based on how frequently states use them as a selling point in economic development marketing materials.” By doing it this way, they made sure the study ranks “the states based on the attributes they use to sell themselves.” They also created specific criteria and metrics by working with a wide variety of business and policy experts, as well as the states. They point out that this isn’t an opinion survey. CNBC.com actually used data and research from various sources to measure the states’ performances. Using their methodology, states were able to earn a maximum of 2,500 points. The states that performed the best based on this criteria were named America’s Top States for Business. Looking at this study, CNBC.com included criteria such as infrastructure, workforce, economy, the cost of doing business, technology, innovation and business friendliness. So, the states with the highest total marks with all of these things combined came out on top of their tally.
So, what are the best states for starting a business in America? According to their research, it’s Virginia at No. 1. The state got especially high marks when it came to the cost of doing business and technology and innovation. However, the state didn’t get high marks in every area. For example, they only got a three on infrastructure and five on business friendliness. No. 2 on the tally of the best states to start a business is North Carolina, followed by Texas, Georgia and Florida. CNBC.com also listed the rest of the states and where they fall when it comes to ease of starting a new business. At the bottom of the pack is actually Hawaii, which is a bit surprising, since Hawaii often falls at the top of best-of lists. Also towards the bottom are Mississippi, Alaska, Louisiana and Montana.
Make Your Money Grow with These Low-Risk Investments
Invest in certificates of deposit (CDs)
You’ve probably heard of CDs being low-risk investments. Fidelity.com explains that “CDs provide reliable, fixed-rate returns on a lump sum of money over a fixed period of time, such as six months, one year, or five years.” They add that the great thing is that if you “get a traditional CD at a bank or credit union where they are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA).” Usually, CDs have a minimum deposit, and you’ll have to pay a penalty if you take your money out too soon.
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High-yield savings accounts
High-yield savings accounts are like your regular savings account, but they earn more interest. “You can use these accounts for long-term savings goals or to hold extra money from your checking account,” CreditKarma.com states. “For example, if you want to start saving for a house or building up an emergency fund, this could be a great option.”
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U.S. treasury bills, notes and bonds
Forbes.com says that right now, the risk level for U.S. treasury bills, notes and bonds is “very low.” They add that, “U.S. Treasury securities are backed by the full faith and credit of the U.S. government. Historically, the U.S. has always paid its debts, which helps to ensure that Treasurys are the lowest-risk investments you can own.”
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Money market funds
Fidelity.com states that, “Money market funds are mutual funds that invest in short-term, low-risk assets like Treasury and government securities, commercial paper, or municipal debt—depending on the focus of the fund.” They add that, “Because their underlying investments are typically high quality, they are generally less volatile than other types of mutual funds, such as stock funds.”
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Fixed annuities
Fixed annuities are a pretty safe bet. As Forbes.com explains, “Fixed annuities are a popular type of annuity contract that are frequently used for retirement planning, but can also be useful for medium-term financial goals.” They add that, “Sold by insurance companies and financial services companies, a fixed annuity guarantees a fixed rate of return over a set period of time, regardless of market conditions.”
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Invest inside your comfort zone
People talk about stepping outside of their comfort zone in life, but really, investing isn’t a place to do this. You know how much money you have to “play” with, so if you’re worried about putting too much money in the market, these low-risk investments could still help you make money on your money.
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