Digital insurance company Embroker put together a list of the 10 Best U.S. Cities for Startup Costs with Dallas coming in eighth place.
The rankings were based on a number of startup-friendly criteria including job growth, median base salary, and state filing fees. Here are some of Dallas’ statistics:
- Job growth: 3.1 percent
- Yearly median rent: $9,900
- Yearly energy cost: $511
- Median base salary: $60,445
- State filing fees: $300
Data for the list was calculated based on the top 100 Metropolitan Statistical Areas according to 2018 census data population estimates. The finalists were funneled down to cities with a population over 600,000 and a growth rate of at least one percent, along with startup costs being calculated and weighted.
“When you think of Texas, and you think of startups, the city of Austin might first come to mind. It’s a place regularly associated with a thriving startup culture and common second office location for Silicon Valley tech firms such as Amazon, Google and Facebook. But just 200 miles north, exists the nation’s 4th most populated region and a cheaper option for startups to set up shop—Dallas,” wrote Embroker in its rankings post.
The post also explained how successful startups are more than an idea and an empty space, such as the proverbial business launched out of a garage. Startups also require office space that fits a budget that’s likely limited and capital for payroll, utilities, office supplies, and legal fees. The impetus behind the rankings, according to Embroker, was to highlight the cities with the highest and lowest startup costs to help entrepreneurs avoid overspending to just get their nascent company off of the ground.
Based on Embroker’s main takeaway, North Texas is well-suited for entrepreneurial success given its relatively low startup costs coupled with overall size: “A big city is an incubator for creative ideas and fresh perspectives, plus it gives you access to an endless supply of customers who may want what you’re selling—not to mention close proximity to venture capitalists.”
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