Not all markets are created equal, and depending upon the industries in which small businesses operate, one city might be more conducive to success than another. Along similar lines, it’s important to note that some metropolitan areas are generally better for companies than others, and many of them are located in the state of California.
While some data shows that the entire Golden State may not be as likely to engender small business success overall, there are a number of cities there where that is certainly the case, according to a new survey of companies with less than $10 million in annual revenues and fewer than 250 employees from Biz2Credit. For instance, Riverside was ranked as the No. 1 city in the country in terms of average annual revenues for small businesses, at nearly $1.22 million per year. Los Angeles also made the top five, coming in at No. 4, with independent enterprises examined there taking in an average revenue of $752,000. Rounding out the top five was Portland, Oregon, at No. 2 with slightly more than $1 million, while Jacksonville and Detroit ($800,000 and $730,000, respectively) were Nos. 3 and 5.
What about credit ratings?
When it comes to the biggest struggles seen by small businesses today, many owners tend to cite access to credit, but three California cities likewise have rather high average credit scores, the report said. San Jose topped the list, as companies there have average ratings of 685, well ahead of the rest of the pack. Los Angeles and San Francisco were ranked fourth and fifth, with respective average credit ratings of 641 and 637. Meanwhile, Denver and Las Vegas were tied for No. 2 in the nation, at an average score of 649.
Owners know that revenues and credit standings are crucial parts of any small company’s success, but so too is the ability to have reliably low costs every month or year. As such, it might be wise for these entrepreneurs to make sure they’re doing all they can to keep their costs down, including finding more affordable small business insurance policies. For instance, taking the time to seek out general liability insurance might help them to reduce their annual costs by thousands of dollars, and therefore better position them for success in the future. The money they save could go toward other aspects of the company, which might need a little more improvement.