If you are in the United States, and you are looking to start a consulting business, note that you will be competing with loads of consulting companies.
No doubt, there are different niches or areas of specialization when it comes to the consulting business, but the good thing is that no matter the type of consulting business you want to start, there are cities in the United States where you can successfully start and grow your business.
In this article, we will consider some of the best cities where you can start your consulting business, and we will also help you highlight some key factors you should consider when choosing a city to start this business.
Best Cities to Start a Consulting Business and Factors to Consider
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New York City, New York
When it comes to starting a consulting business, New York City is usually an ideal city. New York City is known as a hub for professionals in a variety of fields, which makes it an ideal place to find talented employees for your consulting business.
From marketing and sales to finance and technology, you can find skilled professionals in just about any field. Interestingly, over one million businesses exist in this city, with new ones cropping up constantly.
Factors to Consider
- Industry Diversity: New York City has a wide range of industries including finance, media, fashion, and technology.
- Market Access: In New York City, you will have a large and diverse client base.
- Networking Opportunities: In New York City, you will have access to an abundance of networking events and business associations.
- High Cost of Living: Although New York City is a popular destination for business, it comes with considerable expenses for office space and living costs.
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San Francisco, California
The reason why San Francisco, California is suitable for starting a consulting business is that so many companies and startups have access to Silicon Valley’s tech community.
As a result, you can access the country’s best and brightest STEM minds. The San Francisco Bay Area has the most significant concentration of high-tech companies in the United States.
San Francisco supports the growth of businesses including startups, and available data shows that San Francisco Bay has 11,811 startups.
This represents about 20% of The United States startups. San Francisco Bay is the highest-ranked startup ecosystem in The United States.
Factors to Consider
- Tech Hub: San Francisco is ideal for technology and startup consulting.
- Access to Venture Capital: You will have access to a strong venture capital presence and startup ecosystem.
- Talent Pool: San Francisco has plenty of skilled professionals.
- High Living Costs: You should consider the fact that San Francisco is known for expensive office rent and living expenses.
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Washington, D.C.
Washington State is consistently ranked as one of the best places to start a business. Because of the high concentration of wealth in the area and the varied needs of government agencies, DC consultants serve a broad range of clients.
Washington, D.C. has more than 500,000 businesses, from one-person start-ups to some of the most familiar names in retailing, aircraft, software, and outdoor recreation equipment.
Small business owners seeking a diverse and educated workforce, steady economy, and excellent infrastructure can find all that and more in Washington, DC.
Factors to Consider
- Government Contracts: Starting a consulting business in Washington, D.C. gives you the opportunities for government consulting.
- Policy and Advocacy: You should consider consulting in areas such as policy analysis and advocacy.
- Proximity to Government Agencies: You will have access to regulatory bodies and decision-makers.
- Regulatory Complexities: Please note that compliance with government regulations may be complex.
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Chicago, Illinois
Chicago is one of the most diversified economies of the largest U.S. metros (based on output and employment); ranked number 22 globally, ahead of Poland, Sweden, and Belgium. Apart from that, Chicago is identified as the number 1 easiest city (population > 1M) to start a business.
Chicago’s new business owners can access some of the best infrastructure in the U.S., grant money, and a diversified workforce to help support each type of business.
Apart from that, Chicago also offers several programs centered around creating small businesses, such as Neighborhood Business Development Centers.
Factors to Consider
- Central Location: You will have access to Midwest markets.
- Diverse Industries: There are tons of consulting opportunities in finance, manufacturing, and healthcare.
- Lower Cost of Living: You will enjoy a lower cost of living when compared to coastal cities.
- Transportation Hub: Convenient for business travel.
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Boston, Massachusetts
Boston is home to a thriving startup ecosystem across various sectors. A report by the US Chamber of Commerce ranked Boston as the number 1 U.S. city to foster innovation and entrepreneurship. Bloomberg also named Massachusetts the most innovative state in the country for the second consecutive year.
Boston, Massachusetts has the best-educated workforce and most innovative economy in the US. Massachusetts offers a diversity of cost-effective price points for your business across its many regions, a surprisingly reasonable tax regime, competitive business incentives, and the fastest-growing population in the Northeast.
Factors to Consider
- Education and Healthcare: Consulting opportunities in education and healthcare sectors.
- Innovation and Research: Hub for innovation and research institutions.
- Talent Pool: Access to skilled workforce from universities.
- Highly Competitive: Intense competition due to the concentration of consulting firms.
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Atlanta, Georgia
Starting a consulting business in Atlanta, Georgia is indeed a good idea especially if you belong to the black community. Cited for low operating costs, a large talent pool, and a strong community of Black entrepreneurs, the latest acknowledgment comes after the Atlanta metro area captured the best place to start a business in 2023 by LinkedIn. Trust me, if you are considering starting your first business, then you should consider Atlanta, Georgia.
Factors to Consider
- Growing Economy: Diverse industries and growing economy.
- Logistics Hub: Opportunities in transportation and logistics consulting.
- Cost of Living: Relatively affordable compared to other major cities.
- Networking: Active business associations and events.
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Seattle, Washington
According to Forbes, the key drivers of Seattle’s global appeal for visionary start-ups are its highly qualified talent, growing millennial population, and a flourishing economy fueled by multi-million-dollar tech titans, MNCs, and international trade gateways.
Another reason why you may want to consider starting a business in Seattle is that Washington’s tax structure allows successful businesses to grow and expand quickly.
Washington also offers companies in high-growth sectors additional tax incentives, credits, and deferrals to encourage and spur exponential job growth and innovation.
Factors to Consider
- Tech and E-commerce: Consulting opportunities with tech giants like Amazon and Microsoft.
- Innovation Ecosystem: Strong entrepreneurial culture.
- Quality of Life: Scenic surroundings and outdoor activities.
- Competitive Market: Presence of established consulting firms.
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Los Angeles, California
Another ideal city you may want to consider is Los Angeles, California. The reason is that Los Angeles has a $1 trillion metro economy, 20 million consumers, and billions in record-breaking venture deals, infrastructure projects, and public procurement annually.
Los Angeles, California boasts of being the gateway to global opportunities with six commercial airports and the largest port complex in the Western Hemisphere.
Please note that in California, most businesses need a tax certificate, which can be obtained from the Office of Business Licensing.
Apart from that, the owner of a consulting business may also need to hold a professional license. In certain professions, you must be licensed to provide advice. Examples include health care, legal services, and architecture.
Factors to Consider
- Entertainment Industry: Consulting opportunities in entertainment and media.
- Creative Industries: Consulting for design, advertising, and marketing.
- Cultural Diversity: Access to a diverse clientele.
- High Competition: Competitive market with established firms.
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Austin, Texas
Austin, Texas is a fertile ground for networking, snagging investors, and collaboration opportunities. Your business can feed off this dynamic energy year-round, not just during festival season.
Austin has been named the best place to start a business by consumer finance startup Pheabs. They analyzed US Census Data to determine the 15 best places to start a business
One of the biggest advantages of launching a startup in Austin is its affordable cost of living. Compared to other tech hubs like San Francisco and New York, Austin is a much more cost-effective place to start and grow a business.
Factors to Consider
- Tech and Entrepreneurship: Growing tech and startup scene.
- Business-Friendly Environment: Low taxes and fewer regulations.
- Quality of Life: Relatively lower cost of living and vibrant culture.
- Networking: Active business community and events.
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Denver, Colorado
It is no longer news that Denver is one of the hottest cities in the nation for startups. For Denver startups, 2021 was a banner year with a record $4.3 billion invested in 267 deals — a massive increase of just under 170% compared to 2020.
Available data shows that Colorado ranks seventh overall as one of the best states to start a business in 2024. WalletHub analysts compared all 50 states using 25 indicators of startup success, ranging from financing accessibility and labor costs to office space affordability.
Factors to Consider
- Outdoor Lifestyle: Appeal for consulting professionals seeking work-life balance.
- Growing Tech Scene: Opportunities in technology consulting.
- Access to Talent: Proximity to universities and research institutions.
- Cost of Living: Increasing but still relatively affordable.