Bigger Isn't Always Better: Doing Business in A Developing City
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Bigger Isn't Always Better: Doing Business in A Developing City 
When opening a business, it’s easy to assume that choosing a bigger city will present you with more opportunities. This may be true for some aspects, but there are several advantages to launching or expanding your company in a smaller market that has the potential for steady growth. Whether it’s in the form of financial rewards, hiring advantages, or other qualitative benefits, there are numerous developing cities that have a lot to offer for entrepreneurs.
Municipal incentives and perks
In an economic era where it seems like startup expansion is all anyone can talk about, many large markets don’t have to do anything in order to lure companies within their borders. Entrepreneurial communities naturally grow because more people want to open their business in an established area, and the cities can go about business as usual while collecting more in tax revenues.
Smaller cities, however, are often very generous to companies looking to expand there in the form of tax incentives or other perks. They know that they have to offset their size disadvantage by offering more. When you add this to the fact that many viable smaller cities such as Cedar Hill, TX, are located in states with lower to no state income tax, there is even more of a financial incentive for eager entrepreneurs to seek them out.
Building a tighter professional network
Businesses are never built alone. In addition to employees and customers, entrepreneurs need strong professional networks and associations if they hope to succeed and grow. This can be difficult in large cities, because they are typically home to previously-existing, tight-knit associations that are closed off to newcomers. Even when organizations are welcoming of new entrepreneurs, it can be daunting for them to try and navigate such a large and unfamiliar environment.
In smaller cities, these pressures are relaxed, and it’s much easier to build strong relationships that you can rely on. There may not be as many people to make connections with, but the network you do build will likely be more valuable in the long run.
Hiring and talent retention advantages
Cities that are home to dozens or hundreds of huge companies are known for being hotbeds of talent recruitment. It’s a cutthroat business for many of these organizations, and they often have to witness their highly-touted recruits going straight into the arms of a competitor.
Smaller markets allow business owners to have easier access to the available talent pool without worrying that high-quality prospects or employees will get immediately recruited or poached by a behemoth. When entrepreneurs can hire and retain the best talent available, they can build an innovative and sustainable organization that can become a pillar of the community.
Cost savings
It’s no secret that almost everything costs more in a big city; all you have to do is compare the housing pricing in New York City with any developing city in Texas to confirm that. But entrepreneurs often fail to anticipate how much of an impact this is going to have on their business.
When everything from office rent to wholesale supplies to transportation is vastly more expensive, it has a ripple effect that can wreak havoc on the P&L. Lower costs in developing cities allow business owners to control their spending and therefore keep prices competitive.