Post-pandemic life has been a reshuffling of the deck. We’ve had time to reassess our aspirations amid uncertainty.
Sometimes uncertainty can be a blessing: it can prod us to consider starting a new business in a new place.
This thinking has been especially apparent in Virginia, labeled “the top state for business in 2021” by CNBC.
So what makes Virginia so attractive as a place to live and do business?
Geographic Virginia
Few states offer as much variety as Virginia. For starters, the state is home to eight mountain ranges, a quarter of the Appalachian trail and a breathtaking coastline.
Forests and rivers are also popular features throughout the state. What’s not to do on any given day, during any given season? For people motivated to live more actively and in touch with nature, Virginia has it all.
Cultural Virginia
Washington D.C.is the obvious cultural touchstone here. However, dig deeper into each region and you’ll find all types of historical sites and cultural festivals.
The annual James River Batteau Festival is a weeklong celebration featuring replicas of shallow-draft merchant boats.
Washington D.C. is also one of the most culturally and ethnically diverse cities in America. Modern art and cuisine have never been so exciting.
Opportunity Virginia
With such a diversity of landscapes, seasonal weather, historical sites and multi–cultural influence – as well as being a north-south crossroads – it’s easy to see why businesses are thriving. Tourism and technology have equal allure in the Old Dominion.
And with Virginia’s proximity to Washington D.C., opportunity for all levels of national and international business opportunity exists.
Tips for Building a Business in a Boom State Like Virginia
Know your worth; know your competition.
Entrepreneurs in hotbed regions should expect fierce competition. Of course, most of us with dream business ideas have already thought about what makes our ideas one-of-a-kind. Dream business ideas drive us because we sense their potential value to a community.
Therefore, our ideas should be matched with cutting edge service. That is where the necessary hard work and smart decision making begins. Including:
- Developing partnerships with the right suppliers;
- Hiring the right employees; and
- Finding a good accountant.
The first two points have seen new, post-pandemic challenges, including supply chain and labor shortages. In many respects, the third point can help you address supply chain challenges. Cutting edge CPA and accounting firms act as more than tabulators.
They are involved in business development, supply chain management software, and optimal strategies for reporting sales.
For example, CPA firms have paid special attention to an inventory reporting method known as Last-In, First-Out (LIFO), which is a way for companies with growing costs and inventories to defer taxes.
Current supply shortages have affected businesses, such as auto dealerships, with less inventory than before the pandemic. According to CST Group, an accounting and CPA firm in northern VA: “The tax benefits may unexpectedly reverse if a company that’s using LIFO reduces its ending inventory to a level below the beginning inventory balance.”
CPA-Assistance for Every Business Facet
Experienced accountants can make the most daunting details of business startup manageable. Knowing your worth literally means knowing the numbers inside and out before buying and selling a business; or taking on renovation and expansion projects.
In fact, investment in an accomplished CPA firm should be one of your first considerations. For starters, with every business venture comes paperwork. Lots of it.
Your initial investment in a skilled accountant will help your business clear red tape and get moving. Dealing properly with the devilish little details from the start will help you avoid costly accounting fixes down the road.
The Right Business Structure
A CPA will set your business in its right place – whether it be a sole proprietorship, a partnership, an LLC or a corporation. Details like tax requirements, employer identification numbers, licenses and insurance are established at this stage.
How is Your Business Progressing?
Once your business is up and running, there needs to be expert eyes on money management. It can be tempting for new businesses, particularly if they begin hot, to start spending too freely before establishing a more stable pattern of profit.
Hot bed states like Virginia can see disposable income flying one way over a three-month period, then away to greater competition or a new attraction. Accountants, particularly ones familiar with regional economic trends, can help you stay realistic about the speed at which your business will likely grow.
For example, in Virginia, where weather changes drastically throughout the year, tourist-centric businesses can experience both feast and famine. It can take several years of experience in the region to understand its financial peaks and valleys. Even longer than expected winters can keep visitors away for longer stretches than normal – and cost more in heating bills than expected.
A wise accountant can ensure your business always has available money when the spigots are still frozen, and the wildflowers have yet to bloom.
Your Business and the Big Picture
Whether your dream business happens in a red-hot state like Virginia, or another suitable regional growth spot, developing a realistic business strategy that accounts for local and national market shifts will make all the difference to the health of your venture.
Expert CPAs and accountants experienced with all levels of business and federal policy will keep your business tacking through the headwinds, and cruising ahead with the tailwinds.