It’s a common misconception that there are good places and bad places to start a business and that whether or not a location is business-friendly should be a factor in your decision. I’m going to tell you that there is no bad place in America to be in the home service business.
There is no bad place to be an electrician, a plumber, a lawn care provider, or anybody else who is cleaning, maintaining, or building our physical world. There’s a massive shortage of these people all over.
We hear often that being in a business-friendly state gives you an advantage; it’s easier to hire, to build, taxes are lower, etc. but I want to challenge that. There is no better place to make money than somewhere that’s hard to do business, the opportunity is in high-friction areas.
The reasons that people avoid unfriendly business environments become the opportunity. It’s harder to hire in these areas, and harder to get approval to build anything, but that can be your moat, you’ll find fewer competitors popping up trying to make a quick buck.
If you build momentum, you can make massive amounts of money in unfriendly business environments. The labor market will be difficult for everybody in a high cost of living city, but that means you can charge what you want. The lawn care contractors we hire in more difficult states charge out of the nose for their service!
Don’t blame the labor shortage. There are people willing to work, you just need to work your butt off to find the right ones and keep them.
If I was starting a home service company, I’d rush to a high cost of living location, do the work to get through the red tape, hustle to attract and maintain talent, and let the money come in from there.
These difficult environments can be the key to success for an entrepreneur that knows what their doing, will hustle to do it, and can build momentum.
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