Why should I invest in the Orlando region?
Investing in a business is a serious decision, either if you are starting a brand new one, or if you are buying one that is already up and running. Finally, you are the individual that will have to deal with the results and the outcomes of that decision. All this to say that, even if you are the type of investor that says, ‘this decision feels like the right one’ or ‘my guts tell me I should do this’, there are some key factors you should take into consideration before making the final decision.
Besides writing a business plan and conducting a thorough market research into your business products/ services to make sure this is a feasible venture, you need to have a close look at other aspects. Some of them include your knowledge and your passion for that specific field, business location, economic scenario and its trends, capital accessibility, perspectives of the return on investment, workforce availability and technology, among many others.
From all those aspects, we are going to concentrate on the economic scenario, more specifically the infrastructure and taxes and incentives that are offered in Orlando and region. Our goal is not to do a deep and detailed analysis of the macro economy and their impact on the chances of success of your business. Rather, we are going to highlight some very interesting peculiarities of the business environment in our region.
According to the CNBC ranking of the ‘25 best metro areas for access to credit’, the Orlando-Kissimmee-Sanford area (OMA) holds the second place, right after the Silicon Valley region. Also, KPMG ranked OMA as #2 most cost-competitive location for businesses, among the large cities in the country. When you include in this reasoning the total sales tax rate (state/ local) and the corporate income tax rate, OMA figures are respectively 6.50% and 5.50%. The equivalent numbers for the Silicon Valley region are 9.00% and 8.84%, according to the Tax Foundation – 2017. If we add the costs of the business real estate to this equation, OMA is even more attractive. This is very encouraging news that may have a significant impact on the bottom-line of your venture.
As for the incentives, there are a number of them. From tax exemptions to workforce training and specific incentives related to the site or the industry you are in, several possibilities are on the table. A few examples are as follows:
- Infrastructure incentives = that can help you lighten the transportation costs of your company, get differentiated power rates on your energy bill or have access to energy saving inspections, a set of actions that can provide your business with a competitive edge;
- Workforce training = funds may be available for customized training for new or expanding businesses. The presence of an extensive network of potential training providers (community colleges and universities, for instance) grants flexibility and readiness to the training programs that can be done in-house;
- Tax exemptions = there are many of them, which are available for specific fields. Some of them include exemptions on machinery and equipment used to produce tangible goods or predominantly used in R&D as well as the labor component in this area, electricity, the production of motion pictures, etc.;
- Site-specific incentives = to businesses that are located in sites which are underutilized from an industrial or commercial point of view.
In regard to the infrastructure itself, OMA is very well covered and the key words here are efficiency, affordability and reliability. With a first in class transportation infrastructure, companies can reach and get reached by people and other businesses, easily moving their products and services. The same high standards go with the utilities network. Due to its privileged geographic location in Central Florida, OMA is typically spared by Mother Nature from the harsh storm conditions. Even in the unlikely event of a hurricane hit in the region, businesses are constantly up and running, due to our advanced and modern utility systems.
Orlando is the best place to invest in business and there is no better time than right now to do it. For sure ‘this decision feels like the right one’ and ‘your guts tell you that you should do it’, right?
At Florida Connexion our multidisciplinary business brokers can assist you in identifying the right business for you and the right buyer for your business.
This article is for general, indicative purpose only and should not be considered investment advice. Florida Connexion is not liable for any financial loss, damage, expense or costs arising from your investment decisions based on this article.