At this point, it’s almost universally acknowledged that Arizona is one of the best states for
those with an entrepreneurial spirit. From WalletHub to Chief Executives Magazine, surveys
from a variety of sources rank Arizona as one of the most business-friendly US states. There
are many reasons for ranking Arizona among the top business states, but does location really
matter in a constantly evolving digital world?
In many respects, it doesn’t. Where a company is based doesn’t necessarily determine
whether it’s successful because there are a multitude of ways to do business across the
internet. While that’s true, the answer lies in between the two extremes, as is often the case.
Location alone isn’t a primary determinant of success. Neither is an efficient digital platform.
Companies need both.
Why is Arizona a Great Place for Entrepreneurs?
Even if you’re running an online business, you need a physical location. Therefore, it makes
sense to choose a state that offers optimal conditions for businesses of all types. Before we
look at the digital, let’s talk about what makes Arizona a great place to start and run a
business.
The Arizona Commerce Authority’s International Trade Program
The local government wants Arizona to be a gateway to the world, which is why it created
the International Trade Program. The program provides a variety of resources for small and
medium companies looking to create global connections. In addition to assistance and trade
counseling, companies enrolled in the program can access educational resources, help with
background checks, and connect to a network of international partners.
A Consistently Strong Economy
Arizona has been a rising economic star for the best part of a decade now. It had the fifth-best gross domestic product (GDP) of all US states between 2016 and 2021, according to an
article published on Business News Daily. Of the southern states, as defined by the Bureau of
Economic Analysis, only Texas has a bigger GDP than Arizona. Indeed, between 2022 and
In 2024, Arizona’s GDP went from $475 billion to $529 billion. A strong local economy means
there are more potential investors, better facilities, and a more prosperous environment if we
assume that success breeds success.
Plenty of Skilled Workers
There are fewer unemployed people in Arizona than in a lot of US states. As of June 2024,
the seasonally adjusted unemployment rate was 3.3% compared to the national average of
4.1%. Unemployment is a useful measure of a state’s economic productivity and prosperity.
This, in turn, makes it an attractive place for people to live.
Lower unemployment means there are more job opportunities. Therefore, if skilled workers
are looking to relocate, Arizona is a good place to go. Additionally, Times Higher Education
ranks the University of Arizona 48th in the US and 155th in the world, and Arizona State
52nd in the US and 182nd in the world. With highly-regarded academic institutions on your
doorstep, there won’t be any shortage of talented people looking for a job.
Favorable Tax Rates
The final reason Arizona is a great place to do business is its tax rates. Corporate
tax is 4.9%, and personal income is taxed at a flat rate of 2.5%. Additionally, sales tax in
Arizona is 5.6%, and when other taxes are taken into account, Arizona is rated as the 14th on
taxfoundation.org’s State Business Tax Climate Index. The less you pay in taxes, the more of
your profits go into the bank. What’s more, because personal tax rates in Arizona are fairly
low, it should be easier to recruit people.
Build on a Solid Foundation With the Right Digital Tools
That’s how the land lies in Arizona, but having a solid foundation is only half of the business
equation. You need to build on that foundation, and you do that with digital tools that allow
you to run your business efficiently and effectively. Additionally, having a custom business card can enhance your professional presence and make a memorable impression on potential clients and partners.
We can’t cover everything you need to run your digital business successfully, but we can list
the essentials.
Clickable Content
We’ll assume you’ve already got a website for your business. If you haven’t, there are plenty
of resources out there, such as WordPress, Wix, and Squarespace. Making a website pretty is
important, but search engines want useful and informative content.
Every word and page element on your website needs to offer potential customers something
of value. Professional content writers and marketers help ensure your content is clickable.
They’ll create content plans, perform keyword research, and fill your website with high-quality copy that gets you ranked by the biggest search engines.
Get Social
Closely linked to content is social media. Modern marketing centers around clear and
effective communication. You need to create a dialogue with customers, and the best way to
do this is via social media channels. Regular posts on Instagram, Facebook, and X (Twitter)
can help generate some buzz around your business.
Consistency counts when it comes to social media. You won’t get much engagement, if any,
when you start. However, if you persist and post entertaining content on a consistent basis,
you’ll eventually get some traction. Use this traction to post updates and offers, and have
conversations with customers.
Money Matters
You might not have started your business with money as the central focus, but it’s the metric
by which success is measured. Without making money, businesses don’t survive, which is
why you need ways to manage your finances. Accounting software is a must for most small
and medium businesses, but you only need that if money is coming in.
Going back to our previous point that Arizona should be a starting point but not the end goal,
having ways to move money across borders is essential. Today’s banking systems make
international payments easy, but there are often costs to bear if you don’t have the right type
of business account. An international business account can allow you to receive payments
from customers in over 100 countries, transfer money across borders without incurring
excessive fees, and even issue corporate credit cards in different currencies.
Essentially, you’re stifling your company’s potential if you can’t move and manage money
across multiple currencies. One of the reasons people start businesses in Arizona is the
International Trade Program. Taking advantage of this program but not having the means to
move money across borders in a cost-effective way is a mistake.
Workflow and Productivity
Once you’ve built a successful business complete with a strong website, social media
presence, and financial system, you need to keep it running. Digital task management
platforms such as Asana, Trello, and Monday help you do this. From assigning and
scheduling tasks to providing feedback and setting up alerts, these platforms make it easy to
manage any workload.
There are, of course, a lot more things to consider when it comes to running a business.
However, you need a solid foundation if you want to build an empire. Arizona is one of the
best US states for businesses, but you can’t rely on location alone.
Arizona provides favorable conditions for entrepreneurs, but you need to take advantage of
them by using the right tools. Create a positive presence online, make it easy to move money
around, and manage tasks like a well-oiled machine, and you’ll give your company the best
chance of success.
