Starting up a business in any state in the USA can be demanding. However, the expectations of success that you may have relies on the state that you are choosing to set up within. With manufacturing in Oregon growing by 23%, whole businesses as B2B companies can be very successful within the state. This depends on several factors which are detailed below.
Is there a demand for wholesale businesses?
Firstly, you need to check that there is a demand for wholesale businesses in Oregon and the surrounding states. Wholesale businesses relate to manufacturing, and with manufacturing rising by 23% in the state, this is a good indication that wholesale businesses can be successful there.
Not only this, but wholesale companies, in general, have risen by 14%, with over 9,000 more employees being hired in the wholesale industry than in 2010. Additionally, wholesale accounted for 5.5% of the state’s Gross Domestic Product, indicating that this rather small industry is succeeding in the state.
You should also consider the best places to start a business in Oregon, with some built-up locations performing better than more rural parts of the state. These include Wilsonville, which makes up to $3.4 million in average revenue due to its proximity to the capital. Due to the fact that wholesale businesses are B2B companies, it is important to set up in an area with easy access and communication with other companies.
However, to check that there is a demand, you should always follow competitors to check their success rates and analyze any issues with their production. You should also conduct market research by carrying out polls and surveys and requesting the feedback of other businesses in the area, such as retail, that you might be supplying to in the future.
What facilities do you need?
For anyone setting up a wholesale business, one of the most important aspects that you need is a base of operations, and for the majority of wholesalers, this is a warehouse. Warehouses are important in order to both store and organize stock, and in order to base transportation between manufacturers and retailers. Steel building system companies like ArmstrongSteel.com can supply you with a durable building that can help keep the costs of your business from rising due to its quick and budget-friendly DIY set-up and the ability to own the building from which you are establishing your workplace.
What business taxes and requirements are there?
As a business in Oregon, you will have to apply to register your business name and an Employer Identification Number that is used for tax purposes. Although most businesses in Oregon do not need a business license, you may have to register for a license within the city that you choose to do business, and this may be a factor in deciding on your wholesale location.
In terms of tax in the state, tax is based on the revenue of each business. This is called a corporation excise tax, and 6.6% is charged on the first $10 million of income a company makes, with this rising to 7.6% for anything thereafter. However, unlike in other states, business owners in Oregon do not have to pay both business and personal taxes.
