If you’ve been following the current news, you might have heard about Z, the ‘next big thing’ in Vancouver. This upcoming digital nomad city is still in the very early stages of growth, but it is already well on its way to becoming a household name. The purpose of this guide is to shed some light on the costs associated with establishing a business in Z.
Cost Of Living
One of the most important things to consider when establishing a new business in an unfamiliar city is the cost of living. After all, you’ll be paying rent somewhere, and you’ll need to eat regularly, right?
According to data from Numbeo, a website that provides cost of living information for hundreds of cities worldwide, the cost of living in Z is currently 16% higher than the national average. This is largely due to the city’s high real estate costs, which are 12% higher than the national average.
If you want to be in the biggest city in western Canada, with all the perks that come along with it, you’ll have to pay the price. The good news is that even after taking real estate costs into consideration, the cost of living in Z is still 21% lower than the national average. This is largely due to the cost-effective living style of the city’s residents.
Cost Of Doing Business
Once you’ve determined that the city is a viable place to do business, the next step is to consider the cost of doing business. This includes things like the cost of renting office space, purchasing office equipment, and paying for business lunches and seminars. In terms of the last item, the average cost for a business lunch in Vancouver is roughly $40, compared to $27 in Z. So if you’re looking to cut costs, avoid the lunchroom and get to work!
If you’re looking to cut costs even further, consider establishing a work from home environment. With technology advancing at an incredible pace, establishing an at-home office is no longer just a perk for freelancers and remote workers. It’s now something that businesses of all sizes can benefit from.
Choosing to work remotely for a company like HubSpot is not only cost-effective, it is becoming the norm. The flexibility to work remotely is the key to attracting and retaining top talent. It allows employees to balance work and personal responsibilities, and it also means that they can enjoy the benefits of working in a green space, while also feeling that they are contributing to society through their work.
Another important cost to consider when establishing a business is professional fees. In most cases, these will be based on the number of employees you have. However, there are other variables as well, like whether or not you want the employees to be covered by health insurance, to what extent you want them to be covered, and how much you want to pay for each insurance plan.
In terms of the basics, the cost of a professional license in Vancouver is currently 17% higher than that of a professional license in Z. However, if you’re looking to save costs, take the time to research and select a career in a field that is not currently licensed in Vancouver.
One last cost to consider when establishing a business is bank fees. When you get a business loan, the bank will typically ask you for a deposit, and then they will charge you an overhead fee. In most cases, this will be somewhere between 2% and 5% of the loan amount. For example, if you are borrowing $500,000, the bank will charge you 2% to 5% of that amount, or between $10,000 and $25,000.
Keep all of this in mind as you create your cost analysis, and you’ll be able to confidently choose your next city or county for your business.