7 Reasons Businesses Are Flocking to the California Economy

As business owners, it is important to pick the right location for your business. The location of your business can have a large role to play in the making or breaking of your success. Being in business in California has long been one of the goals of many businesses and now more people than ever are making that goal a reality. Its sandy shores and laid back culture are not the only reason businesses love California. In this article, we are going to talk about 7 reasons businesses are flocking to California and what you should know when you get there.

Complex Tax Code Cuts Down the Competition

While some people see California’s complex tax code as an enemy and something to be battled with, other people see it as a hurdle that will trip up some of their competition. With the help of a great team, the tax code won’t be something that keeps you from doing business in California.

If you are worried about your ability to understand the tax code and properly maintain your compliance with employees and their taxes, you may consider a professional employer organization in California. Instead of having to hire your own in-house employees to do the work, you can work with a company that knows the code already.

Availability of Affluent Customers

California has many things that draw people there to live. The beautiful beaches keep people coming to the gorgeous coast of California and many people with a deep pockets are in the area and ready to do business. Having business in California also means that it is easier to get people to come out for meetings. Who wouldn’t want a visit to beautiful California?

In 2016, the average income of a household was $67,739 which was higher than the overall average in the US. This means people have the resources to buy your products and services. It’s your job to get into the California market and start reaping the spoils.

Being Near Silicon Valley & Hollywood

The glitz and glamor of Hollywood and nerd worship bring many people to these parts of California. Being near these areas presents great opportunity for business, not only because of the ability to have great company retreats nearby, but because of the ability to network, go to meetings in person and service or partner with many of the big businesses. Proximity is important if you want to make it big in this big state.

While these areas have been romanticized by movies, they aren’t only good for tourists. Businesses thrive in these areas when they understand how to properly do business in the region.

Strong Economic Recovery

According to the NYTimes, “California has outperformed the nation in just about every important economic metric.” And they do take into account that California is a bigger state, but its share of economic growth has more than out done its size.

California has shown its ability to rebound and the leadership has done well in guiding the state toward its success. Having a strong government to guide the state is good for long-term business growth and many businesses believe that California has exactly what they need in this area.

Numbers don’t lie and with California accounting for 17 percent of job growth from 2012 to 2016 and a quarter of the growth in gross domestic product, it is clear to see that California is doing more than holding its own.

Large Population

With a large population, there are obviously more people to do business with. When your business is able to put itself in the way of more customers, this means it is going to be easier for you to gain their business. While many businesses are online and can gain business from Californians online, there are still plenty of industries that benefit largely from being in the area where their customers are.

The large population that we mentioned earlier often has more money coming into the household than other areas, creates a great environment for businesses to grow and expand their borders.

Business Resources

SMB (small to medium size businesses) are the first to enjoy the business resources that are offered by California. Options like SCORE and SBA are there to help businesses with challenges the might be facing.

GO-Biz was established by Gov. Edmund J. Brown and is intended to help guide businesses through the different regulatory processes that are in place for California businesses as well as helping businesses get started. Assistance with international trade is also available.

Fiscal Responsibility

While no business enjoys paying higher taxes, it is better to pay higher taxes in some areas than to work within a state that has a deficit. California is back on track with its high marginal tax rates and has a strong outlook on business in California.


If you are thinking of doing business in California, there are many more reasons that California is a great place to plant your flag, but the above points are enough to get you started down the right path. Bringing your business to California means a great environment for your company and a great work force at your fingers.

Growing your business from small to medium or from start to small can be a reality when you bring your business to California. Learn more about the culture and business environment to find even more benefits of bringing your business to the West coast.