Denver and Boston compared by the cost of starting a family business
Living and working in Boston - June 30, 2021
Starting a family business has numerous benefits. Among the most important ones is the fact that you get to spend your working hours with the people you care about the most. It also gives you an opportunity to pass your business down to the next generation. However, starting a family firm is not an easy task and it requires a lot of time and scrutiny. Some of the most important things to consider are the cost of starting a family business and the organization process when moving to either Boston or Denver.
Tips for starting a successful family business
Before you even consider relocating your family, it is important to follow some crucial steps when starting a family corporation. Here are some things to know before the actual making of your family business.
- Develop a business plan and consult with well trusted, legal and tax advisors;
- Set some ground rules on the do’s and don’ts, especially when it comes to the kids and their experience away from home and the company;
- Determine roles based on your views of how to manage a business, interests, and talents;
- Decide on workload for each family member as well as on the ownership stakes;
- Keep your personal and work lives separate. Be cautious of not getting caught up with work overload and forget to spend quality time as a family.
Once you have all of the above cleared, it is time to think more in-depth about the cost of starting a family business. You should try to estimate your costs regarding things such as relocating, renting an office, equipment moving, covering your living expenses at least for the first couple of months. Valuable online resources regarding packing and moving supplies are easily found at homegrownmoving.com alongside moving and storage tips. Here is a list of costs you will most likely have when moving to a new place and opening a family firm.
- Website design
- Cost of living
Rental space is a number one fixed expense you should take note of.
The cost of living in Denver is only six percent higher than the national average. The average rental rate for office space in Denver is currently around $27.31 per square foot, while the average size of rental space is approximately 155,048 square feet.
On the other hand, Boston is considered to be a high-cost municipality. The average rental amount for office space in Boston is $47.48 per square foot, and the average size of office space is approximately 245,116 square feet.
Once you choose the perfect space for the kickoff of your family enterprise, it is time to equip it. Just keep in mind, when moving the machinery and basic supplies into your new office, we recommend that you rely on professional movers who will help you move everything with ease.
Your audience gets the first impression of your business when visiting your website. The cost of designing a website can go anywhere from 100$ to 3000$.
Luckily, web design in Denver goes anywhere from 125$ to 500$ per page which leaves you many options in between.
Boston has a wide range of website agencies, which generally fall under 3 levels: 1. The most affordable ones which charge 3000$ or under; 2. The mid-priced ones whose prices go anywhere from 5000$ to 10000$ and 3. The high-priced ones charging 10000$ or more.
Advertising and promotion of your business
When thinking about the costs of starting a family business, promotion is one of the first few on the list. Advertising helps you earn more profit by enabling more people to get to know about your company and the products you offer. There are many means of doing so – by using billboards, radio, newspapers, bus, and train ads.
The cost of advertising in Denver newspapers is estimated to be around 400$. The standard cost of advertising using billboards is $2,716 per billboard. This type of commercial allows advertisers to reach a large number of 621,580 people within the city. The cost of a 30-second long radio commercial in Denver costs 194$.
The price of billboard ads in Boston ranges from 9500$ to 35000$ per 4 week period, while the price for bus ads for the same duration of time goes from 450$ to 6500$. Newspaper advertisements in Boston are estimated to be 577$. The cost of radio commercials in Boston goes from 25$ during off-peak hours to 100$ during peak hours.
Take payroll into account when determining the cost of starting a family business
This one depends on your business size and the number of family members included. It is important to determine how you will compensate for everyone’s work, whether that’s a fixed salary, an hourly wage, or a percentage of profits. Also, make sure each member of your firm knows how compensation works.
The average salary in Denver is currently at 71k per year, while the average hourly wage is 49$. In Boston, the average yearly salary is 79$ per year, whilst the average hourly rate is 50$. This all affects the cost of starting a family business in the end.
The cost of living
Estimating the cost of living is essential when you need to determine in which city you want to settle and make your family business come into existence.
Although the cost of living in Denver increased in 2021, it is still cheaper than living in other major cities. The largest increases are found in transportation, housing, and food. When it comes to buying a house in Denver, it is fairly out of reach for a typical buyer. The median sales price of a single-family home in the Denver metro area is $438,300, while the median rent for a two-bedroom apartment is around 1,347$.
Utility costs in Denver are still below the national average with the basic utility package being 124$. When thinking of grabbing a bite, a 3-course meal for you and your date will be around 60$. For driving Denver residents, the gas price per gallon is 2,77$, which is slightly less compared to other cities.
If you are navigating a bit more towards Boston, there are many positives of living there such as low crime rate, good neighborhoods, good schools, and median home value. However, Boston’s prices are the third highest in the country. The average rent cost in Boston is 3,462$. Utilities cost around 170$ per month. For a night out or a lunch date, you should expect to pay between 15 and 40$ per person. As far as transportation is concerned, daily bus and subway passes are fairly low. If you pay 90$, you can get a monthly pass good for all forms of public transport.
Protect your family’s success
Thinking through the cost of starting a family business extensively will set you off to a good start. Starting a business with your loved ones will bring you closer and allow you to grow together along with future generations. Family businesses can be of huge success and everyone in the company will be striving to do their best for the family. However, to see success, you will need to be well informed on how to start your family business, have a concrete business plan, and take all the necessary steps to ensure the growth of your company.