Doing business in NYC can bring a whole host of opportunities. It also brings about a lot of unique challenges and costs. You really have to balance the costs and challenges against the opportunities to really see if you want to do business in this city versus another city. What are those unique costs?
Rent- If you want to run a business with employees, you are going to have to pay for rent to house your workers. The rent in NYC is very high, much higher than just about any other place in the country. The space is so compact in Manhattan and Brooklyn that there just isn’t much room to house different businesses. Based on that fact alone, and the fact that so many people want to live and do business here, means the rent is going to be very high. You really have to factor that into the equation if you want to have a company here.
Salaries- Because there is so much competition here and so many businesses, and because the cost of living is so high, companies have to be willing to pay their employees a higher salary. If they aren’t, those people will just end up working somewhere that will pay them a higher salary. Rent is one thing, but the costs really add up when you have to pay a lot of money to attract and retain employees.
Miscellaneous– There are many other random miscellaneous costs associated with conducting business in NYC. You might have to pay for people’s public transportation. You might have to pay very high licensing fees. The regulatory environment in the city can get quite costly. New York City is known for it.
Those are just a few examples of the unique costs that NYC brings to doing business. There is, however, a reason why so many business continue to choose to do business here.