GIS Planning used this criteria to identify the best small cities (with populations between 20,000 and 200,000) for startups in each state. With that data in hand, BusinessWeek asked entrepreneurs in each city what people should know about starting a business there. Many said factors such as affordability, availability of talent, existence of a thriving business community, and quality of life helped them choose where to open shop. What emerged is a picture of 50 dynamic cities, each with its own draw for new businesses.

When big initial costs make it hard to start your business, look further into the figures—they may not be as scary as they seem
As a startup wedding and event photographer, I made a list of all everything I need to purchase for my business, and it literally scared me. Between investing in equipment, software, Web site design, and advertising, my projected income is much less than my necessary expenses for this company. Photography has been my life’s passion, and I really want to succeed. Is there any advice you can …