Manufacturing Business Startup Cost Comparison
Rochester, MN vs Los Angeles, CA
Rochester, MN
$60,000 - $1,009,000
COL Index: 101.5
VS
Los Angeles, CA
$89,000 - $1,466,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Rochester, MN | Los Angeles, CA | Difference |
|---|---|---|---|
|
Licensing & Compliance
|
$2,000 - $15,000 | $4,000 - $15,000 | -11% |
|
Manufacturing Space
|
$9,600 - $191,300 | $25,000 - $500,000 | -62% |
|
Manufacturing Equipment
|
$15,000 - $400,000 | $15,000 - $400,000 | Same |
|
Initial Raw Materials
|
$5,000 - $100,000 | $5,000 - $100,000 | Same |
|
Insurance & Compliance
|
$5,000 - $30,000 | $5,000 - $30,000 | Same |
|
Production Staff & Training
|
$5,000 - $50,000 | $6,800 - $67,500 | -26% |
|
Sales & Distribution
|
$3,000 - $20,000 | $3,000 - $20,000 | Same |
|
Working Capital (3-6 Months)
|
$15,200 - $203,000 | $25,000 - $333,000 | -39% |
| Total Estimated Cost | $60,000 - $1,009,000 | $89,000 - $1,466,000 | -31% |
Local Market Factors
| Factor | Rochester | Los Angeles |
|---|---|---|
| Cost of Living Index | 101.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $14 - $30 | $30 - $85 |
| Labor Rate Index | 1 | 1.35 |
| Sales Tax | 7.375% | 9.5% |
| Minimum Wage | $10.85/hr | $16.78/hr |
| LLC Filing Fee | $155 | $70 |
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