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Big City or Small Market? What Most E-2 Applicants Get Wrong About Location

Big City or Small Market? What Most E‑2 Applicants Get Wrong About Location

Most E‑2 investors obsess over how much to invest and when to hire. But there’s a third factor that’s just as critical and often ignored: where you choose to set up your business.

The location of your E‑2 business can affect your investment amount, operating costs, staffing model, competition, and ultimately, how realistic your business plan looks to USCIS. If you’re choosing between a major city and a smaller market, here’s what you need to know before finalizing your strategy.

Why Location Matters to USCIS

Adjudication officers are looking for signs that your business is credible, not marginal, and positioned to succeed. A plan that looks feasible in Phoenix might seem unrealistic in Los Angeles, even if the numbers are exactly the same. Location impacts:

  • Rent and overhead expectations

  • Hiring timelines and salaries

  • Revenue and pricing strategy

  • Scalability and market penetration

  • Local demand and competitive landscape

If your business plan doesn’t reflect the economic reality of your chosen city, your case may appear weak or inconsistent.

Large Metro Areas: High Stakes, High Expectations

Think New York, Los Angeles, Miami, or San Francisco. These cities offer access to massive markets and talent pools but they come with higher risks and scrutiny.

Pros:

  • High-income demographics

  • Established infrastructure

  • More consumer foot traffic

  • Easier access to professional services

Cons:

  • High rent and labor costs

  • Intense competition

  • Slower path to profitability

  • Officers expect larger investments and faster job creation

Common mistake: Using financial projections that aren’t scaled to local costs. A $150K investment in Manhattan won’t stretch the same way it would in Tampa or Boise. If your plan doesn’t account for that, expect problems.

Tier‑2 Cities: Underestimated and Strategic

Cities like Charlotte, Tucson, Indianapolis, and Raleigh are gaining traction among E‑2 investors who want room to grow with fewer barriers.

Pros:

  • Lower cost of doing business

  • Easier hiring and retention

  • Less saturated markets

  • More favorable local business incentives

Cons:

  • Smaller customer base

  • Less international connectivity

  • May require more local market research

Advantage: With lower expenses, your investment can go further. USCIS often views business plans in these markets as more feasible when the numbers are well thought out. But feasibility must still be proven with credible data and a realistic hiring roadmap.

What We’ve Seen Work Best

Successful E‑2 investors don’t chase flashy cities—they choose locations where their business has the best chance of thriving. That means:

  • Scaling financials based on real local data

  • Adapting staffing plans to reflect local wages and needs

  • Tying pricing and revenue models to local buying power

  • Factoring in local regulations and business licenses

A great business plan doesn’t just explain what you’ll do. It explains why your plan makes sense in that city, at that time, for that market.

Why Location-Specific Planning Isn’t Optional

Your business plan should reflect more than just numbers—it should reflect the economic reality of the city where your business will operate. That’s where we come in. With over 15 years of experience in the business immigration arena, we are the only U.S. business planning firm actively participating in AILA conferences both in the U.S. and abroad, from South Korea to Croatia. These events are attended by the most experienced immigration attorneys and provide direct insight into how adjudication standards are evolving.

Because we stay on top of what decision-makers are prioritizing, our plans are built to meet today’s expectations, not last year’s assumptions. We build every plan with one goal in mind—getting your visa approved.

Contact us today to get started


The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.


Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.

Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.

At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.


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