The founder of Soak and Sage, a renowned day spa in Renton, Washington, is making a bold move that could have significant implications for the state's economy and small businesses. Leslie Goeres, who built the spa from scratch and was named the best day spa in the Pacific Northwest by the Seattle Times, is expanding her business to Nashville, Tennessee. This decision comes as a response to the challenging business climate in Washington, which has become increasingly hostile due to new taxes and permitting processes. Goeres' story highlights the struggles faced by small businesses in Washington and the potential consequences for the state's economy and its residents.
A Business Decision Driven by Taxes and Permitting
Goeres' decision to expand her business to Nashville is primarily driven by the state's tax policies and permitting processes. Washington's new 9.9% income tax, coupled with other taxes, has made the business climate less favorable. Nashville, on the other hand, offers a 25% lower cost of living, lower payroll and overhead costs, and lower excise taxes. Additionally, the city's permitting process is significantly faster, taking only six to eight weeks compared to seven to eight months in Washington. This efficiency is made possible by the city's use of third-party permit expediters, who review and stamp plans before the city signs off, streamlining the process.
A Personal Decision with Emotional Implications
The decision to leave Washington is not just a business move for Goeres. It also has personal and emotional implications. She has two children, one at the University of Washington and another in middle school, whose lives will be impacted by this move. Goeres is considering relocating her family to Tennessee, where she has already been meeting with realtors and looking at warehouse space. This decision reflects the broader trend of Washington employers considering leaving the state, with nearly one in four employers surveyed by the Association of Washington Business (AWB) expressing interest in exiting.
A Call for a More Supportive Business Environment
Goeres challenges the political framing that casts businesses as the problem, emphasizing that businesses support people and provide living wages to employees. She argues that the policies and taxes in Washington are disproportionately affecting small businesses, which are not as large as corporations like Amazon or Starbucks. Goeres urges other small business owners to consider the impact of taxes and permitting processes on their businesses and to advocate for a more supportive environment. She believes that the state needs to reconsider its approach to taxation and regulation to promote small businesses and keep them in Washington.
The Impact on Washington's Economy and Residents
The departure of businesses like Soak and Sage from Washington could have significant economic and social consequences. It may lead to job losses and a decline in the state's tax revenue. Additionally, the loss of businesses could impact the local culture and community, as small businesses often contribute to the unique character of a city. Goeres' decision to move her business to Nashville highlights the need for Washington to address the concerns of small businesses and create a more welcoming and supportive business environment.
In conclusion, Leslie Goeres' decision to expand her business to Nashville is a powerful example of the challenges faced by small businesses in Washington. Her story underscores the importance of creating a supportive business environment that encourages growth and innovation. As Washington continues to grapple with the issue of business exits, it is crucial to listen to the voices of entrepreneurs like Goeres and take steps to address the underlying issues that are driving them away.
