When it comes to running a successful business, location can be key. This doesn't just mean what street or neighborhood you set up in, but also the city and state.

Recently, Chief Executive magazine released its 10th annual survey of CEOs that focused on their feelings toward the best and worst states to run a business. The study features responses from over 500 CEOs across the U.S. that graded states they were familiar with on tax and regulatory regime, the quality of the workforce and the quality of the living environment.

Topping the list was Texas, followed by Florida and Tennessee. The bottom of the list includes Illinois, New York and California. Indiana comes in number six. In a scale of five stars, the state received a four star ranking on taxation/regulation and workforce quality and three and a have stars for living environment.

The state also has experienced growth 0.8 percent higher than the national average.

"I have plants in Kentucky, Indiana and Ohio. Indiana is by far the best of the three for business climate," the executive said in the report. "Ohio is gaining in recent years. But Kentucky remains mired in the past in terms of education and labor relations. And the state treasury's own fiscal condition is ominous—at some point in the future that will make things even worse for business in Kentucky."

Another executive added that having a strong government leadership and a balanced budget trickles down to decisions that affect the business environment.

Before business management software and inventory systems, companies need to ensure they are in the perfect location.