Thinking about starting a business in Birmingham, Alabama? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Birmingham.
Before you get too far along in the process, consider your entrepreneurial instincts and capabilities.
Before you move forward with starting a business, be sure to do these three things:
An important decision is what kind of business you want to start. To help you decide on a business type, we encourage you to read Business Ideas That Don't Make Sense.
Don't forget that your new business will be in Birmingham. Some businesses will do better in Birmingham than others. Study Birmingham demographics and do a competitive analysis as part of your startup planning process.
Birmingham has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Birmingham demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Birmingham.
As a new Birmingham entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Birmingham for each business category. By looking at this chart, you can get
a general sense for how much competition there is in the business niche that
you are pursuing.
| Business Type |
# of
Businesses |
| Adhesive Manufacturing |
1 |
| Advertising Agencies |
48 |
| Aircraft Manufacturing |
1 |
| Ambulance Services |
9 |
| Amusement Arcades |
9 |
| Appliance Repair and Maintenance |
5 |
| Apprenticeship Training |
5 |
| Architectural Services |
85 |
| Armored Car Services |
4 |
| Art Dealers |
17 |
| Audio and Video Equipment Manufacturing |
1 |
| Automotive Exhaust System Repair |
3 |
| Automotive Glass Replacement Shops |
12 |
| Automotive Parts and Accessories Stores |
77 |
| Automotive Transmission Repair |
15 |
| Baked Goods Stores |
4 |
| Barber Shops |
9 |
| Beauty Salons |
129 |
| Bed-and-Breakfast Inns |
1 |
| Beer and Ale Merchant Wholesalers |
2 |
| Beer, Wine, and Liquor Stores |
44 |
| Blind and Shade Manufacturing |
2 |
| Blood and Organ Banks |
5 |
| Boat Dealers |
2 |
| Book Publishers |
9 |
| Book Stores |
26 |
| Books Printing |
1 |
| Bowling Centers |
3 |
| Broadwoven Fabric Finishing Mills |
1 |
| Broom, Brush, and Mop Manufacturing |
1 |
| Building Inspection Services |
10 |
| Burial Casket Manufacturing |
1 |
| Business and Secretarial Schools |
3 |
| Business Associations |
39 |
| Business to Business Electronic Markets |
1 |
| Cable and Other Program Distribution |
6 |
| Cafeterias |
27 |
| Camera and Photographic Supplies Stores |
8 |
| Canvas and Related Product Mills |
3 |
| Car Washes |
22 |
| Carpet and Upholstery Cleaning Services |
14 |
| Caterers |
19 |
| Cemeteries and Crematories |
12 |
| Charter Bus Industry |
1 |
| Child and Youth Services |
16 |
| Child Day Care Services |
155 |
| Children's and Infants' Clothing Stores |
28 |
| Cigarette Manufacturing |
1 |
| Civic and Social Organizations |
80 |
| Claims Adjusting |
17 |
| Clay Refractory Manufacturing |
1 |
| Clothing Accessories Stores |
18 |
| Coffee and Tea Manufacturing |
1 |
| Coin-Operated Laundries and Drycleaners |
10 |
| Collection Agencies |
7 |
| Commercial Bakeries |
6 |
| Commercial Flexographic Printing |
3 |
| Commercial Lithographic Printing |
35 |
| Commercial Photography |
9 |
| Commercial Screen Printing |
8 |
| Commodity Contracts Brokerage |
1 |
| Community Food Services |
4 |
| Computer and Software Stores |
25 |
| Computer Facilities Management Services |
5 |
| Computer Systems Design Services |
85 |
| Computer Training |
7 |
| Concrete Block and Brick Manufacturing |
1 |
| Concrete Pipe Manufacturing |
2 |
| Confectionery and Nut Stores |
4 |
| Confectionery Merchant Wholesalers |
7 |
| Construction Machinery Manufacturing |
1 |
| Construction Sand and Gravel Mining |
1 |
| Consumer Lending |
40 |
| Continuing Care Retirement Communities |
7 |
| Convenience Stores |
61 |
| Convention and Trade Show Organizers |
9 |
| Convention and Visitors Bureaus |
1 |
| Cookie and Cracker Manufacturing |
1 |
| Copper Foundries (except Die-Casting) |
1 |
| Cosmetology and Barber Schools |
6 |
| Couriers |
30 |
| Court Reporting and Stenotype Services |
14 |
| Credit Bureaus |
4 |
| Credit Card Issuing |
1 |
| Credit Unions |
71 |
| Curtain and Drapery Mills |
5 |
| Custom Computer Programming Services |
96 |
| Custom Roll Forming |
2 |
| Cut Stock, Resawing Lumber, and Planing |
1 |
| Dental Laboratories |
18 |
| Diagnostic Imaging Centers |
14 |
| Diet and Weight Reducing Centers |
14 |
| Digital Printing |
4 |
| Dimension Stone Mining and Quarrying |
1 |
| Direct Life Insurance Carriers |
50 |
| Direct Mail Advertising |
7 |
| Direct Title Insurance Carriers |
11 |
| Directory and Mailing List Publishers |
6 |
| Discount Department Stores |
8 |
| Display Advertising |
6 |
| Document Preparation Services |
9 |
| Dog and Cat Food Manufacturing |
1 |
| Drafting Services |
8 |
| Drilling Oil and Gas Wells |
2 |
| Drinking Places (Alcoholic Beverages) |
56 |
| Drywall and Insulation Contractors |
18 |
| Educational Support Services |
14 |
| Electric Power Distribution |
29 |
| Electrical Contractors |
98 |
| Electronic Shopping |
12 |
| Elementary and Secondary Schools |
25 |
| Emergency and Other Relief Services |
3 |
| Employment Placement Agencies |
22 |
| Engineering Services |
139 |
| Environmental Consulting Services |
19 |
| Exam Preparation and Tutoring |
14 |
| Exterminating and Pest Control Services |
33 |
| Facilities Support Services |
5 |
| Family Clothing Stores |
70 |
| Family Planning Centers |
5 |
| Farm Supplies Merchant Wholesalers |
3 |
| Fats and Oils Refining and Blending |
1 |
| Fine Arts Schools |
24 |
| Finish Carpentry Contractors |
13 |
| Fish and Seafood Markets |
6 |
| Fish and Seafood Merchant Wholesalers |
3 |
| Fitness and Recreational Sports Centers |
67 |
| Flight Training |
1 |
| Floor Covering Stores |
19 |
| Flooring Contractors |
21 |
| Florists |
27 |
| Flour Milling |
1 |
| Fluid Milk Manufacturing |
1 |
| Food (Health) Supplement Stores |
19 |
| Food Service Contractors |
48 |
| Footwear and Leather Goods Repair |
3 |
| Footwear Merchant Wholesalers |
2 |
| Formal Wear and Costume Rental |
7 |
| Fossil Fuel Electric Power Generation |
1 |
| Framing Contractors |
6 |
| Freight Transportation Arrangement |
21 |
| Fruit and Vegetable Markets |
4 |
| Full-Service Restaurants |
332 |
| Funeral Homes and Funeral Services |
19 |
| Furniture Merchant Wholesalers |
18 |
| Furniture Stores |
80 |
| General Automotive Repair |
103 |
| General Freight Trucking, Local |
20 |
| General Medical and Surgical Hospitals |
10 |
| General Rental Centers |
10 |
| General Warehousing and Storage |
27 |
| Gift, Novelty, and Souvenir Stores |
75 |
| Glass and Glazing Contractors |
10 |
| Golf Courses and Country Clubs |
16 |
| Grantmaking Foundations |
25 |
| Graphic Design Services |
22 |
| Hardware Merchant Wholesalers |
18 |
| Hardware Stores |
16 |
| Hazardous Waste Treatment and Disposal |
2 |
| Historical Sites |
1 |
| Hobby, Toy, and Game Stores |
22 |
| Home Centers |
10 |
| Home Furnishing Merchant Wholesalers |
12 |
| Home Health Care Services |
47 |
| Home Health Equipment Rental |
9 |
| Homes for the Elderly |
4 |
| Household Appliance Stores |
20 |
| Human Rights Organizations |
5 |
| Industrial Building Construction |
12 |
| Industrial Design Services |
2 |
| Industrial Gas Manufacturing |
2 |
| Industrial Launderers |
8 |
| Industrial Pattern Manufacturing |
1 |
| Industrial Valve Manufacturing |
4 |
| Inorganic Dye and Pigment Manufacturing |
2 |
| Institutional Furniture Manufacturing |
3 |
| Insurance Agencies and Brokerages |
329 |
| Interior Design Services |
39 |
| Internet Publishing and Broadcasting |
5 |
| Internet Service Providers |
7 |
| Interurban and Rural Bus Transportation |
1 |
| Investigation Services |
15 |
| Investment Advice |
52 |
| Iron and Steel Forging |
1 |
| Iron and Steel Mills |
4 |
| Iron Foundries |
4 |
| Irradiation Apparatus Manufacturing |
1 |
| Janitorial Services |
104 |
| Jewelry (except Costume) Manufacturing |
2 |
| Jewelry Stores |
71 |
| Junior Colleges |
2 |
| Kidney Dialysis Centers |
10 |
| Land Subdivision |
25 |
| Landscape Architectural Services |
11 |
| Landscaping Services |
111 |
| Language Schools |
1 |
| Lessors of Other Real Estate Property |
9 |
| Libraries and Archives |
3 |
| Limited-Service Restaurants |
476 |
| Limousine Service |
2 |
| Linen Supply |
4 |
| Local Messengers and Local Delivery |
8 |
| Locksmiths |
6 |
| Logging |
2 |
| Luggage and Leather Goods Stores |
4 |
| Machine Shops |
35 |
| Mail-Order Houses |
14 |
| Manifold Business Forms Printing |
2 |
| Manufactured (Mobile) Home Dealers |
1 |
| Marinas |
2 |
| Marketing Consulting Services |
48 |
| Marking Device Manufacturing |
1 |
| Masonry Contractors |
23 |
| Mattress Manufacturing |
1 |
| Meat Markets |
12 |
| Media Buying Agencies |
4 |
| Media Representatives |
5 |
| Medical Laboratories |
19 |
| Men's Clothing Stores |
33 |
| Metal Can Manufacturing |
2 |
| Metal Household Furniture Manufacturing |
1 |
| Metal Stamping |
5 |
| Metal Tank (Heavy Gauge) Manufacturing |
2 |
| Metal Window and Door Manufacturing |
5 |
| Mineral Wool Manufacturing |
2 |
| Miscellaneous Intermediation |
15 |
| Mobile Food Services |
2 |
| Monetary Authorities-Central Bank |
1 |
| Mortgage and Nonmortgage Loan Brokers |
42 |
| Motion Picture and Video Production |
19 |
| Motor and Generator Manufacturing |
2 |
| Motor Vehicle Body Manufacturing |
3 |
| Motor Vehicle Metal Stamping |
1 |
| Motor Vehicle Towing |
11 |
| Motorcycle Dealers |
7 |
| Museums |
9 |
| Music Publishers |
1 |
| Musical Groups and Artists |
4 |
| Musical Instrument and Supplies Stores |
10 |
| Nail Salons |
10 |
| Natural Gas Distribution |
5 |
| Natural Gas Liquid Extraction |
1 |
| Navigational Services to Shipping |
1 |
| New Car Dealers |
42 |
| New Housing Operative Builders |
28 |
| News Dealers and Newsstands |
4 |
| News Syndicates |
2 |
| Newspaper Publishers |
13 |
| Nonclay Refractory Manufacturing |
1 |
| Nonresidential Property Managers |
31 |
| Nursing Care Facilities |
22 |
| Office Administrative Services |
64 |
| Office Equipment Merchant Wholesalers |
33 |
| Office Machinery Manufacturing |
1 |
| Office Supplies and Stationery Stores |
21 |
| Offices of Bank Holding Companies |
4 |
| Offices of Certified Public Accountants |
160 |
| Offices of Chiropractors |
34 |
| Offices of Dentists |
273 |
| Offices of Lawyers |
585 |
| Offices of Optometrists |
55 |
| Offices of Other Holding Companies |
17 |
| Offices of Podiatrists |
16 |
| Offices of Real Estate Appraisers |
29 |
| One-Hour Photofinishing |
2 |
| Ophthalmic Goods Merchant Wholesalers |
2 |
| Optical Goods Stores |
32 |
| Outdoor Power Equipment Stores |
3 |
| Packaging and Labeling Services |
3 |
| Packing and Crating |
1 |
| Paging |
3 |
| Paint and Coating Manufacturing |
5 |
| Paint and Wallpaper Stores |
19 |
| Painting and Wall Covering Contractors |
36 |
| Parking Lots and Garages |
55 |
| Passenger Car Leasing |
3 |
| Passenger Car Rental |
14 |
| Payroll Services |
14 |
| Periodical Publishers |
27 |
| Perishable Prepared Food Manufacturing |
3 |
| Pet and Pet Supplies Stores |
14 |
| Pet Care (except Veterinary) Services |
7 |
| Petroleum Bulk Stations and Terminals |
8 |
| Pharmacies and Drug Stores |
104 |
| Photography Studios, Portrait |
30 |
| Pipeline Transportation of Natural Gas |
8 |
| Plastics Plumbing Fixture Manufacturing |
3 |
| Plate Work Manufacturing |
5 |
| Political Organizations |
11 |
| Portfolio Management |
28 |
| Prepress Services |
5 |
| Printing Ink Manufacturing |
1 |
| Private Mail Centers |
19 |
| Professional Employer Organizations |
10 |
| Professional Organizations |
23 |
| Public Relations Agencies |
12 |
| Quick Printing |
21 |
| Racetracks |
2 |
| Radio Networks |
2 |
| Radio Stations |
14 |
| Ready-Mix Concrete Manufacturing |
6 |
| Real Estate Credit |
77 |
| Real Estate Investment Trusts |
2 |
| Recreational Vehicle Dealers |
5 |
| Refrigerated Warehousing and Storage |
5 |
| Reinsurance Carriers |
2 |
| Remediation Services |
6 |
| Rendering and Meat Byproduct Processing |
1 |
| Repossession Services |
3 |
| Residential Property Managers |
58 |
| Residential Remodelers |
82 |
| Retail Bakeries |
6 |
| Reupholstery and Furniture Repair |
9 |
| Roofing Contractors |
26 |
| Rooming and Boarding Houses |
1 |
| Sales Financing |
24 |
| Savings Institutions |
4 |
| Scheduled Freight Air Transportation |
1 |
| Scheduled Passenger Air Transportation |
7 |
| Securities Brokerage |
52 |
| Security Guards and Patrol Services |
27 |
| Septic Tank and Related Services |
3 |
| Sheet Metal Work Manufacturing |
3 |
| Shoe Stores |
77 |
| Siding Contractors |
7 |
| Sign Manufacturing |
10 |
| Site Preparation Contractors |
30 |
| Snack and Nonalcoholic Beverage Bars |
45 |
| Soap and Other Detergent Manufacturing |
1 |
| Soft Drink Manufacturing |
2 |
| Software Publishers |
15 |
| Software Reproducing |
1 |
| Solid Waste Collection |
2 |
| Solid Waste Landfill |
4 |
| Sound Recording Studios |
4 |
| Special Needs Transportation |
3 |
| Sporting Goods Stores |
50 |
| Sports and Recreation Instruction |
24 |
| Sports Teams and Clubs |
1 |
| Steel Foundries (except Investment) |
1 |
| Steel Investment Foundries |
1 |
| Support Activities for Coal Mining |
1 |
| Support Activities for Forestry |
3 |
| Tax Preparation Services |
41 |
| Taxi Service |
2 |
| Telecommunications Resellers |
8 |
| Telemarketing Bureaus |
7 |
| Telephone Answering Services |
5 |
| Television Broadcasting |
11 |
| Temporary Help Services |
80 |
| Temporary Shelters |
5 |
| Testing Laboratories |
10 |
| Theater Companies and Dinner Theaters |
6 |
| Tile and Terrazzo Contractors |
12 |
| Tire and Tube Merchant Wholesalers |
14 |
| Tire Dealers |
53 |
| Tire Retreading |
1 |
| Title Abstract and Settlement Offices |
15 |
| Tobacco Stores |
7 |
| Tour Operators |
5 |
| Tradebinding and Related Work |
1 |
| Translation and Interpretation Services |
2 |
| Travel Agencies |
19 |
| Truck Trailer Manufacturing |
1 |
| Truss Manufacturing |
1 |
| Used Car Dealers |
48 |
| Used Household and Office Goods Moving |
22 |
| Used Merchandise Stores |
47 |
| Vending Machine Operators |
11 |
| Veterinary Services |
64 |
| Video Tape and Disc Rental |
33 |
| Vocational Rehabilitation Services |
8 |
| Voluntary Health Organizations |
18 |
| Warehouse Clubs and Supercenters |
10 |
| Water Supply and Irrigation Systems |
4 |
| Wholesale Trade Agents and Brokers |
195 |
| Window Treatment Stores |
5 |
| Wired Telecommunications Carriers |
61 |
| Women's Clothing Stores |
116 |
| Women's Handbag and Purse Manufacturing |
1 |
| Wood Container and Pallet Manufacturing |
4 |
| Wood Window and Door Manufacturing |
1 |
| Zoos and Botanical Gardens |
2 |
A critical step is ensuring that your business is formed as a legal entity that is separate from its owners. Among other things, forming a legal entity for the business limits your liabilities.
The entity you form can be a corporation, LLC, sole proprietorship, partnership or other structure.
Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. If you are starting a business in Alabama, you don't necessarily have to incorporate in Alabama. In fact, you can incorporate in any state you would like to. For example, it's very popular to incorporate in Delaware, and incorporating in Nevada has become very trendy as well. Don't forget, though, that you will have to register as a foreign entity in all states that you do business in.
There are many nuances to forming a company. We recommend you read some of the educational articles about company formation that are availabe on our site, such as Company Formation. You should also consider getting professional assistance from your business lawyer. Finally, if you are starting a business in Birmingham, Alabama, our information on Incorporating in Alabama may be a useful resource if you decide to incorporate in Alabama.
A business plan is essential in maximizing the prospects of your new company. Indeed, a business plan describes what you plan to do with the business and how you plan to do it. Not having a business plan is a recipe for disaster.
To grow your Birmingham business, you'll need to have a good marketing plan.
We have some useful resources on this site for entrepreneurs who are working on marketing plans. Billboard Advertising Best Practices is a good read to get your marketing ideas flowing. There are many more articles on marketing on our site. Visit our Small Business Marketing resource section to see them all.
You have a dream -- starting a business in Birmingham. To achieve your dream, you have to persevere, even when the odds are against you.
From this point on, you control your own destiny.
We are here to help Birmingham businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Birmingham, neighborhood development and overall economic health.
Here are more links that we believe will help you be successful in starting a business in Birmingham.
