Contemplating starting a business in Chapel Hill, North Carolina? We walk you through the process of opening a business in Chapel Hill.
Is Becoming an Entrepreneur Right for You?
Most new businesses don't make it, in part because the entrepreneur did not have the perseverance and abilities that are necessary to succeed. So, before you open a business, consider all of the implications of being an entrepreneur.
Before you move forward with starting a business, be sure to do these three things:
- Talk to other entrepreneurs in Chapel Hill. Get their take on what it's really like to be an entrepreneur.
- We recommend reading Why Small Businesses Fail. For aspiring new entrepreneurs, it's a must read article.
- Get feedback from somebody whom you trust. That's the best way to get a truly objective assessment as to whether others think you have what it takes.
Which Business to Choose?
There are many businesses that you can start. How do you know which type of business is right for you? You might get some good ideas about what kind of business to start by reading Finding Your Niche in Life.
For in-depth how-to guides on how to start specific businesses, browse our Good Businesses to Start section of our site. For example, you might be interested in our Starting an Ethnic Grocers Business guide or our Starting a Floors & Flooring Equipment & Supplies Business guide.
Remember that you are opening your new business in Chapel Hill. The business you want to start may already be well-represented in Chapel Hill. Make sure you fully understand Chapel Hill demographics before you lock in on your business idea.
Chapel Hill, North Carolina Demographic Information
Chapel Hill has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Chapel Hill demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Chapel Hill.
| Business Size | # of
Businesses |
| 1-4 Employees |
7504 |
| 5-9 Employees |
2314 |
| 10-19 Employees |
1572 |
| 20-49 Employees |
1068 |
| 50-99 Employees |
276 |
| 100-249 Employees |
156 |
| 250-499 Employees |
42 |
| 500-999 Employees |
6 |
| 1000+ Employees |
12 |
| All Chapel Hill Businesses |
12950 |
As a new Chapel Hill entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Chapel Hill 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 |
| Advertising Agencies |
4 |
| Appliance Repair and Maintenance |
1 |
| Architectural Services |
10 |
| Art Dealers |
4 |
| Automobile Driving Schools |
1 |
| Automotive Glass Replacement Shops |
3 |
| Automotive Parts and Accessories Stores |
3 |
| Automotive Transmission Repair |
1 |
| Barber Shops |
2 |
| Beauty Salons |
26 |
| Beer, Wine, and Liquor Stores |
4 |
| Book Publishers |
8 |
| Book Stores |
7 |
| Bowling Centers |
1 |
| Breweries |
1 |
| Broadwoven Fabric Finishing Mills |
1 |
| Building Inspection Services |
3 |
| Business Associations |
6 |
| Cafeterias |
3 |
| Camera and Photographic Supplies Stores |
2 |
| Car Washes |
2 |
| Caterers |
3 |
| Cement Manufacturing |
1 |
| Cemeteries and Crematories |
1 |
| Child and Youth Services |
4 |
| Child Day Care Services |
28 |
| Civic and Social Organizations |
11 |
| Clothing Accessories Stores |
1 |
| Collection Agencies |
1 |
| Commercial Lithographic Printing |
3 |
| Commercial Photography |
2 |
| Commodity Contracts Dealing |
1 |
| Community Food Services |
1 |
| Computer and Software Stores |
3 |
| Computer Facilities Management Services |
2 |
| Computer Systems Design Services |
17 |
| Computer Training |
1 |
| Confectionery and Nut Stores |
1 |
| Continuing Care Retirement Communities |
6 |
| Convenience Stores |
1 |
| Convention and Trade Show Organizers |
1 |
| Credit Unions |
5 |
| Custom Computer Programming Services |
38 |
| Dental Laboratories |
2 |
| Diagnostic Imaging Centers |
1 |
| Diet and Weight Reducing Centers |
1 |
| Direct Life Insurance Carriers |
3 |
| Direct Mail Advertising |
1 |
| Direct Title Insurance Carriers |
11 |
| Directory and Mailing List Publishers |
1 |
| Discount Department Stores |
1 |
| Document Preparation Services |
3 |
| Drafting Services |
1 |
| Drinking Places (Alcoholic Beverages) |
19 |
| Educational Support Services |
8 |
| Electric Power Distribution |
1 |
| Electrical Contractors |
13 |
| Electronic Auctions |
1 |
| Electronic Shopping |
2 |
| Elementary and Secondary Schools |
6 |
| Emergency and Other Relief Services |
1 |
| Employment Placement Agencies |
1 |
| Engineering Services |
17 |
| Environmental Consulting Services |
6 |
| Exam Preparation and Tutoring |
4 |
| Facilities Support Services |
1 |
| Family Clothing Stores |
3 |
| Family Planning Centers |
2 |
| Farm Supplies Merchant Wholesalers |
2 |
| Fine Arts Schools |
6 |
| Finish Carpentry Contractors |
6 |
| Fish and Seafood Merchant Wholesalers |
1 |
| Fitness and Recreational Sports Centers |
17 |
| Flight Training |
1 |
| Floor Covering Stores |
2 |
| Flooring Contractors |
1 |
| Florists |
6 |
| Food (Health) Supplement Stores |
6 |
| Food Service Contractors |
15 |
| Footwear and Leather Goods Repair |
1 |
| Formal Wear and Costume Rental |
1 |
| Framing Contractors |
3 |
| Freight Transportation Arrangement |
1 |
| Full-Service Restaurants |
81 |
| Funeral Homes and Funeral Services |
1 |
| Furniture Merchant Wholesalers |
4 |
| Furniture Stores |
8 |
| General Automotive Repair |
8 |
| General Freight Trucking, Local |
1 |
| General Medical and Surgical Hospitals |
1 |
| General Rental Centers |
2 |
| General Warehousing and Storage |
1 |
| Gift, Novelty, and Souvenir Stores |
7 |
| Golf Courses and Country Clubs |
3 |
| Grantmaking Foundations |
7 |
| Graphic Design Services |
5 |
| Hardware Merchant Wholesalers |
1 |
| Hardware Stores |
3 |
| Historical Sites |
1 |
| Hobby, Toy, and Game Stores |
5 |
| Home Centers |
1 |
| Home Furnishing Merchant Wholesalers |
1 |
| Home Health Care Services |
8 |
| Homes for the Elderly |
5 |
| Household Appliance Stores |
2 |
| Human Rights Organizations |
2 |
| Industrial Design Services |
1 |
| Industrial Launderers |
1 |
| Insurance Agencies and Brokerages |
26 |
| Interior Design Services |
10 |
| Internet Publishing and Broadcasting |
2 |
| Internet Service Providers |
2 |
| Investment Advice |
20 |
| Janitorial Services |
11 |
| Jewelry (except Costume) Manufacturing |
1 |
| Jewelry Stores |
12 |
| Land Subdivision |
13 |
| Landscape Architectural Services |
6 |
| Landscaping Services |
21 |
| Language Schools |
3 |
| Lessors of Other Real Estate Property |
2 |
| Libraries and Archives |
1 |
| Limited-Service Restaurants |
64 |
| Local Messengers and Local Delivery |
2 |
| Locksmiths |
1 |
| Logging |
1 |
| Luggage and Leather Goods Stores |
1 |
| Mail-Order Houses |
6 |
| Marketing Consulting Services |
30 |
| Masonry Contractors |
5 |
| Medical Laboratories |
3 |
| Men's Clothing Stores |
4 |
| Miscellaneous Intermediation |
1 |
| Mortgage and Nonmortgage Loan Brokers |
5 |
| Motion Picture and Video Distribution |
2 |
| Motion Picture and Video Production |
4 |
| Motor Vehicle Towing |
1 |
| Museums |
1 |
| Music Publishers |
2 |
| Musical Groups and Artists |
2 |
| Natural Gas Distribution |
1 |
| New Car Dealers |
3 |
| New Housing Operative Builders |
5 |
| News Dealers and Newsstands |
1 |
| Newspaper Publishers |
2 |
| Nonresidential Property Managers |
4 |
| Nursing Care Facilities |
2 |
| Office Administrative Services |
9 |
| Office Supplies and Stationery Stores |
3 |
| Offices of Certified Public Accountants |
14 |
| Offices of Chiropractors |
10 |
| Offices of Dentists |
42 |
| Offices of Lawyers |
65 |
| Offices of Optometrists |
7 |
| Offices of Podiatrists |
1 |
| Offices of Real Estate Appraisers |
6 |
| Optical Goods Stores |
4 |
| Packing and Crating |
1 |
| Paint and Wallpaper Stores |
2 |
| Painting and Wall Covering Contractors |
10 |
| Parking Lots and Garages |
3 |
| Payroll Services |
2 |
| Periodical Publishers |
4 |
| Pet and Pet Supplies Stores |
3 |
| Pet Care (except Veterinary) Services |
2 |
| Pharmacies and Drug Stores |
8 |
| Portfolio Management |
7 |
| Private Mail Centers |
3 |
| Professional Organizations |
6 |
| Public Relations Agencies |
3 |
| Quick Printing |
2 |
| Radio Networks |
1 |
| Real Estate Credit |
12 |
| Residential Property Managers |
16 |
| Residential Remodelers |
23 |
| Retail Bakeries |
1 |
| Roofing Contractors |
4 |
| Rooming and Boarding Houses |
16 |
| Savings Institutions |
1 |
| Securities Brokerage |
13 |
| Security Guards and Patrol Services |
1 |
| Shoe Stores |
7 |
| Siding Contractors |
2 |
| Site Preparation Contractors |
4 |
| Snack and Nonalcoholic Beverage Bars |
17 |
| Software Publishers |
12 |
| Solid Waste Collection |
1 |
| Sporting Goods Stores |
4 |
| Sports and Recreation Instruction |
10 |
| Sports Teams and Clubs |
1 |
| Support Activities for Forestry |
1 |
| Tax Preparation Services |
2 |
| Taxi Service |
3 |
| Telemarketing Bureaus |
2 |
| Television Broadcasting |
1 |
| Temporary Help Services |
6 |
| Temporary Shelters |
1 |
| Testing Laboratories |
1 |
| Tile and Terrazzo Contractors |
2 |
| Tire Dealers |
5 |
| Tobacco Stores |
1 |
| Tour Operators |
2 |
| Translation and Interpretation Services |
4 |
| Travel Agencies |
5 |
| Used Household and Office Goods Moving |
1 |
| Used Merchandise Stores |
8 |
| Veterinary Services |
6 |
| Video Tape and Disc Rental |
4 |
| Voluntary Health Organizations |
5 |
| Web Search Portals |
2 |
| Wholesale Trade Agents and Brokers |
11 |
| Wired Telecommunications Carriers |
6 |
| Women's Clothing Stores |
16 |
Naming the Company
A good company name can give a big boost to a new startup. It might seem like an easy thing to do, but there are many things to consider when naming a business.
Pick a company name that isn't too generic. If you do a search engine search for your proposed name and a billion results come up, you may want to reconsider the name. It's much easier to come up in the search engines when your name is fairly unique.
To get up to speed on what makes for a good company name, we encourage you to read this useful article: Branding Advice.
There's one other important factor when naming a business. Since you are starting a business in Chapel Hill, it's imperative that you check now that no other North Carolina company is using the business name you want to use.
Forming a Company in Chapel Hill, North Carolina
It's essential 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 North Carolina, you don't necessarily have to incorporate in North Carolina. As it turns out, you are allowed to incorporate wherever you want. 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 Offshore Company Formation. You should also consider getting professional assistance from your business lawyer. Finally, if you are starting a business in Chapel Hill, North Carolina, our information on Incorporating in North Carolina may be a useful resource if you decide to incorporate in North Carolina.
Raising Money for Your New Venture
Getting your Chapel Hill business the capital it needs to succeed is a difficult chore. To obtain business financing, you will need to hear a lot of rejections before you finally find a funding solution that works for you.
Take advantage of our many articles on raising money, such as SBIR Funding.
For Chapel Hill entrepreneurs who want to raise money for a new venture, check out our List of North Carolina Angel Investors and our List of North Carolina Venture Capital Firms.
Improving Your Entrepreneurial Skillset
Successful business owners recognize that they don't know everything.
As an entrepreneur who lives in Chapel Hill, North Carolina, you will want to take advantage of the learning programs at local North Carolina educational institutions. It's also worthwhile to see if there are any networking groups or organizations in which Chapel Hill entrepreneurs get together to network and trade their business experiences.
Moving Forward
Most new Chapel Hill businesses underestimate the number of challenges they will face.
From this point on, you control your own destiny.
We are here to help Chapel Hill businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Chapel Hill, neighborhood development and overall economic health.
More Entrepreneurial Resources for Starting a Business in Chapel Hill, North Carolina
Here are more links that we believe will help you be successful in starting a business in Chapel Hill.
Starting-a-Business Guides for Other Cities in North Carolina
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