Thinking about starting a business in Dothan, Alabama? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Dothan.
What Business Are You Starting?
An important decision is what kind of business you want to start. We recommend that you read Free Business Ideas.
For step-by-step instructions on starting a variety of business types, visit the Good Businesses to Start section of our site. For example, you might be interested in our How to Start a Measuring & Controlling Devices Wholesale & Manufacturers Business guide or our Opening a Special Occasion Photography Business guide.
Remember that you are starting a business in Dothan. Some businesses will do better in Dothan than others. A critical consideration is whether Dothan demographics mesh well with your startup concept.
Dothan, Alabama Demographic Information
Dothan has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Dothan demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Dothan.
| Business Size | # of
Businesses |
| 1-4 Employees |
3575 |
| 5-9 Employees |
1703 |
| 10-19 Employees |
1296 |
| 20-49 Employees |
849 |
| 50-99 Employees |
270 |
| 100-249 Employees |
105 |
| 250-499 Employees |
30 |
| 500-999 Employees |
12 |
| 1000+ Employees |
12 |
| All Dothan Businesses |
7852 |
As a new Dothan entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Dothan 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 |
3 |
| Aircraft Manufacturing |
1 |
| Ambulance Services |
3 |
| Amusement Arcades |
3 |
| Appliance Repair and Maintenance |
3 |
| Architectural Services |
10 |
| Automotive Exhaust System Repair |
2 |
| Automotive Glass Replacement Shops |
5 |
|
Automotive Parts and Accessories Stores |
22 |
| Automotive Transmission Repair |
4 |
| Baked Goods Stores |
1 |
| Barber Shops |
1 |
| Beauty Salons |
22 |
| Beer and Ale Merchant Wholesalers |
2 |
| Beer, Wine, and Liquor Stores |
7 |
| Blood and Organ Banks |
1 |
|
Boat Dealers |
3 |
| Book Stores |
5 |
| Bowling Centers |
3 |
| Broadwoven Fabric Finishing Mills |
1 |
| Broadwoven Fabric Mills |
1 |
| Business Associations |
6 |
| Cable and Other Program Distribution |
1 |
| Cafeterias |
7 |
|
Canvas and Related Product Mills |
4 |
| Car Washes |
3 |
| Carpet and Upholstery Cleaning Services |
6 |
| Caterers |
2 |
| Cemeteries and Crematories |
1 |
| Charter Bus Industry |
1 |
| Child and Youth Services |
9 |
| Child Day Care Services |
30 |
|
Children's and Infants' Clothing Stores |
7 |
| Civic and Social Organizations |
13 |
| Claims Adjusting |
1 |
| Clothing Accessories Stores |
3 |
| Coin-Operated Laundries and Drycleaners |
5 |
| Collection Agencies |
8 |
| Commercial Bakeries |
1 |
| Commercial Gravure Printing |
1 |
|
Commercial Lithographic Printing |
7 |
| Commercial Screen Printing |
2 |
| Community Food Services |
1 |
| Computer and Software Stores |
5 |
| Computer Systems Design Services |
3 |
| Concrete Block and Brick Manufacturing |
1 |
| Confectionery Merchant Wholesalers |
3 |
| Construction Sand and Gravel Mining |
1 |
|
Consumer Lending |
17 |
| Continuing Care Retirement Communities |
1 |
| Convenience Stores |
3 |
| Convention and Visitors Bureaus |
1 |
| Couriers |
6 |
| Court Reporting and Stenotype Services |
1 |
| Credit Unions |
10 |
| Custom Computer Programming Services |
5 |
|
Dance Companies |
1 |
| Dental Laboratories |
6 |
| Diagnostic Imaging Centers |
3 |
| Diet and Weight Reducing Centers |
2 |
| Direct Life Insurance Carriers |
6 |
| Direct Title Insurance Carriers |
1 |
| Directory and Mailing List Publishers |
5 |
| Discount Department Stores |
2 |
|
Display Advertising |
2 |
| Document Preparation Services |
2 |
| Drafting Services |
3 |
| Drinking Places (Alcoholic Beverages) |
8 |
| Drywall and Insulation Contractors |
7 |
| Educational Support Services |
2 |
| Electric Power Distribution |
2 |
| Electrical Contractors |
21 |
|
Electronic Shopping |
2 |
| Elementary and Secondary Schools |
6 |
| Emergency and Other Relief Services |
1 |
| Engineering Services |
17 |
| Exam Preparation and Tutoring |
1 |
| Exterminating and Pest Control Services |
9 |
| Facilities Support Services |
3 |
| Family Clothing Stores |
15 |
|
Farm Supplies Merchant Wholesalers |
4 |
| Fertilizer (Mixing Only) Manufacturing |
1 |
| Fine Arts Schools |
2 |
| Finish Carpentry Contractors |
2 |
| Fish and Seafood Merchant Wholesalers |
2 |
| Fitness and Recreational Sports Centers |
6 |
| Flight Training |
2 |
| Floor Covering Stores |
8 |
|
Flooring Contractors |
4 |
| Florists |
9 |
| Food (Health) Supplement Stores |
3 |
| Food Service Contractors |
3 |
| Framing Contractors |
3 |
| Freight Transportation Arrangement |
8 |
| Fruit and Vegetable Markets |
2 |
| Full-Service Restaurants |
66 |
|
Funeral Homes and Funeral Services |
5 |
| Furniture Merchant Wholesalers |
3 |
| Furniture Stores |
22 |
| General Automotive Repair |
34 |
| General Freight Trucking, Local |
4 |
| General Medical and Surgical Hospitals |
2 |
| General Warehousing and Storage |
3 |
| Gift, Novelty, and Souvenir Stores |
15 |
|
Glass and Glazing Contractors |
2 |
| Golf Courses and Country Clubs |
5 |
| Hardware Merchant Wholesalers |
3 |
| Hardware Stores |
3 |
| Heating Oil Dealers |
1 |
| Historical Sites |
1 |
| Hobby, Toy, and Game Stores |
5 |
| Home Centers |
1 |
|
Home Furnishing Merchant Wholesalers |
2 |
| Home Health Care Services |
13 |
| Home Health Equipment Rental |
2 |
| Homes for the Elderly |
3 |
| Household Appliance Stores |
6 |
| Human Rights Organizations |
1 |
| Industrial Building Construction |
1 |
| Industrial Launderers |
2 |
|
Institutional Furniture Manufacturing |
1 |
| Insurance Agencies and Brokerages |
40 |
| Interior Design Services |
1 |
| Internet Service Providers |
1 |
| Investigation Services |
1 |
| Investment Advice |
5 |
| Janitorial Services |
16 |
| Jewelry Stores |
13 |
|
Kidney Dialysis Centers |
3 |
| Land Subdivision |
7 |
| Landscaping Services |
14 |
| Lessors of Other Real Estate Property |
3 |
| Libraries and Archives |
1 |
| Limited-Service Restaurants |
74 |
| Limousine Service |
1 |
| Linen Supply |
1 |
|
Locksmiths |
3 |
| Logging |
1 |
| Machine Shops |
11 |
| Mail-Order Houses |
6 |
| Manifold Business Forms Printing |
2 |
| Manufactured (Mobile) Home Dealers |
6 |
| Marketing Consulting Services |
2 |
| Masonry Contractors |
3 |
|
Materials Recovery Facilities |
1 |
| Meat Markets |
1 |
| Media Buying Agencies |
1 |
| Media Representatives |
1 |
| Medical Laboratories |
2 |
| Men's Clothing Stores |
5 |
| Metal Window and Door Manufacturing |
3 |
| Miscellaneous Intermediation |
2 |
|
Mobile Food Services |
1 |
| Mortgage and Nonmortgage Loan Brokers |
3 |
| Motor and Generator Manufacturing |
1 |
| Motorcycle Dealers |
6 |
| Museums |
1 |
| Musical Instrument and Supplies Stores |
4 |
| Nail Salons |
5 |
| New Car Dealers |
12 |
|
New Housing Operative Builders |
8 |
| Newspaper Publishers |
2 |
| Nonresidential Property Managers |
4 |
| Nursing Care Facilities |
3 |
| Office Administrative Services |
6 |
| Office Equipment Merchant Wholesalers |
4 |
| Office Supplies and Stationery Stores |
7 |
| Offices of Certified Public Accountants |
21 |
|
Offices of Chiropractors |
13 |
| Offices of Dentists |
39 |
| Offices of Lawyers |
81 |
| Offices of Optometrists |
10 |
| Offices of Other Holding Companies |
1 |
| Offices of Podiatrists |
4 |
| Offices of Real Estate Appraisers |
6 |
| One-Hour Photofinishing |
1 |
|
Optical Goods Stores |
3 |
| Outdoor Power Equipment Stores |
1 |
| Paging |
1 |
| Paint and Wallpaper Stores |
5 |
| Painting and Wall Covering Contractors |
13 |
| Parking Lots and Garages |
1 |
| Passenger Car Rental |
4 |
| Payroll Services |
5 |
|
Pet and Pet Supplies Stores |
3 |
| Pet Care (except Veterinary) Services |
6 |
| Petroleum Bulk Stations and Terminals |
2 |
| Pharmacies and Drug Stores |
17 |
| Phosphatic Fertilizer Manufacturing |
1 |
| Photography Studios, Portrait |
9 |
| Plastics Plumbing Fixture Manufacturing |
1 |
| Plate Work Manufacturing |
1 |
|
Portfolio Management |
1 |
| Poultry Processing |
1 |
| Professional Employer Organizations |
5 |
| Professional Organizations |
4 |
| Quick Printing |
2 |
| Radio Networks |
1 |
| Radio Stations |
3 |
| Ready-Mix Concrete Manufacturing |
1 |
|
Real Estate Credit |
12 |
| Recreational Vehicle Dealers |
2 |
| Refrigerated Warehousing and Storage |
1 |
| Repossession Services |
2 |
| Residential Property Managers |
3 |
| Residential Remodelers |
12 |
| Retail Bakeries |
1 |
| Reupholstery and Furniture Repair |
3 |
|
Roofing Contractors |
5 |
| Sales Financing |
5 |
| Sawmills |
1 |
| Scheduled Passenger Air Transportation |
1 |
| Securities Brokerage |
6 |
| Security Guards and Patrol Services |
2 |
| Sheet Metal Work Manufacturing |
6 |
| Shoe Stores |
14 |
|
Siding Contractors |
6 |
| Sign Manufacturing |
8 |
| Site Preparation Contractors |
3 |
| Snack and Nonalcoholic Beverage Bars |
6 |
| Software Publishers |
1 |
| Solid Waste Collection |
1 |
| Special Needs Transportation |
1 |
| Sporting Goods Stores |
11 |
|
Sports and Recreation Instruction |
2 |
| Support Activities for Forestry |
2 |
| Tax Preparation Services |
9 |
| Taxi Service |
2 |
| Telecommunications Resellers |
1 |
| Telephone Answering Services |
3 |
| Television Broadcasting |
2 |
| Temporary Help Services |
9 |
|
Temporary Shelters |
2 |
| Testing Laboratories |
2 |
| Theater Companies and Dinner Theaters |
1 |
| Tile and Terrazzo Contractors |
4 |
| Tire and Tube Merchant Wholesalers |
1 |
| Tire Dealers |
14 |
| Tire Manufacturing (except Retreading) |
1 |
| Tire Retreading |
1 |
|
Title Abstract and Settlement Offices |
2 |
| Tobacco Stores |
4 |
| Travel Agencies |
2 |
| Truss Manufacturing |
1 |
| Used Car Dealers |
20 |
| Used Household and Office Goods Moving |
5 |
| Used Merchandise Stores |
14 |
| Vending Machine Operators |
2 |
|
Veterinary Services |
6 |
| Video Tape and Disc Rental |
12 |
| Vocational Rehabilitation Services |
2 |
| Warehouse Clubs and Supercenters |
3 |
| Water Supply and Irrigation Systems |
1 |
| Wholesale Trade Agents and Brokers |
13 |
| Window Treatment Stores |
1 |
| Wired Telecommunications Carriers |
4 |
|
Women's Clothing Stores |
20 |
| Zoos and Botanical Gardens |
1 |
Is a Franchise Opportunity Right For You?
As you drive around Dothan, you'll notice that many local entrepreneurs have gone the franchising route. But is franchising the right option for you?
We advise the entrepreneurs we work with to consider franchising as an option. We have many articles on franchises, such as Common Franchisee Mistakes. Gain a solid understanding of franchising by scanning all of our Articles on Franchising.
To learn about specific franchise opportunities, check out our Franchise Directory.
Representative franchise opportunities include Mr. Greek Restaurants and New York Burrito-Gourmet Wraps. Alternatively, you can browse franchise categories, such as Tanning Franchises and Healthcare Services Franchises.
Note on Dothan Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Dothan.
Forming a Company in Dothan, Alabama
It's very important that your business is formed as a legal entity that is separate from its owners. Doing so will shield you from personal liability for business debts and obligations.
The entity you form can be a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.
Incorporation 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 the state of your choosing. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.
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 Pre-Incorporation Agreements. You may also want to seek the advice of an attorney. Finally, if you are starting a business in Dothan, Alabama, our information on Incorporating in Alabama may be a useful resource if you decide to incorporate in Alabama.
Marketing Your New Startup
To grow your Dothan business, you need a solid marketing plan.
There are myriad resources on this site to help you with your marketing plan. Advertising on Google is a good read to get your marketing juices flowing. That's just a sampling of the many useful articles we have on Marketing a Small Business.
Ramping Up Sales
Being able to sell is a key enabler to your business success. Whether you are focused on selling local customers in Dothan or are selling to customers throughout Alabama, the United States or even the world, you have to be able to sell.
So what does it take to bring in more prospects and close more business? The good news is we can help you to make selling a big competitve advantage for your new firm.
Selling on the Phone is a good article to read, one of dozens in the Selling for Entrepreneurs section of our site.
Moving Forward
You have a dream -- starting a business in Dothan. To achieve your dream, you have to persevere, even when the odds are against you.
From this point on, you control your own destiny.
This site is all about helping entrepreneurs in Dothan and elsewhere to achieve real success. We believe entrepreneurship is an amazing engine for job creation in Dothan, neighborhood development and overall economic health.
More Entrepreneurial Resources for Starting a Business in Dothan, Alabama
Here are more links that we believe will help you be successful in starting a business in Dothan.
- Resources for Dothan, Alabama Entrepreneurs - Browse a variety of resources we've collected to assist Dothan entrepreneurs.
- Alabama Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Alabama.
- Alabama Small Business Development Center - Alabama's Small Business Development Center (SBDC) counsels and trains business people in a wide variety of business topics and provides comprehensive information services and access to experts in many fields. Counseling is provided free of charge to all Alabama small business owners.
- Dothan, Alabama Newspaper Ad Rates - This is a nearly comprehensive list of advertising rates for Dothan, Alabama newspapers, including ad costs for newspapers serving the Dothan area.
- Dothan, Alabama Radio Advertising Prices - To help you in your marketing efforts, we've gathered radio advertising rates for Dothan, Alabama area radio stations.
- Dothan, Alabama Payroll Services - This list includes Dothan, Alabama payroll services, national payroll services for Dothan, and helpful information on choosing a Dothan payroll service.
- Dothan, Alabama Businesses for Sale - This list includes resources for buying a business in Dothan, Alabama, such as business brokers in Dothan and other helpful information on how to buy a Dothan business.
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