Thinking about starting a business in Frederick, Maryland? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Frederick.
Will You Be a Good Entrepreneur?
Most startup ventures don't make it, in part because the entrepreneur did not have the tenacity and/or the skills to succeed. So, before you start your business, consider all of the implications of being an entrepreneur.
Because entrepreneurship is not for everyone, we recommend you do the following to help you assess whether you should move forward with starting a business:
- Reach out to other entrepreneurs in Frederick. They are usually very willing to share their insights on the ups and downs of being an entrepreneur.
- Peruse Characteristics of Successful Entrepreneurs. This is one of our more popular articles for folks who want to go into business for themselves.
- Seek the advice of somebody who knows you well. Others sometimes know you better than you know yourself.
What Business to Start
There are many businesses that you can start. How do you know which type of business is right for you? To help you decide on a business type, we encourage you to read 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 a Race Car Parts, Equipment, & Supplies Retail Business guide or our Opening a Creative Writers Business guide.
Don't forget that starting a business in Frederick has some implications. Some businesses will do better in Frederick than others. Only by spending some time analyzing Frederick demographics can you decide if there will be strong demand for your business idea.
Frederick, Maryland Demographic Information
Frederick has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Frederick demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Frederick.
| Business Size | # of
Businesses |
| 1-4 Employees |
25260 |
| 5-9 Employees |
10845 |
| 10-19 Employees |
7740 |
| 20-49 Employees |
6075 |
| 50-99 Employees |
1995 |
| 100-249 Employees |
1365 |
| 250-499 Employees |
255 |
| 500-999 Employees |
90 |
| 1000+ Employees |
45 |
| All Frederick Businesses |
53670 |
As a new Frederick entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Frederick 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 |
| Amusement Arcades |
1 |
| Appliance Repair and Maintenance |
1 |
| Architectural Services |
9 |
| Armored Car Services |
1 |
| Art Dealers |
4 |
| Automotive Exhaust System Repair |
1 |
|
Automotive Glass Replacement Shops |
4 |
| Automotive Parts and Accessories Stores |
18 |
| Automotive Transmission Repair |
1 |
| Baked Goods Stores |
3 |
| Barber Shops |
5 |
| Beauty Salons |
42 |
| Bed-and-Breakfast Inns |
1 |
| Beer and Ale Merchant Wholesalers |
1 |
|
Beer, Wine, and Liquor Stores |
23 |
| Book Publishers |
5 |
| Book Stores |
7 |
| Bowling Centers |
2 |
| Breweries |
1 |
| Building Inspection Services |
4 |
| Business and Secretarial Schools |
1 |
| Business Associations |
9 |
|
Cable and Other Program Distribution |
5 |
| Camera and Photographic Supplies Stores |
2 |
| Car Washes |
10 |
| Carpet and Upholstery Cleaning Services |
5 |
| Caterers |
7 |
| Cement Manufacturing |
1 |
| Cemeteries and Crematories |
2 |
| Child and Youth Services |
4 |
|
Child Day Care Services |
18 |
| Children's and Infants' Clothing Stores |
5 |
| Civic and Social Organizations |
15 |
| Claims Adjusting |
1 |
| Clothing Accessories Stores |
7 |
| Coin-Operated Laundries and Drycleaners |
5 |
| Collection Agencies |
1 |
| Commercial Bakeries |
1 |
|
Commercial Lithographic Printing |
6 |
| Community Food Services |
1 |
| Computer and Software Stores |
4 |
| Computer Facilities Management Services |
3 |
| Computer Systems Design Services |
44 |
| Computer Training |
3 |
| Concrete Block and Brick Manufacturing |
1 |
| Concrete Pipe Manufacturing |
2 |
|
Confectionery and Nut Stores |
1 |
| Construction Sand and Gravel Mining |
1 |
| Consumer Lending |
6 |
| Continuing Care Retirement Communities |
3 |
| Convenience Stores |
10 |
| Convention and Trade Show Organizers |
4 |
| Convention and Visitors Bureaus |
1 |
| Cosmetology and Barber Schools |
1 |
|
Couriers |
2 |
| Credit Bureaus |
3 |
| Credit Unions |
6 |
| Custom Computer Programming Services |
36 |
| Dental Laboratories |
2 |
| Diagnostic Imaging Centers |
8 |
| Diet and Weight Reducing Centers |
5 |
| Direct Life Insurance Carriers |
3 |
|
Direct Mail Advertising |
5 |
| Direct Title Insurance Carriers |
2 |
| Discount Department Stores |
7 |
| Document Preparation Services |
3 |
| Drafting Services |
1 |
| Drinking Places (Alcoholic Beverages) |
10 |
| Drywall and Insulation Contractors |
14 |
| Electric Power Distribution |
1 |
|
Electrical Contractors |
39 |
| Electronic Shopping |
1 |
| Elementary and Secondary Schools |
8 |
| Emergency and Other Relief Services |
1 |
| Employment Placement Agencies |
6 |
| Engineering Services |
31 |
| Environmental Consulting Services |
7 |
| Exam Preparation and Tutoring |
4 |
|
Exterminating and Pest Control Services |
3 |
| Facilities Support Services |
1 |
| Family Clothing Stores |
10 |
| Family Planning Centers |
1 |
| Farm Supplies Merchant Wholesalers |
1 |
| Fine Arts Schools |
6 |
| Finish Carpentry Contractors |
19 |
| Fitness and Recreational Sports Centers |
14 |
|
Flight Training |
1 |
| Floor Covering Stores |
8 |
| Flooring Contractors |
11 |
| Florists |
7 |
| Fluid Milk Manufacturing |
2 |
| Food (Health) Supplement Stores |
5 |
| Food Service Contractors |
12 |
| Footwear and Leather Goods Repair |
1 |
|
Formal Wear and Costume Rental |
2 |
| Framing Contractors |
9 |
| Freight Transportation Arrangement |
3 |
| Full-Service Restaurants |
101 |
| Funeral Homes and Funeral Services |
5 |
| Furniture Merchant Wholesalers |
2 |
| Furniture Stores |
20 |
| General Automotive Repair |
43 |
|
General Freight Trucking, Local |
6 |
| General Medical and Surgical Hospitals |
1 |
| General Rental Centers |
3 |
| General Warehousing and Storage |
7 |
| Gift, Novelty, and Souvenir Stores |
19 |
| Glass and Glazing Contractors |
10 |
| Golf Courses and Country Clubs |
3 |
| Grantmaking Foundations |
2 |
|
Graphic Design Services |
17 |
| Hardware Merchant Wholesalers |
5 |
| Hardware Stores |
1 |
| Heating Oil Dealers |
2 |
| Historical Sites |
1 |
| Hobby, Toy, and Game Stores |
8 |
| Home Centers |
3 |
| Home Furnishing Merchant Wholesalers |
3 |
|
Home Health Care Services |
13 |
| Homes for the Elderly |
5 |
| Household Appliance Stores |
4 |
| Human Rights Organizations |
1 |
| Industrial Building Construction |
1 |
| Industrial Launderers |
2 |
| Insurance Agencies and Brokerages |
43 |
| Interior Design Services |
6 |
|
International Trade Financing |
1 |
| Internet Publishing and Broadcasting |
2 |
| Internet Service Providers |
2 |
| Investigation Services |
1 |
| Investment Advice |
9 |
| Iron and Steel Mills |
1 |
| Janitorial Services |
28 |
| Jewelry (except Costume) Manufacturing |
1 |
|
Jewelry Stores |
18 |
| Kidney Dialysis Centers |
1 |
| Land Subdivision |
4 |
| Landscape Architectural Services |
4 |
| Landscaping Services |
42 |
| Lessors of Other Real Estate Property |
2 |
| Limited-Service Restaurants |
105 |
| Limousine Service |
3 |
|
Livestock Merchant Wholesalers |
1 |
| Locksmiths |
5 |
| Machine Shops |
4 |
| Mail-Order Houses |
3 |
| Marinas |
1 |
| Marketing Consulting Services |
9 |
| Masonry Contractors |
17 |
| Media Representatives |
1 |
|
Medical Laboratories |
3 |
| Men's Clothing Stores |
7 |
| Mortgage and Nonmortgage Loan Brokers |
11 |
| Motion Picture and Video Production |
3 |
| Motor Vehicle Towing |
1 |
| Motorcycle Dealers |
4 |
| Museums |
2 |
| Musical Instrument and Supplies Stores |
4 |
|
Nail Salons |
13 |
| New Car Dealers |
21 |
| New Housing Operative Builders |
6 |
| News Dealers and Newsstands |
1 |
| Newspaper Publishers |
4 |
| Nitrogenous Fertilizer Manufacturing |
1 |
| Nonresidential Property Managers |
4 |
| Nursing Care Facilities |
6 |
|
Office Administrative Services |
15 |
| Office Equipment Merchant Wholesalers |
2 |
| Office Machinery Manufacturing |
1 |
| Office Supplies and Stationery Stores |
6 |
| Offices of Certified Public Accountants |
37 |
| Offices of Chiropractors |
13 |
| Offices of Dentists |
73 |
| Offices of Lawyers |
76 |
|
Offices of Optometrists |
8 |
| Offices of Podiatrists |
10 |
| Offices of Real Estate Appraisers |
14 |
| One-Hour Photofinishing |
1 |
| Optical Goods Stores |
10 |
| Outdoor Power Equipment Stores |
1 |
| Packing and Crating |
1 |
| Paging |
1 |
|
Paint and Coating Manufacturing |
1 |
| Paint and Wallpaper Stores |
3 |
| Painting and Wall Covering Contractors |
24 |
| Passenger Car Rental |
4 |
| Payroll Services |
6 |
| Periodical Publishers |
8 |
| Pet and Pet Supplies Stores |
7 |
| Pet Care (except Veterinary) Services |
3 |
|
Petroleum Bulk Stations and Terminals |
1 |
| Pharmacies and Drug Stores |
12 |
| Photography Studios, Portrait |
8 |
| Plastics Plumbing Fixture Manufacturing |
1 |
| Plate Work Manufacturing |
1 |
| Political Organizations |
1 |
| Portfolio Management |
2 |
| Primary Aluminum Production |
1 |
|
Private Mail Centers |
1 |
| Professional Employer Organizations |
1 |
| Professional Organizations |
7 |
| Public Relations Agencies |
3 |
| Quick Printing |
2 |
| Radio Stations |
5 |
| Ready-Mix Concrete Manufacturing |
3 |
| Real Estate Credit |
34 |
|
Real Estate Investment Trusts |
1 |
| Recreational Vehicle Dealers |
2 |
| Residential Property Managers |
19 |
| Residential Remodelers |
72 |
| Retail Bakeries |
2 |
| Reupholstery and Furniture Repair |
2 |
| Roofing Contractors |
6 |
| Sales Financing |
1 |
|
Satellite Telecommunications |
2 |
| Savings Institutions |
9 |
| Securities Brokerage |
12 |
| Security Guards and Patrol Services |
1 |
| Sewage Treatment Facilities |
1 |
| Sheet Metal Work Manufacturing |
3 |
| Shoe Stores |
18 |
| Siding Contractors |
3 |
|
Sign Manufacturing |
5 |
| Site Preparation Contractors |
16 |
| Snack and Nonalcoholic Beverage Bars |
18 |
| Software Publishers |
4 |
| Software Reproducing |
1 |
| Solid Waste Collection |
3 |
| Solid Waste Landfill |
1 |
| Sporting Goods Stores |
15 |
|
Sports and Recreation Instruction |
7 |
| Spring (Light Gauge) Manufacturing |
1 |
| Tax Preparation Services |
9 |
| Taxi Service |
2 |
| Telecommunications Resellers |
1 |
| Telemarketing Bureaus |
3 |
| Telephone Answering Services |
1 |
| Telephone Apparatus Manufacturing |
1 |
|
Temporary Help Services |
17 |
| Temporary Shelters |
1 |
| Testing Laboratories |
4 |
| Tile and Terrazzo Contractors |
6 |
| Tire and Tube Merchant Wholesalers |
4 |
| Tire Dealers |
8 |
| Title Abstract and Settlement Offices |
12 |
| Tobacco Stores |
2 |
|
Tradebinding and Related Work |
1 |
| Translation and Interpretation Services |
4 |
| Travel Agencies |
4 |
| Truss Manufacturing |
1 |
| Used Car Dealers |
13 |
| Used Household and Office Goods Moving |
5 |
| Used Merchandise Stores |
18 |
| Veterinary Services |
15 |
|
Video Tape and Disc Rental |
5 |
| Vocational Rehabilitation Services |
5 |
| Voluntary Health Organizations |
1 |
| Warehouse Clubs and Supercenters |
2 |
| Wholesale Trade Agents and Brokers |
16 |
| Window Treatment Stores |
1 |
| Wineries |
1 |
| Wired Telecommunications Carriers |
15 |
|
Women's Clothing Stores |
14 |
| Wood Window and Door Manufacturing |
1 |
Selecting a Name For Your Business
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.
Company names need to be easy to spell, easy to pronounce, and easy to remember.
To get up to speed on what makes for a good company name, we encourage you to read this useful article: Naming a Business.
On a final note, given that you are planning on starting a business in Frederick, it's imperative that you check now that no other Maryland company is using the business name you want to use.
Company Formation in Frederick, Maryland
A critical step is ensuring that you form your business as a legal structure. Doing so will protect 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. A key decision is whether to form and S-Corp or a C-Corp, and you also must decide in which state you will incorporate. Just because you are starting a business in Maryland, it doesn't mean you are required to incorporate in Maryland. As it turns out, you can incorporate in any state you would like to. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.
There's a lot to know about forming a company. We recommend you read some of the educational articles about company formation that are availabe on our site, such as Incorporating Online. You may also want to seek the advice of an attorney. Finally, if you are starting a business in Frederick, Maryland, our information on Incorporating in Maryland may be a useful resource if you decide to incorporate in Maryland.
Don't Forget to Create a Business Plan
A business plan is vital in laying a solid foundation for your business success. 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 learn more about business plans, read Business Plan Contests. A great resource for business planning assistance is the free counseling sessions provided by your local SCORE chapter in Maryland.
Promoting Your New Startup
Whether your goal is to attract Frederick customers or you plan on selling elsewhere, having an excellent marketing plan is fundamental to your beating the competition.
You can learn quite a bit about marketing on our site. National TV Spot Advertising Rates discusses marketing strategy and tactical marketing in a way that should get you thinking about how to creatively promote your business. That's just a taste of the many useful articles we have on Marketing a Small Business.
What's Next?
Most new Frederick businesses underestimate the number of challenges they will face.
Owning your own business will be a daunting task, but you can do it.
Our goal here is to promote the vitality and growth of small businesses in Frederick and throughout the United States . We believe entrepreneurship is an amazing engine for job creation in Frederick, neighborhood development and overall economic health.
More Entrepreneurial Resources for Starting a Business in Frederick, Maryland
Here are more links that we believe will help you be successful in starting a business in Frederick.
- Resources for Frederick, Maryland Entrepreneurs - Browse a variety of resources we've collected to assist Frederick entrepreneurs.
- Maryland Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Maryland.
- Maryland Small Business Development Center - The Maryland Small Business Development Center Network has six regional offices and more than 20 locations where Maryland entrepreneurs can receive comprehensive, resources and relevant assistance.
- Frederick, Maryland Newspaper Ad Rates - This is a nearly comprehensive list of advertising rates for Frederick, Maryland newspapers, including ad costs for newspapers serving the Frederick area.
- Frederick, Maryland Radio Advertising Prices - To help you in your marketing efforts, we've gathered radio advertising rates for Frederick, Maryland area radio stations.
- Frederick, Maryland Payroll Services - This list includes Frederick, Maryland payroll services, national payroll services for Frederick, and helpful information on choosing a Frederick payroll service.
- Frederick, Maryland Businesses for Sale - This list includes resources for buying a business in Frederick, Maryland, such as business brokers in Frederick and other helpful information on how to buy a Frederick business.
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