Thinking about starting a business in Lexington, Kentucky? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Lexington.
Do You Have Entrepreneurial Drive and Passion?
Most new businesses do not succeed, in part because the entrepreneur did not have the perseverance and abilities that are necessary to succeed. So, before jumping into the world of entrepreneurship, consider all of the implications of being an entrepreneur.
Here are three things we recommend you do before you fully commit to starting a new business of your own.
- Talk to other entrepreneurs in Lexington. Get their candid feedback on what it takes to start a successful business.
- We recommend reading Characteristics of Successful Entrepreneurs. For aspiring new entrepreneurs, it's a must read article.
- Seek the advice of somebody who knows you well. A support network of family and friends can be a great sounding board for good advice before you decide for sure to go into business.
What Business Are You Starting?
An important decision is what kind of business you want to start. To stir your creative juices on what kind of business to start, take a look at Good 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 Starting a Dance Club guide or our Starting a Tatoo Parlor guide.
Remember that your new startup will be located in Lexington. Think about what needs are currently being underserved in Lexington. Only by spending some time analyzing Lexington demographics can you decide if there will be strong demand for your business idea.
Lexington, Kentucky Demographic Information
Lexington has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Lexington demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Lexington.
| Business Size | # of
Businesses |
| 1-4 Employees |
199750 |
| 5-9 Employees |
82892 |
| 10-19 Employees |
62883 |
| 20-49 Employees |
44676 |
| 50-99 Employees |
16830 |
| 100-249 Employees |
8058 |
| 250-499 Employees |
1938 |
| 500-999 Employees |
1020 |
| 1000+ Employees |
408 |
| All Lexington Businesses |
418455 |
As a new Lexington entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Lexington 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 |
29 |
|
Aircraft Manufacturing |
1 |
| Ambulance Services |
3 |
| Amusement Arcades |
3 |
| Appliance Repair and Maintenance |
6 |
| Architectural Services |
53 |
| Armored Car Services |
2 |
| Art Dealers |
8 |
| Audio and Video Equipment Manufacturing |
1 |
|
Automobile Driving Schools |
2 |
| Automotive Exhaust System Repair |
1 |
| Automotive Glass Replacement Shops |
9 |
| Automotive Parts and Accessories Stores |
34 |
| Automotive Transmission Repair |
7 |
| Baked Goods Stores |
4 |
| Barber Shops |
3 |
| Beauty Salons |
71 |
|
Bed-and-Breakfast Inns |
1 |
| Beer and Ale Merchant Wholesalers |
1 |
| Beer, Wine, and Liquor Stores |
27 |
| Bituminous Coal Underground Mining |
1 |
| Blind and Shade Manufacturing |
2 |
| Blood and Organ Banks |
6 |
| Boat Dealers |
1 |
| Book Publishers |
2 |
|
Book Stores |
20 |
| Bowling Centers |
3 |
| Breweries |
1 |
| Building Inspection Services |
4 |
| Burial Casket Manufacturing |
2 |
| Business Associations |
33 |
| Cable and Other Program Distribution |
3 |
| Cafeterias |
7 |
|
Canvas and Related Product Mills |
2 |
| Car Washes |
14 |
| Carpet and Rug Mills |
2 |
| Carpet and Upholstery Cleaning Services |
16 |
| Caterers |
13 |
| Cemeteries and Crematories |
3 |
| Charter Bus Industry |
1 |
| Child and Youth Services |
12 |
|
Child Day Care Services |
85 |
| Children's and Infants' Clothing Stores |
10 |
| Civic and Social Organizations |
33 |
| Claims Adjusting |
13 |
| Clothing Accessories Stores |
7 |
| Coffee and Tea Manufacturing |
1 |
| Coin-Operated Laundries and Drycleaners |
13 |
| Collection Agencies |
7 |
|
Commercial Lithographic Printing |
19 |
| Commercial Photography |
6 |
| Commercial Screen Printing |
5 |
| Commodity Contracts Brokerage |
1 |
| Commodity Contracts Dealing |
1 |
| Community Food Services |
3 |
| Computer and Software Stores |
14 |
| Computer Facilities Management Services |
5 |
|
Computer Systems Design Services |
42 |
| Computer Terminal Manufacturing |
1 |
| Computer Training |
10 |
| Concrete Block and Brick Manufacturing |
1 |
| Concrete Pipe Manufacturing |
1 |
| Confectionery and Nut Stores |
3 |
| Confectionery Merchant Wholesalers |
3 |
| Construction Machinery Manufacturing |
2 |
|
Consumer Lending |
16 |
| Continuing Care Retirement Communities |
3 |
| Convenience Stores |
17 |
| Convention and Trade Show Organizers |
5 |
| Cosmetology and Barber Schools |
3 |
| Couriers |
11 |
| Court Reporting and Stenotype Services |
11 |
| Credit Bureaus |
2 |
|
Credit Card Issuing |
1 |
| Credit Unions |
19 |
| Curtain and Drapery Mills |
4 |
| Custom Compounding of Purchased Resins |
1 |
| Custom Computer Programming Services |
42 |
| Dance Companies |
4 |
| Dental Laboratories |
13 |
| Diagnostic Imaging Centers |
9 |
|
Diet and Weight Reducing Centers |
4 |
| Digital Printing |
4 |
| Direct Life Insurance Carriers |
17 |
| Direct Mail Advertising |
3 |
| Direct Title Insurance Carriers |
3 |
| Directory and Mailing List Publishers |
8 |
| Discount Department Stores |
5 |
| Display Advertising |
2 |
|
Document Preparation Services |
8 |
| Drafting Services |
3 |
| Drilling Oil and Gas Wells |
3 |
| Drinking Places (Alcoholic Beverages) |
42 |
| Drywall and Insulation Contractors |
17 |
| Educational Support Services |
11 |
| Electric Power Distribution |
9 |
| Electrical Contractors |
64 |
|
Electron Tube Manufacturing |
1 |
| Electronic Auctions |
1 |
| Electronic Shopping |
7 |
| Elementary and Secondary Schools |
15 |
| Emergency and Other Relief Services |
2 |
| Employment Placement Agencies |
13 |
| Engineering Services |
99 |
| Environmental Consulting Services |
9 |
|
Exam Preparation and Tutoring |
8 |
| Exterminating and Pest Control Services |
11 |
| Fabric Coating Mills |
1 |
| Facilities Support Services |
4 |
| Family Clothing Stores |
34 |
| Family Planning Centers |
4 |
| Farm Supplies Merchant Wholesalers |
4 |
| Fine Arts Schools |
17 |
|
Finish Carpentry Contractors |
28 |
| Fitness and Recreational Sports Centers |
41 |
| Floor Covering Stores |
17 |
| Flooring Contractors |
9 |
| Florists |
19 |
| Food (Health) Supplement Stores |
8 |
| Food Service Contractors |
27 |
| Footwear and Leather Goods Repair |
5 |
|
Formal Wear and Costume Rental |
3 |
| Fossil Fuel Electric Power Generation |
1 |
| Framing Contractors |
11 |
| Freight Transportation Arrangement |
8 |
| Fruit and Vegetable Canning |
1 |
| Fruit and Vegetable Markets |
1 |
| Full-Service Restaurants |
251 |
| Funeral Homes and Funeral Services |
7 |
|
Furniture Merchant Wholesalers |
3 |
| Furniture Stores |
31 |
| General Automotive Repair |
52 |
| General Freight Trucking, Local |
18 |
| General Medical and Surgical Hospitals |
5 |
| General Rental Centers |
8 |
| General Warehousing and Storage |
17 |
| Gift, Novelty, and Souvenir Stores |
47 |
|
Glass and Glazing Contractors |
7 |
| Golf Courses and Country Clubs |
6 |
| Grantmaking Foundations |
12 |
| Graphic Design Services |
15 |
| Gypsum Product Manufacturing |
1 |
| Hardware Manufacturing |
1 |
| Hardware Merchant Wholesalers |
8 |
| Hardware Stores |
9 |
|
Hazardous Waste Treatment and Disposal |
1 |
| Historical Sites |
1 |
| Hobby, Toy, and Game Stores |
12 |
| Home Centers |
5 |
| Home Furnishing Merchant Wholesalers |
6 |
| Home Health Care Services |
19 |
| Home Health Equipment Rental |
6 |
| Homes for the Elderly |
10 |
|
Household Appliance Stores |
14 |
| Human Rights Organizations |
3 |
| Ice Manufacturing |
1 |
| Industrial Building Construction |
1 |
| Industrial Launderers |
8 |
| Industrial Mold Manufacturing |
1 |
| Industrial Valve Manufacturing |
1 |
| Insurance Agencies and Brokerages |
176 |
|
Interior Design Services |
29 |
| Internet Publishing and Broadcasting |
7 |
| Internet Service Providers |
6 |
| Investigation Services |
2 |
| Investment Advice |
17 |
| Iron and Steel Forging |
1 |
| Iron Foundries |
1 |
| Janitorial Services |
57 |
|
Jewelry Stores |
40 |
| Junior Colleges |
2 |
| Kidney Dialysis Centers |
5 |
| Land Subdivision |
11 |
| Landscape Architectural Services |
10 |
| Landscaping Services |
70 |
| Lessors of Other Real Estate Property |
8 |
| Libraries and Archives |
1 |
|
Limited-Service Restaurants |
238 |
| Limousine Service |
1 |
| Linen Supply |
1 |
| Livestock Merchant Wholesalers |
4 |
| Local Messengers and Local Delivery |
9 |
| Locksmiths |
3 |
| Logging |
1 |
| Luggage and Leather Goods Stores |
1 |
|
Luggage Manufacturing |
1 |
| Machine Shops |
9 |
| Mail-Order Houses |
6 |
| Manifold Business Forms Printing |
2 |
| Manufactured (Mobile) Home Dealers |
1 |
| Marketing Consulting Services |
17 |
| Masonry Contractors |
32 |
| Meat Markets |
2 |
|
Meat Processed from Carcasses |
1 |
| Media Buying Agencies |
1 |
| Media Representatives |
2 |
| Medical Laboratories |
11 |
| Men's Clothing Stores |
15 |
| Metal Heat Treating |
2 |
| Miscellaneous Intermediation |
6 |
| Mobile Food Services |
1 |
|
Monetary Authorities-Central Bank |
1 |
| Mortgage and Nonmortgage Loan Brokers |
26 |
| Motion Picture and Video Production |
10 |
| Motor Vehicle Metal Stamping |
3 |
| Motor Vehicle Towing |
3 |
| Motorcycle Dealers |
5 |
| Museums |
8 |
| Musical Groups and Artists |
4 |
|
Musical Instrument and Supplies Stores |
5 |
| Nail Salons |
11 |
| Natural Gas Distribution |
1 |
| New Car Dealers |
25 |
| New Housing Operative Builders |
17 |
| News Dealers and Newsstands |
1 |
| Newspaper Publishers |
6 |
| Nonresidential Property Managers |
22 |
|
Nursing Care Facilities |
17 |
| Office Administrative Services |
32 |
| Office Equipment Merchant Wholesalers |
17 |
| Office Supplies and Stationery Stores |
13 |
| Offices of Bank Holding Companies |
1 |
| Offices of Certified Public Accountants |
73 |
| Offices of Chiropractors |
31 |
| Offices of Dentists |
162 |
|
Offices of Lawyers |
229 |
| Offices of Optometrists |
15 |
| Offices of Other Holding Companies |
5 |
| Offices of Podiatrists |
13 |
| Offices of Real Estate Appraisers |
28 |
| One-Hour Photofinishing |
3 |
| Ophthalmic Goods Merchant Wholesalers |
1 |
| Optical Goods Stores |
15 |
|
Outdoor Power Equipment Stores |
4 |
| Packaging and Labeling Services |
1 |
| Packing and Crating |
1 |
| Paging |
3 |
| Paint and Coating Manufacturing |
2 |
| Paint and Wallpaper Stores |
11 |
| Painting and Wall Covering Contractors |
34 |
| Parking Lots and Garages |
30 |
|
Passenger Car Rental |
10 |
| Payroll Services |
9 |
| Periodical Publishers |
20 |
| Perishable Prepared Food Manufacturing |
1 |
| Pet and Pet Supplies Stores |
7 |
| Pet Care (except Veterinary) Services |
12 |
| Petroleum Bulk Stations and Terminals |
2 |
| Pharmacies and Drug Stores |
38 |
|
Photography Studios, Portrait |
19 |
| Pipeline Transportation of Natural Gas |
1 |
| Plastics Bottle Manufacturing |
1 |
| Plastics Plumbing Fixture Manufacturing |
1 |
| Political Organizations |
4 |
| Portfolio Management |
16 |
| Precision Turned Product Manufacturing |
2 |
| Prepress Services |
4 |
|
Private Mail Centers |
5 |
| Professional Employer Organizations |
2 |
| Professional Organizations |
19 |
| Public Relations Agencies |
6 |
| Quick Printing |
7 |
| Racetracks |
2 |
| Radio Networks |
1 |
| Radio Stations |
18 |
|
Ready-Mix Concrete Manufacturing |
3 |
| Real Estate Credit |
47 |
| Recreational Vehicle Dealers |
2 |
| Reinsurance Carriers |
1 |
| Remediation Services |
7 |
| Repossession Services |
4 |
| Residential Property Managers |
35 |
| Residential Remodelers |
54 |
|
Retail Bakeries |
5 |
| Reupholstery and Furniture Repair |
3 |
| Roofing Contractors |
25 |
| Rooming and Boarding Houses |
13 |
| Sales Financing |
8 |
| Satellite Telecommunications |
2 |
| Savings Institutions |
9 |
| Scheduled Passenger Air Transportation |
7 |
|
Securities Brokerage |
34 |
| Security Guards and Patrol Services |
11 |
| Septic Tank and Related Services |
2 |
| Sheet Metal Work Manufacturing |
6 |
| Shoe Stores |
30 |
| Siding Contractors |
8 |
| Sign Manufacturing |
4 |
| Site Preparation Contractors |
24 |
|
Small Arms Manufacturing |
1 |
| Snack and Nonalcoholic Beverage Bars |
37 |
| Soft Drink Manufacturing |
1 |
| Software Publishers |
8 |
| Solid Waste Collection |
7 |
| Solid Waste Landfill |
1 |
| Sound Recording Studios |
3 |
| Special Needs Transportation |
4 |
|
Sporting Goods Stores |
32 |
| Sports and Recreation Instruction |
17 |
| Sports Teams and Clubs |
3 |
| Support Activities for Coal Mining |
2 |
| Tax Preparation Services |
23 |
| Taxi Service |
3 |
| Telecommunications Resellers |
2 |
| Telemarketing Bureaus |
1 |
|
Telephone Answering Services |
2 |
| Television Broadcasting |
4 |
| Temporary Help Services |
39 |
| Temporary Shelters |
7 |
| Testing Laboratories |
9 |
| Textile Machinery Manufacturing |
1 |
| Theater Companies and Dinner Theaters |
2 |
| Tile and Terrazzo Contractors |
8 |
|
Tire and Tube Merchant Wholesalers |
3 |
| Tire Dealers |
16 |
| Title Abstract and Settlement Offices |
13 |
| Tobacco Stemming and Redrying |
1 |
| Tobacco Stores |
12 |
| Tour Operators |
1 |
| Translation and Interpretation Services |
2 |
| Travel Agencies |
12 |
|
Travel Trailer and Camper Manufacturing |
1 |
| Truss Manufacturing |
2 |
| Used Car Dealers |
20 |
| Used Household and Office Goods Moving |
6 |
| Used Merchandise Stores |
29 |
| Vending Machine Operators |
11 |
| Veterinary Services |
54 |
| Video Tape and Disc Rental |
8 |
|
Vocational Rehabilitation Services |
4 |
| Voluntary Health Organizations |
7 |
| Warehouse Clubs and Supercenters |
5 |
| Water Supply and Irrigation Systems |
3 |
| Wholesale Trade Agents and Brokers |
60 |
| Window Treatment Stores |
4 |
| Wineries |
2 |
| Wired Telecommunications Carriers |
27 |
|
Women's Clothing Stores |
47 |
| Wood Container and Pallet Manufacturing |
4 |
What About Franchising Opportunities?
As you drive around Lexington, you may be surprised to see how many franchises there are in the area. But is franchising the right option for you?
We highly recommend you investigate buying a franchise. We have many articles on franchises, such as Growth Trends in Franchising. Gain a solid understanding of franchising by scanning all of our Articles on Franchising.
A comprehensive list of franchisors is available via our List of Franchise Opportunities.
Sample franchise opportunities include Subway Franchises and Starbucks Franchises. Alternatively, you can browse franchise categories, such as Accounting Franchises and Moving Franchises.
Note on Lexington Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Lexington.
Is Buying an Existing Lexington Business a Good Strategy?
We've created a useful website page for those who want to Buy a Business in Kentucky. Follow that link and you might discover several good businesses for sale in Lexington.
Before buying a business, be sure to read this article: Buying a Business.
Naming the Company
Making the right decision when choosing a company name is very important. There are many decisions you'll make now that you can change later, but changing a company name years down the road is not very easy. So, choose a good company name at the outset.
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.
For other considerations regarding naming a company, we recommend this article: Naming a Company.
As a final piece of advice, remember that because you are planning on starting a business in Lexington, it's imperative that you check now that no other Kentucky company is using the business name you want to use.
Forming a Company in Lexington, Kentucky
A critical step is ensuring that your business is formed as a legal entity that is separate from its owners. 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. Of course, you have to decide which type of corporation to form and where to incorporate. If you are starting a business in Kentucky, you don't necessarily have to incorporate in Kentucky. In fact, you are allowed to 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 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 Incorporating Online. You may also want to seek the advice of an attorney. Finally, if you are starting a business in Lexington, Kentucky, our information on Incorporating in Kentucky may be a useful resource if you decide to incorporate in Kentucky.
Don't Skip the Business Plan
A business plan is essential in maximizing the prospects of your new company. Simply put, your business plan is your game plan for how you hope to grow your business. Starting a business without a business plan is a recipe for disaster.
If you want more information on writing business plans, we recommend reading Business Plan Contests. A great resource for business planning assistance is the face-to-face free consulting available from your local SCORE chapter in Kentucky.
Raising Capital for Your Business
Getting your Lexington business the capital it needs to succeed is very difficult due to the ongoing business credit crunch. 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 securing funding, such as How to Raise Money.
For Lexington entrepreneurs who need startup capital, you'll want to take a look at our List of Kentucky Angel Investors and our List of Kentucky Venture Capital Firms.
Letting the World Know You Exist
Whether your goal is to attract Lexington customers or you plan on selling elsewhere, you need a excellent marketing plan.
We have some helpful resources on this site for entrepreneurs who are working on marketing plans. Yellow Pages Advertising Advice 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 sampling of the many useful articles we have on Marketing a Small Business.
Ramping Up Sales
Mastering the art of selling is priority one if you want your new Lexington business to do well.
Why should customers buy from you instead of buying from competitors? Fortunately, we've got plenty of good advice to help you improve your selling skills.
Compensating Sales People offers some helpful tips on how to sell. It's one of several good articles on our site regarding Entrepreneurial Selling.
How to Improve Your Entrepreneurial Abilities
Good business owners recognize that what they know now may not be enough to ensure their future success.
Given that you are starting a business in Lexington, Kentucky, you will want to take advantage of the many programs available at nearby Kentucky universities, colleges and community colleges. It's also beneficial to see if there are any networking groups or organizations in which Lexington entrepreneurs get together to network and trade their business experiences.
Now It's Up To You
Most new Lexington businesses underestimate the number of challenges they will face.
If you choose the right business and love what you do, you will greatly increase your odds of success.
This site is all about helping entrepreneurs in Lexington and elsewhere to achieve real success. We believe entrepreneurship is an amazing engine for job creation in Lexington, neighborhood development and overall economic health.
More Entrepreneurial Resources for Starting a Business in Lexington, Kentucky
Here are more links that we believe will help you be successful in starting a business in Lexington.
- Resources for Lexington, Kentucky Entrepreneurs - Browse a variety of resources we've collected to assist Lexington entrepreneurs.
- Kentucky Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Kentucky.
- Kentucky Small Business Development Center - The Kentucky Small Business Development Center (KSBDC) has been assisting Kentucky small business community for more than 25 years. KSBDC is co-sponsored by the U.S. Small Business Administration and is administered by the University of Kentucky in partnership with regional universities, community and private colleges, and the private sector.
- Lexington, Kentucky Newspaper Ad Rates - This is a nearly comprehensive list of advertising rates for Lexington, Kentucky newspapers, including ad costs for newspapers serving the Lexington area.
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