Thinking about starting a business in Los Angeles, California? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Los Angeles.
Most new companies do not succeed, in part because the founder did not have the entrepreneurial skills and traits needed to succeed. So, before you open a business, consider all of the implications of being an entrepreneur.
While entrepreneurship has become a popular career choice, we recommend you do the following before you take the plunge:
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 How to Evaluate a Business Idea.
Always keep in mind that you are starting a business in Los Angeles. Some businesses will do better in Los Angeles than others. Only by spending some time analyzing Los Angeles demographics can you decide if there will be strong demand for your business idea.
Los Angeles has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Los Angeles demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Los Angeles.
As a new Los Angeles entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Los Angeles 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 |
| Abrasive Product Manufacturing |
5 |
| Adhesive Manufacturing |
1 |
| Advertising Agencies |
190 |
| Alkalies and Chlorine Manufacturing |
1 |
| Aluminum Die-Casting Foundries |
6 |
| Aluminum Extruded Product Manufacturing |
3 |
| Aluminum Foundries (except Die-Casting) |
3 |
| Ambulance Services |
11 |
| Amusement and Theme Parks |
4 |
| Amusement Arcades |
7 |
| Animal (except Poultry) Slaughtering |
7 |
| Appliance Repair and Maintenance |
18 |
| Apprenticeship Training |
11 |
| Architectural Services |
321 |
| Armored Car Services |
9 |
| Art Dealers |
83 |
| Audio and Video Equipment Manufacturing |
5 |
| Automatic Vending Machine Manufacturing |
2 |
| Automobile Driving Schools |
21 |
| Automotive Exhaust System Repair |
19 |
| Automotive Glass Replacement Shops |
25 |
| Automotive Parts and Accessories Stores |
200 |
| Automotive Transmission Repair |
44 |
| Baked Goods Stores |
67 |
| Ball and Roller Bearing Manufacturing |
1 |
| Barber Shops |
21 |
| Beauty Salons |
277 |
| Bed-and-Breakfast Inns |
6 |
| Beer and Ale Merchant Wholesalers |
13 |
| Beer, Wine, and Liquor Stores |
287 |
| Blind and Shade Manufacturing |
7 |
| Blood and Organ Banks |
9 |
| Boat Dealers |
4 |
| Book Publishers |
27 |
| Book Stores |
90 |
| Books Printing |
7 |
| Bottled Water Manufacturing |
4 |
| Bowling Centers |
10 |
| Breakfast Cereal Manufacturing |
2 |
| Breweries |
1 |
| Broadwoven Fabric Finishing Mills |
52 |
| Broadwoven Fabric Mills |
25 |
| Broom, Brush, and Mop Manufacturing |
6 |
| Building Inspection Services |
12 |
| Burial Casket Manufacturing |
1 |
| Business and Secretarial Schools |
7 |
| Business Associations |
96 |
| Business to Business Electronic Markets |
39 |
| Cable and Other Program Distribution |
39 |
| Cafeterias |
54 |
| Camera and Photographic Supplies Stores |
16 |
| Canvas and Related Product Mills |
8 |
| Car Washes |
135 |
| Carbon Black Manufacturing |
1 |
| Carpet and Rug Mills |
3 |
| Carpet and Upholstery Cleaning Services |
28 |
| Caterers |
94 |
| Cemeteries and Crematories |
9 |
| Charter Bus Industry |
12 |
| Cheese Manufacturing |
3 |
| Child and Youth Services |
116 |
| Child Day Care Services |
512 |
| Children's and Infants' Clothing Stores |
72 |
| Civic and Social Organizations |
144 |
| Claims Adjusting |
14 |
| Clothing Accessories Stores |
107 |
| Coffee and Tea Manufacturing |
4 |
| Coin-Operated Laundries and Drycleaners |
148 |
| Collection Agencies |
23 |
| Commercial Bakeries |
53 |
| Commercial Flexographic Printing |
5 |
| Commercial Gravure Printing |
1 |
| Commercial Lithographic Printing |
147 |
| Commercial Photography |
80 |
| Commercial Screen Printing |
63 |
| Commodity Contracts Brokerage |
10 |
| Commodity Contracts Dealing |
24 |
| Community Food Services |
28 |
| Computer and Software Stores |
59 |
| Computer Facilities Management Services |
17 |
| Computer Systems Design Services |
240 |
| Computer Terminal Manufacturing |
1 |
| Computer Training |
22 |
| Concrete Block and Brick Manufacturing |
1 |
| Confectionery and Nut Stores |
22 |
| Confectionery Merchant Wholesalers |
31 |
| Construction Machinery Manufacturing |
1 |
| Construction Sand and Gravel Mining |
1 |
| Consumer Lending |
28 |
| Continuing Care Retirement Communities |
11 |
| Convenience Stores |
153 |
| Convention and Trade Show Organizers |
49 |
| Convention and Visitors Bureaus |
5 |
| Cookie and Cracker Manufacturing |
8 |
| Copper Foundries (except Die-Casting) |
1 |
| Copper Rolling, Drawing, and Extruding |
1 |
| Copper Wire (except Mechanical) Drawing |
2 |
| Cosmetology and Barber Schools |
12 |
| Couriers |
88 |
| Court Reporting and Stenotype Services |
32 |
| Credit Bureaus |
7 |
| Credit Card Issuing |
3 |
| Credit Unions |
66 |
| Curtain and Drapery Mills |
18 |
| Custom Compounding of Purchased Resins |
4 |
| Custom Computer Programming Services |
298 |
| Custom Roll Forming |
3 |
| Cut Stock, Resawing Lumber, and Planing |
6 |
| Dance Companies |
9 |
| Deep Sea Freight Transportation |
2 |
| Deep Sea Passenger Transportation |
3 |
| Dental Laboratories |
71 |
| Diagnostic Imaging Centers |
55 |
| Diet and Weight Reducing Centers |
11 |
| Digital Printing |
16 |
| Direct Life Insurance Carriers |
57 |
| Direct Mail Advertising |
27 |
| Direct Title Insurance Carriers |
12 |
| Directory and Mailing List Publishers |
9 |
| Discount Department Stores |
20 |
| Display Advertising |
20 |
| Document Preparation Services |
51 |
| Dog and Cat Food Manufacturing |
6 |
| Doll and Stuffed Toy Manufacturing |
4 |
| Drafting Services |
8 |
| Dried and Dehydrated Food Manufacturing |
1 |
| Drinking Places (Alcoholic Beverages) |
228 |
| Drive-In Motion Picture Theaters |
2 |
| Dry Pasta Manufacturing |
5 |
| Drywall and Insulation Contractors |
22 |
| Educational Support Services |
72 |
| Electric Power Distribution |
4 |
| Electrical Contractors |
226 |
| Electronic Auctions |
4 |
| Electronic Computer Manufacturing |
3 |
| Electronic Shopping |
113 |
| Elementary and Secondary Schools |
280 |
| Emergency and Other Relief Services |
17 |
| Employment Placement Agencies |
150 |
| Engineering Services |
219 |
| Envelope Manufacturing |
4 |
| Environmental Consulting Services |
35 |
| Exam Preparation and Tutoring |
62 |
| Exterminating and Pest Control Services |
69 |
| Fabric Coating Mills |
4 |
| Facilities Support Services |
29 |
| Family Clothing Stores |
233 |
| Family Planning Centers |
26 |
| Farm Management Services |
1 |
| Farm Product Warehousing and Storage |
1 |
| Farm Supplies Merchant Wholesalers |
18 |
| Fats and Oils Refining and Blending |
5 |
| Fertilizer (Mixing Only) Manufacturing |
1 |
| Fine Arts Schools |
91 |
| Finish Carpentry Contractors |
61 |
| Fish and Seafood Markets |
36 |
| Fish and Seafood Merchant Wholesalers |
51 |
| Fitness and Recreational Sports Centers |
139 |
| Flat Glass Manufacturing |
1 |
| Floor Covering Stores |
83 |
| Flooring Contractors |
54 |
| Florists |
107 |
| Flour Milling |
7 |
| Fluid Milk Manufacturing |
5 |
| Folding Paperboard Box Manufacturing |
9 |
| Food (Health) Supplement Stores |
66 |
| Food Product Machinery Manufacturing |
1 |
| Food Service Contractors |
132 |
| Footwear and Leather Goods Repair |
16 |
| Footwear Merchant Wholesalers |
86 |
| Formal Wear and Costume Rental |
20 |
| Fossil Fuel Electric Power Generation |
1 |
| Framing Contractors |
20 |
| Freight Transportation Arrangement |
253 |
| Fresh and Frozen Seafood Processing |
9 |
| Frozen Specialty Food Manufacturing |
5 |
| Fruit and Vegetable Canning |
9 |
| Fruit and Vegetable Markets |
51 |
| Full-Service Restaurants |
1,755 |
| Funeral Homes and Funeral Services |
35 |
| Fur and Leather Apparel Manufacturing |
10 |
| Furniture Merchant Wholesalers |
114 |
| Furniture Stores |
238 |
| General Automotive Repair |
461 |
| General Freight Trucking, Local |
149 |
| General Medical and Surgical Hospitals |
30 |
| General Rental Centers |
19 |
| General Warehousing and Storage |
62 |
| Gift, Novelty, and Souvenir Stores |
225 |
| Glass and Glazing Contractors |
25 |
| Glass Container Manufacturing |
1 |
| Glove and Mitten Manufacturing |
1 |
| Golf Courses and Country Clubs |
18 |
| Grantmaking Foundations |
135 |
| Graphic Design Services |
254 |
| Greeting Card Publishers |
2 |
| Gum and Wood Chemical Manufacturing |
1 |
| Hand and Edge Tool Manufacturing |
11 |
| Hardware Manufacturing |
8 |
| Hardware Merchant Wholesalers |
49 |
| Hardware Stores |
61 |
| Hat, Cap, and Millinery Manufacturing |
7 |
| Hazardous Waste Collection |
1 |
| Hazardous Waste Treatment and Disposal |
6 |
| Heavy Duty Truck Manufacturing |
1 |
| Historical Sites |
4 |
| HMO Medical Centers |
9 |
| Hobby, Toy, and Game Stores |
40 |
| Home Centers |
18 |
| Home Furnishing Merchant Wholesalers |
168 |
| Home Health Care Services |
155 |
| Home Health Equipment Rental |
4 |
| Homes for the Elderly |
90 |
| Household Appliance Stores |
47 |
| Human Rights Organizations |
45 |
| Hunting and Trapping |
1 |
| Hydroelectric Power Generation |
1 |
| Ice Manufacturing |
2 |
| Industrial Building Construction |
2 |
| Industrial Design Services |
27 |
| Industrial Gas Manufacturing |
5 |
| Industrial Launderers |
27 |
| Industrial Mold Manufacturing |
2 |
| Industrial Pattern Manufacturing |
2 |
| Inland Water Freight Transportation |
1 |
| Inorganic Dye and Pigment Manufacturing |
2 |
| Institutional Furniture Manufacturing |
10 |
| Insurance Agencies and Brokerages |
529 |
| Interior Design Services |
171 |
| International Trade Financing |
16 |
| Internet Publishing and Broadcasting |
50 |
| Internet Service Providers |
73 |
| Interurban and Rural Bus Transportation |
10 |
| Investigation Services |
39 |
| Investment Advice |
244 |
| Iron and Steel Forging |
1 |
| Iron and Steel Mills |
4 |
| Iron Foundries |
6 |
| Irradiation Apparatus Manufacturing |
1 |
| Janitorial Services |
233 |
| Jewelry (except Costume) Manufacturing |
140 |
| Jewelry Stores |
425 |
| Junior Colleges |
16 |
| Kidney Dialysis Centers |
23 |
| Land Subdivision |
50 |
| Landscape Architectural Services |
41 |
| Landscaping Services |
124 |
| Language Schools |
22 |
| Lead Pencil and Art Good Manufacturing |
1 |
| Leather and Hide Tanning and Finishing |
4 |
| Lessors of Other Real Estate Property |
38 |
| Libraries and Archives |
9 |
| Limited-Service Restaurants |
1,654 |
| Limousine Service |
48 |
| Linen Supply |
8 |
| Livestock Merchant Wholesalers |
3 |
| Local Messengers and Local Delivery |
73 |
| Locksmiths |
25 |
| Logging |
1 |
| Luggage and Leather Goods Stores |
30 |
| Luggage Manufacturing |
2 |
| Machine Shops |
55 |
| Mail-Order Houses |
49 |
| Manifold Business Forms Printing |
5 |
| Manufactured (Mobile) Home Dealers |
1 |
| Marinas |
5 |
| Marine Cargo Handling |
1 |
| Marketing Consulting Services |
212 |
| Marking Device Manufacturing |
2 |
| Masonry Contractors |
17 |
| Materials Recovery Facilities |
7 |
| Mattress Manufacturing |
24 |
| Meat Markets |
88 |
| Meat Processed from Carcasses |
20 |
| Media Buying Agencies |
24 |
| Media Representatives |
57 |
| Medical Laboratories |
38 |
| Medicinal and Botanical Manufacturing |
2 |
| Men's and Boys' Neckwear Manufacturing |
4 |
| Men's Clothing Stores |
112 |
| Metal Can Manufacturing |
1 |
| Metal Heat Treating |
8 |
| Metal Household Furniture Manufacturing |
11 |
| Metal Stamping |
12 |
| Metal Tank (Heavy Gauge) Manufacturing |
3 |
| Metal Window and Door Manufacturing |
17 |
| Mineral Wool Manufacturing |
1 |
| Miscellaneous Intermediation |
65 |
| Mixed Mode Transit Systems |
1 |
| Mobile Food Services |
19 |
| Monetary Authorities-Central Bank |
2 |
| Mortgage and Nonmortgage Loan Brokers |
145 |
| Motion Picture and Video Distribution |
48 |
| Motion Picture and Video Production |
1,328 |
| Motor Vehicle Body Manufacturing |
2 |
| Motor Vehicle Metal Stamping |
4 |
| Motor Vehicle Towing |
70 |
| Motorcycle Dealers |
6 |
| Museums |
38 |
| Music Publishers |
39 |
| Musical Groups and Artists |
174 |
| Musical Instrument and Supplies Stores |
32 |
| Musical Instrument Manufacturing |
4 |
| Nail Salons |
155 |
| Narrow Fabric Mills |
11 |
| Natural Gas Distribution |
25 |
| New Car Dealers |
77 |
| New Housing Operative Builders |
24 |
| News Dealers and Newsstands |
23 |
| News Syndicates |
26 |
| Newspaper Publishers |
67 |
| Nitrogenous Fertilizer Manufacturing |
1 |
| Nonferrous Forging |
1 |
| Nonresidential Property Managers |
217 |
| Nonwoven Fabric Mills |
3 |
| Nursing Care Facilities |
84 |
| Office Administrative Services |
347 |
| Office Equipment Merchant Wholesalers |
61 |
| Office Supplies and Stationery Stores |
66 |
| Offices of Bank Holding Companies |
4 |
| Offices of Certified Public Accountants |
593 |
| Offices of Chiropractors |
193 |
| Offices of Dentists |
958 |
| Offices of Lawyers |
2,845 |
| Offices of Optometrists |
111 |
| Offices of Other Holding Companies |
61 |
| Offices of Podiatrists |
49 |
| Offices of Real Estate Appraisers |
41 |
| One-Hour Photofinishing |
22 |
| Open-End Investment Funds |
6 |
| Ophthalmic Goods Manufacturing |
2 |
| Ophthalmic Goods Merchant Wholesalers |
20 |
| Optical Goods Stores |
54 |
| Outdoor Power Equipment Stores |
4 |
| Outerwear Knitting Mills |
18 |
| Packaging and Labeling Services |
24 |
| Packaging Machinery Manufacturing |
6 |
| Packing and Crating |
11 |
| Paging |
8 |
| Paint and Coating Manufacturing |
19 |
| Paint and Wallpaper Stores |
31 |
| Painting and Wall Covering Contractors |
119 |
| Paper (except Newsprint) Mills |
2 |
| Paper Industry Machinery Manufacturing |
1 |
| Paperboard Mills |
3 |
| Parking Lots and Garages |
716 |
| Passenger Car Leasing |
8 |
| Passenger Car Rental |
84 |
| Payroll Services |
61 |
| Pen and Mechanical Pencil Manufacturing |
1 |
| Periodical Publishers |
107 |
| Perishable Prepared Food Manufacturing |
7 |
| Pet and Pet Supplies Stores |
53 |
| Pet Care (except Veterinary) Services |
37 |
| Petroleum Bulk Stations and Terminals |
11 |
| Pharmacies and Drug Stores |
320 |
| Photography Studios, Portrait |
94 |
| Pipeline Transportation of Crude Oil |
1 |
| Plastics Bag Manufacturing |
8 |
| Plastics Bottle Manufacturing |
3 |
| Plate Work Manufacturing |
4 |
| Political Organizations |
38 |
| Polystyrene Foam Product Manufacturing |
7 |
| Portfolio Management |
182 |
| Poultry Processing |
8 |
| Powder Metallurgy Part Manufacturing |
2 |
| Precision Turned Product Manufacturing |
7 |
| Prepress Services |
25 |
| Printing Ink Manufacturing |
8 |
| Private Mail Centers |
23 |
| Professional Employer Organizations |
31 |
| Professional Organizations |
63 |
| Public Relations Agencies |
195 |
| Quick Printing |
74 |
| Radio Networks |
9 |
| Radio Stations |
48 |
| Ready-Mix Concrete Manufacturing |
10 |
| Real Estate Credit |
140 |
| Real Estate Investment Trusts |
24 |
| Record Production |
19 |
| Recreational Goods Rental |
8 |
| Recreational Vehicle Dealers |
1 |
| Refrigerated Warehousing and Storage |
26 |
| Reinsurance Carriers |
8 |
| Remediation Services |
7 |
| Rendering and Meat Byproduct Processing |
4 |
| Repossession Services |
5 |
| Residential Property Managers |
348 |
| Residential Remodelers |
226 |
| Retail Bakeries |
113 |
| Reupholstery and Furniture Repair |
76 |
| Roofing Contractors |
47 |
| Rooming and Boarding Houses |
45 |
| Sales Financing |
50 |
| Sanitary Paper Product Manufacturing |
1 |
| Satellite Telecommunications |
4 |
| Savings Institutions |
107 |
| Sawmills |
1 |
| Scheduled Freight Air Transportation |
20 |
| Scheduled Passenger Air Transportation |
74 |
| Schiffli Machine Embroidery |
3 |
| School and Employee Bus Transportation |
15 |
| Seafood Canning |
7 |
| Secondary Market Financing |
2 |
| Securities Brokerage |
124 |
| Security Guards and Patrol Services |
165 |
| Septic Tank and Related Services |
2 |
| Setup Paperboard Box Manufacturing |
1 |
| Sheer Hosiery Mills |
3 |
| Sheet Metal Work Manufacturing |
20 |
| Ship Building and Repairing |
1 |
| Shoe Stores |
222 |
| Siding Contractors |
8 |
| Sign Manufacturing |
25 |
| Silverware and Hollowware Manufacturing |
2 |
| Site Preparation Contractors |
30 |
| Small Arms Ammunition Manufacturing |
1 |
| Snack and Nonalcoholic Beverage Bars |
436 |
| Soap and Other Detergent Manufacturing |
4 |
| Soft Drink Manufacturing |
3 |
| Software Publishers |
49 |
| Software Reproducing |
2 |
| Solid Waste Collection |
18 |
| Solid Waste Landfill |
3 |
| Sound Recording Studios |
82 |
| Soybean Processing |
3 |
| Special Needs Transportation |
18 |
| Specialty Canning |
1 |
| Spice and Extract Manufacturing |
7 |
| Sporting Goods Stores |
65 |
| Sports and Recreation Instruction |
39 |
| Sports Teams and Clubs |
7 |
| Spring (Light Gauge) Manufacturing |
2 |
| Steam and Air-Conditioning Supply |
2 |
| Steel Foundries (except Investment) |
3 |
| Steel Investment Foundries |
1 |
| Steel Wire Drawing |
2 |
| Storage Battery Manufacturing |
1 |
| Surface Active Agent Manufacturing |
2 |
| Surface-Coated Paperboard Manufacturing |
1 |
| Synthetic Rubber Manufacturing |
2 |
| Tax Preparation Services |
142 |
| Taxi Service |
4 |
| Telecommunications Resellers |
32 |
| Telemarketing Bureaus |
23 |
| Telephone Answering Services |
15 |
| Television Broadcasting |
37 |
| Temporary Help Services |
163 |
| Temporary Shelters |
27 |
| Testing Laboratories |
20 |
| Textile Bag Mills |
2 |
| Textile Machinery Manufacturing |
2 |
| Theater Companies and Dinner Theaters |
73 |
| Thread Mills |
2 |
| Tile and Terrazzo Contractors |
25 |
| Tire and Tube Merchant Wholesalers |
14 |
| Tire Dealers |
67 |
| Tire Manufacturing (except Retreading) |
1 |
| Tire Retreading |
1 |
| Title Abstract and Settlement Offices |
17 |
| Tobacco Stores |
20 |
| Toilet Preparation Manufacturing |
14 |
| Tortilla Manufacturing |
13 |
| Tour Operators |
56 |
| Tradebinding and Related Work |
16 |
| Translation and Interpretation Services |
26 |
| Travel Agencies |
255 |
| Truck Trailer Manufacturing |
1 |
| Underwear and Nightwear Knitting Mills |
1 |
| Used Car Dealers |
87 |
| Used Household and Office Goods Moving |
51 |
| Used Merchandise Stores |
129 |
| Vending Machine Operators |
17 |
| Veterinary Services |
67 |
| Video Tape and Disc Rental |
108 |
| Vocational Rehabilitation Services |
93 |
| Voluntary Health Organizations |
40 |
| Warehouse Clubs and Supercenters |
1 |
| Watch, Clock, and Part Manufacturing |
1 |
| Water Supply and Irrigation Systems |
5 |
| Web Search Portals |
11 |
| Weft Knit Fabric Mills |
15 |
| Wholesale Trade Agents and Brokers |
672 |
| Window Treatment Stores |
14 |
| Wineries |
7 |
| Wired Telecommunications Carriers |
140 |
| Women's Clothing Stores |
413 |
| Women's Handbag and Purse Manufacturing |
5 |
| Wood Container and Pallet Manufacturing |
17 |
| Wood Office Furniture Manufacturing |
4 |
| Wood Preservation |
2 |
| Wood Window and Door Manufacturing |
4 |
| Yarn Spinning Mills |
7 |
| Zoos and Botanical Gardens |
2 |
Writing a business plan is critical in laying a solid foundation for your business success. In effect, a business plan describes what you plan to do with the business and how you plan to do it. Starting a business without a business plan will greatly reduce your chances of business success.
Mastering the art of selling is a must if you want your new Los Angeles business to do well.
Good selling involves demonstrating that your wares meet your customer's needs. Fortunately, we've got plenty of good advice to help you improve your selling skills.
Successful entrepreneurs recognize that what they know now may not be enough to ensure their future success.
Given that you are starting a business in Los Angeles, California, you will want to take advantage of the many programs available at nearby California universities, colleges and community colleges. It's also worthwhile to see if there are any networking groups or organizations in which Los Angeles entrepreneurs get together to network and trade their business experiences.
Most new Los Angeles businesses underestimate the number of challenges they will face.
From this point on, you control your own destiny.
We are here to help Los Angeles businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Los Angeles, neighborhood development and overall economic health.
Here are more links that we believe will help you be successful in starting a business in Los Angeles.
