Starting a Business in Madison, Connecticut

Thinking about starting a business in Madison, Connecticut? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Madison.

Do You Have Entrepreneurial Drive and Passion?

Running your own business is demanding, and can be orders of magnitude more strenuous than working as an employee. Are you sure you have the stamina and skills to succeed on your own?

Here are three things we recommend you do before you fully commit to starting a new business of your own.

• Reach out to other entrepreneurs in Madison. Get their candid feedback on what it takes to start a successful business.
• Peruse Why Small Businesses Fail. This is one of our more popular articles for folks who want to go into business for themselves.
• Get feedback from somebody whom you trust. 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.

Choosing the Right Company to Start

Choosing a business that is right for you is very important. You might get some good ideas about what kind of business to start by reading Free Business Ideas.

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 Dance Club guide or our Starting a Tatoo Parlor guide.

Always keep in mind that your new startup will be located in Madison. If Madison already has plenty of the kind of business you want to start, you might want to change your plans. Make sure you fully understand Madison demographics before you lock in on your business idea.

Madison, Connecticut Demographic Information

Madison has an active business community that includes small businesses, mid-sized businesses and large businesses.

To give you a better feel for Madison demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Madison.

Business Size	# of Businesses
1-4 Employees	20601
5-9 Employees	6405
10-19 Employees	3654
20-49 Employees	1953
50-99 Employees	945
100-249 Employees	126
250-499 Employees	0
500-999 Employees	0
1000+ Employees	0
All Madison Businesses	33684

As a new Madison entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Madison 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	1
Ambulance Services	1
Architectural Services	4
Art Dealers	2
Automotive Glass Replacement Shops	1
Baked Goods Stores	1
Beauty Salons	9
Bed-and-Breakfast Inns	1
Beer, Wine, and Liquor Stores	5
Boat Dealers	2
Book Publishers	2
Book Stores	1
Building Inspection Services	2
Business to Business Electronic Markets	1
Car Washes	4
Caterers	4
Child and Youth Services	1
Child Day Care Services	8
Children's and Infants' Clothing Stores	1
Civic and Social Organizations	2
Claims Adjusting	1
Clothing Accessories Stores	3
Commercial Lithographic Printing	2
Commercial Photography	1
Computer Facilities Management Services	2
Computer Systems Design Services	5
Computer Training	1
Confectionery and Nut Stores	1
Consumer Lending	1
Convenience Stores	1
Court Reporting and Stenotype Services	1
Custom Computer Programming Services	5
Dental Laboratories	1
Direct Life Insurance Carriers	2
Drinking Places (Alcoholic Beverages)	1
Drywall and Insulation Contractors	1
Educational Support Services	2
Electric Power Distribution	1
Electrical Contractors	7
Elementary and Secondary Schools	5
Employment Placement Agencies	1
Engineering Services	3
Environmental Consulting Services	2
Exam Preparation and Tutoring	1
Exterminating and Pest Control Services	2
Family Clothing Stores	1
Finish Carpentry Contractors	7
Fitness and Recreational Sports Centers	4
Floor Covering Stores	2
Footwear and Leather Goods Repair	1
Full-Service Restaurants	12
Furniture Merchant Wholesalers	1
Furniture Stores	1
General Automotive Repair	3
Gift, Novelty, and Souvenir Stores	3
Golf Courses and Country Clubs	1
Grantmaking Foundations	1
Graphic Design Services	2
Heating Oil Dealers	1
Historical Sites	1
Home Health Care Services	5
Homes for the Elderly	2
Household Appliance Stores	1
Industrial Launderers	4
Insurance Agencies and Brokerages	10
Interior Design Services	1
Internet Service Providers	1
Investment Advice	3
Janitorial Services	2
Jewelry Stores	4
Land Subdivision	3
Landscape Architectural Services	2
Landscaping Services	9
Libraries and Archives	1
Limited-Service Restaurants	10
Machine Shops	1
Mail-Order Houses	1
Marinas	1
Marketing Consulting Services	5
Masonry Contractors	1
Meat Markets	1
Mortgage and Nonmortgage Loan Brokers	5
Musical Instrument and Supplies Stores	1
Nail Salons	1
New Car Dealers	2
Newspaper Publishers	1
Nursing Care Facilities	2
Office Administrative Services	1
Offices of Certified Public Accountants	5
Offices of Chiropractors	3
Offices of Dentists	15
Offices of Lawyers	11
Offices of Other Holding Companies	2
Offices of Podiatrists	2
Offices of Real Estate Appraisers	1
Optical Goods Stores	3
Packaging and Labeling Services	2
Painting and Wall Covering Contractors	9
Periodical Publishers	1
Petroleum Refineries	1
Pharmacies and Drug Stores	2
Portfolio Management	2
Residential Remodelers	6
Retail Bakeries	2
Roofing Contractors	1
Sales Financing	1
Savings Institutions	6
School and Employee Bus Transportation	2
Securities Brokerage	5
Septic Tank and Related Services	1
Siding Contractors	1
Site Preparation Contractors	6
Snack and Nonalcoholic Beverage Bars	4
Software Publishers	2
Sporting Goods Stores	1
Sports and Recreation Instruction	1
Tax Preparation Services	1
Temporary Help Services	1
Travel Agencies	1
Used Car Dealers	1
Used Merchandise Stores	1
Veterinary Services	2
Video Tape and Disc Rental	1
Wholesale Trade Agents and Brokers	8
Window Treatment Stores	1
Wired Telecommunications Carriers	1
Women's Clothing Stores	2

Have You Considered Franchising?

As you drive around Madison, it's apparent that franchising has become a very popular way to start a business. Is franchising maybe a better way for you to start your business?

Our recommendation is that you consider franchising as an option. We have many articles on franchises, such as Benefits of Owning A Franchise. Get a thorough education on franchising by browsing all of our Articles on Franchising.

To learn about specific franchise opportunities, check out our Franchise Directory.

Representative franchise opportunities include Subway Franchises and Starbucks Franchises. Alternatively, you can browse franchise categories, such as Accounting Franchises and Moving Franchises.

Note on Madison Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Madison.

Have You Considered Buying an Existing Madison Business?

We've created a handy website page for those who want to Buy a Business in Connecticut. Follow that link and you can assess several good businesses for sale in Madison.

If you are serious about buying a business, you may want to read this article: How to Buy a Business.

Picking a Company Name

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.

Company names need to be easy to spell, easy to pronounce, and easy to remember.

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 opening a business in Madison, it's critical that you ensure that no Connecticut company has already registered the company name you have selected.

Forming a Company in Madison, Connecticut

It's essential 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.

When forming a company, you will select one of many company types, such as a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.

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 Connecticut, you don't necessarily have to incorporate in Connecticut. In fact, 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 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 Piercing the Corporate Veil. You may also want to seek the advice of an lawyer. On a final note, since you will be starting a business in Madison, Connecticut, our web page covering Incorporating in Connecticut may be a useful resource if you decide to incorporate in Connecticut.

Don't Skip the Business Plan

A business plan is essential in maximizing the prospects of your new company. Simply put, 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 Free Business Plan Templates. You should also take advantage of free business counselors available to you through your local SCORE chapter in Connecticut.

Raising Money for Your New Venture

Obtaining startup financing for your Madison business requires strong organization skills and perseverance. The reality is that there is very little funding available for new small businesses, and you have to explore every possible alternative.

To learn about raising money, we recommend you read the fundraising articles on our site, such as 504 Loans.

For Madison entrepreneurs who want to raise money for a new venture, check out our List of Connecticut Angel Investors and our List of Connecticut Venture Capital Firms.

Marketing Your New Startup

Whether your goal is to attract Madison customers or you plan on selling elsewhere, you'll need to have a good marketing plan.

There are myriad resources on this site to help you with your marketing plan. How to Get Started with Advertsing is an article that will stimulate a few thoughts on your marketing plan. That's just one of the many useful articles we have on Marketing a Small Business.

The Art of Selling

Do you know how to sell? In order to attract customers to your new Madison business, you need to focus on sales.

Good selling involves demonstrating that your wares meet your customer's needs. The good news is we can help you to make selling a big competitve advantage for your new firm.

Landing Big Customers is worth reading, as it may give you some good ideas on how to sell your products or services. We have many more good articles on selling that you may enjoy reading.

Advancing Your Entrepreneurial Skills

The best entrepreneurs recognize that they don't know everything.

As an entrepreneur who lives in Madison, Connecticut, you should check out some of the many programs available at nearby Connecticut universities, colleges and community colleges. Another way to keep up on your learning is to investigate networking groups or organizations in which Madison entrepreneurs get together to network and trade their business experiences.

Now It's Up To You

As an entrepreneur in Madison, you won't be working for the boss anymore. You are the boss.

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 Madison and elsewhere to achieve real success. We want to be there for you to answer your business questions, whether you are a new Madison entrepreneur who is just getting started or you are already up and running with your new venture.

More Entrepreneurial Resources for Starting a Business in Madison, Connecticut

Here are more links that we believe will help you be successful in starting a business in Madison.

• Resources for Madison, Connecticut Entrepreneurs - Browse a variety of resources we've collected to assist Madison entrepreneurs.
• Connecticut Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Connecticut.
• Connecticut Small Business Development Center - Central Connecticut State University's Institute of Technology and Business Development (ITBD) supports Connecticut businesses and business-related organizations with training, technology assistance, conferencing services, procurement services and business incubation.
• Madison, Connecticut Newspaper Ad Rates - This is a nearly comprehensive list of advertising rates for Madison, Connecticut newspapers, including ad costs for newspapers serving the Madison area.

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