Thinking about starting a business in Nashville, Tennessee? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Nashville.
Are You Ready for the Challenges of Being an Entrepreneur?
Before quitting your day job, consider your entrepreneurial instincts and capabilities.
While entrepreneurship has become a popular career choice, we recommend you do the following before you take the plunge:
- Talk to other entrepreneurs in Nashville. Listen closely to their experiences and see if you think you too can be successful.
- We recommend reading Should You Become an Entrepreneur?. For aspiring new entrepreneurs, it's a must read article.
- Have a candid conversation with friends and family. Ask them directly: Do I have what it takes to be an entrepreneur? Listen carefully to their answer, as they presumably know your strengths and weaknesses.
What Business to Start
An important decision is what kind of business you want to start. We recommend that you read Business Ideas That Don't Make Sense.
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.
Don't forget that Nashville is the place where you are starting a business. Think about what needs are currently being underserved in Nashville. A critical consideration is whether Nashville demographics mesh well with your startup concept.
Nashville, Tennessee Demographic Information
Nashville has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Nashville demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Nashville.
| Business Size | # of
Businesses |
| 1-4 Employees |
169744 |
| 5-9 Employees |
67856 |
| 10-19 Employees |
51480 |
| 20-49 Employees |
40704 |
| 50-99 Employees |
14688 |
| 100-249 Employees |
9192 |
| 250-499 Employees |
2448 |
| 500-999 Employees |
720 |
| 1000+ Employees |
528 |
| All Nashville Businesses |
357360 |
As a new Nashville entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Nashville 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 |
47 |
| Ambulance Services |
4 |
| Amusement Arcades |
1 |
| Animal (except Poultry) Slaughtering |
2 |
| Appliance Repair and Maintenance |
7 |
| Apprenticeship Training |
5 |
| Architectural Services |
72 |
| Armored Car Services |
7 |
| Art Dealers |
12 |
| Audio and Video Equipment Manufacturing |
1 |
| Automobile Driving Schools |
1 |
| Automotive Exhaust System Repair |
7 |
| Automotive Glass Replacement Shops |
14 |
| Automotive Parts and Accessories Stores |
73 |
| Automotive Transmission Repair |
13 |
| Baked Goods Stores |
10 |
| Barber Shops |
3 |
| Beauty Salons |
122 |
| Beer and Ale Merchant Wholesalers |
3 |
| Beer, Wine, and Liquor Stores |
51 |
| Blood and Organ Banks |
3 |
| Boat Dealers |
4 |
| Book Publishers |
18 |
| Book Stores |
25 |
| Books Printing |
5 |
| Bowling Centers |
5 |
| Breweries |
2 |
| Broom, Brush, and Mop Manufacturing |
1 |
| Building Inspection Services |
3 |
| Business and Secretarial Schools |
2 |
| Business Associations |
64 |
| Business to Business Electronic Markets |
3 |
| Cable and Other Program Distribution |
6 |
| Cafeterias |
26 |
| Camera and Photographic Supplies Stores |
4 |
| Canvas and Related Product Mills |
3 |
| Car Washes |
36 |
| Carpet and Rug Mills |
2 |
| Carpet and Upholstery Cleaning Services |
20 |
| Casino Hotels |
1 |
| Caterers |
37 |
| Cemeteries and Crematories |
5 |
| Charter Bus Industry |
3 |
| Child and Youth Services |
36 |
| Child Day Care Services |
152 |
| Children's and Infants' Clothing Stores |
19 |
| Civic and Social Organizations |
72 |
| Claims Adjusting |
13 |
| Clothing Accessories Stores |
11 |
| Coffee and Tea Manufacturing |
1 |
| Coin-Operated Laundries and Drycleaners |
20 |
| Collection Agencies |
16 |
| Commercial Bakeries |
6 |
| Commercial Flexographic Printing |
3 |
| Commercial Gravure Printing |
2 |
| Commercial Lithographic Printing |
51 |
| Commercial Photography |
8 |
| Commercial Screen Printing |
11 |
| Commodity Contracts Brokerage |
2 |
| Community Food Services |
4 |
| Computer and Software Stores |
18 |
| Computer Facilities Management Services |
8 |
| Computer Systems Design Services |
66 |
| Computer Terminal Manufacturing |
1 |
| Computer Training |
9 |
| Concrete Block and Brick Manufacturing |
1 |
| Confectionery and Nut Stores |
3 |
| Confectionery Merchant Wholesalers |
3 |
| Construction Machinery Manufacturing |
1 |
| Construction Sand and Gravel Mining |
1 |
| Consumer Lending |
30 |
| Continuing Care Retirement Communities |
7 |
| Convenience Stores |
25 |
| Convention and Trade Show Organizers |
20 |
| Convention and Visitors Bureaus |
3 |
| Copper Wire (except Mechanical) Drawing |
1 |
| Cosmetology and Barber Schools |
4 |
| Couriers |
28 |
| Court Reporting and Stenotype Services |
2 |
| Credit Bureaus |
5 |
| Credit Card Issuing |
1 |
| Credit Unions |
36 |
| Curtain and Drapery Mills |
1 |
| Custom Compounding of Purchased Resins |
3 |
| Custom Computer Programming Services |
73 |
| Custom Roll Forming |
1 |
| Dance Companies |
3 |
| Deep Sea Freight Transportation |
1 |
| Dental Laboratories |
11 |
| Diagnostic Imaging Centers |
15 |
| Diet and Weight Reducing Centers |
8 |
| Digital Printing |
2 |
| Direct Life Insurance Carriers |
44 |
| Direct Mail Advertising |
12 |
| Direct Title Insurance Carriers |
27 |
| Directory and Mailing List Publishers |
9 |
| Discount Department Stores |
7 |
| Display Advertising |
7 |
| Document Preparation Services |
10 |
| Drafting Services |
6 |
| Dried and Dehydrated Food Manufacturing |
1 |
| Drinking Places (Alcoholic Beverages) |
60 |
| Dry Pasta Manufacturing |
1 |
| Drywall and Insulation Contractors |
21 |
| Educational Support Services |
17 |
| Electrical Contractors |
116 |
| Electronic Auctions |
2 |
| Electronic Shopping |
13 |
| Elementary and Secondary Schools |
41 |
| Emergency and Other Relief Services |
6 |
| Employment Placement Agencies |
17 |
| Engineering Services |
127 |
| Envelope Manufacturing |
1 |
| Environmental Consulting Services |
12 |
| Exam Preparation and Tutoring |
16 |
| Exterminating and Pest Control Services |
23 |
| Fabric Coating Mills |
1 |
| Facilities Support Services |
15 |
| Family Clothing Stores |
47 |
| Family Planning Centers |
3 |
| Farm Supplies Merchant Wholesalers |
8 |
| Fine Arts Schools |
23 |
| Finish Carpentry Contractors |
21 |
| Fish and Seafood Markets |
2 |
| Fitness and Recreational Sports Centers |
46 |
| Flat Glass Manufacturing |
1 |
| Flight Training |
2 |
| Floor Covering Stores |
32 |
| Flooring Contractors |
27 |
| Florists |
35 |
| Fluid Milk Manufacturing |
2 |
| Food (Health) Supplement Stores |
17 |
| Food Product Machinery Manufacturing |
2 |
| Food Service Contractors |
77 |
| Footwear and Leather Goods Repair |
4 |
| Footwear Merchant Wholesalers |
6 |
| Formal Wear and Costume Rental |
6 |
| Framing Contractors |
13 |
| Freight Transportation Arrangement |
40 |
| Fruit and Vegetable Markets |
5 |
| Full-Service Restaurants |
399 |
| Funeral Homes and Funeral Services |
22 |
| Furniture Merchant Wholesalers |
9 |
| Furniture Stores |
48 |
| General Automotive Repair |
108 |
| General Freight Trucking, Local |
27 |
| General Medical and Surgical Hospitals |
12 |
| General Rental Centers |
14 |
| General Warehousing and Storage |
30 |
| Gift, Novelty, and Souvenir Stores |
45 |
| Glass and Glazing Contractors |
8 |
| Golf Courses and Country Clubs |
6 |
| Grantmaking Foundations |
21 |
| Graphic Design Services |
51 |
| Greeting Card Publishers |
1 |
| Hand and Edge Tool Manufacturing |
1 |
| Hardware Manufacturing |
1 |
| Hardware Merchant Wholesalers |
17 |
| Hardware Stores |
25 |
| Hazardous Waste Collection |
6 |
| Hazardous Waste Treatment and Disposal |
13 |
| Heating Oil Dealers |
1 |
| Historical Sites |
2 |
| HMO Medical Centers |
2 |
| Hobby, Toy, and Game Stores |
22 |
| Home Centers |
6 |
| Home Furnishing Merchant Wholesalers |
16 |
| Home Health Care Services |
36 |
| Home Health Equipment Rental |
8 |
| Homes for the Elderly |
14 |
| Household Appliance Stores |
8 |
| Human Rights Organizations |
15 |
| Ice Manufacturing |
1 |
| Industrial Building Construction |
2 |
| Industrial Design Services |
1 |
| Industrial Gas Manufacturing |
1 |
| Industrial Launderers |
8 |
| Industrial Mold Manufacturing |
2 |
| Inland Water Freight Transportation |
4 |
| Institutional Furniture Manufacturing |
1 |
| Insurance Agencies and Brokerages |
294 |
| Interior Design Services |
29 |
| Internet Publishing and Broadcasting |
8 |
| Internet Service Providers |
9 |
| Interurban and Rural Bus Transportation |
4 |
| Investigation Services |
7 |
| Investment Advice |
48 |
| Iron and Steel Mills |
1 |
| Iron Foundries |
2 |
| Irradiation Apparatus Manufacturing |
1 |
| Janitorial Services |
118 |
| Jewelry (except Costume) Manufacturing |
2 |
| Jewelry Stores |
46 |
| Junior Colleges |
6 |
| Kidney Dialysis Centers |
12 |
| Land Subdivision |
19 |
| Landscape Architectural Services |
18 |
| Landscaping Services |
111 |
| Language Schools |
3 |
| Lessors of Other Real Estate Property |
10 |
| Libraries and Archives |
2 |
| Limited-Service Restaurants |
406 |
| Limousine Service |
2 |
| Linen Supply |
2 |
| Local Messengers and Local Delivery |
10 |
| Locksmiths |
4 |
| Luggage and Leather Goods Stores |
4 |
| Luggage Manufacturing |
1 |
| Machine Shops |
11 |
| Mail-Order Houses |
15 |
| Manifold Business Forms Printing |
2 |
| Manufactured (Mobile) Home Dealers |
4 |
| Marinas |
1 |
| Marine Cargo Handling |
2 |
| Marketing Consulting Services |
40 |
| Marking Device Manufacturing |
2 |
| Masonry Contractors |
33 |
| Mattress Manufacturing |
3 |
| Meat Markets |
6 |
| Meat Processed from Carcasses |
1 |
| Media Buying Agencies |
4 |
| Media Representatives |
8 |
| Medical Laboratories |
19 |
| Men's Clothing Stores |
29 |
| Metal Heat Treating |
1 |
| Metal Stamping |
1 |
| Metal Window and Door Manufacturing |
1 |
| Miscellaneous Intermediation |
13 |
| Mobile Food Services |
4 |
| Monetary Authorities-Central Bank |
1 |
| Mortgage and Nonmortgage Loan Brokers |
38 |
| Motion Picture and Video Production |
62 |
| Motor and Generator Manufacturing |
1 |
| Motor Vehicle Body Manufacturing |
1 |
| Motor Vehicle Towing |
17 |
| Motorcycle Dealers |
7 |
| Museums |
9 |
| Music Publishers |
85 |
| Musical Groups and Artists |
186 |
| Musical Instrument and Supplies Stores |
9 |
| Musical Instrument Manufacturing |
6 |
| Nail Salons |
7 |
| Natural Gas Distribution |
2 |
| New Car Dealers |
36 |
| New Housing Operative Builders |
13 |
| News Syndicates |
3 |
| Newspaper Publishers |
13 |
| Nonresidential Property Managers |
29 |
| Nursing Care Facilities |
18 |
| Office Administrative Services |
59 |
| Office Equipment Merchant Wholesalers |
26 |
| Office Supplies and Stationery Stores |
22 |
| Offices of Certified Public Accountants |
111 |
| Offices of Chiropractors |
44 |
| Offices of Dentists |
196 |
| Offices of Lawyers |
435 |
| Offices of Optometrists |
24 |
| Offices of Other Holding Companies |
17 |
| Offices of Podiatrists |
12 |
| Offices of Real Estate Appraisers |
34 |
| One-Hour Photofinishing |
6 |
| Ophthalmic Goods Manufacturing |
4 |
| Ophthalmic Goods Merchant Wholesalers |
4 |
| Optical Goods Stores |
26 |
| Outdoor Power Equipment Stores |
3 |
| Packaging and Labeling Services |
4 |
| Packing and Crating |
2 |
| Paging |
3 |
| Paint and Coating Manufacturing |
3 |
| Paint and Wallpaper Stores |
15 |
| Painting and Wall Covering Contractors |
31 |
| Paper Industry Machinery Manufacturing |
1 |
| Parking Lots and Garages |
80 |
| Passenger Car Rental |
34 |
| Payroll Services |
15 |
| Periodical Publishers |
34 |
| Perishable Prepared Food Manufacturing |
2 |
| Pet and Pet Supplies Stores |
14 |
| Pet Care (except Veterinary) Services |
14 |
| Petroleum Bulk Stations and Terminals |
8 |
| Petroleum Refineries |
1 |
| Pharmacies and Drug Stores |
72 |
| Photography Studios, Portrait |
16 |
| Pipeline Transportation of Natural Gas |
1 |
| Plastics Plumbing Fixture Manufacturing |
2 |
| Political Organizations |
13 |
| Portfolio Management |
40 |
| Poultry Processing |
1 |
| Prepress Services |
12 |
| Printing Ink Manufacturing |
9 |
| Private Mail Centers |
11 |
| Professional Employer Organizations |
8 |
| Professional Organizations |
46 |
| Public Relations Agencies |
42 |
| Quick Printing |
12 |
| Radio Networks |
11 |
| Radio Stations |
39 |
| Ready-Mix Concrete Manufacturing |
9 |
| Real Estate Credit |
77 |
| Real Estate Investment Trusts |
12 |
| Record Production |
14 |
| Recreational Goods Rental |
1 |
| Recreational Vehicle Dealers |
5 |
| Refrigerated Warehousing and Storage |
2 |
| Reinsurance Carriers |
2 |
| Remediation Services |
8 |
| Repossession Services |
4 |
| Residential Property Managers |
88 |
| Residential Remodelers |
73 |
| Retail Bakeries |
4 |
| Reupholstery and Furniture Repair |
7 |
| Roofing Contractors |
20 |
| Rooming and Boarding Houses |
9 |
| Sales Financing |
14 |
| Satellite Telecommunications |
2 |
| Savings Institutions |
1 |
| Sawmills |
2 |
| Scheduled Passenger Air Transportation |
18 |
| School and Employee Bus Transportation |
1 |
| Securities Brokerage |
59 |
| Security Guards and Patrol Services |
41 |
| Septic Tank and Related Services |
2 |
| Sheet Metal Work Manufacturing |
3 |
| Shoe Stores |
62 |
| Siding Contractors |
13 |
| Sign Manufacturing |
18 |
| Site Preparation Contractors |
20 |
| Small Arms Ammunition Manufacturing |
1 |
| Snack and Nonalcoholic Beverage Bars |
49 |
| Soap and Other Detergent Manufacturing |
1 |
| Soft Drink Manufacturing |
3 |
| Software Publishers |
15 |
| Software Reproducing |
2 |
| Solid Waste Collection |
13 |
| Solid Waste Landfill |
3 |
| Sound Recording Studios |
52 |
| Special Needs Transportation |
4 |
| Sporting Goods Stores |
35 |
| Sports and Recreation Instruction |
9 |
| Sports Teams and Clubs |
4 |
| Spring (Light Gauge) Manufacturing |
2 |
| Steel Wire Drawing |
1 |
| Storage Battery Manufacturing |
1 |
| Tax Preparation Services |
30 |
| Taxi Service |
4 |
| Telecommunications Resellers |
8 |
| Telemarketing Bureaus |
10 |
| Telephone Answering Services |
4 |
| Telephone Apparatus Manufacturing |
1 |
| Television Broadcasting |
8 |
| Temporary Help Services |
96 |
| Temporary Shelters |
7 |
| Testing Laboratories |
11 |
| Textile Machinery Manufacturing |
2 |
| Theater Companies and Dinner Theaters |
14 |
| Thread Mills |
2 |
| Tile and Terrazzo Contractors |
14 |
| Tire and Tube Merchant Wholesalers |
8 |
| Tire Dealers |
41 |
| Tire Retreading |
3 |
| Title Abstract and Settlement Offices |
22 |
| Tobacco Stores |
11 |
| Toilet Preparation Manufacturing |
1 |
| Tortilla Manufacturing |
1 |
| Tour Operators |
11 |
| Tradebinding and Related Work |
13 |
| Translation and Interpretation Services |
4 |
| Travel Agencies |
38 |
| Used Car Dealers |
83 |
| Used Household and Office Goods Moving |
11 |
| Used Merchandise Stores |
54 |
| Vending Machine Operators |
25 |
| Veterinary Services |
34 |
| Video Tape and Disc Rental |
29 |
| Vocational Rehabilitation Services |
16 |
| Voluntary Health Organizations |
29 |
| Warehouse Clubs and Supercenters |
3 |
| Water Supply and Irrigation Systems |
3 |
| Wholesale Trade Agents and Brokers |
105 |
| Window Treatment Stores |
1 |
| Wired Telecommunications Carriers |
50 |
| Women's Clothing Stores |
76 |
| Wood Container and Pallet Manufacturing |
1 |
| Wood Preservation |
1 |
| Wood Window and Door Manufacturing |
2 |
| Zoos and Botanical Gardens |
2 |
Should You Franchise?
Examine a list of Nashville businesses and you'll notice that many local entrepreneurs have gone the franchising route. But is franchising the right option for you?
Most business experts recommend that you consider franchising as an option. We have many articles on franchises, such as Evaluating Franchise Opportunities. 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.
Sample franchise opportunities include Subway Franchises and Starbucks Franchises. Alternatively, you can browse franchise categories, such as Accounting Franchises and Moving Franchises.
Note on Nashville Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Nashville.
Have You Considered Buying an Existing Nashville Business?
If you have some capital to play with, you may want to Buy a Business in Tennessee. Follow that link and you can review several good businesses for sale in Nashville.
For anybody who wants to buy a business, we recommend reading this useful article: Buying a Business.
Selecting a Name For Your Venture
A big decision when starting a company is choosing a company name. Believe it or not, choosing a good company name can be a big contributor to your business success.
We strongly advocate that you make sure the ".com" domain name is available for your company name. Every business needs a strong Web presence these days, and having a non ".com" domain means somebody else may outrank you in the search results for your own company name.
Numerous company naming issues are discussed in more detail in this article: Branding Advice.
On a final note, given that you are starting a business in Nashville, it's very important that you make sure no other Tennessee company is using the business name you want to use.
Company Formation in Nashville, Tennessee
It's very important that your business is formed as a legal entity that is separate from its owners. Among other things, forming a legal entity for the business limits your liabilities.
The entity you form can be a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.
Incorporating is a very common way to legally create a business entity. Of course, you have to decide which type of corporation to form and where to incorporate. Just because you are starting a business in Tennessee, you don't necessarily have to incorporate in Tennessee. 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'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 Getting an EIN. You should also consider getting professional assistance from your business lawyer. Finally, if you are starting a business in Nashville, Tennessee, our information on Incorporating in Tennessee may be a useful resource if you decide to incorporate in Tennessee.
Don't Forget to Create a Business Plan
Creating a business plan is vital to the health of your new business. Indeed, your business plan is your game plan for how you hope to grow your business. Failure to write a business plan
To learn more about business plans, read Business Plan Contests. You can also get free counseling sessions provided by your local SCORE chapter in Tennessee.
Getting Money to Start a Business
Getting your Nashville business the capital it needs to succeed requires strong organization skills and perseverance. If you don't have a rich uncle to fund you, you'll need to be creative in how you approach your fundraising efforts.
To learn about raising money, we recommend you read the fundraising articles on our site, such as 504 Loans.
For Nashville entrepreneurs in need of startup financing, check out our List of Tennessee Angel Investors and our List of Tennessee Venture Capital Firms.
Letting the World Know You Exist
Whether your goal is to attract Nashville 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. Holiday-Powered Marketing is a good read to get your marketing juices flowing. There are many more articles on marketing on our site. Visit our Small Business Marketing resource section to see them all.
The Art of Selling
Being able to sell is fundamental to your business success. Whether you are focused on selling local customers in Nashville or are selling to customers throughout Tennessee, the United States or even the world, you have to be able to sell.
The key to selling is to set sales goals goals and monitor your progress towards those goals. Let us help you refine your selling techniques through our many useful sales advice tips.
Tips on Customer Referrals 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.
Increase Your Entrepreneurial Knowledge
Good business owners know that they don't know everything.
As an entrepreneur who lives in Nashville, Tennessee, you will want to take advantage of the learning programs at local Tennessee educational institutions. It's also worthwhile to see if there are any Nashville networking organizations.
Never Give Up
You have a dream -- starting a business in Nashville. To achieve your dream, you have to persevere, even when the odds are against you.
If you choose the right business and love what you do, you will greatly increase your odds of success.
We are here to help Nashville businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Nashville, neighborhood development and overall economic health.
More Entrepreneurial Resources for Starting a Business in Nashville, Tennessee
Here are more links that we believe will help you be successful in starting a business in Nashville.
More Startup Articles for Tennessee Cities
Starting a Business in Murfreesboro
Starting a Business in Newport
Browse All
Business Startup Guides for Tennessee
