Thinking about starting a business in Phoenix, Arizona? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Phoenix.
Most startup ventures fail, in part because the business owner did not have the tenacity and/or the skills to succeed. So, before jumping into the world of entrepreneurship, 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:
Choosing a business that is right for you is very important. To stir your creative juices on what kind of business to start, take a look at Free Business Ideas.
Don't forget that starting a business in Phoenix has some implications. Some businesses will do better in Phoenix than others. Study Phoenix demographics and do a competitive analysis as part of your startup planning process.
Phoenix has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Phoenix demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Phoenix.
As a new Phoenix entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Phoenix 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 |
3 |
| Advertising Agencies |
77 |
| Air and Gas Compressor Manufacturing |
2 |
| Aircraft Manufacturing |
1 |
| Aluminum Extruded Product Manufacturing |
4 |
| Aluminum Foundries (except Die-Casting) |
1 |
| Ambulance Services |
6 |
| Amusement and Theme Parks |
3 |
| Amusement Arcades |
8 |
| Appliance Repair and Maintenance |
28 |
| Apprenticeship Training |
9 |
| Architectural Services |
209 |
| Armored Car Services |
6 |
| Art Dealers |
23 |
| Audio and Video Equipment Manufacturing |
2 |
| Automatic Vending Machine Manufacturing |
1 |
| Automobile Driving Schools |
5 |
| Automotive Exhaust System Repair |
13 |
| Automotive Glass Replacement Shops |
51 |
| Automotive Parts and Accessories Stores |
199 |
| Automotive Transmission Repair |
35 |
| Baked Goods Stores |
16 |
| Barber Shops |
14 |
| Beauty Salons |
257 |
| Bed-and-Breakfast Inns |
2 |
| Beer and Ale Merchant Wholesalers |
5 |
| Beer, Wine, and Liquor Stores |
42 |
| Blind and Shade Manufacturing |
2 |
| Blood and Organ Banks |
7 |
| Boat Building |
2 |
| Boat Dealers |
12 |
| Book Publishers |
9 |
| Book Stores |
46 |
| Books Printing |
5 |
| Bottled Water Manufacturing |
2 |
| Bowling Centers |
11 |
| Broadwoven Fabric Finishing Mills |
1 |
| Broadwoven Fabric Mills |
2 |
| Broom, Brush, and Mop Manufacturing |
1 |
| Building Inspection Services |
31 |
| Burial Casket Manufacturing |
1 |
| Business and Secretarial Schools |
3 |
| Business Associations |
74 |
| Business to Business Electronic Markets |
2 |
| Cable and Other Program Distribution |
15 |
| Cafeterias |
43 |
| Camera and Photographic Supplies Stores |
10 |
| Canvas and Related Product Mills |
7 |
| Car Washes |
76 |
| Carpet and Upholstery Cleaning Services |
43 |
| Casinos (except Casino Hotels) |
2 |
| Caterers |
46 |
| Cemeteries and Crematories |
8 |
| Charter Bus Industry |
6 |
| Child and Youth Services |
44 |
| Child Day Care Services |
183 |
| Children's and Infants' Clothing Stores |
20 |
| Civic and Social Organizations |
77 |
| Claims Adjusting |
33 |
| Clothing Accessories Stores |
29 |
| Coffee and Tea Manufacturing |
1 |
| Coin-Operated Laundries and Drycleaners |
38 |
| Collection Agencies |
49 |
| Commercial Bakeries |
11 |
| Commercial Flexographic Printing |
5 |
| Commercial Gravure Printing |
2 |
| Commercial Lithographic Printing |
76 |
| Commercial Photography |
26 |
| Commercial Screen Printing |
29 |
| Commodity Contracts Brokerage |
5 |
| Commodity Contracts Dealing |
2 |
| Community Food Services |
14 |
| Computer and Software Stores |
48 |
| Computer Facilities Management Services |
10 |
| Computer Systems Design Services |
190 |
| Computer Training |
14 |
| Concrete Block and Brick Manufacturing |
10 |
| Concrete Pipe Manufacturing |
6 |
| Confectionery and Nut Stores |
13 |
| Confectionery Merchant Wholesalers |
7 |
| Construction Machinery Manufacturing |
2 |
| Construction Sand and Gravel Mining |
11 |
| Consumer Lending |
42 |
| Continuing Care Retirement Communities |
13 |
| Convenience Stores |
115 |
| Convention and Trade Show Organizers |
18 |
| Convention and Visitors Bureaus |
4 |
| Copper Foundries (except Die-Casting) |
2 |
| Copper Ore and Nickel Ore Mining |
1 |
| Cosmetology and Barber Schools |
7 |
| Couriers |
47 |
| Court Reporting and Stenotype Services |
38 |
| Credit Bureaus |
7 |
| Credit Card Issuing |
3 |
| Credit Unions |
56 |
| Crop Harvesting, Primarily by Machine |
1 |
| Curtain and Drapery Mills |
6 |
| Custom Compounding of Purchased Resins |
4 |
| Custom Computer Programming Services |
209 |
| Custom Roll Forming |
4 |
| Cut Stock, Resawing Lumber, and Planing |
4 |
| Dance Companies |
2 |
| Dental Laboratories |
36 |
| Diagnostic Imaging Centers |
36 |
| Diet and Weight Reducing Centers |
12 |
| Digital Printing |
6 |
| Dimension Stone Mining and Quarrying |
4 |
| Direct Life Insurance Carriers |
77 |
| Direct Mail Advertising |
19 |
| Direct Title Insurance Carriers |
70 |
| Directory and Mailing List Publishers |
11 |
| Discount Department Stores |
21 |
| Display Advertising |
10 |
| Document Preparation Services |
28 |
| Dog and Cat Food Manufacturing |
2 |
| Drafting Services |
21 |
| Drilling Oil and Gas Wells |
2 |
| Drinking Places (Alcoholic Beverages) |
184 |
| Drywall and Insulation Contractors |
114 |
| Educational Support Services |
24 |
| Electric Power Distribution |
4 |
| Electrical Contractors |
269 |
| Electronic Computer Manufacturing |
2 |
| Electronic Connector Manufacturing |
2 |
| Electronic Shopping |
27 |
| Elementary and Secondary Schools |
106 |
| Emergency and Other Relief Services |
4 |
| Employment Placement Agencies |
62 |
| Engineering Services |
380 |
| Envelope Manufacturing |
2 |
| Environmental Consulting Services |
31 |
| Exam Preparation and Tutoring |
21 |
| Exterminating and Pest Control Services |
75 |
| Facilities Support Services |
7 |
| Family Clothing Stores |
97 |
| Family Planning Centers |
12 |
| Farm Labor Contractors and Crew Leaders |
2 |
| Farm Management Services |
2 |
| Farm Product Warehousing and Storage |
4 |
| Farm Supplies Merchant Wholesalers |
9 |
| Fine Arts Schools |
33 |
| Finish Carpentry Contractors |
126 |
| Fish and Seafood Markets |
1 |
| Fish and Seafood Merchant Wholesalers |
6 |
| Fitness and Recreational Sports Centers |
101 |
| Flight Training |
5 |
| Floor Covering Stores |
52 |
| Flooring Contractors |
67 |
| Florists |
50 |
| Fluid Milk Manufacturing |
2 |
| Folding Paperboard Box Manufacturing |
2 |
| Food (Health) Supplement Stores |
55 |
| Food Service Contractors |
107 |
| Footwear and Leather Goods Repair |
4 |
| Footwear Merchant Wholesalers |
1 |
| Formal Wear and Costume Rental |
11 |
| Fossil Fuel Electric Power Generation |
1 |
| Framing Contractors |
56 |
| Freight Transportation Arrangement |
72 |
| Fresh and Frozen Seafood Processing |
1 |
| Frozen Specialty Food Manufacturing |
1 |
| Fruit and Vegetable Canning |
1 |
| Fruit and Vegetable Markets |
1 |
| Full-Service Restaurants |
734 |
| Funeral Homes and Funeral Services |
26 |
| Furniture Merchant Wholesalers |
40 |
| Furniture Stores |
128 |
| General Automotive Repair |
333 |
| General Freight Trucking, Local |
113 |
| General Medical and Surgical Hospitals |
20 |
| General Rental Centers |
17 |
| General Warehousing and Storage |
64 |
| Gift, Novelty, and Souvenir Stores |
98 |
| Glass and Glazing Contractors |
34 |
| Golf Courses and Country Clubs |
16 |
| Grantmaking Foundations |
44 |
| Graphic Design Services |
95 |
| Gypsum Product Manufacturing |
2 |
| Hand and Edge Tool Manufacturing |
5 |
| Hardware Manufacturing |
6 |
| Hardware Merchant Wholesalers |
40 |
| Hardware Stores |
37 |
| Hazardous Waste Collection |
1 |
| Hazardous Waste Treatment and Disposal |
5 |
| Heating Oil Dealers |
1 |
| Historical Sites |
2 |
| HMO Medical Centers |
5 |
| Hobby, Toy, and Game Stores |
45 |
| Home Centers |
19 |
| Home Furnishing Merchant Wholesalers |
43 |
| Home Health Care Services |
69 |
| Home Health Equipment Rental |
6 |
| Homes for the Elderly |
61 |
| Household Appliance Stores |
28 |
| Human Rights Organizations |
15 |
| Hunting and Trapping |
1 |
| Ice Manufacturing |
1 |
| Industrial Building Construction |
9 |
| Industrial Design Services |
4 |
| Industrial Gas Manufacturing |
1 |
| Industrial Launderers |
11 |
| Industrial Mold Manufacturing |
1 |
| Industrial Pattern Manufacturing |
1 |
| Industrial Sand Mining |
1 |
| Inland Water Passenger Transportation |
1 |
| Inorganic Dye and Pigment Manufacturing |
1 |
| Institutional Furniture Manufacturing |
2 |
| Insurance Agencies and Brokerages |
636 |
| Interior Design Services |
60 |
| International Trade Financing |
2 |
| Internet Publishing and Broadcasting |
11 |
| Internet Service Providers |
19 |
| Interurban and Rural Bus Transportation |
5 |
| Investigation Services |
47 |
| Investment Advice |
135 |
| Iron and Steel Forging |
2 |
| Iron and Steel Mills |
7 |
| Janitorial Services |
271 |
| Jewelry (except Costume) Manufacturing |
8 |
| Jewelry Stores |
112 |
| Junior Colleges |
5 |
| Kidney Dialysis Centers |
14 |
| Land Subdivision |
50 |
| Landscape Architectural Services |
45 |
| Landscaping Services |
344 |
| Language Schools |
4 |
| Lessors of Other Real Estate Property |
45 |
| Libraries and Archives |
4 |
| Limited-Service Restaurants |
957 |
| Limousine Service |
15 |
| Linen Supply |
11 |
| Local Messengers and Local Delivery |
36 |
| Locksmiths |
22 |
| Luggage and Leather Goods Stores |
2 |
| Machine Shops |
100 |
| Mail-Order Houses |
38 |
| Manifold Business Forms Printing |
7 |
| Manufactured (Mobile) Home Dealers |
6 |
| Marinas |
2 |
| Marketing Consulting Services |
144 |
| Marking Device Manufacturing |
3 |
| Masonry Contractors |
107 |
| Materials Recovery Facilities |
5 |
| Mattress Manufacturing |
6 |
| Meat Markets |
29 |
| Meat Processed from Carcasses |
4 |
| Media Buying Agencies |
8 |
| Media Representatives |
10 |
| Medical Laboratories |
69 |
| Medicinal and Botanical Manufacturing |
2 |
| Men's Clothing Stores |
35 |
| Metal Can Manufacturing |
1 |
| Metal Heat Treating |
7 |
| Metal Household Furniture Manufacturing |
4 |
| Metal Stamping |
6 |
| Metal Tank (Heavy Gauge) Manufacturing |
2 |
| Metal Window and Door Manufacturing |
9 |
| Miscellaneous Intermediation |
40 |
| Mobile Food Services |
13 |
| Monetary Authorities-Central Bank |
2 |
| Mortgage and Nonmortgage Loan Brokers |
159 |
| Motion Picture and Video Distribution |
1 |
| Motion Picture and Video Production |
37 |
| Motor and Generator Manufacturing |
1 |
| Motor Vehicle Body Manufacturing |
7 |
| Motor Vehicle Towing |
32 |
| Motorcycle Dealers |
24 |
| Museums |
10 |
| Music Publishers |
1 |
| Musical Groups and Artists |
17 |
| Musical Instrument and Supplies Stores |
18 |
| Nail Salons |
31 |
| Natural Gas Distribution |
5 |
| New Car Dealers |
70 |
| New Housing Operative Builders |
25 |
| News Dealers and Newsstands |
8 |
| News Syndicates |
2 |
| Newspaper Publishers |
24 |
| Nitrogenous Fertilizer Manufacturing |
1 |
| Nonresidential Property Managers |
88 |
| Nuclear Electric Power Generation |
1 |
| Nursing Care Facilities |
37 |
| Office Administrative Services |
146 |
| Office Equipment Merchant Wholesalers |
50 |
| Office Machinery Manufacturing |
1 |
| Office Supplies and Stationery Stores |
46 |
| Offices of Bank Holding Companies |
1 |
| Offices of Certified Public Accountants |
301 |
| Offices of Chiropractors |
217 |
| Offices of Dentists |
482 |
| Offices of Lawyers |
1,070 |
| Offices of Optometrists |
60 |
| Offices of Other Holding Companies |
34 |
| Offices of Podiatrists |
31 |
| Offices of Real Estate Appraisers |
91 |
| One-Hour Photofinishing |
8 |
| Open-End Investment Funds |
3 |
| Ophthalmic Goods Manufacturing |
1 |
| Ophthalmic Goods Merchant Wholesalers |
8 |
| Optical Goods Stores |
66 |
| Outdoor Power Equipment Stores |
9 |
| Outerwear Knitting Mills |
1 |
| Packaging and Labeling Services |
11 |
| Packing and Crating |
8 |
| Paging |
2 |
| Paint and Coating Manufacturing |
6 |
| Paint and Wallpaper Stores |
22 |
| Painting and Wall Covering Contractors |
159 |
| Paperboard Mills |
1 |
| Parking Lots and Garages |
99 |
| Passenger Car Leasing |
3 |
| Passenger Car Rental |
44 |
| Payroll Services |
31 |
| Pen and Mechanical Pencil Manufacturing |
1 |
| Periodical Publishers |
63 |
| Pet and Pet Supplies Stores |
40 |
| Pet Care (except Veterinary) Services |
47 |
| Petroleum Bulk Stations and Terminals |
15 |
| Pharmacies and Drug Stores |
100 |
| Photography Studios, Portrait |
53 |
| Pipeline Transportation of Natural Gas |
2 |
| Plastics Bottle Manufacturing |
2 |
| Plastics Plumbing Fixture Manufacturing |
3 |
| Plate Work Manufacturing |
2 |
| Political Organizations |
14 |
| Polystyrene Foam Product Manufacturing |
8 |
| Portfolio Management |
59 |
| Poultry Processing |
1 |
| Precision Turned Product Manufacturing |
14 |
| Prepress Services |
7 |
| Printing Ink Manufacturing |
5 |
| Private Mail Centers |
48 |
| Professional Employer Organizations |
44 |
| Professional Organizations |
40 |
| Public Relations Agencies |
40 |
| Quick Printing |
37 |
| Racetracks |
2 |
| Radio Networks |
5 |
| Radio Stations |
40 |
| Ready-Mix Concrete Manufacturing |
14 |
| Real Estate Credit |
216 |
| Real Estate Investment Trusts |
19 |
| Record Production |
2 |
| Recreational Goods Rental |
6 |
| Recreational Vehicle Dealers |
11 |
| Refrigerated Warehousing and Storage |
6 |
| Reinsurance Carriers |
5 |
| Remediation Services |
12 |
| Rendering and Meat Byproduct Processing |
1 |
| Repossession Services |
5 |
| Residential Property Managers |
136 |
| Residential Remodelers |
173 |
| Retail Bakeries |
13 |
| Reupholstery and Furniture Repair |
25 |
| Roofing Contractors |
90 |
| Rooming and Boarding Houses |
3 |
| Rope, Cordage, and Twine Mills |
1 |
| Sales Financing |
47 |
| Sanitary Paper Product Manufacturing |
1 |
| Satellite Telecommunications |
5 |
| Savings Institutions |
38 |
| Saw Blade and Handsaw Manufacturing |
2 |
| Scheduled Freight Air Transportation |
4 |
| Scheduled Passenger Air Transportation |
22 |
| School and Employee Bus Transportation |
2 |
| Secondary Market Financing |
1 |
| Securities and Commodity Exchanges |
1 |
| Securities Brokerage |
122 |
| Security Guards and Patrol Services |
54 |
| Semiconductor Machinery Manufacturing |
5 |
| Septic Tank and Related Services |
6 |
| Sheer Hosiery Mills |
1 |
| Sheet Metal Work Manufacturing |
33 |
| Ship Building and Repairing |
1 |
| Shoe Stores |
100 |
| Siding Contractors |
10 |
| Sign Manufacturing |
45 |
| Site Preparation Contractors |
110 |
| Small Arms Ammunition Manufacturing |
1 |
| Small Arms Manufacturing |
2 |
| Snack and Nonalcoholic Beverage Bars |
154 |
| Soap and Other Detergent Manufacturing |
3 |
| Soft Drink Manufacturing |
3 |
| Software Publishers |
39 |
| Software Reproducing |
1 |
| Solid Waste Collection |
20 |
| Solid Waste Combustors and Incinerators |
1 |
| Solid Waste Landfill |
5 |
| Sound Recording Studios |
8 |
| Special Needs Transportation |
10 |
| Spice and Extract Manufacturing |
1 |
| Sporting Goods Stores |
87 |
| Sports and Recreation Instruction |
35 |
| Sports Teams and Clubs |
3 |
| Spring (Heavy Gauge) Manufacturing |
1 |
| Spring (Light Gauge) Manufacturing |
2 |
| Steel Investment Foundries |
2 |
| Steel Wire Drawing |
3 |
| Storage Battery Manufacturing |
1 |
| Support Activities for Forestry |
1 |
| Tax Preparation Services |
118 |
| Taxi Service |
6 |
| Telecommunications Resellers |
14 |
| Telemarketing Bureaus |
26 |
| Telephone Answering Services |
14 |
| Telephone Apparatus Manufacturing |
2 |
| Television Broadcasting |
18 |
| Temporary Help Services |
245 |
| Temporary Shelters |
16 |
| Testing Laboratories |
46 |
| Textile Bag Mills |
2 |
| Theater Companies and Dinner Theaters |
14 |
| Tile and Terrazzo Contractors |
91 |
| Timber Tract Operations |
1 |
| Tire and Tube Merchant Wholesalers |
23 |
| Tire Dealers |
86 |
| Tire Manufacturing (except Retreading) |
1 |
| Tire Retreading |
3 |
| Title Abstract and Settlement Offices |
42 |
| Tobacco Stores |
20 |
| Toilet Preparation Manufacturing |
6 |
| Tortilla Manufacturing |
4 |
| Tour Operators |
12 |
| Tradebinding and Related Work |
15 |
| Translation and Interpretation Services |
6 |
| Travel Agencies |
100 |
| Travel Trailer and Camper Manufacturing |
5 |
| Truck Trailer Manufacturing |
3 |
| Used Car Dealers |
92 |
| Used Household and Office Goods Moving |
48 |
| Used Merchandise Stores |
79 |
| Vending Machine Operators |
41 |
| Veterinary Services |
107 |
| Video Tape and Disc Rental |
69 |
| Vocational Rehabilitation Services |
37 |
| Voluntary Health Organizations |
32 |
| Warehouse Clubs and Supercenters |
24 |
| Water Supply and Irrigation Systems |
9 |
| Web Search Portals |
2 |
| Wholesale Trade Agents and Brokers |
261 |
| Window Treatment Stores |
13 |
| Wired Telecommunications Carriers |
148 |
| Women's Clothing Stores |
92 |
| Wood Container and Pallet Manufacturing |
13 |
| Wood Office Furniture Manufacturing |
6 |
| Wood Preservation |
1 |
| Wood Window and Door Manufacturing |
10 |
| Zoos and Botanical Gardens |
2 |
Examine a list of Phoenix businesses and you may be surprised to see how many franchises there are in the area. But is franchising the right option for you?
Most business experts recommend that you consider franchising as an option. To help you learn more about franchising, we've gathered a ton of articles on franchising, including Evaluating Franchise Opportunities. Get a thorough education on franchising by browsing all of our Articles on Franchising.
It's very important 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.
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 Arizona, you don't necessarily have to incorporate in Arizona. In fact, you can incorporate wherever you want. 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 Nevada Incorporation. You may also want to seek the advice of an attorney. Finally, if you are starting a business in Phoenix, Arizona, our information on Incorporating in Arizona may be a useful resource if you decide to incorporate in Arizona.
Creating a business plan is vital to the health of your new business. Indeed, 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
Most new Phoenix 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.
We are here to help Phoenix businesses to be successful. We have a wealth of experience in business start-ups, financing, marketing, sales and more...and we've made all of our knowledge available to you.
Here are more links that we believe will help you be successful in starting a business in Phoenix.
