Thinking about starting a business in Prescott, Arizona? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Prescott.
Choosing the Right Company to Start
Choosing a business that is right for you is very important. If you are struggling with what type of business to start, 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 Home Health Care Insurance Business guide or our Opening a Party Entertainment Business guide.
Always keep in mind that starting a business in Prescott has some implications. The business you want to start may already be well-represented in Prescott. Don't forget to review Prescott demographics to see if there's a market for what you want to sell.
Prescott, Arizona Demographic Information
Prescott has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for Prescott demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Prescott.
| Business Size | # of
Businesses |
| 1-4 Employees |
33408 |
| 5-9 Employees |
10656 |
| 10-19 Employees |
6936 |
| 20-49 Employees |
3744 |
| 50-99 Employees |
1368 |
| 100-249 Employees |
672 |
| 250-499 Employees |
72 |
| 500-999 Employees |
48 |
| 1000+ Employees |
24 |
| All Prescott Businesses |
56928 |
As a new Prescott entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Prescott 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 |
2 |
| Ambulance Services |
2 |
| Appliance Repair and Maintenance |
2 |
| Architectural Services |
11 |
| Art Dealers |
7 |
| Automobile Driving Schools |
1 |
| Automotive Exhaust System Repair |
1 |
| Automotive Glass Replacement Shops |
3 |
| Automotive Parts and Accessories Stores |
11 |
| Automotive Transmission Repair |
3 |
| Barber Shops |
1 |
| Beauty Salons |
22 |
| Bed-and-Breakfast Inns |
4 |
| Beer and Ale Merchant Wholesalers |
1 |
| Beer, Wine, and Liquor Stores |
2 |
| Blood and Organ Banks |
1 |
| Book Publishers |
3 |
| Book Stores |
6 |
| Bowling Centers |
1 |
| Building Inspection Services |
5 |
| Business Associations |
4 |
| Cafeterias |
2 |
| Camera and Photographic Supplies Stores |
1 |
| Car Washes |
7 |
| Carpet and Upholstery Cleaning Services |
4 |
| Caterers |
1 |
| Cemeteries and Crematories |
1 |
| Child and Youth Services |
4 |
| Child Day Care Services |
10 |
| Children's and Infants' Clothing Stores |
1 |
| Civic and Social Organizations |
2 |
| Claims Adjusting |
2 |
| Clothing Accessories Stores |
4 |
| Coin-Operated Laundries and Drycleaners |
3 |
| Commercial Lithographic Printing |
1 |
| Commercial Photography |
2 |
| Commercial Screen Printing |
1 |
| Commodity Contracts Brokerage |
2 |
| Community Food Services |
1 |
| Computer and Software Stores |
2 |
| Computer Facilities Management Services |
1 |
| Computer Systems Design Services |
4 |
| Concrete Block and Brick Manufacturing |
1 |
| Confectionery and Nut Stores |
1 |
| Confectionery Merchant Wholesalers |
1 |
| Construction Machinery Manufacturing |
2 |
| Construction Sand and Gravel Mining |
1 |
| Consumer Lending |
2 |
| Continuing Care Retirement Communities |
3 |
| Convenience Stores |
4 |
| Convention and Trade Show Organizers |
2 |
| Convention and Visitors Bureaus |
1 |
| Copper Foundries (except Die-Casting) |
2 |
| Couriers |
1 |
| Court Reporting and Stenotype Services |
3 |
| Credit Unions |
4 |
| Custom Computer Programming Services |
6 |
| Dental Laboratories |
3 |
| Diagnostic Imaging Centers |
3 |
| Diet and Weight Reducing Centers |
1 |
| Direct Life Insurance Carriers |
4 |
| Direct Title Insurance Carriers |
4 |
| Directory and Mailing List Publishers |
1 |
| Discount Department Stores |
2 |
| Document Preparation Services |
2 |
| Drafting Services |
3 |
| Drinking Places (Alcoholic Beverages) |
14 |
| Drywall and Insulation Contractors |
8 |
| Educational Support Services |
1 |
| Electrical Contractors |
15 |
| Elementary and Secondary Schools |
11 |
| Engineering Services |
19 |
| Environmental Consulting Services |
3 |
| Exterminating and Pest Control Services |
8 |
| Facilities Support Services |
1 |
| Family Clothing Stores |
8 |
| Family Planning Centers |
3 |
| Fine Arts Schools |
2 |
| Finish Carpentry Contractors |
9 |
| Fitness and Recreational Sports Centers |
6 |
| Flight Training |
3 |
| Floor Covering Stores |
8 |
| Flooring Contractors |
4 |
| Florists |
4 |
| Food (Health) Supplement Stores |
6 |
| Food Service Contractors |
4 |
| Footwear and Leather Goods Repair |
1 |
| Fossil Fuel Electric Power Generation |
1 |
| Framing Contractors |
14 |
| Freight Transportation Arrangement |
1 |
| Fruit and Vegetable Canning |
1 |
| Fruit and Vegetable Markets |
1 |
| Full-Service Restaurants |
73 |
| Funeral Homes and Funeral Services |
3 |
| Furniture Merchant Wholesalers |
1 |
| Furniture Stores |
8 |
| General Automotive Repair |
24 |
| General Freight Trucking, Local |
2 |
| General Medical and Surgical Hospitals |
2 |
| General Rental Centers |
1 |
| Gift, Novelty, and Souvenir Stores |
15 |
| Glass and Glazing Contractors |
2 |
| Golf Courses and Country Clubs |
1 |
| Grantmaking Foundations |
2 |
| Graphic Design Services |
4 |
| Hardware Stores |
2 |
| Hobby, Toy, and Game Stores |
4 |
| Home Centers |
3 |
| Home Health Care Services |
4 |
| Home Health Equipment Rental |
1 |
| Homes for the Elderly |
9 |
| Household Appliance Stores |
5 |
| Industrial Building Construction |
1 |
| Industrial Design Services |
1 |
| Insurance Agencies and Brokerages |
38 |
| Interior Design Services |
4 |
| Internet Publishing and Broadcasting |
1 |
| Internet Service Providers |
1 |
| Interurban and Rural Bus Transportation |
1 |
| Investigation Services |
3 |
| Investment Advice |
5 |
| Janitorial Services |
14 |
| Jewelry (except Costume) Manufacturing |
2 |
| Jewelry Stores |
8 |
| Kidney Dialysis Centers |
1 |
| Land Subdivision |
8 |
| Landscape Architectural Services |
3 |
| Landscaping Services |
27 |
| Lessors of Other Real Estate Property |
7 |
| Limited-Service Restaurants |
49 |
| Livestock Merchant Wholesalers |
1 |
| Local Messengers and Local Delivery |
2 |
| Locksmiths |
1 |
| Machine Shops |
2 |
| Mail-Order Houses |
7 |
| Marinas |
1 |
| Marketing Consulting Services |
7 |
| Masonry Contractors |
15 |
| Media Representatives |
1 |
| Medical Laboratories |
2 |
| Metal Window and Door Manufacturing |
1 |
| Miscellaneous Intermediation |
2 |
| Mortgage and Nonmortgage Loan Brokers |
7 |
| Motor Vehicle Body Manufacturing |
1 |
| Motor Vehicle Towing |
3 |
| Motorcycle Dealers |
2 |
| Museums |
5 |
| Musical Groups and Artists |
1 |
| Musical Instrument and Supplies Stores |
2 |
| Natural Gas Distribution |
1 |
| New Car Dealers |
7 |
| New Housing Operative Builders |
8 |
| News Dealers and Newsstands |
1 |
| Newspaper Publishers |
1 |
| Nonresidential Property Managers |
3 |
| Nursing Care Facilities |
6 |
| Office Administrative Services |
35 |
| Office Equipment Merchant Wholesalers |
2 |
| Office Supplies and Stationery Stores |
7 |
| Offices of Certified Public Accountants |
29 |
| Offices of Chiropractors |
23 |
| Offices of Dentists |
48 |
| Offices of Lawyers |
57 |
| Offices of Optometrists |
8 |
| Offices of Other Holding Companies |
1 |
| Offices of Podiatrists |
3 |
| Offices of Real Estate Appraisers |
18 |
| One-Hour Photofinishing |
1 |
| Optical Goods Stores |
8 |
| Outdoor Power Equipment Stores |
1 |
| Paint and Wallpaper Stores |
1 |
| Painting and Wall Covering Contractors |
23 |
| Passenger Car Rental |
3 |
| Payroll Services |
1 |
| Periodical Publishers |
2 |
| Pet and Pet Supplies Stores |
6 |
| Pet Care (except Veterinary) Services |
5 |
| Pharmacies and Drug Stores |
3 |
| Photography Studios, Portrait |
2 |
| Plastics Bottle Manufacturing |
1 |
| Political Organizations |
2 |
| Portfolio Management |
5 |
| Private Mail Centers |
1 |
| Professional Employer Organizations |
1 |
| Professional Organizations |
1 |
| Public Relations Agencies |
1 |
| Quick Printing |
5 |
| Radio Stations |
6 |
| Ready-Mix Concrete Manufacturing |
3 |
| Real Estate Credit |
12 |
| Real Estate Investment Trusts |
1 |
| Recreational Goods Rental |
2 |
| Recreational Vehicle Dealers |
1 |
| Residential Property Managers |
3 |
| Residential Remodelers |
26 |
| Reupholstery and Furniture Repair |
1 |
| Roofing Contractors |
10 |
| Scheduled Passenger Air Transportation |
2 |
| Securities Brokerage |
20 |
| Security Guards and Patrol Services |
3 |
| Sheet Metal Work Manufacturing |
1 |
| Shoe Stores |
11 |
| Siding Contractors |
5 |
| Sign Manufacturing |
3 |
| Site Preparation Contractors |
15 |
| Small Arms Ammunition Manufacturing |
1 |
| Small Arms Manufacturing |
2 |
| Snack and Nonalcoholic Beverage Bars |
7 |
| Software Publishers |
2 |
| Solid Waste Collection |
2 |
| Sporting Goods Stores |
6 |
| Sports and Recreation Instruction |
2 |
| Tax Preparation Services |
4 |
| Taxi Service |
1 |
| Telemarketing Bureaus |
1 |
| Television Broadcasting |
1 |
| Temporary Help Services |
4 |
| Temporary Shelters |
2 |
| Testing Laboratories |
3 |
| Theater Companies and Dinner Theaters |
1 |
| Tile and Terrazzo Contractors |
9 |
| Tire Dealers |
3 |
| Title Abstract and Settlement Offices |
3 |
| Tobacco Stores |
2 |
| Tour Operators |
1 |
| Translation and Interpretation Services |
1 |
| Travel Agencies |
4 |
| Used Car Dealers |
4 |
| Used Household and Office Goods Moving |
1 |
| Used Merchandise Stores |
9 |
| Vending Machine Operators |
1 |
| Veterinary Services |
7 |
| Video Tape and Disc Rental |
3 |
| Vocational Rehabilitation Services |
3 |
| Voluntary Health Organizations |
1 |
| Warehouse Clubs and Supercenters |
3 |
| Water Supply and Irrigation Systems |
1 |
| Wholesale Trade Agents and Brokers |
5 |
| Wired Telecommunications Carriers |
2 |
| Women's Clothing Stores |
13 |
| Zoos and Botanical Gardens |
1 |
Should You Franchise?
Visit the business district of Prescott and you'll conclude that many business owners have opted to buy a franchise, rather than starting a business on their own. Is franchising maybe a better way for you to start your business?
We highly recommend you consider franchising as an option. We have many articles on franchises, such as How to Franchise a Business. Gain a solid understanding of franchising by scanning all of our Articles on Franchising.
To learn about specific franchise opportunities, check out our Franchise Directory.
Representative franchise opportunities include ASP Pool & Spa Co. and Century 21 Real Estate Corporation. Alternatively, you can browse franchise categories, such as ATM Franchises and Home Repair Franchises.
Note on Prescott Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Prescott.
Have You Considered Buying an Existing Prescott Business?
If you have some capital to play with, you may want to Buy a Business in Arizona. Follow that link and you may find several good businesses for sale in Prescott.
If you are serious about buying a business, you may want to read this article: How to Buy a Business.
Forming a Company in Prescott, Arizona
A critical step is ensuring that you form your business as a legal structure. Doing so will shield you from personal liability for business debts and obligations.
The entity you form can be a corporation, LLC, sole proprietorship, partnership or other structure.
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. If you are starting a business in Arizona, you don't necessarily have to incorporate in Arizona. In fact, you can incorporate wherever you want. For example, it's very popular to incorporate in Delaware, and incorporating in Nevada has become very trendy as well. Don't forget, though, that you will have to register as a foreign entity in all states that you do business in.
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 C Corp Versus S Corp. You may also want to seek the advice of an lawyer. Finally, if you are starting a business in Prescott, Arizona, our information on Incorporating in Arizona may be a useful resource if you decide to incorporate in Arizona.
Marketing Your New Venture
Whether your goal is to attract Prescott 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. Advertising in Magazines is a good read to get your marketing juices flowing. That's just one of the many useful articles we have on Marketing a Small Business.
The Art of Selling
Being able to sell is critical to your business success. Whether you are focused on selling local customers in Prescott or are selling to customers throughout Arizona, 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.
Mastering the Complex Sale offers some helpful tips on how to sell. It's one of several good articles on our site regarding Entrepreneurial Selling.
Now It's Up To You
You have a dream -- starting a business in Prescott. To achieve your dream, you have to persevere, even when the odds are against you.
Owning your own business will be a daunting task, but you can do it.
We are here to help Prescott businesses to be successful. We want to be there for you to answer your business questions, whether you are a new Prescott 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 Prescott, Arizona
Here are more links that we believe will help you be successful in starting a business in Prescott.
Starting-a-Business Guides for Other Cities in Arizona
Starting a Business in Phoenix
Starting a Business in Safford
Browse All
Business Startup Guides for Arizona
