California Business Startup Guides

Starting a Business in San Diego, California

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

Will You Be a Good Entrepreneur?

Running your own business is hard work, much harder than working as an employee. Are you certain you have the stamina and skills to succeed on your own?

With so much at stake when you start a business, we strongly recommend you do the following before you proceed:

  • Speak with other entrepreneurs in San Diego. They are usually very willing to share their insights on the ups and downs of being an entrepreneur.
  • You should read Starting a Company. It's a good read for those who are thinking about becoming an entrepreneur.
  • Talk it over with a close friend or partner. Others sometimes know you better than you know yourself.

What Business to Start

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 Good Business Ideas.

For step-by-step instructions on starting a variety of business types, visit the Good Businesses to Start section of our site. For example, you might be interested in our Starting a Child Abuse Treatment Centers Business guide or our How to Start a Used Brick Dealers Business guide.

Always keep in mind that you are opening your new business in San Diego. The business you want to start may already be well-represented in San Diego. Make sure you fully understand San Diego demographics before you lock in on your business idea.

San Diego, California Demographic Information

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

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

Business Size
# of
Businesses
1-4 Employees
111342
5-9 Employees
35384
10-19 Employees
25038
20-49 Employees
18768
50-99 Employees
7134
100-249 Employees
4230
250-499 Employees
1176
500-999 Employees
426
1000+ Employees
264
All San Diego Businesses
203762

As a new San Diego entrepreneur, you may also be interested in the table below. It shows how many businesses there are in San Diego 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
103
Air Traffic Control
1
Aircraft Manufacturing
3
Ambulance Services
12
Amusement and Theme Parks
3
Amusement Arcades
8
Appliance Repair and Maintenance
13
Architectural Services
213
Armored Car Services
5
Art Dealers
26
Audio and Video Equipment Manufacturing
5
Automobile Driving Schools
4
Automotive Exhaust System Repair
11
Automotive Glass Replacement Shops
23
Automotive Transmission Repair
22
Baked Goods Stores
29
Barber Shops
5
Beauty Salons
275
Bed-and-Breakfast Inns
8
Beer and Ale Merchant Wholesalers
6
Beer, Wine, and Liquor Stores
122
Blood and Organ Banks
6
Boat Building
2
Boat Dealers
39
Book Publishers
19
Book Stores
44
Books Printing
1
Bottled Water Manufacturing
1
Breweries
3
Broadwoven Fabric Finishing Mills
4
Broadwoven Fabric Mills
2
Building Inspection Services
21
Business and Secretarial Schools
2
Business Associations
68
Business to Business Electronic Markets
8
Cafeterias
29
Camera and Photographic Supplies Stores
11
Canvas and Related Product Mills
11
Car Washes
63
Carpet and Upholstery Cleaning Services
49
Caterers
41
Cemeteries and Crematories
7
Child and Youth Services
59
Child Day Care Services
331
Children's and Infants' Clothing Stores
23
Civic and Social Organizations
88
Claims Adjusting
31
Clothing Accessories Stores
31
Coin-Operated Laundries and Drycleaners
39
Commercial Bakeries
23
Commercial Flexographic Printing
4
Commercial Gravure Printing
5
Commercial Lithographic Printing
69
Commercial Photography
26
Commercial Screen Printing
27
Commodity Contracts Brokerage
4
Community Food Services
11
Computer and Software Stores
79
Computer Facilities Management Services
31
Computer Storage Device Manufacturing
3
Computer Systems Design Services
328
Computer Training
29
Concrete Block and Brick Manufacturing
3
Confectionery and Nut Stores
23
Confectionery Merchant Wholesalers
6
Construction Sand and Gravel Mining
5
Consumer Lending
46
Continuing Care Retirement Communities
9
Convenience Stores
97
Convention and Trade Show Organizers
49
Cookie and Cracker Manufacturing
3
Copper Foundries (except Die-Casting)
1
Copper Rolling, Drawing, and Extruding
1
Cosmetology and Barber Schools
4
Couriers
46
Court Reporting and Stenotype Services
24
Credit Bureaus
9
Credit Unions
77
Curtain and Drapery Mills
5
Custom Computer Programming Services
447
Custom Roll Forming
1
Cut Stock, Resawing Lumber, and Planing
1
Dance Companies
10
Deep Sea Freight Transportation
3
Diagnostic Imaging Centers
33
Diet and Weight Reducing Centers
10
Digital Printing
13
Direct Life Insurance Carriers
48
Direct Mail Advertising
24
Direct Title Insurance Carriers
45
Directory and Mailing List Publishers
13
Display Advertising
17
Document Preparation Services
30
Dog and Cat Food Manufacturing
2
Doll and Stuffed Toy Manufacturing
1
Drafting Services
8
Dried and Dehydrated Food Manufacturing
1
Drilling Oil and Gas Wells
1
Drive-In Motion Picture Theaters
1
Dry Pasta Manufacturing
2
Drywall and Insulation Contractors
35
Educational Support Services
58
Electric Power Distribution
15
Electrical Contractors
212
Electron Tube Manufacturing
1
Electronic Capacitor Manufacturing
5
Electronic Computer Manufacturing
7
Electronic Connector Manufacturing
3
Electronic Shopping
70
Elementary and Secondary Schools
65
Emergency and Other Relief Services
14
Employment Placement Agencies
47
Environmental Consulting Services
51
Exam Preparation and Tutoring
33
Exterminating and Pest Control Services
35
Facilities Support Services
20
Family Clothing Stores
93
Family Planning Centers
11
Farm Product Warehousing and Storage
1
Fiber Optic Cable Manufacturing
1
Fine Arts Schools
32
Finfish Fishing
17
Finish Carpentry Contractors
68
Fish and Seafood Markets
5
Fish and Seafood Merchant Wholesalers
9
Fitness and Recreational Sports Centers
145
Floor Covering Stores
52
Flooring Contractors
60
Florists
66
Folding Paperboard Box Manufacturing
1
Food (Health) Supplement Stores
37
Food Service Contractors
91
Footwear and Leather Goods Repair
7
Formal Wear and Costume Rental
7
Framing Contractors
15
Freight Transportation Arrangement
136
Fresh and Frozen Seafood Processing
1
Frozen Specialty Food Manufacturing
3
Fruit and Vegetable Markets
12
Full-Service Restaurants
979
Fur and Leather Apparel Manufacturing
1
Furniture Merchant Wholesalers
43
Furniture Stores
122
General Automotive Repair
288
General Freight Trucking, Local
83
General Medical and Surgical Hospitals
10
General Rental Centers
16
Gift, Novelty, and Souvenir Stores
167
Glass and Glazing Contractors
20
Golf Courses and Country Clubs
18
Grantmaking Foundations
36
Graphic Design Services
116
Gypsum Product Manufacturing
1
Hand and Edge Tool Manufacturing
4
Hardware Merchant Wholesalers
31
Hardware Stores
26
Hazardous Waste Collection
3
Hazardous Waste Treatment and Disposal
3
Historical Sites
4
HMO Medical Centers
4
Hobby, Toy, and Game Stores
40
Home Furnishing Merchant Wholesalers
40
Home Health Care Services
59
Home Health Equipment Rental
5
Homes for the Elderly
71
Household Appliance Stores
30
Household Vacuum Cleaner Manufacturing
1
Human Rights Organizations
14
Industrial Design Services
12
Industrial Gas Manufacturing
1
Industrial Launderers
13
Industrial Mold Manufacturing
5
Inland Water Passenger Transportation
2
Institutional Furniture Manufacturing
2
Insurance Agencies and Brokerages
539
International Trade Financing
3
Internet Publishing and Broadcasting
32
Internet Service Providers
57
Interurban and Rural Bus Transportation
2
Investigation Services
29
Investment Advice
204
Iron and Steel Mills
1
Janitorial Services
201
Jewelry (except Costume) Manufacturing
8
Jewelry Stores
111
Junior Colleges
7
Kidney Dialysis Centers
12
Land Subdivision
55
Landscape Architectural Services
57
Language Schools
16
Leather and Hide Tanning and Finishing
3
Lessors of Other Real Estate Property
33
Libraries and Archives
11
Lime Manufacturing
1
Limited-Service Restaurants
976
Limousine Service
24
Local Messengers and Local Delivery
29
Locksmiths
18
Luggage and Leather Goods Stores
12
Luggage Manufacturing
1
Machine Shops
61
Mail-Order Houses
43
Manifold Business Forms Printing
3
Marinas
30
Marine Cargo Handling
2
Marketing Consulting Services
196
Marking Device Manufacturing
4
Masonry Contractors
25
Materials Recovery Facilities
6
Mattress Manufacturing
1
Media Buying Agencies
7
Media Representatives
14
Medical Laboratories
54
Medicinal and Botanical Manufacturing
2
Men's Clothing Stores
29
Metal Can Manufacturing
1
Metal Heat Treating
2
Metal Stamping
1
Metal Tank (Heavy Gauge) Manufacturing
2
Metal Window and Door Manufacturing
1
Mineral Wool Manufacturing
1
Miscellaneous Intermediation
48
Mobile Food Services
16
Mortgage and Nonmortgage Loan Brokers
247
Motor and Generator Manufacturing
2
Motor Vehicle Body Manufacturing
1
Motor Vehicle Towing
35
Motorcycle Dealers
16
Museums
24
Music Publishers
1
Musical Groups and Artists
17
Musical Instrument Manufacturing
1
Nail Salons
102
Natural Gas Distribution
17
Navigational Services to Shipping
1
New Car Dealers
79
New Housing Operative Builders
20
News Dealers and Newsstands
4
Newspaper Publishers
21
Nonresidential Property Managers
143
Nursing Care Facilities
30
Office Administrative Services
196
Office Equipment Merchant Wholesalers
52
Office Supplies and Stationery Stores
40
Offices of Certified Public Accountants
335
Offices of Dentists
636
Offices of Lawyers
1,437
Offices of Optometrists
83
Offices of Other Holding Companies
25
Offices of Podiatrists
12
Offices of Real Estate Appraisers
76
One-Hour Photofinishing
11
Ophthalmic Goods Manufacturing
9
Ophthalmic Goods Merchant Wholesalers
10
Optical Goods Stores
39
Outdoor Power Equipment Stores
4
Packaging and Labeling Services
3
Packaging Machinery Manufacturing
1
Packing and Crating
3
Paint and Coating Manufacturing
4
Paint and Wallpaper Stores
25
Painting and Wall Covering Contractors
135
Parking Lots and Garages
222
Passenger Car Leasing
5
Passenger Car Rental
64
Payroll Services
17
Periodical Publishers
61
Perishable Prepared Food Manufacturing
4
Pet and Pet Supplies Stores
40
Pet Care (except Veterinary) Services
28
Petroleum Bulk Stations and Terminals
10
Pharmacies and Drug Stores
111
Photography Studios, Portrait
48
Pipeline Transportation of Natural Gas
3
Plastics Bag Manufacturing
2
Political Organizations
13
Polystyrene Foam Product Manufacturing
1
Portfolio Management
101
Precision Turned Product Manufacturing
5
Prepress Services
9
Professional Employer Organizations
31
Professional Organizations
35
Public Relations Agencies
60
Quick Printing
35
Radio Networks
4
Radio Stations
31
Ready-Mix Concrete Manufacturing
10
Real Estate Investment Trusts
25
Record Production
1
Recreational Goods Rental
12
Recreational Vehicle Dealers
8
Refrigerated Warehousing and Storage
5
Reinsurance Carriers
2
Remediation Services
14
Residential Property Managers
321
Residential Remodelers
237
Retail Bakeries
26
Reupholstery and Furniture Repair
16
Roofing Contractors
31
Rooming and Boarding Houses
15
Sales Financing
29
Savings Institutions
64
Scheduled Freight Air Transportation
1
Scheduled Passenger Air Transportation
21
School and Employee Bus Transportation
2
Seafood Canning
1
Secondary Market Financing
7
Securities and Commodity Exchanges
1
Security Guards and Patrol Services
73
Semiconductor Machinery Manufacturing
1
Septic Tank and Related Services
1
Sheer Hosiery Mills
1
Sheet Metal Work Manufacturing
12
Shellfish Fishing
1
Ship Building and Repairing
9
Siding Contractors
7
Sign Manufacturing
29
Silverware and Hollowware Manufacturing
2
Site Preparation Contractors
42
Snack and Nonalcoholic Beverage Bars
306
Soap and Other Detergent Manufacturing
3
Soft Drink Manufacturing
2
Software Reproducing
4
Solid Waste Collection
7
Solid Waste Landfill
1
Sound Recording Studios
8
Special Needs Transportation
3
Spice and Extract Manufacturing
1
Sporting Goods Stores
129
Sports Teams and Clubs
3
Steam and Air-Conditioning Supply
1
Steel Wire Drawing
1
Storage Battery Manufacturing
1
Tax Preparation Services
115
Taxi Service
8
Telecommunications Resellers
26
Telephone Answering Services
14
Telephone Apparatus Manufacturing
5
Television Broadcasting
10
Temporary Help Services
195
Temporary Shelters
10
Testing Laboratories
38
Textile Bag Mills
1
Tile and Terrazzo Contractors
51
Tire and Tube Merchant Wholesalers
3
Tire Dealers
53
Tire Retreading
1
Title Abstract and Settlement Offices
22
Tobacco Stores
20
Toilet Preparation Manufacturing
3
Tour Operators
23
Tradebinding and Related Work
11
Translation and Interpretation Services
25
Travel Agencies
113
Truss Manufacturing
1
Used Car Dealers
79
Used Household and Office Goods Moving
49
Vending Machine Operators
12
Veterinary Services
86
Video Tape and Disc Rental
61
Vocational Rehabilitation Services
43
Voluntary Health Organizations
19
Warehouse Clubs and Supercenters
6
Water Supply and Irrigation Systems
6
Wet Corn Milling
1
Wholesale Trade Agents and Brokers
218
Window Treatment Stores
12
Wineries
3
Wired Telecommunications Carriers
142
Women's Clothing Stores
118
Wood Container and Pallet Manufacturing
1
Wood Window and Door Manufacturing
4
Yarn Spinning Mills
1
Zoos and Botanical Gardens
3

Picking a Company Name

A good company name can give a big boost to a new startup. It might seem like an easy thing to do, but there are many things to consider when naming a business.

Before you decide on a company name, run it by some prospective customers and see what they think. If they don't like it, it's probably a good idea to go back to the drawing board.

To get up to speed on what makes for a good company name, we encourage you to read this useful article: Naming a Business.

There's one other important factor when naming a business. Since you are planning on starting a business in San Diego, it's critical that you ensure that no California company has already registered the company name you have selected.

Forming a Company in San Diego, California

It's essential that your business is formed as a legal entity that is separate from its owners. The principal advantage of forming your new business as a legal entity is that it separates your business liabilities from your personal liabilities.

When forming a company, you will pick from many company types, such as 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 California, you don't necessarily have to incorporate in California. In fact, you are allowed to incorporate in the state of your choosing. 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. To learn the fundamentals of company formation, browse articles on our site, such as Incorporation Advice. You should also consider getting professional assistance from your business lawyer. On a final note, since you will be starting a business in San Diego, California, our web page covering Incorporating in California may be a useful resource if you decide to incorporate in California.

Don't Skip the Business Plan

Having a business plan is critical in laying a solid foundation for your business success. In effect, a business plan is a written description of the future you envision for your business. Failure to write a business plan makes you more prone to becoming a business failure statistic.

If you want more information on writing business plans, we recommend reading Business Plan Software. You should also take advantage of face-to-face free consulting available from your local SCORE chapter in California.

Bring in Revenues

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

Why should customers buy from you instead of buying from competitors? Fortunately, we've got plenty of good advice to help you improve your selling skills.

Writing Great Proposals 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.

Some Interesting San Diego Entrepreneurs

We're compiling a number of interviews with San Diego entrepreneurs. Enjoy!

What's Next?

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

From this point on, you control your own destiny.

This site is all about helping entrepreneurs in San Diego and elsewhere to achieve real success. We believe entrepreneurship is an amazing engine for job creation in San Diego, neighborhood development and overall economic health.

More Entrepreneurial Resources for Starting a Business in San Diego, California

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

More Startup Articles for California Cities

Starting a Business in San Clemente
Starting a Business in San Fernando

Browse All Business Startup Guides for California
Starting a Business Guides for Other States

 

 

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