Michigan Business Startup Guides

Starting a Business in Detroit, Michigan

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

Do You Have Entrepreneurial Drive and Passion?

Before announcing to the world that you are going to start your own business, assess 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 Detroit. Get their candid feedback on what it takes to start a successful business.
  • We recommend reading Why Small Businesses Fail. For aspiring new entrepreneurs, it's a must read article.
  • 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.

Detroit, Michigan Demographic Information

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

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

Business Size
# of
Businesses
1-4 Employees
73245
5-9 Employees
27315
10-19 Employees
18220
20-49 Employees
13140
50-99 Employees
4575
100-249 Employees
2955
250-499 Employees
885
500-999 Employees
330
1000+ Employees
405
All Detroit Businesses
141070

As a new Detroit entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Detroit 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
Abrasive Product Manufacturing
2
Adhesive Manufacturing
2
Advertising Agencies
14
Ambulance Services
2
Amusement Arcades
1
Appliance Repair and Maintenance
2
Apprenticeship Training
4
Architectural Services
26
Armored Car Services
5
Art Dealers
2
Automobile Driving Schools
2
Automobile Manufacturing
2
Automotive Glass Replacement Shops
12
Automotive Parts and Accessories Stores
75
Automotive Transmission Repair
10
Baked Goods Stores
16
Barber Shops
7
Beauty Salons
33
Bed-and-Breakfast Inns
1
Beer, Wine, and Liquor Stores
222
Blood and Organ Banks
1
Boat Dealers
2
Book Publishers
2
Book Stores
17
Bowling Centers
3
Breweries
3
Building Inspection Services
1
Burial Casket Manufacturing
2
Business and Secretarial Schools
1
Business Associations
15
Business to Business Electronic Markets
1
Cable and Other Program Distribution
1
Cafeterias
5
Canvas and Related Product Mills
5
Car Washes
33
Carpet and Upholstery Cleaning Services
2
Casinos (except Casino Hotels)
5
Caterers
17
Cement Manufacturing
1
Cemeteries and Crematories
4
Child and Youth Services
39
Child Day Care Services
154
Civic and Social Organizations
73
Claims Adjusting
2
Clothing Accessories Stores
5
Coin-Operated Laundries and Drycleaners
38
Collection Agencies
1
Commercial Flexographic Printing
1
Commercial Lithographic Printing
29
Commercial Photography
5
Commercial Screen Printing
7
Commodity Contracts Dealing
1
Community Food Services
9
Commuter Rail Systems
1
Computer Facilities Management Services
4
Computer Systems Design Services
25
Computer Training
3
Concrete Block and Brick Manufacturing
1
Confectionery and Nut Stores
1
Confectionery Merchant Wholesalers
7
Consumer Lending
2
Convenience Stores
148
Convention and Trade Show Organizers
3
Convention and Visitors Bureaus
2
Cosmetology and Barber Schools
1
Couriers
9
Court Reporting and Stenotype Services
4
Credit Bureaus
1
Curtain and Drapery Mills
2
Custom Compounding of Purchased Resins
1
Custom Computer Programming Services
16
Dance Companies
1
Dental Laboratories
2
Diagnostic Imaging Centers
3
Digital Printing
4
Direct Mail Advertising
2
Direct Title Insurance Carriers
2
Directory and Mailing List Publishers
2
Discount Department Stores
1
Display Advertising
2
Document Preparation Services
2
Dog and Cat Food Manufacturing
1
Drinking Places (Alcoholic Beverages)
120
Dry Pasta Manufacturing
2
Drywall and Insulation Contractors
12
Educational Support Services
10
Electric Power Distribution
12
Electrical Contractors
31
Electronic Shopping
3
Emergency and Other Relief Services
5
Employment Placement Agencies
11
Engineering Services
59
Envelope Manufacturing
1
Environmental Consulting Services
9
Exam Preparation and Tutoring
9
Exterminating and Pest Control Services
2
Family Clothing Stores
19
Family Planning Centers
5
Fine Arts Schools
3
Finish Carpentry Contractors
20
Fish and Seafood Markets
14
Fish and Seafood Merchant Wholesalers
3
Fitness and Recreational Sports Centers
20
Flooring Contractors
6
Florists
10
Folding Paperboard Box Manufacturing
1
Food (Health) Supplement Stores
4
Food Product Machinery Manufacturing
2
Food Service Contractors
46
Footwear and Leather Goods Repair
1
Formal Wear and Costume Rental
2
Framing Contractors
5
Freight Transportation Arrangement
25
Frozen Specialty Food Manufacturing
1
Fruit and Vegetable Canning
2
Fruit and Vegetable Markets
7
Full-Service Restaurants
216
Fur and Leather Apparel Manufacturing
1
Furniture Merchant Wholesalers
4
Furniture Stores
14
General Automotive Repair
158
General Freight Trucking, Local
35
General Medical and Surgical Hospitals
9
General Rental Centers
6
Gift, Novelty, and Souvenir Stores
35
Glass and Glazing Contractors
9
Golf Courses and Country Clubs
4
Grantmaking Foundations
24
Graphic Design Services
12
Greeting Card Publishers
2
Gypsum Product Manufacturing
1
Hardware Merchant Wholesalers
6
Hardware Stores
31
Hazardous Waste Collection
1
Hazardous Waste Treatment and Disposal
6
Heavy Duty Truck Manufacturing
1
HMO Medical Centers
1
Hobby, Toy, and Game Stores
6
Home Furnishing Merchant Wholesalers
3
Home Health Care Services
17
Homes for the Elderly
21
Household Appliance Stores
4
Human Rights Organizations
13
Industrial Building Construction
4
Industrial Launderers
13
Industrial Pattern Manufacturing
2
Inland Water Passenger Transportation
1
Institutional Furniture Manufacturing
4
Insurance Agencies and Brokerages
85
Interior Design Services
5
Internet Publishing and Broadcasting
2
Interurban and Rural Bus Transportation
1
Investment Advice
8
Iron and Steel Forging
1
Iron and Steel Mills
2
Janitorial Services
73
Jewelry Stores
12
Junior Colleges
1
Kidney Dialysis Centers
12
Landscape Architectural Services
3
Landscaping Services
35
Language Schools
1
Libraries and Archives
1
Limited-Service Restaurants
412
Limousine Service
3
Linen Supply
6
Locksmiths
6
Luggage and Leather Goods Stores
1
Machine Shops
26
Mail-Order Houses
2
Marinas
6
Marine Cargo Handling
1
Marketing Consulting Services
17
Masonry Contractors
20
Materials Recovery Facilities
2
Meat Markets
16
Meat Processed from Carcasses
8
Media Representatives
2
Medical Laboratories
3
Medicinal and Botanical Manufacturing
1
Metal Heat Treating
8
Metal Stamping
2
Metal Window and Door Manufacturing
1
Miscellaneous Intermediation
5
Mobile Food Services
3
Monetary Authorities-Central Bank
1
Mortgage and Nonmortgage Loan Brokers
5
Motor Vehicle Body Manufacturing
2
Motor Vehicle Metal Stamping
7
Motor Vehicle Towing
22
Museums
5
Music Publishers
1
Musical Groups and Artists
2
Nail Salons
3
Navigational Services to Shipping
1
New Car Dealers
23
New Housing Operative Builders
5
News Dealers and Newsstands
1
News Syndicates
1
Newspaper Publishers
11
Nonresidential Property Managers
11
Office Administrative Services
33
Office Equipment Merchant Wholesalers
20
Office Supplies and Stationery Stores
5
Offices of Bank Holding Companies
2
Offices of Certified Public Accountants
31
Offices of Chiropractors
13
Offices of Dentists
107
Offices of Optometrists
10
Offices of Other Holding Companies
16
Offices of Podiatrists
20
Offices of Real Estate Appraisers
1
Ophthalmic Goods Manufacturing
1
Ophthalmic Goods Merchant Wholesalers
2
Optical Goods Stores
14
Packaging Machinery Manufacturing
1
Packing and Crating
2
Paging
3
Paint and Coating Manufacturing
7
Paint and Wallpaper Stores
7
Painting and Wall Covering Contractors
16
Parking Lots and Garages
56
Passenger Car Rental
27
Payroll Services
5
Periodical Publishers
9
Perishable Prepared Food Manufacturing
1
Pet and Pet Supplies Stores
7
Pet Care (except Veterinary) Services
1
Petroleum Bulk Stations and Terminals
5
Pharmacies and Drug Stores
118
Photography Studios, Portrait
6
Pipeline Transportation of Crude Oil
2
Plate Work Manufacturing
2
Political Organizations
8
Port and Harbor Operations
2
Portfolio Management
8
Precision Turned Product Manufacturing
5
Prepress Services
7
Private Mail Centers
2
Professional Employer Organizations
14
Professional Organizations
11
Public Relations Agencies
8
Quick Printing
5
Ready-Mix Concrete Manufacturing
4
Real Estate Credit
14
Record Production
2
Refrigerated Warehousing and Storage
2
Reinsurance Carriers
1
Remediation Services
11
Repossession Services
1
Residential Remodelers
23
Retail Bakeries
16
Reupholstery and Furniture Repair
2
Rolled Steel Shape Manufacturing
1
Roofing Contractors
11
Rooming and Boarding Houses
5
Sales Financing
4
Scheduled Passenger Air Transportation
15
School and Employee Bus Transportation
5
Seafood Canning
2
Securities Brokerage
19
Security Guards and Patrol Services
38
Setup Paperboard Box Manufacturing
1
Sewage Treatment Facilities
1
Shoe Stores
35
Siding Contractors
2
Sign Manufacturing
9
Site Preparation Contractors
21
Snack and Nonalcoholic Beverage Bars
41
Soap and Other Detergent Manufacturing
8
Soft Drink Manufacturing
3
Solid Waste Collection
21
Solid Waste Combustors and Incinerators
1
Solid Waste Landfill
1
Sound Recording Studios
4
Special Needs Transportation
7
Spice and Extract Manufacturing
1
Sporting Goods Stores
2
Sports Teams and Clubs
3
Spring (Heavy Gauge) Manufacturing
1
Spring (Light Gauge) Manufacturing
3
Steam and Air-Conditioning Supply
1
Steel Foundries (except Investment)
1
Tax Preparation Services
43
Taxi Service
8
Television Broadcasting
3
Temporary Help Services
28
Temporary Shelters
18
Testing Laboratories
8
Theater Companies and Dinner Theaters
11
Tile and Terrazzo Contractors
5
Tire and Tube Merchant Wholesalers
3
Tire Retreading
2
Title Abstract and Settlement Offices
4
Tobacco Stores
7
Toilet Preparation Manufacturing
1
Tortilla Manufacturing
2
Tour Operators
3
Tradebinding and Related Work
2
Travel Agencies
14
Used Car Dealers
64
Used Household and Office Goods Moving
11
Used Merchandise Stores
21
Vending Machine Operators
6
Veterinary Services
16
Video Tape and Disc Rental
29
Voluntary Health Organizations
8
Warehouse Clubs and Supercenters
1
Wholesale Trade Agents and Brokers
13
Window Treatment Stores
1
Wired Telecommunications Carriers
37
Women's Clothing Stores
52
Wood Container and Pallet Manufacturing
4
Wood Window and Door Manufacturing
2

What About Buying an Existing Detroit Business?

We've created a useful website page for those who want to Buy a Business in Michigan. Follow that link and you can review several good businesses for sale in Detroit.

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

Company Formation in Detroit, Michigan

It's essential that your business is formed as a legal entity that is separate from its owners. Doing so will protect 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 popular way to form a business. A key decision is whether to form and S-Corp or a C-Corp, and you also must decide in which state you will incorporate. Just because you are starting a business in Michigan, you don't necessarily have to incorporate in Michigan. As it turns out, 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 C Corp Versus S Corp. You may also want to seek the advice of an attorney. Finally, if you are starting a business in Detroit, Michigan, our information on Incorporating in Michigan may be a useful resource if you decide to incorporate in Michigan.

Don't Forget to Create a Business Plan

A business plan is essential in laying a solid foundation for your business success. In effect, your business plan is your game plan for how you hope to grow your business. Not having a business plan is a recipe for disaster.

To learn more about business plans, read Business Plan Contests. You can also get free business counselors available to you through your local SCORE chapter in Michigan.

Bring in Revenues

Being able to sell is fundamental to your business success. Whether you are focused on selling local customers in Detroit or are selling to customers throughout Michigan, the United States or even the world, you have to be able to sell.

Good selling involves demonstrating that your wares meet your customer's needs. Let us help you refine your selling techniques through our many useful sales advice tips.

Compensating Sales People offers some helpful tips on how to sell. It's one of several good articles on our site regarding Entrepreneurial Selling.

Interviews With Detroit Entrepreneurs

Enjoy these interviews we've had with Detroit entrepreneurs.

Now It's Up To You

You have a dream -- starting a business in Detroit. 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 Detroit businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Detroit, neighborhood development and overall economic health.

More Entrepreneurial Resources for Starting a Business in Detroit, Michigan

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

  • Resources for Detroit, Michigan Entrepreneurs - Browse a variety of resources we've collected to assist Detroit entrepreneurs.
  • Michigan Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Michigan.
  • Michigan Small Business Development Center - This organization supports 12 regional offices and over 30 satellite offices, each providing counseling and training to Michigan small business owners and entrepreneurs throughout the 83 counties in Michigan. Services to entrepreneurs are offered through a cooperative agreement with the U.S. Small Business Administration.

More Business Startup Guides for Michigan

Starting a Business in Deckerville
Starting a Business in Dowagiac

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

 

 

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