California Business Startup Guides

Starting a Business in Los Angeles, California

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

Are You Sure You Want to Do This?

Most new companies do not succeed, in part because the founder did not have the entrepreneurial skills and traits needed to succeed. So, before you open a business, 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:

  • Talk to other entrepreneurs in Los Angeles. Ask them candidly what it's like to run a 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. The people who know you best are often in the best position to tell you bluntly whether you will be a good entrepreneur.

What Business Are You Starting?

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 How to Evaluate a Business Idea.

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 Diesel Generators Business guide or our Opening a Fraternal Orders Business guide.

Always keep in mind that you are starting a business in Los Angeles. Some businesses will do better in Los Angeles than others. Only by spending some time analyzing Los Angeles demographics can you decide if there will be strong demand for your business idea.

Los Angeles, California Demographic Information

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

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

Business Size
# of
Businesses
1-4 Employees
114409
5-9 Employees
30364
10-19 Employees
20355
20-49 Employees
15554
50-99 Employees
5451
100-249 Employees
3228
250-499 Employees
888
500-999 Employees
348
1000+ Employees
174
All Los Angeles Businesses
190771

As a new Los Angeles entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Los Angeles 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
1
Advertising Agencies
190
Alkalies and Chlorine Manufacturing
1
Aluminum Die-Casting Foundries
6
Aluminum Extruded Product Manufacturing
3
Aluminum Foundries (except Die-Casting)
3
Ambulance Services
11
Amusement Arcades
7
Animal (except Poultry) Slaughtering
7
Appliance Repair and Maintenance
18
Apprenticeship Training
11
Architectural Services
321
Armored Car Services
9
Art Dealers
83
Automatic Vending Machine Manufacturing
2
Automobile Driving Schools
21
Automotive Exhaust System Repair
19
Automotive Glass Replacement Shops
25
Automotive Parts and Accessories Stores
200
Automotive Transmission Repair
44
Baked Goods Stores
67
Barber Shops
21
Beauty Salons
277
Bed-and-Breakfast Inns
6
Beer and Ale Merchant Wholesalers
13
Beer, Wine, and Liquor Stores
287
Blind and Shade Manufacturing
7
Blood and Organ Banks
9
Book Publishers
27
Book Stores
90
Books Printing
7
Bottled Water Manufacturing
4
Bowling Centers
10
Breakfast Cereal Manufacturing
2
Breweries
1
Broadwoven Fabric Mills
25
Broom, Brush, and Mop Manufacturing
6
Building Inspection Services
12
Burial Casket Manufacturing
1
Business and Secretarial Schools
7
Business Associations
96
Business to Business Electronic Markets
39
Cafeterias
54
Camera and Photographic Supplies Stores
16
Canvas and Related Product Mills
8
Car Washes
135
Carbon Black Manufacturing
1
Carpet and Rug Mills
3
Carpet and Upholstery Cleaning Services
28
Cemeteries and Crematories
9
Charter Bus Industry
12
Cheese Manufacturing
3
Child and Youth Services
116
Child Day Care Services
512
Children's and Infants' Clothing Stores
72
Civic and Social Organizations
144
Clothing Accessories Stores
107
Coffee and Tea Manufacturing
4
Coin-Operated Laundries and Drycleaners
148
Collection Agencies
23
Commercial Bakeries
53
Commercial Flexographic Printing
5
Commercial Gravure Printing
1
Commercial Photography
80
Commercial Screen Printing
63
Commodity Contracts Brokerage
10
Commodity Contracts Dealing
24
Community Food Services
28
Computer and Software Stores
59
Computer Facilities Management Services
17
Computer Terminal Manufacturing
1
Computer Training
22
Concrete Block and Brick Manufacturing
1
Confectionery and Nut Stores
22
Confectionery Merchant Wholesalers
31
Construction Machinery Manufacturing
1
Construction Sand and Gravel Mining
1
Continuing Care Retirement Communities
11
Convenience Stores
153
Convention and Trade Show Organizers
49
Convention and Visitors Bureaus
5
Cookie and Cracker Manufacturing
8
Copper Foundries (except Die-Casting)
1
Copper Rolling, Drawing, and Extruding
1
Cosmetology and Barber Schools
12
Couriers
88
Court Reporting and Stenotype Services
32
Credit Bureaus
7
Credit Card Issuing
3
Credit Unions
66
Curtain and Drapery Mills
18
Custom Computer Programming Services
298
Custom Roll Forming
3
Cut Stock, Resawing Lumber, and Planing
6
Dance Companies
9
Deep Sea Freight Transportation
2
Deep Sea Passenger Transportation
3
Dental Laboratories
71
Diet and Weight Reducing Centers
11
Digital Printing
16
Direct Life Insurance Carriers
57
Direct Mail Advertising
27
Direct Title Insurance Carriers
12
Directory and Mailing List Publishers
9
Discount Department Stores
20
Document Preparation Services
51
Dog and Cat Food Manufacturing
6
Doll and Stuffed Toy Manufacturing
4
Drafting Services
8
Dried and Dehydrated Food Manufacturing
1
Drinking Places (Alcoholic Beverages)
228
Drive-In Motion Picture Theaters
2
Drywall and Insulation Contractors
22
Educational Support Services
72
Electric Power Distribution
4
Electrical Contractors
226
Electronic Auctions
4
Electronic Computer Manufacturing
3
Electronic Shopping
113
Emergency and Other Relief Services
17
Employment Placement Agencies
150
Engineering Services
219
Envelope Manufacturing
4
Environmental Consulting Services
35
Exam Preparation and Tutoring
62
Exterminating and Pest Control Services
69
Facilities Support Services
29
Family Clothing Stores
233
Family Planning Centers
26
Farm Management Services
1
Farm Product Warehousing and Storage
1
Farm Supplies Merchant Wholesalers
18
Fats and Oils Refining and Blending
5
Fine Arts Schools
91
Finish Carpentry Contractors
61
Fish and Seafood Markets
36
Fish and Seafood Merchant Wholesalers
51
Fitness and Recreational Sports Centers
139
Flat Glass Manufacturing
1
Floor Covering Stores
83
Florists
107
Flour Milling
7
Fluid Milk Manufacturing
5
Folding Paperboard Box Manufacturing
9
Food (Health) Supplement Stores
66
Food Product Machinery Manufacturing
1
Food Service Contractors
132
Footwear Merchant Wholesalers
86
Formal Wear and Costume Rental
20
Fossil Fuel Electric Power Generation
1
Framing Contractors
20
Freight Transportation Arrangement
253
Fresh and Frozen Seafood Processing
9
Frozen Specialty Food Manufacturing
5
Fruit and Vegetable Markets
51
Full-Service Restaurants
1,755
Funeral Homes and Funeral Services
35
Fur and Leather Apparel Manufacturing
10
Furniture Merchant Wholesalers
114
Furniture Stores
238
General Automotive Repair
461
General Medical and Surgical Hospitals
30
General Rental Centers
19
General Warehousing and Storage
62
Gift, Novelty, and Souvenir Stores
225
Glass and Glazing Contractors
25
Glass Container Manufacturing
1
Glove and Mitten Manufacturing
1
Grantmaking Foundations
135
Graphic Design Services
254
Greeting Card Publishers
2
Gum and Wood Chemical Manufacturing
1
Hand and Edge Tool Manufacturing
11
Hardware Manufacturing
8
Hardware Merchant Wholesalers
49
Hat, Cap, and Millinery Manufacturing
7
Hazardous Waste Collection
1
Hazardous Waste Treatment and Disposal
6
Heavy Duty Truck Manufacturing
1
Historical Sites
4
HMO Medical Centers
9
Hobby, Toy, and Game Stores
40
Home Furnishing Merchant Wholesalers
168
Home Health Care Services
155
Home Health Equipment Rental
4
Homes for the Elderly
90
Household Appliance Stores
47
Human Rights Organizations
45
Hunting and Trapping
1
Ice Manufacturing
2
Industrial Building Construction
2
Industrial Design Services
27
Industrial Gas Manufacturing
5
Industrial Launderers
27
Industrial Mold Manufacturing
2
Industrial Pattern Manufacturing
2
Inorganic Dye and Pigment Manufacturing
2
Institutional Furniture Manufacturing
10
Insurance Agencies and Brokerages
529
Interior Design Services
171
International Trade Financing
16
Internet Publishing and Broadcasting
50
Internet Service Providers
73
Investigation Services
39
Investment Advice
244
Iron and Steel Forging
1
Iron and Steel Mills
4
Iron Foundries
6
Irradiation Apparatus Manufacturing
1
Janitorial Services
233
Jewelry Stores
425
Junior Colleges
16
Kidney Dialysis Centers
23
Land Subdivision
50
Landscape Architectural Services
41
Landscaping Services
124
Language Schools
22
Leather and Hide Tanning and Finishing
4
Lessors of Other Real Estate Property
38
Libraries and Archives
9
Limited-Service Restaurants
1,654
Limousine Service
48
Linen Supply
8
Livestock Merchant Wholesalers
3
Locksmiths
25
Logging
1
Luggage and Leather Goods Stores
30
Luggage Manufacturing
2
Machine Shops
55
Mail-Order Houses
49
Manifold Business Forms Printing
5
Marinas
5
Marine Cargo Handling
1
Marketing Consulting Services
212
Marking Device Manufacturing
2
Masonry Contractors
17
Materials Recovery Facilities
7
Mattress Manufacturing
24
Meat Processed from Carcasses
20
Media Buying Agencies
24
Media Representatives
57
Medical Laboratories
38
Medicinal and Botanical Manufacturing
2
Men's and Boys' Neckwear Manufacturing
4
Men's Clothing Stores
112
Metal Heat Treating
8
Metal Household Furniture Manufacturing
11
Metal Stamping
12
Metal Tank (Heavy Gauge) Manufacturing
3
Metal Window and Door Manufacturing
17
Mineral Wool Manufacturing
1
Miscellaneous Intermediation
65
Mobile Food Services
19
Monetary Authorities-Central Bank
2
Mortgage and Nonmortgage Loan Brokers
145
Motion Picture and Video Distribution
48
Motion Picture and Video Production
1,328
Motor Vehicle Body Manufacturing
2
Motor Vehicle Metal Stamping
4
Motorcycle Dealers
6
Museums
38
Music Publishers
39
Musical Groups and Artists
174
Musical Instrument and Supplies Stores
32
Musical Instrument Manufacturing
4
Nail Salons
155
Natural Gas Distribution
25
New Car Dealers
77
New Housing Operative Builders
24
News Dealers and Newsstands
23
News Syndicates
26
Newspaper Publishers
67
Nitrogenous Fertilizer Manufacturing
1
Nonresidential Property Managers
217
Nonwoven Fabric Mills
3
Nursing Care Facilities
84
Office Administrative Services
347
Office Equipment Merchant Wholesalers
61
Office Supplies and Stationery Stores
66
Offices of Bank Holding Companies
4
Offices of Chiropractors
193
Offices of Dentists
958
Offices of Lawyers
2,845
Offices of Optometrists
111
Offices of Other Holding Companies
61
Offices of Podiatrists
49
Offices of Real Estate Appraisers
41
Open-End Investment Funds
6
Ophthalmic Goods Manufacturing
2
Ophthalmic Goods Merchant Wholesalers
20
Optical Goods Stores
54
Outdoor Power Equipment Stores
4
Outerwear Knitting Mills
18
Packaging and Labeling Services
24
Packing and Crating
11
Paging
8
Paint and Coating Manufacturing
19
Paint and Wallpaper Stores
31
Painting and Wall Covering Contractors
119
Paper (except Newsprint) Mills
2
Paper Industry Machinery Manufacturing
1
Parking Lots and Garages
716
Passenger Car Leasing
8
Passenger Car Rental
84
Payroll Services
61
Pen and Mechanical Pencil Manufacturing
1
Periodical Publishers
107
Perishable Prepared Food Manufacturing
7
Pet Care (except Veterinary) Services
37
Petroleum Bulk Stations and Terminals
11
Pharmacies and Drug Stores
320
Photography Studios, Portrait
94
Pipeline Transportation of Crude Oil
1
Plastics Bag Manufacturing
8
Plastics Bottle Manufacturing
3
Political Organizations
38
Polystyrene Foam Product Manufacturing
7
Portfolio Management
182
Poultry Processing
8
Powder Metallurgy Part Manufacturing
2
Precision Turned Product Manufacturing
7
Prepress Services
25
Private Mail Centers
23
Professional Employer Organizations
31
Professional Organizations
63
Public Relations Agencies
195
Quick Printing
74
Radio Networks
9
Radio Stations
48
Real Estate Credit
140
Real Estate Investment Trusts
24
Record Production
19
Recreational Goods Rental
8
Recreational Vehicle Dealers
1
Refrigerated Warehousing and Storage
26
Reinsurance Carriers
8
Rendering and Meat Byproduct Processing
4
Repossession Services
5
Residential Property Managers
348
Residential Remodelers
226
Retail Bakeries
113
Reupholstery and Furniture Repair
76
Roofing Contractors
47
Sales Financing
50
Sanitary Paper Product Manufacturing
1
Satellite Telecommunications
4
Savings Institutions
107
Sawmills
1
Scheduled Freight Air Transportation
20
Scheduled Passenger Air Transportation
74
School and Employee Bus Transportation
15
Seafood Canning
7
Secondary Market Financing
2
Securities Brokerage
124
Security Guards and Patrol Services
165
Septic Tank and Related Services
2
Setup Paperboard Box Manufacturing
1
Sheet Metal Work Manufacturing
20
Ship Building and Repairing
1
Shoe Stores
222
Siding Contractors
8
Sign Manufacturing
25
Silverware and Hollowware Manufacturing
2
Site Preparation Contractors
30
Snack and Nonalcoholic Beverage Bars
436
Soap and Other Detergent Manufacturing
4
Soft Drink Manufacturing
3
Software Publishers
49
Software Reproducing
2
Solid Waste Collection
18
Solid Waste Landfill
3
Soybean Processing
3
Special Needs Transportation
18
Specialty Canning
1
Spice and Extract Manufacturing
7
Sporting Goods Stores
65
Sports and Recreation Instruction
39
Sports Teams and Clubs
7
Steam and Air-Conditioning Supply
2
Steel Foundries (except Investment)
3
Steel Investment Foundries
1
Steel Wire Drawing
2
Storage Battery Manufacturing
1
Surface Active Agent Manufacturing
2
Surface-Coated Paperboard Manufacturing
1
Tax Preparation Services
142
Taxi Service
4
Telecommunications Resellers
32
Telemarketing Bureaus
23
Telephone Answering Services
15
Television Broadcasting
37
Temporary Help Services
163
Testing Laboratories
20
Textile Bag Mills
2
Textile Machinery Manufacturing
2
Theater Companies and Dinner Theaters
73
Thread Mills
2
Tile and Terrazzo Contractors
25
Tire and Tube Merchant Wholesalers
14
Tire Manufacturing (except Retreading)
1
Tire Retreading
1
Title Abstract and Settlement Offices
17
Tobacco Stores
20
Toilet Preparation Manufacturing
14
Tortilla Manufacturing
13
Tour Operators
56
Translation and Interpretation Services
26
Travel Agencies
255
Truck Trailer Manufacturing
1
Underwear and Nightwear Knitting Mills
1
Used Car Dealers
87
Used Household and Office Goods Moving
51
Used Merchandise Stores
129
Veterinary Services
67
Video Tape and Disc Rental
108
Vocational Rehabilitation Services
93
Voluntary Health Organizations
40
Warehouse Clubs and Supercenters
1
Watch, Clock, and Part Manufacturing
1
Water Supply and Irrigation Systems
5
Weft Knit Fabric Mills
15
Wholesale Trade Agents and Brokers
672
Window Treatment Stores
14
Wineries
7
Wired Telecommunications Carriers
140
Women's Clothing Stores
413
Women's Handbag and Purse Manufacturing
5
Wood Office Furniture Manufacturing
4
Wood Preservation
2
Wood Window and Door Manufacturing
4
Yarn Spinning Mills
7
Zoos and Botanical Gardens
2

Don't Forget to Create a Business Plan

Writing a business plan is critical in laying a solid foundation for your business success. In effect, 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 will greatly reduce your chances of business success.

If you want more information on writing business plans, we recommend reading Business Plan Contests. A great resource for business planning assistance is the free business counselors available to you through your local SCORE chapter in California.

Selling Tips

Mastering the art of selling is a must if you want your new Los Angeles business to do well.

Good selling involves demonstrating that your wares meet your customer's needs. Fortunately, we've got plenty of good advice to help you improve your selling skills.

Good Sales Strategies 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.

How to Improve Your Entrepreneurial Abilities

Successful entrepreneurs recognize that what they know now may not be enough to ensure their future success.

Given that you are starting a business in Los Angeles, California, you will want to take advantage of the many programs available at nearby California universities, colleges and community colleges. It's also worthwhile to see if there are any networking groups or organizations in which Los Angeles entrepreneurs get together to network and trade their business experiences.

Los Angeles Entrepreneur Interviews

We're compiling a number of interviews with Los Angeles entrepreneurs. Enjoy!

Next Steps

Most new Los Angeles businesses underestimate the number of challenges they will face.

From this point on, you control your own destiny.

We are here to help Los Angeles businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Los Angeles, neighborhood development and overall economic health.

More Entrepreneurial Resources for Starting a Business in Los Angeles, California

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

Starting-a-Business Guides for Other Cities in California

Starting a Business in Los Altos Hills
Starting a Business in Los Banos

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

 

 

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