Arizona Business Startup Guides

Start a Business in Phoenix, Arizona

Are you starting a business in Phoenix, Arizona? This article discusses the most important things to consider when opening a business in Phoenix.

Are You Ready for the Challenges of Being an Entrepreneur?

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:

  • Talk to other entrepreneurs in Phoenix. Listen closely to their experiences and see if you think you too can be successful.
  • We recommend reading Should You Become an Entrepreneur?. For aspiring new entrepreneurs, it's a must read article.
  • Have a candid conversation with friends and family. Ask them directly: Do I have what it takes to be an entrepreneur? Listen carefully to their answer, as they presumably know your strengths and weaknesses.

What Business Are You Starting?

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.

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 Opening a Real Estate Tax Search Business guide or our Starting a Women's Accessories Retail Business guide.

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, Arizona Demographic Information

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.

Business Size
# of
Businesses
1-4 Employees
197944
5-9 Employees
69404
10-19 Employees
52600
20-49 Employees
40880
50-99 Employees
16032
100-249 Employees
10092
250-499 Employees
2928
500-999 Employees
960
1000+ Employees
648
All Phoenix Businesses
391488

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
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
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
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
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
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
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 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
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
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 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
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
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
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
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
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
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 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 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
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
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
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
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 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 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 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
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
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
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
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
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 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 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
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
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
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 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
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
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 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
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
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
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
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 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
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 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
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
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
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
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
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 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
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
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
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
Zoos and Botanical Gardens
2

Is Franchising a Better Option?

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.

To learn about specific franchise opportunities, check out our Franchise Directory.

Representative franchise opportunities include Pro One Janitorial and Multi Menu. Alternatively, you can browse franchise categories, such as Candy and Chocolate Franchises and IT Training Franchises.

Note on Phoenix Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Phoenix.

Company Formation in Phoenix, Arizona

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.

Don't Forget to Create a Business Plan

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

To learn more about business plans, read Business Plan Contests. A great resource for business planning assistance is the free counseling sessions provided by your local SCORE chapter in Arizona.

Some Interesting Phoenix Entrepreneurs

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

Never Give Up

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.

More Entrepreneurial Resources for Starting a Business in Phoenix, Arizona

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

  • Resources for Phoenix, Arizona Entrepreneurs - Browse a variety of resources we've collected to assist Phoenix entrepreneurs.
  • Arizona Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Arizona.
  • Arizona Small Business Development Center - Arizona’s Small Business Development Center Network is an innovative partnership between the state’s ten community college districts and the U.S. Small Business Administration. The network is the largest and most accessible source of assistance to Arizona businesses with fewer than 200 employees.

More Business Startup Guides for Arizona

Starting a Business in Payson
Starting a Business in Prescott

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

 

 

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