California Business Startup Guides

Start a Business in Santa Cruz, California

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

Will You Be a Good Entrepreneur?

Most new businesses don't make it, in part because the entrepreneur did not have the perseverance and abilities that are necessary to succeed. So, before you open a business, consider all of the implications of being an entrepreneur.

To determine whether you have what it takes to run a business, we recommend these three steps to help you decide:

  • Speak with other entrepreneurs in Santa Cruz. They are usually very willing to share their insights on the ups and downs of being an entrepreneur.
  • You should read Business Failure. It's a good read for those who are thinking about becoming an entrepreneur.
  • Involve a spouse, family member or trusted friend in the decision. Others sometimes know you better than you know yourself.

Choosing the Right Company to Start

An important decision is what kind of business you want to start. You might get some good ideas about what kind of business to start by reading Good Business Ideas.

To view an extensive list of business types, complete with startup instructions, spend some time in the Good Businesses to Start section of our site. For example, you might be interested in our How to Start a Holiday Decorations Wholesale & Manufacturers Business guide or our How to Start a Meat Choppers & Grinders Business guide.

Remember that you are starting a business in Santa Cruz. Some businesses will do better in Santa Cruz than others. Make sure you fully understand Santa Cruz demographics before you lock in on your business idea.

Santa Cruz, California Demographic Information

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

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

Business Size
# of
Businesses
1-4 Employees
13860
5-9 Employees
4821
10-19 Employees
3528
20-49 Employees
2043
50-99 Employees
585
100-249 Employees
333
250-499 Employees
0
500-999 Employees
18
1000+ Employees
9
All Santa Cruz Businesses
25197

As a new Santa Cruz entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Santa Cruz 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
1
Advertising Agencies
2
Ambulance Services
2
Amusement and Theme Parks
3
Appliance Repair and Maintenance
3
Architectural Services
22
Audio and Video Equipment Manufacturing
2
Automotive Exhaust System Repair
2
Automotive Glass Replacement Shops
3
Automotive Parts and Accessories Stores
11
Automotive Transmission Repair
3
Baked Goods Stores
1
Barber Shops
1
Bed-and-Breakfast Inns
3
Beer, Wine, and Liquor Stores
11
Boat Building
1
Boat Dealers
3
Book Publishers
1
Book Stores
7
Bowling Centers
1
Building Inspection Services
1
Business Associations
4
Cable and Other Program Distribution
1
Canvas and Related Product Mills
3
Car Washes
4
Carpet and Upholstery Cleaning Services
4
Caterers
3
Cemeteries and Crematories
1
Child and Youth Services
6
Child Day Care Services
42
Children's and Infants' Clothing Stores
2
Civic and Social Organizations
10
Clothing Accessories Stores
3
Coffee and Tea Manufacturing
2
Commercial Bakeries
5
Commercial Lithographic Printing
9
Commercial Photography
4
Commercial Screen Printing
1
Commodity Contracts Brokerage
1
Community Food Services
4
Computer and Software Stores
3
Computer Systems Design Services
18
Computer Training
4
Confectionery and Nut Stores
1
Construction Sand and Gravel Mining
1
Consumer Lending
2
Convenience Stores
4
Convention and Trade Show Organizers
1
Cosmetology and Barber Schools
2
Couriers
1
Court Reporting and Stenotype Services
2
Credit Unions
7
Custom Computer Programming Services
32
Custom Roll Forming
2
Dental Laboratories
1
Diet and Weight Reducing Centers
1
Direct Mail Advertising
1
Direct Title Insurance Carriers
1
Document Preparation Services
3
Drilling Oil and Gas Wells
1
Drinking Places (Alcoholic Beverages)
20
Drive-In Motion Picture Theaters
1
Educational Support Services
6
Electric Power Distribution
1
Electrical Contractors
28
Electronic Computer Manufacturing
1
Electronic Shopping
6
Elementary and Secondary Schools
9
Employment Placement Agencies
2
Environmental Consulting Services
12
Exam Preparation and Tutoring
2
Exterminating and Pest Control Services
3
Family Clothing Stores
8
Family Planning Centers
2
Farm Supplies Merchant Wholesalers
1
Fiber Optic Cable Manufacturing
2
Finish Carpentry Contractors
8
Fish and Seafood Markets
2
Fish and Seafood Merchant Wholesalers
3
Fitness and Recreational Sports Centers
17
Floor Covering Stores
6
Flooring Contractors
6
Florists
11
Food Service Contractors
6
Footwear Merchant Wholesalers
1
Framing Contractors
9
Fruit and Vegetable Canning
1
Full-Service Restaurants
100
Funeral Homes and Funeral Services
2
Furniture Merchant Wholesalers
2
General Automotive Repair
47
General Medical and Surgical Hospitals
2
General Rental Centers
2
General Warehousing and Storage
2
Gift, Novelty, and Souvenir Stores
11
Glass and Glazing Contractors
3
Golf Courses and Country Clubs
1
Graphic Design Services
14
Hand and Edge Tool Manufacturing
1
Hardware Merchant Wholesalers
1
Hardware Stores
4
Hazardous Waste Treatment and Disposal
1
Hobby, Toy, and Game Stores
2
Home Centers
3
Home Health Care Services
5
Homes for the Elderly
12
Household Appliance Stores
2
Human Rights Organizations
3
Industrial Building Construction
1
Industrial Design Services
2
Insurance Agencies and Brokerages
21
Internet Publishing and Broadcasting
2
Internet Service Providers
7
Investigation Services
3
Investment Advice
8
Janitorial Services
14
Jewelry Stores
11
Kidney Dialysis Centers
1
Landscape Architectural Services
8
Landscaping Services
41
Language Schools
1
Leather and Hide Tanning and Finishing
1
Lessors of Other Real Estate Property
14
Libraries and Archives
1
Limited-Service Restaurants
53
Locksmiths
2
Logging
2
Machine Shops
7
Mail-Order Houses
6
Manufactured (Mobile) Home Dealers
1
Marinas
2
Marketing Consulting Services
6
Media Representatives
2
Medicinal and Botanical Manufacturing
2
Men's Clothing Stores
1
Mobile Food Services
2
Monetary Authorities-Central Bank
2
Mortgage and Nonmortgage Loan Brokers
7
Motion Picture and Video Production
6
Motorcycle Dealers
5
Museums
2
Musical Groups and Artists
3
Musical Instrument and Supplies Stores
5
Musical Instrument Manufacturing
2
Nail Salons
4
New Car Dealers
4
Newspaper Publishers
3
Nonresidential Property Managers
4
Nursing Care Facilities
5
Office Administrative Services
5
Office Equipment Merchant Wholesalers
1
Office Supplies and Stationery Stores
3
Offices of Certified Public Accountants
16
Offices of Dentists
65
Offices of Lawyers
78
Offices of Optometrists
8
Offices of Other Holding Companies
1
Offices of Podiatrists
1
Offices of Real Estate Appraisers
5
One-Hour Photofinishing
2
Optical Goods Stores
3
Packaging Machinery Manufacturing
2
Paging
1
Paint and Wallpaper Stores
4
Painting and Wall Covering Contractors
18
Parking Lots and Garages
2
Passenger Car Rental
5
Pet and Pet Supplies Stores
3
Pet Care (except Veterinary) Services
5
Petroleum Bulk Stations and Terminals
1
Pharmacies and Drug Stores
9
Photography Studios, Portrait
4
Political Organizations
1
Portfolio Management
6
Private Mail Centers
2
Professional Employer Organizations
1
Professional Organizations
4
Quick Printing
4
Radio Stations
2
Ready-Mix Concrete Manufacturing
2
Real Estate Credit
7
Residential Property Managers
10
Residential Remodelers
43
Retail Bakeries
2
Reupholstery and Furniture Repair
1
Roofing Contractors
12
Savings Institutions
2
Sawmills
1
Securities Brokerage
5
Shoe Stores
5
Siding Contractors
2
Sign Manufacturing
3
Site Preparation Contractors
9
Snack and Nonalcoholic Beverage Bars
35
Soft Drink Manufacturing
1
Special Needs Transportation
1
Sporting Goods Stores
24
Sports and Recreation Instruction
8
Tax Preparation Services
4
Taxi Service
1
Telephone Answering Services
1
Temporary Help Services
8
Testing Laboratories
1
Tile and Terrazzo Contractors
8
Tire and Tube Merchant Wholesalers
1
Tire Dealers
5
Tobacco Stores
3
Tour Operators
1
Travel Agencies
7
Used Household and Office Goods Moving
7
Used Merchandise Stores
9
Veterinary Services
16
Video Tape and Disc Rental
9
Vocational Rehabilitation Services
3
Voluntary Health Organizations
4
Warehouse Clubs and Supercenters
1
Wholesale Trade Agents and Brokers
13
Wineries
7
Wired Telecommunications Carriers
4
Women's Clothing Stores
17
Wood Office Furniture Manufacturing
1
Wood Window and Door Manufacturing
2
Zoos and Botanical Gardens
1

Should You Franchise?

As you drive around Santa Cruz, you may be surprised to see how many franchises there are in the area. Should you be giving franchising serious consideration?

We advise the entrepreneurs we work with to consider franchising as an option. This site has dozens of articles on franchising, such as Growth Trends in Franchising. 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.

Sample franchise opportunities include Nestle Toll House Cafe by Chip and The Counter. Alternatively, you can browse franchise categories, such as Cell Phone Franchises and Automotive Services Franchises.

Note on Santa Cruz Franchise Opportunities: To find out if a franchise you are interested in is available in Santa Cruz, you will need to get in direct contact with the franchisor.

Selecting a Name For Your Business

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.

Even if the name doesn't do it by itself, many naming experts believe there should be a story behind the name that ties into your company mission.

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 starting a business in Santa Cruz, it's imperative that you check now that your company name has not already been claimed by another California business.

Company Formation in Santa Cruz, California

A critical step is ensuring that you choose the right legal structure for your new entity. Doing so will protect you from personal liability for business debts and obligations.

When forming a company, you will choose from many company types, such as a corporation, LLC, sole proprietorship, partnership or other structure.

Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. Just because you are starting a business in California, it doesn't mean you are required to incorporate in California. In fact, you can 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's a lot to know about forming a company. To learn the fundamentals of company formation, browse articles on our site, such as Why Incorporate in Delaware. You may also want to seek the advice of an attorney. On a final note, since you will be starting a business in Santa Cruz, California, our web page covering Incorporating in California may be a useful resource if you decide to incorporate in California.

Getting Money to Start a Business

Raising money to fund your new Santa Cruz business is very difficult due to the ongoing business credit crunch. To obtain business financing, you will need to hear a lot of rejections before you finally find a funding solution that works for you.

To learn about raising money, we recommend you read the fundraising articles on our site, such as Business Credit Evaluation.

For Santa Cruz entrepreneurs who need startup capital, check out our List of California Angel Investors and our List of California Venture Capital Firms.

What's Next?

Most new Santa Cruz 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.

Our goal here is to promote the vitality and growth of small businesses in Santa Cruz and throughout the United States . We believe entrepreneurship is an amazing engine for job creation in Santa Cruz, neighborhood development and overall economic health.

More Entrepreneurial Resources for Starting a Business in Santa Cruz, California

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

More Business Startup Guides for California

Starting a Business in Santa Clarita
Starting a Business in Santa Fe Springs

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

 

 

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary