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Starting a Business in California

Many factors need to be considered when starting a new business to ensure its success. A good location, skilled talent, and strong network; to name a few. California has attracted many over the years who have migrated to this ever-happening and growing state, seeking business opportunities. From small businesses to booming enterprises, California has an advancing and successful market for start-ups and business investments of all sizes. With just a 909 Area Code number and a business plan, it is easy to jump on the opportunity of starting a business in California. Even if you’re located elsewhere in the country or even the world, you can create a business presence in California to capitalize on this thriving market.

Starting a Business in california

California’s Business Scene

California’s top industries with investment opportunities are finance, technology, real estate, business services, healthcare, and social assistance. More recently, however, California has become a breeding ground for start-ups and small businesses.

Potential For Successful Start-Ups

A start-up is a company in its initial stage of operations. These are entrepreneurial ventures with 1-3 founders who focus on capitalizing by developing a practical product, service, or platform. Starting small and with few employees, start-ups need to survive in order to be successful. Affordable office spaces and labor are very important in helping start-ups to thrive.

Some trending business ideas for California are mobile bartending services, escape room businesses, hydroponics stores, skate shops, salons, and more. As a result, with a business idea that is new, trending, or up-and-coming, starting a business in California is a step in the right direction.

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Small Businesses Are Growing

California is prime for small businesses because of the availability of effective networking opportunities with numerous trade shows and conferences. The booming economy can support growth for a wide range of businesses. Proximity to Silicon Valley and Hollywood leads to greater demand for concentrated talent and highly trained specialists. These are the main reasons why starting a business in California, even a small business, is so popular.

For instance, the best industries for small businesses are real estate rentals, e-commerce with print/online catalogs, non-instructional services such as counseling and student exchange programs. Retail shops, salons and spas, and other educational businesses are additional options. These jobs have a greater tendency to be successful because they are high-revenue with few expenses.

Why Is California Good For Business?

California continues to attract employees and residents from other states and countries because of the opportunities it provides. The state’s most appealing features are its exquisite beaches, proximity to national parks, year-round mild weather, and opportunities for coastal road-trips. But these aside, California offers many conferences, trade shows, and seminars where networking is prime. Interact with other businesses and highly skilled workforce and talent to learn the most effective practices for your business. When starting a business in California, its strong business network will provide resources for you to succeed.

Cater To A Diverse Culture

The state is also widely known for its upscale cultural scene with chic boutiques, diverse cuisine, five-star entertainment options, performances, and more. California is projected to grow at an annualized rate of 0.76 percent, adding 6.5 million people, from 2016 to 2036. More people with high incomes equals higher spending power and demand. Being a wealthy state, the cost of goods and services, as well as wages, are higher than in other states. Businesses operating here, therefore, stand to make more money and be more successful.

Cities To Consider

Sacramento, California has been growing rapidly in recent years, spurred by an economic renaissance. Residents looking for cheaper urban living are gradually considering Sacramento as an option. As an emerging tech hub, it has been gaining attention from investors and start-up firms. The city provides cheap office space along with the demand and availability of highly specialized talent. Its proximity to Silicon Valley, the center of the tech universe, makes this location important for a tech business.

Similarly, San Francisco has been ranking high in real estate markets because of its high housing prices. This enables real estate agents to easily make six-figure incomes. Because of the high housing prices, making a few deals at a time is enough to generate a good reputation. WalletHub rated San Francisco as the third best city to be a real estate agent. On the other hand, residents looking for cheaper urban living are gradually considering Sacramento as an option.

Steps For Starting A Business In California

So, what do you need to start a business in California? Here are a few steps to guide you in the right direction:

  • Step 1: Choose a Business Name
  • Step 2: Create a Business Plan and decide on a business entity such as a DBA, a Corporation, or an LLC
  • Step 3: Register Your Business
  • Step 4: Obtain an Employer Identification Number (EIN)
  • Step 5: Obtain any required Business Licenses or Permits
  • Step 6: Open a Business Bank Account and explore your funding options
  • Step 7: Register Sales and Taxes [for selling products, hiring employees]
  • Step 8: Tax and Employer Identification documents
  • Step 9: Get a business phone number with a 909 Area Code. A virtual phone number with California area codes helps you maintain your business, even from outside of California.
  • Step 10: Purchase Domains And Hosting
  • Step 11: Begin Marketing by advertising on
    • Business cards
    • Website
    • Billboards

Above all, California is a good location for start-ups and small businesses that draw highly specialized talent. With high affordability, new businesses have a higher rate of surviving the market here. Therefore, when you’re ready to start a business in California, you can do so knowing there is a high chance of success. Be sure to sign up for a virtual phone number from United World Telecom to ensure you’re taking advantage of communicating like a local entity. This way, your business will have a virtual presence, even if you are not in the country.

About the author

Mohd Zaid

Hi, I am Mohd Zaid Mansoori, a Web Developer, Digital Marketer, Tech Enthusiast and a Student from Lucknow, India. I am a freelancer and co-founder of TechnoCrator and TechnoTrones.

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