How to Start a Small Business in Los Angeles

Start a small business in the city of Los Angeles.

Los Angeles ranks as one of the largest cities in the world. With a huge population and a variety of arts, culture and entertainment, it offers a lot of financial possibilities for starting a small business in the area. This metropolitan environment creates fierce competition, but with a good business plan and determination, business opportunities will materialize. Have the basic requirements down before starting a small business in Los Angeles.

Things You'll Need

• Business plan
• Financial Assistance
• Business license
• Employee Identification Number

Instructions

1. Create a business plan. With more than three million people in the city, Los Angeles is the second largest city in the United States. A good business plan is needed to compete with other businesses in this metropolitan area. Five basic components make up a business plan: a mission statement; a description of the company and its products; market research and analysis; a marketing plan; and an operating plan. Start by writing a mission statement or business objective, and then identify the industry, company, and product or service. Next describe the ideal customers, market size and trends, competition, market share and potential sales. Now create an overall market strategy, including pricing, sales tactics, and advertising and promotion. Finally, research the business location within the city, facilities that the business will use and the labor force.

2. Get financial assistance for the small business. Go to the nearest bank and ask to speak with a representative. Show her the business plan and ask about acquiring loans from the bank. She will look over the plan and determine whether the business is credible enough to warrant financial assistance from that bank. She may also request a rewrite of the plan if she sees any problems regarding the potential of the business. Another way to get financial assistance is from the U.S. Small Business Administration. It offers different financial programs for small businesses owners who are in need of capital. See Resources below for a link to more information on SBA financial assistance.

3. Acquire a business license. Regardless of what city or state the business will be located in, the owner will need a business license to legally conduct a small business. To apply for one, visit the Business.gov website (see Resources).

4. Obtain an Employer Identification Number (EIN) if the business plan calls for employing workers. A business needs an EIN to withhold federal income taxes from the employees' paychecks. Apply for an EIN at the IRS.gov website or by telephone, fax or mail.

5. Promote a small business in Los Angeles by attending meetings or networking events in the city and handing out business cards to every person there. Deliver fliers door to door in residential areas. Write an article related to the business in a Los Angeles press release. Buy ad space for an advertisement in the Los Angeles Times. Create a business website and join community forums with people from Los Angeles. Join social media networks, find people in the area of Los Angeles and help them with topics relating to the new business; leave a link to the new business website in case they want find out more information.

References

• How to Write a Great Business Plan
• Los Angeles Public Library

Resources

• SBA: Financial Assistance
• IRS.gov: How to Apply for and EIN