The Best Small Business Ideas in New York: Start One Today
There are a lot of great business ideas to launch in the Empire State. According to Investopedia, some of the top industries driving New York’s economy are:
- Financial Services
- Healthcare
- Business and Professional Services
- Retail
- Manufacturing
The New York startup climate isn’t exactly the most affordable with strict regulations and high costs for doing business. There is however a large amount of startup capital available, so you might benefit from checking out New York business opportunities.
This article covers some of the best small business ideas in each industry below. If you’re considering New York for business, MyCompanyWorks can help you start a Limited Liability Company (LLC) or Corporation in as little as one business day. Read our guide and find helpful tips to start and manage a profitable business.
New York Financial Services
New York is obviously a major hub for finance, so it makes sense that closely-aligned businesses get started in the Big Apple. Finance-related startups have increased over the last several years. The Empire has seen a growing number of advisory and investment firms, consulting agencies, apps for wealth management, insurance solutions, and accounting firms.
Healthcare Technology
The Empire State is one of the top destinations for tech startups with a focus on healthcare. Popular startups like Noom, Talkspace, and Crossix already call New York home, and they’re just a few successful healthcare startups in the tech industry. With telemedicine, online therapists, and direct order pharmacies booming in the last couple of years, there’s a lot of opportunity for health-related tech startups.
Business and Professional Services
According to US Census Bureau numbers, the Business and Professional Services category produced over 48,000 business applications in March 2022. Startups in logistics, legal services, accounting and bookkeeping, marketing consulting, content marketing, and event management are very popular and can be profitable with the right plan and execution.
New York Business Resources
Start Your New York LLC, Corporation, or DBA | The Small Business Plan | Discover Great Business Ideas
New York Retail
The retail industry is a large umbrella for a broad range of products, services, and business models. The whole world flocks to NYC to shop for clothing, jewelry, toys, electronics, and gifts. Even if you open an online clothing business, you’ll still be right next to all the most popular brands and manufacturers. Starting an Amazon store is also a great low-cost startup idea. Building an online store around what’s available in New York also increases your bottom line by saving on shipping and import costs.
Manufacturing
Manufacturing all kinds of goods is a very important part of the Upstate New York economy. Jobs related to tech and computer and electronic manufacturing are growing, along with the pace of new products in the Empire State. Food, plastics, tiles, fiber products, and packaging top quite a long list of products manufactured in New York.
New York Business for Sale
Buying an existing business can save startup costs and turn profits faster than building from the ground up. Sites like BizBuySell and Commercial business brokers can help you find legitimate business opportunities.
How Much Does it Cost to Start a Business in New York?
Costs will vary depending on the kind of business you start, but formation fees can be found on our New York business registration page. You can also see current turnaround times.
Launch Your Business with an LLC, Corporation, or DBA (Assumed Name)
If you’re ready to start a business in New York, the following 10 steps and tips offer everything needed to launch.
1. Choose the Best Entity Type and Business Name
What’s in a name?
Naming a company or product can seem like a simple task, but it’s vital you take the time to do some research in order to ensure that you pick a unique name. This will help prevent any potential future legal issues, as most countries have trademark laws. Companies often sue each other over having similar names and the same type of product or service. To avoid these problems you should use a unique name for your company.
Common entity types
For startups, the most common type of business entity is the Limited Liability Company (LLC). Generally speaking, LLCs are considered flexible and easy for managing. If you’re not sure which option to take, it’s best to consult a licensed accountant or lawyer.
- LLC: The LLC – short for Limited Liability Company is the most popular among startups. There are many potential benefits to this type of business, including tax savings and a simplified ownership structure. You do not need to file a “business” tax return annually but instead, report on profits and expenses in the personal filing of your own yearly return.
- Corporation: For bigger companies or complex models, the business entity type might be “corporation” but most businesses should be registered as an individual. In our experience, small businesses might not need to form a Corporation. It would be best to contact an attorney or accountant before forming one if you’re having doubts.
- DBA: DBA stands for “Doing Business As”. New York refers to DBAs as Assumed Names. One way to run your business without the hassle of an ENT is through a DBA. DBAs don’t offer liability protection though, so if you don’t get an EIN for your business, you’ll have to use your personal social security number for business purposes. DBAs are not required to have an EIN if you don’t hire workers, but it provides a layer of identity protection, so we recommend applying for one.
Talk to a tax professional to decide which entity type is right for your New York business.
2. Develop an Effective Business Plan
Why every business should have a plan
A comprehensive and well-designed business plan is essential to secure funding for your business. A clear, coherent plan will show investors that you know what you are doing. Investors like to fund startups that align with their vision, so make sure to add details that outline the purpose of your business. Lenders require a business plan to see short-term and long-term goals, which helps them decide if you can repay loans. Start working on your plan before approaching investors for the best results. The Internet is full of free business planning templates, so there’s no need to re-invent the wheel. Our small business plan guide is a great place to start.
What’s included in a proper business plan
Your plan should summarize the details on the first page, then break down each part for clarity. An effective business plan should include:
- An executive summary that describes the company, its purpose, and benefits
- Detailed strategies for pricing and marketing
- Details about demographics, target market, and possible locations
- Products and/or services being offered
- Revenue and expense forecast for the first year (some investors want to see longer forecasts)
Learn how to forecast revenues and expenses for your business plan.
Find New York startup funding
NOTE: The costs at each stage of business can be different and it’s important to know what they are before you apply for loans and credit. Startup costs will vary depending on your industry, but you can get a solid estimate if you research products, equipment, rent, and business licensing and registration costs without spending any money. Potential investors want to see solid numbers and data to support your ability to repay loans. Check out our New York LLC and Corporation options to see processing times and actual fees.
Where to find funding:
- Start by counting up personal savings, home equity if available, and money in retirement accounts. Borrowing from yourself is the fastest, easiest way to collect startup cash.
- Nearly $900 billion is spent each year on small business startup loans. Friends and family play a major role in these investments, with close to 40% of them taking a loan for the business. If you have relatives and friends who want to invest in your startup, make sure they receive something in return. You can offer them interest rates on loans, free products, or services from your business. Further tips are available at Debt.org
- Angel investors can boost small business startups in the early stages with funding in exchange for things like part ownership, discounts, or free products and services. If you’re looking to start your own business and don’t want to look for participants with less capital, it may be worth looking into angel investors. They may be willing to invest a larger sum of money or offer other benefits in order to get on the ground floor of a growing company. Sites like Gust and Funded.com are great platforms for startups to raise their first bit of capital.
- SeedInvest, Kickstarter, and IFundWomen offer crowdfunding options for easy account setup. You can start your campaign with just a few clicks and it’s also flexible – give rewards, set a budget, and offer different perks.
TIP: Investors like to work with businesses that keep bills and taxes paid. Bills, payroll, taxes, and business fees should all be processed in a timely manner to build good business credit.
Related Helpful Resources
The Best Business Plan Tips | LLC? Corporation? Choosing the Right Entity Type | Build Business Credit for Funding
3. Employers Must Apply for an Employer ID Number, or EIN
All US companies must have an Employer Identification Number (EIN) in order to hire employees. If you are a sole proprietor or DBA and don’t need to hire employees, then you will only need an EIN to separate business and personal matters. If you have a Social Security number, you can apply online with the IRS.
NOTE: Non-US citizens must apply for EINs by phone. The IRS has additional requirements for international business owners.
You’ll need your EIN to open business bank accounts, hire workers, and file tax returns for your business. A ‘’Doing Business As’’, or DBA is optional if you don’t have employees, but we recommend applying for one to separate business from personal matters and help protect against identity theft.
Order your EIN application with any LLC or Corporation package.
4. Open Business Bank and Credit Accounts
Having a business bank account is one of the best ways to separate personal and business finances. It helps establish business credit and also keeps you organized. Make sure you find a financial institution that offers the right services and products for your business needs. If your local branch can’t help, search the internet or contact one of our partners to help you find exactly what you’re looking for. Each bank has different requirements, so make sure to interview a few before making a decision.
Chat with our banking partners to find the best business financial solutions.
5. Locate Business Space
Depending on the kind of business you’re starting, you may be able to save on startup costs and overhead with a home office. If you’re not able to work from a home office, commercial real estate agencies can help you find working space. They usually charge by square foot.
Contact a commercial leasing broker to buy or lease business space.
6. Business Licenses and Permits
Most companies don’t need to register with the federal government, but you will need to be licensed in your state. Permits and licenses vary across different industries so you’ll want to contact the New York business licenses division.
Order a business license compliance package to save time and money. Our partners make sure you get the right licenses and permits to run your business.
7. Apply for Business Insurance
You may need additional coverage depending on your specific business, but here are some common business insurance policies:
- Business Owner’s Policy
- General Liability Policy
- Workers’ Compensation Policy
To find the right insurance for your business, you can get free quotes from our partners netQuote and Hiscox.
8. Set Up Accounting and Organize a Filing System
Running a small business takes up a lot of work and you might not have the time to keep track of finances every day. You can save time, effort, and money by using accounting software like Quickbooks Online or finding a qualified financial professional.
Businesses generate paperwork of one type or another – for example, invoices, records, etc. Creating a filing system before your paperwork starts to pile up is the best way to manage paper. It makes it easier to find and store them. To store your files, you’ll need to set up a filing method according to your business needs. A paper cabinet will do, or you can try cloud storage instead. Whatever system you decide on, make sure it works for you and that it suits the business documents which may include:
- Customer contact information, contracts, invoices, etc.
- All employee documents, including applications, annual tax forms, reviews, disciplinary actions, etc.
- Vendor contact information, product information, contracts, and open/paid invoices
- Original business formation paperwork, licenses, permits, lawsuits
- Tax returns with company information, employee tax filings, tax deposit receipts
IMPORTANT: A business must keep tax records for at least seven years after their filing date. Other records may be needed depending on the business, but often only need to be kept for three years or less. Click here for more information on how to store your records.
9. Recruit and Hire Help (Optional)
Skip to Step 10 if you’re working alone.
Learn how to recruit the best team
If you already have a business plan, it will help you figure out who to hire. If you have a customer-facing product or service, then you’ll want people who are good with people and are not shy as part of your team. Data companies in particular need to hire staff that has strong math and analytical skills. It may not seem like a big deal, but skipping these important steps can lead to wasted interviews and bad hiring decisions. The most important things to consider when hiring are the qualities of your business that matter the most. A skill set can be taught, but it’s important to find employees who will represent your company in a positive way.
Develop and motivate an effective team
Use online job forums to find qualified candidates fast. Whether you need full-time or part-time help, most job seekers look in places like Indeed, LinkedIn, and local job sites for job listings.
Pro tips for best results:
- Write an employee handbook and use it to train your team
Policies about things like company conduct, uniforms, and procedures should be clearly defined in your training manual. Make sure to add a signature page so that employees can acknowledge they’ve read the manual. You can use free templates online to create the company’s policy manual and store it on the company website or intranet for easy access by all staff members.
- Write a job description for each position
A well-written job post is your best weapon when looking to hire the best people. Include details like tasks, environment, and general overview of how the business operates in your job post to attract suitable candidates. Writing detailed postings will also weed out unqualified applicants if your business has special requirements. It’s best to lift details like if there’s heavy lifting or working after normal business hours so job seekers can decide if they want the job before requesting an interview. Candidates like to know what they’re getting into. You’ll want to make sure that you include as many details as possible while listing your open positions and this will help them decide if it’s the right job for them or not.
TIP: Most positions take between 6-10 interviews to fill.
- Conduct interviews in order to find the best candidates for your team.
Ask each applicant about their skills, experience, and background so that you can find someone who is both qualified and right for the job.
The average open job receives around 26 applications, but your chances of receiving hundreds might be more likely. Vetting candidates based on their skills can help reduce interviews. Choosing qualified candidates reduces training expenses and employee turnover. Indeed.com offers expert recruitment advice so you can recruit the best team possible.
10. Execute a Marketing Plan
Website with Domain Name and Email
Today, 70% of potential customers are more likely to buy from a business if they visit the company website before making their purchase. Websites are invaluable for a business because they provide potential and current customers with an overview of your products and services. Websites should have business hours and some kind of contact form available. If your customers are mostly locals, you can attract more of them by adding a business profile to Google My Business.
Want help? We offer an exclusive package with a custom domain name, website, and company email to launch your online presence fast. Order with any New York startup package.
Start a New York Business Today
MyCompanyWorks offers the exclusive Startup Wizard to walk you through the startup process for LLCs, Corporations, or DBAs in New York. Creating an LLC in New York is fast and easy with our exclusive Startup Wizard, free with every New York startup package.
Summary
The New York business landscape is booming, and thousands of startups are calling the Empire State home. Financial services, healthcare, business and professional services, retail, and manufacturing are some of the major industries in New York, and many entrepreneurs are finding the venture capital and resources to establish their startups. Although New York’s startup environment can come with a lot of regulations and fees, the right business can still be profitable if it can keep up with New York’s fast pace.
If you followed our guide, your business should now have: a memorable name, a solid business plan, insurance, funding, and an Employer ID Number to hire employees (optional). We also recommend opening a bank account to separate your business transactions from personal ones. Once we have those things in place, you’ll be ready to write a training manual for your employees. For example, you can use platforms like LinkedIn and Indeed to find the right candidates quickly.
Now that your business is registered and you have it up and running, it’s time to get the word out! A custom website, domain name, and email address are a great way to attract new customers. More than 2/3 of consumers prefer to buy from companies with a current website. Capture your share of the market with a custom website, domain, and business email package. Add your web package to any business formation order.
MyCompanyWorks can start your New York LLC, Corporation, or DBA in as little as one business day. We offer comprehensive packages to help you launch your business fast. Check out our blog for startup guides, tips, and resources to grow a profitable business.
Business FAQs
Find answers to common business startup and management questions on our Frequently Asked Questions (FAQ) page. You can also reach out to our 5-Star support team during regular business hours.
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