South Dakota Business Startup Guides

Starting a Business in Hot Springs, South Dakota

Thinking about starting a business in Hot Springs, South Dakota? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Hot Springs.

Which Business to Choose?

Choosing a business that is right for you is very important. If you are struggling with what type of business to start, read Good 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 Starting a Fan Retailer guide or our How to Start a Technology Research & Development Business guide.

Remember that starting a business in Hot Springs has some implications. Some businesses will do better in Hot Springs than others. Only by spending some time analyzing Hot Springs demographics can you decide if there will be strong demand for your business idea.

Hot Springs, South Dakota Demographic Information

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

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

Business Size
# of
Businesses
1-4 Employees
1448
5-9 Employees
444
10-19 Employees
276
20-49 Employees
96
50-99 Employees
12
100-249 Employees
12
250-499 Employees
0
500-999 Employees
12
1000+ Employees
0
All Hot Springs Businesses
2300

As a new Hot Springs entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Hot Springs 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
Automotive Parts and Accessories Stores
3
Beauty Salons
2
Book Stores
2
Business Associations
1
Child Day Care Services
2
Civic and Social Organizations
3
Coin-Operated Laundries and Drycleaners
1
Convenience Stores
1
Credit Unions
1
Dog and Cat Food Manufacturing
1
Drinking Places (Alcoholic Beverages)
3
Electrical Contractors
3
Fitness and Recreational Sports Centers
3
Floor Covering Stores
1
Florists
2
Fossil Fuel Electric Power Generation
1
Full-Service Restaurants
7
Funeral Homes and Funeral Services
1
Furniture Stores
1
General Automotive Repair
1
General Freight Trucking, Local
2
General Rental Centers
1
Gift, Novelty, and Souvenir Stores
2
Hardware Stores
1
Household Appliance Stores
1
Insurance Agencies and Brokerages
2
Landscaping Services
3
Limited-Service Restaurants
8
Miscellaneous Intermediation
1
Museums
1
New Car Dealers
1
Newspaper Publishers
1
Offices of Certified Public Accountants
1
Offices of Chiropractors
3
Offices of Dentists
2
Offices of Optometrists
1
Offices of Real Estate Appraisers
1
Painting and Wall Covering Contractors
2
Passenger Car Rental
1
Pharmacies and Drug Stores
1
Poultry Processing
1
Radio Stations
1
Securities Brokerage
2
Site Preparation Contractors
2
Small Arms Manufacturing
1
Solid Waste Collection
1
Sporting Goods Stores
1
Tax Preparation Services
1
Temporary Help Services
1
Tobacco Stores
1
Used Car Dealers
1
Used Merchandise Stores
1
Veterinary Services
2
Video Tape and Disc Rental
1
Water Supply and Irrigation Systems
1
Wholesale Trade Agents and Brokers
1

Company Formation in Hot Springs, South Dakota

It's very important that you choose the right legal structure for your new entity. Without a legal structure for the business, you can be held personally liable for the actions, debts and obligations of your company.

The entity you form can be a corporation, LLC, sole proprietorship, partnership or other structure.

Incorporating is a very popular way to form a business. A key decision is whether to form and S-Corp or a C-Corp, and you also must decide in which state you will incorporate. Just because you are starting a business in South Dakota, you don't necessarily have to incorporate in South Dakota. In fact, you are allowed to incorporate in any state you would like to. 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 How to Incorporate. You may also want to seek the advice of an lawyer. Finally, if you are starting a business in Hot Springs, South Dakota, our information on Incorporating in South Dakota may be a useful resource if you decide to incorporate in South Dakota.

Don't Skip the Business Plan

A business plan is essential to the health of your new business. Simply put, a business plan describes what you plan to do with the business and how you plan to do it. Failure to write a business plan is a recipe for disaster.

If you want more information on writing business plans, we recommend reading Business Plan Contests. You can also get face-to-face free consulting available from your local SCORE chapter in South Dakota.

Raising Money for Your Venture

Getting your Hot Springs business the capital it needs to succeed is very difficult due to the ongoing business credit crunch. Bootstrapping, which means growing the business without outside funding, is the best alternative, but that's not a viable option for many startup plans.

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

For Hot Springs entrepreneurs who want to raise money for a new venture, check out our List of South Dakota Angel Investors and our List of South Dakota Venture Capital Firms.

Getting the Word Out About Your New Venture

To grow your Hot Springs business, you'll need to have a good marketing plan.

There are myriad resources on this site to help you with your marketing plan. Direct Mail Costs is a good read to get your marketing thoughts flowing. That's just a taste of the many useful articles we have on Marketing a Small Business.

The Art of Selling

Being able to sell is critical to your business success. Whether you are focused on selling local customers in Hot Springs or are selling to customers throughout South Dakota, the United States or even the world, you have to be able to sell.

Why should customers buy from you instead of buying from competitors? The good news is we can help you to make selling a big competitve advantage for your new firm.

Compensating Sales People offers some helpful tips on how to sell. It's one of several good articles on our site regarding Entrepreneurial Selling.

What's Next?

You have a dream -- starting a business in Hot Springs. To achieve your dream, you have to persevere, even when the odds are against you.

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 Hot Springs and throughout the United States . 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 Hot Springs, South Dakota

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

Starting-a-Business Guides for Other Cities in South Dakota

Starting a Business in Hill City
Starting a Business in Hoven

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