South Dakota Business Startup Guides

Starting a Business in Madison, South Dakota

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

Madison, South Dakota Demographic Information

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

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

Business Size
# of
Businesses
1-4 Employees
10428
5-9 Employees
4290
10-19 Employees
1914
20-49 Employees
1716
50-99 Employees
726
100-249 Employees
132
250-499 Employees
66
500-999 Employees
0
1000+ Employees
0
All Madison Businesses
19272

As a new Madison entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Madison 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
Art Dealers
1
Automotive Parts and Accessories Stores
3
Beauty Salons
1
Beer, Wine, and Liquor Stores
2
Bowling Centers
1
Business Associations
2
Cemeteries and Crematories
1
Civic and Social Organizations
2
Coin-Operated Laundries and Drycleaners
1
Commercial Lithographic Printing
1
Commercial Screen Printing
1
Computer Facilities Management Services
2
Computer Systems Design Services
1
Construction Machinery Manufacturing
3
Convenience Stores
1
Credit Unions
2
Document Preparation Services
1
Drinking Places (Alcoholic Beverages)
5
Drywall and Insulation Contractors
1
Electric Power Distribution
1
Electrical Contractors
5
Emergency and Other Relief Services
1
Engineering Services
1
Farm Product Warehousing and Storage
1
Flooring Contractors
1
Florists
2
Food Service Contractors
1
Freight Transportation Arrangement
1
Funeral Homes and Funeral Services
2
Furniture Stores
2
General Automotive Repair
2
General Freight Trucking, Local
1
General Medical and Surgical Hospitals
1
Gift, Novelty, and Souvenir Stores
2
Golf Courses and Country Clubs
1
Hand and Edge Tool Manufacturing
1
Hardware Merchant Wholesalers
1
Hardware Stores
2
Home Furnishing Merchant Wholesalers
1
Homes for the Elderly
1
Household Appliance Stores
1
Insurance Agencies and Brokerages
11
Land Subdivision
1
Landscaping Services
4
Lessors of Other Real Estate Property
1
Limited-Service Restaurants
6
Livestock Merchant Wholesalers
1
Machine Shops
2
Mail-Order Houses
1
Men's Clothing Stores
1
Motorcycle Dealers
2
Museums
2
New Car Dealers
2
New Housing Operative Builders
1
News Dealers and Newsstands
1
Newspaper Publishers
1
Nursing Care Facilities
2
Office Administrative Services
1
Offices of Certified Public Accountants
3
Offices of Chiropractors
2
Offices of Dentists
4
Offices of Lawyers
6
Offices of Optometrists
2
Painting and Wall Covering Contractors
1
Pharmacies and Drug Stores
2
Racetracks
1
Ready-Mix Concrete Manufacturing
2
Real Estate Credit
1
Residential Property Managers
3
Residential Remodelers
3
Sheet Metal Work Manufacturing
1
Siding Contractors
1
Sign Manufacturing
1
Site Preparation Contractors
3
Snack and Nonalcoholic Beverage Bars
2
Software Publishers
1
Solid Waste Collection
1
Temporary Shelters
1
Tile and Terrazzo Contractors
1
Tire Dealers
1
Title Abstract and Settlement Offices
1
Used Car Dealers
1
Veterinary Services
1
Video Tape and Disc Rental
1
Wired Telecommunications Carriers
3

Is a Franchise Opportunity Right For You?

As you drive around Madison, you may be surprised to see how many franchises there are in the area. But is franchising the right option for you?

We highly recommend you consider franchising as an option. On our site, you can read many articles about franchising, such as Franchise Versus Business Opportunity. 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 Boscos Restaurant Franchises and Gotcha Covered Blinds. Alternatively, you can browse franchise categories, such as Soccer Franchises and Bakery Franchises.

Note on Madison Franchise Opportunities: You will need to contact franchisors directly to see if their franchises are available in Madison.

Forming a Company in Madison, South Dakota

It's essential that your business is formed as a legal entity that is separate from its owners. Doing so will insulate you from personal liability for business debts and obligations.

The entity you form can be a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.

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. If you are starting a business in South Dakota, you don't necessarily have to incorporate in South Dakota. In fact, you can incorporate in the state of your choosing. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.

There are many nuances to forming a company. We recommend you read some of the educational articles about company formation that are availabe on our site, such as Company Formation. You may also want to seek the advice of an lawyer. Finally, if you are starting a business in Madison, South Dakota, our information on Incorporating in South Dakota may be a useful resource if you decide to incorporate in South Dakota.

Don't Forget to Create a Business Plan

A business plan is essential in laying a solid foundation for your business success. Indeed, 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.

To learn more about business plans, read Business Plan Contests. A great resource for business planning assistance is the free counseling sessions provided by your local SCORE chapter in South Dakota.

Where to Get Money to Start a Company

Getting your Madison business the capital it needs to succeed is not an easy task. To obtain business financing, you will need to hear a lot of rejections before you finally find a funding solution that works for you.

Fortunately, this site contains dozens of articles on raising money, including one we recommend entitled 504 Loans.

For Madison entrepreneurs who need startup capital, check out our List of South Dakota Angel Investors and our List of South Dakota Venture Capital Firms.

Letting the World Know You Exist

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

We have some helpful resources on this site for entrepreneurs who are working on marketing plans. Pros and Cons of Advertising discusses marketing strategy and tactical marketing in a way that should get you thinking about how to creatively promote your business. That's just one of the many useful articles we have on Marketing a Small Business.

The Art of Selling

Mastering the art of selling is priority one if you want your new Madison business to do well.

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.

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

Next Steps

Most new Madison 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 Madison and throughout the United States . We want to be there for you to answer your business questions, whether you are a new Madison entrepreneur who is just getting started or you are already up and running with your new venture.

More Entrepreneurial Resources for Starting a Business in Madison, South Dakota

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

More Business Startup Guides for South Dakota

Starting a Business in Leola
Starting a Business in Marion

Browse All Business Startup Guides for South Dakota
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