Michigan is home to top global conglomerates like General Motors, Ford, Kellogg’s, Whirlpool, and more. This state located in the upper mid-western part of the United States has a diversified economy. The domestic auto industry accounts for one of every ten jobs in the whole of America. On the other side, it has a huge hunting industry contributing over $2 billion annually to the state’s economy.
Michigan has a massive tourism industry. It supports over 193,000 tourism jobs in the state with top destinations that draw vacationers and nature enthusiasts from across the United States and Canada. Here’s a complete guide on how you can start a successful business in Michigan.
List of 18 Small Business Ideas in Michigan
1. Open a Microbrewery
Michigan has a strong beer culture. The state is known for its diverse and innovative craft beer offerings. However, to stand out in this competitive market and be successful, you have to be creative in brewing unique flavors that showcase local ingredients and regional influences.
2. Christmas Tree Business
A popular seasonal business, one can grow and sell Christmas trees in the state. As a matter of fact, Michigan is the third-largest grower of Christmas trees in the United States.
3. Recruiting Agency
Michigan has an important source of engineering jobs and has a very developed domestic auto industry. The state has a very healthy employment ratio too. If you have networking capability, consider starting a recruiting agency in Michigan.
4. Bed & Breakfast Business
Michigan has several tourists visiting the state every year from all over the US and Canada. You can start to offer a bed and breakfast option for tourists who look for an alternative to hotels.
Learn More: How to Start A Bed & Breakfast Business
5. Business Plan Writing Service
Companies often look for research-based strategies to improve their business. You offer business plans to help them do better.
6. Online Business Consultancy
If you have expertise in the field, you can start offering consultations. You can keep doing your own work and can offer consultations online.
7. Affiliate Marketing Business
If you can attract an audience through your channels, you can make money by influencing people to buy something. As an affiliate marketer, You will get paid to endorse products and services through different platforms.
8. Hunting Equipment Business
Michigan had the highest number of licensed hunters. You can start selling hunting equipment, which contributes $2 billion annually to Michigan’s economy.
9. Financial Advisor
If you are good at finance and accounts, you can start giving out advice. The massive working population of Michigan is a potential market.
10. Marketing Services
Different small businesses operate in Michigan without prior marketing knowledge. You can assist them to execute their marketing plans and help them promote their products and services.
11. Start a Blog
If you have a writing passion, start a blog of your own. Start writing on a particular subject, share your blogs, and make money. There are several methods of making money from a blog. Some of the popular ways are Google AdSense, affiliate marketing, sponsored articles, and selling your own products.
12. Online Copywriting Services
Companies often look for copywriters online for different marketing projects. You can offer different copywriting services like blogs, social media posts, PRs, and more.
13. Content Marketing Agency
Michigan has a pool of companies operating in the state. You can help these companies create content to increase leads over advertising.
14. Social Media Marketing
Social media is a specific marketing specialty that most business owners know they need, but few are capable of doing well.
15. Dairy Exports
Milk is one of the most valuable agricultural products in Michigan. You can produce your dairy products in Michigan and export them to other states.
16. Fruit Farming
Michigan is one of the largest growers of fruit in the United States. You can start fruit farming and produce some of the top-selling fruits like blueberries, tart cherries, apples, grapes, and peaches.
17. Create Mobile Apps
The tech industry in Michigan is on the rise. starting an app development company. You can create innovative mobile apps for specific industries or create consumer-focused apps that cater to various needs of consumers. It includes e-commerce, health and fitness, or entertainment.
18. Online Currency Trading
You can buy foreign currencies online and sell them at different exchange rates. You can gain on the conversions. Forex trading is a popular part-time business around the globe.
How to Start A Business in Michigan in 10 Steps
Follow the given steps to legally start a business in Michigan.
Step 1. Choose a Business Idea
The very first step toward starting a business in Michigan is to select a proper business idea. If you are a beginner with a low budget, check out the above small business opportunities that need almost no money.
Step 2. Planning Your Business
Start with a detailed plan for your new business. The business plan will help you to stay ahead of your competition. Jot down the goals, targets, and how to wish to proceed with your new business.
Step 3. Financing Your Business
Michigan offers a healthy platform for new businesses. The state has several investors and venture capital firms. If you choose to fund your own business, go for a loan with a long-term payback period and a low-interest rate.
Step 4. Naming Your Business
Choose a name and register it with the US trademark department. Make sure no one else has your name. Buy a domain immediately with the same name.
Step 5. Choosing A Business Structure
To register your business in Michigan, you need an Unemployment Insurance Account (UIA) from the Michigan Department of Licensing and Regulatory Affairs. You can choose between a sole proprietorship, partnership, corporation, and an LLC. An LLC will offer you added benefits and extra advantages.
Step 6. Federal EIN & Tax Filing
You have to apply for a Federal EIN to be eligible for taxation. The Federal Employer Identification Number (FEIN) is your business tax ID. Register your business with the Michigan Department of Taxation and Finance.
Step 7. Business Permits & Licenses
You will need local licenses specific to cities in Michigan to be legally operational. Get a sales tax license to sell products legally. The license will allow you to make purchases for resale without paying any sales tax. The sales tax license has to be issued by the Michigan Department of Treasury.
Step 8. Business Bank Account & Bookkeeping
Get a business bank account to facilitate financial transactions and open a credit account for vendors. Choose reliable accounting software that will help you to manage all your transactions in one place.
Step 9. Business Insurance
You need to have a professional liability policy to sell services in Michigan. Also if you have any employees, you will need worker’s compensation insurance to have a legal business
Step 10. Promoting Your Business
Now it’s time to take the word out. Take your business to your potential audience. Promoting a business in the right places is important. It’s better to hire an agency for promotions and marketing.
Best Places To Start A Business In Michigan
Choosing the right location is going to determine how your business runs. Here are some of the best places in Michigan to start your business:
- Grand Rapids
- Farmington Hills
We hope this complete hands-on guide will inspire you in starting your own small business in Michigan.
Frequently Asked Questions
What are the best business ideas in Michigan with No Money?
There are several business ideas that you can explore in Michigan if you have a limited budget. It can be food trucks, pet grooming, house cleaning, or tutoring. In addition, you can explore e-commerce opportunities by selling unique products online or starting a dropshipping business.
Are there any niche business ideas that are particularly successful in Michigan?
As a matter of fact, Michigan offers a fertile ground for niche businesses. Some of the niche business ideas that you can explore are organic farming, farm-to-table restaurant, kayak rentals, hiking or biking tours, or outdoor gear retail.
Are there any government programs available to support new businesses in Michigan?
Michigan offers a wide range of government programs and resources to support new businesses. For example, the Michigan Small Business Development Center (SBDC) provides free business counseling, market research assistance, and guidance on securing funding.
In addition, the Michigan Economic Development Corporation (MEDC) offers grants, loans, and tax incentives for businesses that contribute to the state’s economic growth. Additionally, local chambers of commerce and entrepreneurial organizations provide networking opportunities and resources for startups.
Can I start a business in Michigan if I am not a resident?
Yes, you can start a business in Michigan even if you are not a resident. However, there are certain legal and administrative requirements to fulfill. You may need to register your business with the Michigan Department of Licensing and Regulatory Affairs (LARA) and obtain the necessary permits and licenses. It is advised to consult with an attorney or business advisor to ensure compliance with all regulations.
What are some key industries driving Michigan’s economy?
The economy of Michigan is diverse and powered by several key industries. Some of the leading industries in Michigan include the automotive industry, healthcare, information technology, tourism, agriculture, aerospace, defense, and medical devices sectors.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.