Top Business Trends in California
California is a state with a thriving economy, despite a few setbacks caused by the coronavirus pandemic in 2020 and early 2021. Statistics from early 2020 reflect a record-low unemployment rate of 3.9% and the largest GDP of all the states in the U.S.
Hard-hit industries in the state include arts & entertainment, accommodation & tourism, food & beverage, all beauty businesses, and sports & recreation. Through these difficult times, small business owners proved their ability to come up with creative solutions to manage to ensure a steady income stream as they quickly adapted to their customer behavior.
Current Business Trends
Consumer behavior and tech are the two areas where businesses have concentrated their efforts for recovery. Customers now want to receive products, services, and solutions faster than ever before. This means they spend more time online shopping.
How shoppers have shaped business trends?
Digital solutions offer consumers the fastest way to receive the products they want. Shoppers have changed business trends by altering the way they shop. Huge increases have been noted in all online spending, including items like frozen food deliveries, perishables, entertainment, etc. Other changes in consumer behavior include the significant rise in the amount of time they spend on their hobbies, entertainment, and catching up with the news. This means the economy has shifted to on-demand shopping as consumers look online and on social media to make these and other = purchases. Ecommerce is here to stay.
Californians, the local movement, and the community
California is one of the top five states in the locavore movement, especially when it comes to buying fresh produce and meat products. People are cooking more and businesses who throw in produce delivery are set to continue growing. This trend is expected to continue offering business opportunities.
Small businesses are connecting with their communities more, making it easier for them to compete with bigger brands.
What is the future of business in California?
Both the operational and human capital of businesses have shifted. Customers expect better relationships and faster transactions. These are enabled by the technological capabilities available to browse and complete each transaction.
The future of business in California is dependent on these changes. New businesses need to concentrate on offering unique experiences, customization, and less formal interactions. Specialized products and services are more in demand now than ever before, offering new business opportunities for entrepreneurs.
Starting a Small Business in California
If you have an excellent business idea and a business plan then you are ready to start a small business in California. One of the most important decisions you need to make as you grow your business into a reality is the business structure.
Why choose to start your business as an LLC?
In California, the most popular business structure for a small business is a limited liability company (LLC) because of the benefits it offers.
With an LLC, all your personal assets are protected if something happens to your business. It is also very simple to run an LLC, and this structure lends you credibility among your suppliers and customers. Finally, LLCs offer you some tax-saving options.
Starting an LLC
There are 6 simple steps required to start your California LLC. Once these steps are completed, you are ready to open a business account and get your business license.
The first step in the creation process is to find a business name for your LLC. The catchier the name, the better, but make sure to include the words limited liability company or its abbreviations. Also, your LLC must not carry the same name as any other business in the state. A name search with the Secretary of State allows you to establish the availability of the name you have chosen.
Why must you appoint a registered agent?
The next step in the process is to file the Articles of Organization for your LLC. With this, you must list a registered agent. In California, these are known as agents for service processes.
The address of the registered agent is where all the formal correspondence for your business is sent. They are always available during working hours to receive these, and you ensure your home or business address is not on public record.
Once you have filed your Articles of Organization and the initial statement of information, you can create your LLC operating agreement. In this, you mention the members, their responsibilities, and how profits and dividends will be distributed. Finally, you specify how changes in members can be made. This information is vital in case there ever are any disputes.
The final step is to apply to receive an employer identification number (EIN) online from the IRS. This number is used by the IRS and the state of California to track your business activities. You are now ready to open your bank business bank account and start doing business.