Are you thinking of starting a business in California? This mega state’s mega economy is worth an investment. California has no shortage of opportunities with top industries, including agriculture, film and television, hospitality, healthcare, tech, and construction.

More than 39 million people live in California, and each of them represents an opportunity for an entrepreneur like you. With such a vast population and wide array of industries, California is an ideal place to start almost any business.

From 2010 to 2010, California earned an astounding 53% GDP growth, the third-highest in the nation. Not to mention the increase of non-farm employment during the same time, which grew by nearly 11.5%, ranking California 14th in the U.S. for employment growth since 2010.

And this employment isn’t all coming from large businesses and billion-dollar corporations. In fact, according to the Small Business Administration, California is home to more than 4 million small businesses. These companies employ over 7 million people, nearly half the state’s workforce.

The time to invest in a business in California is now. But before you do, you need to prepare by securing the right insurance and selecting the right kind of business for the state’s economic climate.

Insurance for Businesses in California

California business coverage is a must for every entrepreneur seeking to start a business in this state. Starting a company is hard, but staying in business is even more challenging. With the proper insurance protection, you’ll be well on your way to staying solvent and protecting your assets.

There are numerous types of business insurance, and what you’ll need depends on the size and scope of your business. For example, California requires firms with one or more employees to provide workers’ compensation insurance. It protects owners and employees when accidents cause bodily injury happens.

Not every business will need workers’ compensation, although quite a few wills. There is, however, one type of business insurance nearly every California business owner should have: general liability insurance. These policies provide basic, comprehensive coverage to protect your business from the unexpected.

General liability will cover your company when a wildfire pauses your operations or you fall off a ladder. These policies cover everything from property damage to bodily injury and even lawsuits for libel, slander, and defamation.

But general liability is just that, general. You should consider getting targeted insurance policies to cover specific aspects of your business. For example, commercial property and auto can be valuable additions to your business insurance suite.

Commercial property, often overlooked due to the prevalence of home-based businesses, is a worthwhile consideration. For instance, if you work from home and a flood takes out your office, your homeowners’ or renters’ policy probably won’t cover your damaged office equipment and space. The same goes for standard auto insurance policies. Commercial property and auto insurance will protect your company’s most valuable assets.

And if you have a lot of specialized tools and equipment, think about getting tools and equipment insurance. These policies protect your things if they are damaged, lost, or stolen. It even covers you when borrowing or lending gear.

Still, another type of insurance may be even more important than covering your property and other material assets. And this has to do with the times when you’ve caused the problem.

We all make mistakes, and if you’re providing professional services, like financial, legal, or medical care, you need to prepare for errors. Of course, you don’t intend to make them, but they happen, all the same. Professional liability and errors and omissions insurance has covered you when they do. 

These policies help businesses recover from business errors, missed deadlines, and accusations of negligence. Of course, no one plans for these things to happen, but you need to be prepared and able to protect your business when they do.

What Are the Best Businesses to Start in California?

You already know a wide range of industries and customers await you in California. Here are five businesses that do well in this state.

Restaurant

California has one of the largest restaurant industries in the country. By the end of 2022, full-service restaurants in this state are projected to make nearly $40 billion in revenue. However, limited-service restaurants aren’t far behind, expected to earn $34.3 billion in 2022.

These numbers are significant because they demonstrate the vast opportunities in the California restaurant industry and have also increased steadily for the last several years. No matter what type of restaurant you want to start, it’s hard to lose in California.

3D Print Shop

3D printing has seen a steady rise in popularity over the last decade. But, despite its prominence, few individuals or businesses can afford a 3D printer of their own. Starting a 3D printing lab gives citizens and enterprises affordable access to this critical technology.

Economists expect this 13.8 billion dollar industry to increase steadily throughout the 2020s. They estimate a compound annual growth rate of 20.8% through 2030. You can still get in on this early by opening a 3D print shop in California.

Car Wash

With 14.2 billion cars on the road, California has more vehicles registered than any other state in the U.S. (by several billion cars). And not only do these cars need to be serviced and repaired, but they also need to be washed!

Car washes are extremely popular in California because of the arid environment. After getting a car wash, there’s little chance it will be ruined by a future rain or snow storm, as is often the case in other parts of the country.

Fitness Center

California is known as a state with a healthy population. But how do its citizens stay that way? It’s not just drinking smoothies and taking hikes!

Gyms and fitness centers are overwhelmingly popular in California, especially in large urban centers like Los Angeles, San Francisco, and San Diego. Starting a gym is a great way to capitalize on this health-conscious state.

Billboard Advertising

What do you think of when California’s landscape comes to mind? Many envision its complex and sprawling highway system, every mile of which is flanked by billboard advertising. This is why California is one of the best states to start a billboard advertising business.

People in California spend a lot of time on the road. And with millions of businesses in the state, you’ll have no shortage of companies seeking to connect with their customers with billboard advertising.

There’s so much opportunity in California; the possibilities for your next venture are endless. Take the time to research and determine which business feels right for you before getting started!