How to start a business in Tennessee in 7 steps

Food and hospitality: If you have a passion for food and customer service, starting a restaurant or catering business—or even a bed and breakfast—could be a great opportunity in Tennessee. Learn more about how to start a food business or explore these food business ideas.
 

Tourism and outdoor recreation business ideas: Take advantage of Tennessee's natural attractions and start a business that caters to tourists like a tour company, outdoor equipment rental business, or camping or RV park.
 

Healthcare and wellness: With an aging population, the demand for healthcare services and products is on the rise in Tennessee. Starting a business in the healthcare or wellness sector—such as a home healthcare agency, fitness center or medical supply business—could be worth looking into.
 

Technology and innovation: Tennessee's growing number of technology startups and research institutions has fed its culture of innovation. The state is thereby ripe for new technology-based unique businesses.
 

Agriculture and manufacturing: Known for its fertile land and diverse natural resources, Tennessee is an ideal location for starting a farming business or a forestry-related business. Think how to make money for a farmer: crop and livestock farming, timber and logging, a farm-to-table restaurant or a manufacturing facility.

Franchise: Under this model, you can tap into an established brand, proven business model and ongoing support from a franchisor. This allows you to minimize your risk and capitalize on a successful concept.
 

Online: Play your hand at e-commerce, online services or selling digital products—each of which can be sold through your own branded website and/or established marketplaces (like Amazon).
 

Service-based: Tennessee's population has been steadily increasing over the years, leading to a growing demand for various services. Examples of service-based businesses include consulting (see how to create a consultant business plan), hair salons, daycare (see how to create a daycare business plan) or pet care.
 

Home-based: Save on expenses and enjoy a flexible schedule by starting an online business (such as eCommerce, consulting or tutoring services) that can be done from home.
 

Social enterprise: Focus on solving social or environmental issues while generating income. Some ideas: a sustainable clothing brand or a non-profit that runs a for-profit business to fund its mission.
 

Subscription-based: Build a loyal customer base and enjoy predictable revenue by offering subscription-based services, like meal delivery services, streaming services and software-as-a-service.

Make it memorable: Choose a name that is easy to remember and stands out from the competition.
 

Make it descriptive: Consider including keywords that describe what your business does, such as "Tennessee BBQ" or "Nashville Music Store."
 

Keep it simple: Avoid complex or confusing names that are difficult to spell or pronounce.
 

Check for availability: Before finalizing your name, check that it’s not already in use by another business. You can check the Tennessee Secretary of State's business name database to see if the name is already in use, plus use Wix’s domain name search to check that it’s available as a website name.
 

Consider your brand image: Your business name should align with your brand image and values, so choose a name that reflects the tone and personality of your business.
 

Get feedback: Put your name in front of friends, family and potential customers to get feedback on how it's perceived and make adjustments as needed.

Choose your business structure, be it a sole proprietorship, LLC or corporation.
 

Register your business with the Tennessee Secretary of State by mail or online. The exact paperwork will depend on your business type. For example, LLCs will have to file an Articles of Organization. Filing fees and service fees may apply.
 

Obtain necessary licenses and permits from the state, county or city (requirements vary depending on your business type). The Tennessee Department of Revenue provides more information on this. You can also check out the Tennessee Department of Commerce & Insurance for info on industry-specific certificates and business licenses.
 

Register for a sales tax certificate with the Tennessee Department of Revenue if your business will be selling taxable goods or services. You may also need to register for other types of taxes, such as employer taxes or franchise and excise taxes.
 

Obtain business insurance. While generally not required, it’s highly recommended that you get business insurance to protect you from unforeseen events. There are various business insurance policies to choose from, including general liability insurance, property insurance, professional liability insurance and cyber liability insurance.

Small Business Administration (SBA) loans: The SBA provides loans to small businesses with favorable terms and low-interest rates. Tennessee has multiple SBA offices that can assist you with the loan application process.
 

Grants: Explore various grant options available through the Tennessee Department of Economic and Community Development. Check their website to see what grants are currently available.
 

Angel investors: In Tennessee, there are angel investors who can provide funding to small businesses. You can find them through networking events, online platforms (like AngelList or Gust) or referrals.
 

Crowdfunding: You can use crowdfunding platforms like Kickstarter or Indiegogo to raise funds for your business.
 

Bank loans: Consider applying for a business loan at a bank or credit union in Tennessee. To secure the loan, be ready to provide a detailed business plan, financial projections and collateral.
 

Friends and family: Consider asking friends and family for initial capital, but be sure to establish clear agreements to avoid misunderstandings.