How to Open a Business in Brooklyn
New York City's biggest borough is as much a brand as a location, and it is ripe for start-ups of all stripes.
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Brooklyn artist Lexy Funk began making messenger bags out of billboard vinyl in the 1990s. Today, her Brooklyn Industries has 14 storefronts nationwide.
For Alexis Miesen, Atlantic Avenue had all the makings of the quintessential Brooklyn thoroughfare that combines the charm of a small town with the pace of city life. With its colorful boutique storefronts, diverse dining options, smattering of coffee shops, and antique stores, she expected to see happy families strolling along the street sharing ice cream cones.
There was one problem: There was no ice cream anywhere around.
'It's filled with all these fantastic bars and restaurants and shops and it just has this really great kind of energy. They have all these great amenities to the community but no great ice cream shop,' she said. 'This is a gap in what other people are offering.'
Less than three years later, Miesen and her partner Jennie Dundas had opened not only an ice cream shop on Atlantic Avenue, but also had rapidly expanded the franchise to two other Brooklyn locations, feeding summertime crowds that often form lines winding out the door. Blue Marble's organic, grass-fed dairy-based ice cream has been praised on The Martha Stewart Show, CNN, and in a bevy of New York City publications.
Brooklyn has become as much a brand these days as a location. Slap the word 'Brooklyn' on a piece of clothing and it's instantly edgy, and quite likely to sell. New York City's most populous borough remains a popular place to start a business, and Miesen and Dundas are emblematic of the grassroots, DIY entrepreneurs across the borough who've found a niche, and a loyal fan base that helps spread their brand along the way. (Check out Inc.com's slideshow on Brooklyn's Best Entrepreneurs.)
The surge of creative energy, young artists and recent graduates is putting Brooklyn on the map not just for its booming music scene but also as competition with San Francisco to see who will lead the next Internet revolution.
Business owners say starting a venture in Brooklyn requires creativity, a careful study of neighborhoods, and a good deal of Web 2.0 savvy. We talked with several successful companies about why the county of Kings is a bubbling cauldron of entrepreneurship, and how to get in on the action.
Opening a Business in Brooklyn: Why Brooklyn?
While Brooklyn was once considered a sparse hinterland outside the bustling hub of Manhattan, now it's seen as the roomier, cheaper, less chaotic alternative, with a more stable population, and a reputation for creativity that draws artists, developers, and investors from across the world.
'It's a community actually that appreciates a lot of handmade goods, ethnic foods,' said Catalina Castano, director of the Brooklyn Small Business Development Center. 'It's not only ethnically diverse but it's also culturally diverse. People have really open minds.'
For those looking to tap into the excitement of New York City without getting tapped dry on cash, Brooklyn can be the savior. The average rent for prime commercial corridors in Brooklyn such as Court Street, Fifth Avenue in Park Slope, and Bedford Avenue in Williamsburg is between $35 and $100 per square foot, according to a 2010 retail report produced by CPEX Real Estate. Compare that to $125 to $2,000 per square foot in most of Manhattan's commercial areas.
'It is a bit closer to the real world,' said Taylor Mork, owner of Crop To Cup, a family-farm centric coffee importer based near downtown Brooklyn. 'It's not as fast-paced. I think people are willing to wait a little longer on their investment in you.'
With 2.7 million residents, the demand for goods and services is multitudinous and diverse. The first step, experts say, is figuring out where you need to put your business to best serve your clientele.
Dig Deeper: The View From Brooklyn
Opening a Business in Brooklyn: Location, Location, Location
Brooklyn's neighborhoods all have unique flavors and demographics, so Castano and others said the initial question any new business should ask is: Who are my customers?
If you're a family retailer like the boutique Area Kids, the answer is Park Slope, and the busy pedestrian and commercial thoroughfares of 7th and 5th Avenues.
'What I look for with kids stores is people pushing strollers,' said owner Loretta Gendville, who runs seven stores and spas in Brooklyn and two in Manhattan. 'I want a high density with parents, moms. I like people that are at home, people that are with their kids during the day.'
That means opening a space alongside kids hair salons, yoga studios and tea shops on those Park Slope streets.
Trying for a bar? The influx of artists, a vibrant music scene and a surge in condo construction make Williamsburg a hot spot for bar hopping.
If large-scale production is your game, the old manufacturing warehouse buildings on the north Brooklyn waterfront are considered prime real estate. When Rob Ferraroni was looking for a new location for his Ferra Designs metal fabrication shop 12 years ago, relocating to the Brooklyn Navy Yard seemed like a bold move.
Now, people are clamoring to get into the property, and the ground-level, 10,000-sqare foot space in a former World War II building trades shop is coveted. A lot of his work is for clients in Manhattan, which is a quick hop across the bridge.
'You need to be able to execute these ambitious projects, so you need room,' Ferraroni said.
People also doubted Doug Steiner when he started building Steiner Studios on in the Navy Yard in 1999. But Steiner saw the potential for major growth, and the opportunity to fill a hole in the movie and television production market in New York City. Now Steiner Studios is the largest studio complex outside of Hollywood with aims of growing to a 50-acre campus, and New York City has helped roll out the welcome mat for the film industry in Brooklyn.
