10 Steps to Starting a Business in Boston
For entrepreneurs seeking an innovative city, the Hub lives up to its name.
The Red Sox curse is reversed, the Big Dig is dug, and South Boston is more movie script than crime-blotter fodder. Parts of Boston have transformed drastically in past decades, but some things will never change.
"Boston maintains its identity while keeping up with the times," says Rafael Carbonell, deputy director of the Office of Business Development in the city's Department of Neighborhood Development. "The concentration of brains here is phenomenal."
More than 30 colleges and universities call Boston home, including Boston College, Boston University, and Northeastern University. With Harvard and MIT next door in Cambridge, it's no surprise that wicked smart entrepreneurs call Beantown home.
Bostonians take pride in sharing business insights with new arrivals who want to set up shop in the Hub. Here's what they had to say:
1. Take a study break.
"You'd be hard-pressed to find other places where people in the industry would be so open and willing to help others get started," says Brenda McKenzie, director of economic development for the Boston Redevelopment Authority, Boston's planning and economic development agency.
McKenzie recommends taking advantage of local resources at an early stage, before the business even gets to the regulatory point. She notes that several of the city's colleges and universities offer free services.
"They will help you walk through the business plan and craft it," McKenzie says. For example, Boston College's Carroll School of Management offers free consulting to start-ups and existing companies. Boston has the free volunteer business counseling service SCORE. Even the Boston Public Library's Kirstein Business Library has extensive resources for entrepreneurs.
2. Learn - and follow - the rules.
Navigating state and local rules and regulations might not be as challenging as navigating some of Boston's winding streets, but doing so successfully takes smart planning.
The city's Inspectional Services Department handles zoning and permitting, and offers a free 15-minute clinic weekly to help applicants through the process. Any food- or health-related business needs to contact the Division of Health Inspections. Depending on the industry, new businesses might need license from both the state and the city.
Boston's small business resource guide (PDF) describes licensing and registration step by step in clear language. For the restaurant business in particular, where there are quite a few regulations, McKenzie points to the city's customized Restaurant Roadmap online.
"The restaurant business is a very tough business with very tight margins, so that's why having the food business guide is so useful," she says.
3. Look at growth industries.
The city has a legacy of groundbreaking innovation that includes Alexander Graham Bell's first phone call to his assistant Watson and the world's first successful kidney transplant. Technology, biotech in particular, still has an upward trajectory in Boston, McKenzie says.
Boston might not be the most centrally located city for a business that does national shipping, but on the local level, some sectors continue to thrive. The food sector in particular is still big business. "Even the creative industry is really growing and burgeoning here in Boston," McKenzie says.
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4. Secure funding.
"This has always been recognized as a very vibrant venture and private-equity community," says Frank Carpenito, CEO of Dancing Deer Baking Co., which is based in Boston. "That continues to be the case. There are dollars to be invested and spent."
Carpenito, a natural foods industry veteran, recently took over the reins from company cofounder Trish Karter. Having spent 15 years with the company, she's currently considering different paths that combine sustainability with social justice. "I'm just amazed at how many worthwhile and interesting business opportunities and businesses there are that hit on the things I'm interested in," she says.
In addition to offering business loans and grants, the city has dedicated funds for nonprofit organizations looking to make capital improvements, green retrofits in particular. "It not only helps them be more energy efficient, it allows them to keep those dollars going for services for city residents," Carbonell says.
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5. Get local support.
Several years ago, Boston Mayor Tom Menino was seeing vibrant business development on the ground but noticed a lack of city involvement in supporting and communicating it. Advisers told him to separate the city imitative from government so in early 2008 he launched a nonprofit organization, Boston World Partnerships. Rather than focusing on conventional print ads, the organization would focus on customer service.
"For us, the fundamental problem we solve for entrepreneurs is helping them navigate this region," says Dave McLaughlin, executive director for Boston World Partnerships. The organization tries to achieve that by having 150 "connectors" who are local leaders in their industries. Connectors are rigorously vetted and serve as a crowd-sourced help desk.
Rue La La, a brand sale website based in Boston, was quickly outgrowing its space and thinking about leaving the city in search of cheaper space. The online company, which arranges for members get access to private sales on high-end merchandise, told connectors. "We were able to bring resources to them," McLaughlin says. As a result, the company signed a lease on a 43,000 square foot space in the city.
