Finding A Location For Your Business
One of the keys to a successful business is the right location. Each business is unique. It is important to identify your venture's individual space requirements. Before you purchase or rent a site, you should consider the following:
You can use the Business Library and this Web site to find the information on these topics. The following are some resources to help you with your search.
Your location is essential if you are opening a restaurant, a clothing store or other types of retail and service businesses where your clientele come to you. Your location can be your best form of advertisement if you are located in a busy area. A neighborhood's demographics are important. For instance, a daycare center should be in a neighborhood with families who need and can afford daycare. A video rental store should not open where there are already two or three competitors. Therefore, you should research both the consumers and the competitors in the area in which you plan to locate.
Consumer Demographics Check out our Market Demographics resources on this site for a description of the U.S. Census and other statistical sources. The census offers population and other demographics for individual ZIP codes or census tracts.
Market Profile Analysis: Consumer and Business Demographics is an important market research tool published by Claritas and Dun & Bradstreet. It defines the New York City area by ZIP code and census tract and gives statistics on population, age, households, income, education and number of businesses within an industry sector for the area. It has census tract maps and identifies the census tracts within a ZIP code.
Use The Sourcebook of Zip Code Demographics when you are looking for consumer spending habits in a geographic area. For example, you might be trying to determine how much the members of a community spend on items such as home repairs or apparel in comparison to the rest of the country.
Use "Destination Brooklyn" on the website for comprehensive zoning and demographic information on a particular location. Just enter an address in Brooklyn and you can pull up data for the surronding area. Real estate Web sites also provide demographics for an exact location, often for a fee.At PikeNet look under the heading "Demographics." Free Demographics is good for free data. FFIEC Geocoding allows you to enter a street address to get population, income and housing information for the corresponding census tract
Data on Competitors To determine the number and type of businesses located in a geogrphic area you can use one of the following:
Reference USA (listed on our E-Resource page) is a great database for information on both the individuals and the businesses found in a specific area. You can pull up the total number and the specific names of individuals and businesses by ZIP code, county, city, telephone area code and more. You can also create a list of enterprises by business category (such as plumbers, shoe stores, etc.) or size of business (measured by employee size or revenue size) all within a specific geographic area.
Dun & Bradstreet Regional Business Directory also covers businesses, but just those located in either the New York metropolitan area or Long Island. The companies are listed by type of business (Standard Industrial Classification or SIC Code), ZIP code or alphabetically, with a brief description of revenues, contact personnel and number of employees.
County Business Patterns, available online and in print. This U.S. Bureau of Census survey counts the number of establishments by type of business or employee size.
Every business needs a space that will allow it to operate easily. You, the business owner, have to think about its specific requirements. If you have worked in your industry, this may not be difficult. If you have not, you will need an architect or real estate developer to outline the type of space you are looking for. Even if you are working at home, you may need to add electrical lines or telephone lines to accommodate your business. Consulting a building professional to design or create the right space is often necessary. Additionally, a professional can help with questions regarding building codes and zoning.
To begin your search you will probably want to enlist the services of a real estate broker or developer. The Real Estate section of this site identifies the library's numerous directories that list brokers, developers and other professionals in the field. You can also search online for commercial properties to lease or buy. Three great sites are:
FacilityCity, sponsored by Business Facility magazine, is a site selection and facility management site, with many helpful sections on locating a business, as well directories of sites and services. The Business Library also subscribes to the print version of the magazine.
Community Development or Business Assistance Organizations offer a variety of services also. Established to encourage local economic development, these groups serve small businesses on many levels. They can help you locate properties, or refer you to reputable real estate brokers; they can help you identify special incentive programs such as the New York State Empire Zones and they can help you find financing solutions.
Local Business Assistance Providers are listed on our web site. Or you can contact the New York City Department of Business Services (212-513-6300) and ask for information on Local Development Corporations (LDCs) and Business Improvement Districts (BIDs). Following are a few organizations in Brooklyn that offer location assitance:
New York Economic Development Corporation
110 William Street, New York, NY 10038, 212-312-3600
The city offers many plans to help businesses, including tax credits and economic development zones. Call to get a brochure on "Business Essentials" or check out the Business Incentives portion of the Web site, especially the section on Real Estate.
Brooklyn Chamber of Commerce--Real Estate and Business Services
7 Metrotech Center, Suite 2000, Brooklyn, NY 11201, 718-875-100
The Chamber helps identify properties, obtain financing and access available incentive programs.
Brooklyn Economic Development Corporation
175 Remsen Street, Suite 350, Brooklyn, NY 11201, 718-522-4600
Links businesses with commercial brokers or LDCs, helps with financing and provides general business assistance.
Bedford Stuyvesant Restoration Corporation
1368 Fulton Street, Brooklyn, NY 11216, 718-636-6924
Serves the Bedford Stuyvesant community economically and culturally.
East Williamsburg Valley Industrial Development Corporation (EWVIDCO)
11-29 Catherine Street, Brooklyn, NY 11211, 718-388-7287
Administers the East Williamsburg In-Place Industrial Park, as well as the North Brooklyn Navy Yard Empire Development Zone. Site identification, infrastructure maintenance, job training and general business assistance are some of the services offered.
Local Development Corporation of East New York
80 Jamaica Avenue, 3rd Floor, Brooklyn, NY 11207, 718-385-6700.
Offers a wide array of services from economic development to start-up assistance. Administers the East New York In-Place Industrial Park and assists with eligibility for the NY Empire Development Zone incentives, plus business classes and loan packaging assistance.
Southwest Brooklyn Economic Development Zone (SWBDIC)
269 37th Street, 2nd floor, Brooklyn, NY 11232
Oversees the Southwest Brooklyn Industrial Park, the Sunset Park Technology District (which offers pre-built office space wired with fiber optic cable) and the Southwest Brooklyn Empire Development Zone. SWBDIC can assist with their many incentive opportunities as well as helping you locate and finance space.
Once you have a location, building professionals, such as architects or contractors, can help you design the space you need. Even if you are working at home you may need to add electrical or telephone lines to accomodate your business. In addition to designing and constructing the space for your operations, a building professional can help answer questions about zoning and building codes. And don't forget, if you do construction or alter your space, you will also need a permit. Call the New York City Department of Buildings at 718-802-3681, 212-248-8530 or 212-248-8000.
To locate professionals of all types the Business Library's Directory Collection has a large number of directories that can assist you. There are also numerous Web sites:
ProFile On the Web has an interactive database for locating building professionals, from architects and engineers to firms specializing in code compliance or site analysis.
The Blue Book of Building and Construction is another excellent site. Use the search boxes to enter your state and the type of professional you need. The site includes a category for expediters who can help you with permits, zoning and other regulations.
The Encyclopedia of Associations lists trade associations, many of which have Web sites. They are another way to locate professionals. Associations Unlimited is online via Brooklyn Public Library's E-resources or in print at the library's reference desk. Price is just as important as the right neighborhood and the right space. It is important to know what you can afford in relation to your savings and your business' income. This will impact where you look and the spaces you consider.
Remember that commercial leases are negotiable, just as property prices are negotiable. It helps to know what the market rate is. If you are leasing, ask other tenants in the building. If you are buying a building, you can research the price of other buildings in the area. The Real Estate section of this site, under Property Information, describes the resources in the Business Library and online that offer this sort of information.
If you have found a space to lease or buy, make sure the property is properly zoned. Every city has zoning ordinances that divide the city into districts for various activities. Neighborhoods are zoned as primarily residential or commercial to ensure a quality of life or ease of doing business. In New York City there are a number of different zoning designations for different types of business activity.
There are a couple of steps involved in determining the zoning status of a property.
1. Identify the zoning code for a neighborhood by looking at New York City's official zoning maps. These maps can be found at:
- New York City Department of City Planning
- The Business Library, 280 Cadman Plaza West, Brooklyn, NY 11201
- The Brooklyn Borough President's Office, 209 Joralemon Street, Brooklyn, NY 11201, 718-802-3700
- New York City Department of City Planning, 22 Reade Street, New York, NY 10007, 212-720-3300
2. Identify the zoning code for a specific address by using:
- Brooklyn Comps Directory at the Business Library Reference Desk
- Redi Real Estate Microfiche,in the Business Library Periodicals Room
- New York City Department of City Planning Use the GeoQuery and Address Translator functions at the bottom of the homepage to search an address and obtain block and lot number as well as zoning code for that address.
3. If you have the block and lot number you may call to get the zoning designation:
- The New York City Department of City Planning Zoning Information Desk , 212-720-3291
- Brooklyn Borough President's Office, Economic Development 718-802-3854.
4. To understand what restrictions apply to a specific code use:
- The Zoning Handbook, available at the Business Library. You can also purchase it from the NYC Department of City Planning Map & Bookstore, 22 Reade Street, New York, NY 10007, 212-720-3667.
- The New York City Zoning Resolutions, available in print at the Business Library.
- The New York City Zoning section of The Department of City Planning's web site offers a good explanation plus the actual text of the Zoning Resolution.
If the property is not zoned to suit your business' need, it is possible to get a variance. Home-based businesses are subject to special restrictions and need to be careful regarding zoning laws, since it is likely your home is in a residential district. To make inquiries about variances or if you are unsure about restrictions, contact the Department of City Planning at 212-720-3480 or 718-643-7550. You should also be aware of health, safety and building ordinances. Certain business licenses and permits outline these requirements. See The Legal Aspects of Starting Your Own Business to get information on licenses and permits. A contractor or architect can once again help you with compliance issues. See the information on Finding the Right Space (above) to help you locate a professional.
After you have found a site, you need to sign a lease if you are renting, or a contract if you are buying the space. These documents outline a number of terms, and in both cases the terms can be negotiated. It is extremely helpful to retain a lawyer to make sure the terms are favorable. See the section on The Legal Aspects of Starting Your Own Business for help locating an attorney.
The lease for a rental space should contain some basic items, such as your right to renew the lease, and whether the landlord or tenant is responsible for repairs or improvements. You can find many basic details on negotiating these terms in one of the books in the Business Library's collection; using the Electronic Catalog, look for titles on negotiating real estate transactions or on legal aspects of running a small business. Additionally the Small Business Center has two pamphlets that cover negotiating a lease:
- "What You Need to Know About Commercial Leases" from Cleary, Gottlieb, Steen & Hamilton
- "Legal Aspects of Home-Based Businesses" from Accion NY.
Web sites also have information on rental contracts
- FindLaw.com has a chapter on "Leasing Strategies" in The Upstart Small Business Legal Guide
- Nolo's "Legal Encyclopedia," has a section on "Finding and Renting Space". There is also a chapter on "Negotiating a Favorable Lease" in Nolo's book, Legal Guide for Starting & Running a Small Business, found on the reference shelf of the Business Library's Small Business Center.
Once you have a location do not overlook the necessity of insuring your business. Your insurance plan doesn't have to be complicated. There are two types of necessary coverage:
- Property, to protect your building against theft and fire.
- Casualty, to protect against claims of negligence incurred by customers while on your property or while using your products.
Most small businesses are covered by a "business owner's policy" or BOP; this is a package offered by insurance companies. This type of package often includes business interruption coverage that covers expenses such as payroll when income is lost due to disaster. To make sure your package covers the individual needs of your business such as professional liability or product liability insurance or disability coverage, it is wise to meet with an insurance agent or broker.
To better understand your options, you can take out one of the library's books on starting a business or the legal aspects of running a business, which usually have chapters on insurance. Use the Electronic Catalog to find titles. The Insurance Information Institute is an excellent resource for insurance basics. Visit their Web site and click on "Business," or call them at 212-346-5500 for more information.
A good way to find affordable insurance is through a trade association. The rates are usually better for a group of buyers, and the policies are often geared toward the particular needs of your business. The Encyclopedia of Associations can, once again, help you find an association to join. The National Federation of Independent Business (NFIB) is an umbrella organization for entrepreneurs, offering discounts and special services, including property/casualty, workers' comp, health and other types of insurance. Click on "Member Benefits" on their homepage or call 800-NFIB-NOW.
A good way to locate insurance agents is to get references from other business owners. You can also use one of the directories found in the Business Library's Directory Collection. A good online directory is Independent Insurance Agents "Agent Search." If you wish to verify the financial stability of the insurance company you are considering, use Best's Insurance Reports: Property-Casualty. It rates all major insurance suppliers (not individual agents) in the U.S. and can be found on the financial reference shelves at the Business Library.
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