Want To Start Your Own Artisanal Business?

READ INVESTOPEDIA’S SPECIAL REPORT on starting a business in New York City, filled with stories of Brooklyn business startups. You’ll see why Brooklyn and Queens are magnets for innovation and small-batch production as well as get important leads to New York City services that can untangle regulations and smooth your way. (Full disclosure: The Investopedia story is brought to you by founding folks at Brooklyn Artisan.)

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Be an Operator, Not a Hustler…and Other Tips for Business Success

BUSINESS OWNERS SHANE WELCH, FOUNDER OF SIXPOINT BREWERY in Red Hook, Matthew Tilden, founder of SCRATCHbread in Bed-Stuy and Charlie Sahadi, proprietor of Sahadi Importing Co. in Brooklyn Heights, showed their business scars and shared some hard-earned wisdom at a recent Brooklyn Public Library conversation, “Fantastic Food,” led by photographer Randy Duchaine, whose “Created in Brooklyn” exhibition of portraits inspired the series:

If the adjoining property comes up for sale, buy it.—Charlie Sahadi
Sahadi remembered this advice from his father when two buildings on Atlantic Avenue came up for sale in 1977 for what seemed, at the time, an impossibly astronomical price. “Owning your property is a very big plus. Landlords want to become your partner without doing the work. We scrimped and bought the buildings. Now when I look back at the price, of course, I feel as if we stole the property.”

“You have to innovate—adapt and change with the times,” says Charlie Sahadi (above). “Sahadi’s is an ingredients store, but then we opened a deli to show off what you can make with these ingredients.” Photograph © 2013 by Randy Duchaine

“You have to innovate—adapt and change with the times,” says Charlie Sahadi (above).
“Sahadi’s is an ingredients store, but then we opened a deli to show off what you can
make with all these ingredients.” Photograph by RandyDuchaine.com

When a cohort of producers grows up in a neighborhood, that’s good. —Shane Welch
“We all root for each other. If there’s only one place in a neighborhood, it might be hard to get people to come to you. But now in Red Hook you have roving bands of food tourists who make a day of it and stop at three or four places.” (Similarly, Sahadi talked about Trader Joe’s opening up near his store, which far from being a competitive threat, is introducing a whole new set of customers to Sahadi’s, he says, and helping make “downtown Brooklyn a foodie paradise.”)

“We knew Brooklyn would grasp what we were doing with beer,” says Shane Welch, front, with his Sixpoint Brewery crew. “And the mineral profile of the water here is virtually perfect for brewing.” Photograph © 2013 by Randy Duchaine

“We knew Brooklyn would grasp what we were doing with beer,” says Shane Welch, front, with his Sixpoint Brewery crew. “And the mineral profile of the water here is virtually perfect for brewing.” Photograph by RandyDuchaine.com

Don’t take yourself too seriously, but do serious work.—Matt Tilden
“Be humble. Work hard, focus on community betterment and sharing knowledge. A brand is a living breathing thing; for us, it’s a statement about food.”

Make the transition from hustler to operator—a perspective Tilden remembers Welch sharing with him over dinner one night.
Welch explains: “Everyone starts out hard-scrabble, hustling. But as you and the business grow and mature, you legitimize. Operators figure out how to get things done the right way. It can be poisonous if you remain a hustler. Say you do building without permits and then someone gets hurt. That could be the end of your business.”

Matt Tilden, founder of SCRATCHbread: “Brooklyn is approachable sophistication. It’s a family culture with an edge. I relate to raw and rustic.” Photograph © 2013 by Randy Duchaine

Matt Tilden, founder of SCRATCHbread: “Brooklyn is approachable sophistication.
It’s a family culture with an edge. I relate to raw and rustic.” Photograph by RandyDuchaine.com

Give people a good product, at a fair price, with good customer service.—Charlie Sahadi 
When Sahadi says, “Our customers become our friends,” you believe him if you’ve ever stepped inside his store. “Shopping with us has to be a pleasurable experience. We’re part of our customers’ lives. Otherwise, we’d just be another store on Atlantic Avenue.”

Can’t the City Make It Easier?

This is one they all could agree on. Regulations are one of the biggest threats to New York City small businesses, they said. You have to be on top of them, and there are hundreds of them—city, state, federal—and they seem to change almost hourly. Dept. of Agriculture, NYC Dept. of Health, Landmarks Preservation, Dept. of Buildings, the list goes on.

Yes, of course these owners value their customers’ safety and health. But can’t it be easier? A 2008 update to the NYC building code complicated everyone’s lives enormously, they report. Sahadi’s first planned a store renovation in 1999; they got all the approvals, but then decided to postpone construction when they bought a big warehouse in Sunset Park. By the time they were ready to build, the 2008 revision was in effect. “It drove us a little crazy to get all the right permitting,” says Sahadi, “especially since our buildings also come under the Landmark Preservation Commission.” He credits his son, Ron, and his daughter Christine with managing the project and getting it done.

A sole proprietor can find it overwhelming to manage the contracting, building and running back and forth to city offices for permitting while keeping the business going—not to mention staying on top of the regulatory changes. Shane Welch finds himself dealing with the Dept. of Homeland Security now, since the Tax and Trade Bureau, which governs the excise tax on beer, was swallowed up in it. Day-to-day, it’s a little like being nibbled to death by ducks. For instance, SCRATCHbread got a ticket recently because its benches were three feet further out than they were supposed to be—one of hundreds of details a business must keep track of. “Now don’t you think the inspector could simply have pointed it out?” Matt Tilden wondered. “I’d have been happy to move them.”

The “Created in Brooklyn” exhibit is on display at Brooklyn Public Library until August 31. The conversations continue in June and July, on Wednesdays from 6:30 to 8 pm: June 26, Design Crafts; July 10, Urban Adventures; July 17, Art & Music.

Improve Your Space: A Competition for Free Fiber Wiring

Brooklyn artisans: Are you making your product or trying to run your business in an unwired or underwired building? Or are you considering space in a building that would be great—if only it were better wired? You may want to check out ConnectNYC, a city-sponsored competition that will award $12 million in free fast-track fiber cable wiring to selected small and medium-sized commercial and industrial businesses over the next two years.

ConnectNYC is a project of  the New York City Economic Development Corporation (NYCEDC) and ChallengePost, an NYC startup that “enables government agencies and software companies to invite the public to solve problems.” According to NYC Council member Gale Brewer, “We learned that fast, free and low cost fiber does not exist in many of the commercial and manufacturing areas” in the city. “Getting more New York City businesses access to high-speed broadband will have a major impact on their ability to be competitive and ultimately succeed in today’s marketplace,” said City Council Speaker Christine C. Quinn.

To apply, go to http://nycfiberchallenge.com, or call 311 for more information. The deadline is 5 pm EST, November 27, 2012. Awards will be based on various criteria, including how better connectivity could help you grow your business. Only individual businesses may apply, but it’s worth getting fellow business owners in your neighborhood to apply as well because “applications will be evaluated on proximity to other applying businesses in order to encourage clustering and efficiency in broadband installation, as well as proximity to areas currently underserved by broadband infrastructure,” according to ConnectNYC. 

The first set of winners will be announced in early 2013. Time Warner Cable and Cablevision will do the build-outs, with 100 businesses expected to be wired in the first year of the program and another 140 the following year.

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