How To Construct a Startup In New York Metropolis: Recommendation From A Vogue & Actual Property Mogul
New York City has a variety of nicknames, The Big Apple; The capital of the world; The city is so beautiful that it has been named twice; The city that never sleeps; The Empire State – and perhaps most relevantly: The City of Dreams. New York is full of new startups and the world is starting to take notice. New York City, usually overshadowed by San Jose, the center of Silicon Valley, has finally overtaken its first place. CNBC was recently named “America’s Top City to Start a Small Business” by CNBC and has seen an influx of aspiring entrepreneurs hoping to “make it big”. According to the US Small Business Administration, there are more than two million small businesses in NY state, making up roughly 99.8% of all businesses in the area and more than half of the workforce in the area. What makes New York a magnet for startups? Perhaps it’s a combination of the city’s booming real estate market, myriad of industries, strong banking and tourism sectors, a diverse population, a dense business network, and an impressive source of seed capital.
New York is one of the best cities in the world to start a business, ”said investor and developer Yair Levy, who owns real estate in New York and Miami. “New York has an energy that is hard to find in other cities. If you work hard, dream big, and don’t give up, you can become very successful. When I came to New York from Israel in the early 1970s, I never thought that I would sell my clothing line to some of the largest department stores in the world in New York. And when I switched from fashion to real estate in the early 2000s, I was able to become one of the most prolific real estate investors and developers in Manhattan because I had big dreams. “
At the moment, New York is home to many entrepreneurs who have built on past mistakes. Some New York City-based startups have unique product and service offerings that you may be familiar with: Etsy, Blue Apron, Codeacademy, Citizen App, Venmo, and Digital Ocean – to name a few. While Yair remains humble about his accomplishments, he has his own track record. When Yair was only twenty-two, he came to the United States with a dream of a better future. After just a year he had created a clothing line and was selling his designs to the country’s leading department stores, including the renowned Bloomingdales. By 1997, however, Yair had developed an interest in real estate and had begun sourcing strategically located properties for redevelopment in Manhattan. Today, Yair is an advisor to New York-based Time Century Holdings LLC, a family trustee focused on development locations and retail real estate. Today he shares valuable information with which you can start your own business.
1. Follow your passion
Successful entrepreneurs have a passion for a particular product or industry. In his case, Yair learned fashion from his mother’s experience in the field and real estate from his father. By combining these experiences with creativity, he found success in New York. Upon arriving in New York City, Yair quickly spotted gaps in the retail fashion market to fill – and it wasn’t long before he found success nationally and internationally. Yair’s achievements in the fashion industry show the importance of differentiating your product or service from competing companies by taking customer needs into account. The more you invest in your business concept, the harder you will work to make it flourish. As with all startups, you will inevitably face hiccups on the streets. So when you have a strong personal connection with your mission, your chances of success increase. If you need help finding inspiration, search the internet for trending industries to see if there is a field that suits your individual goals, interests, and natural abilities. He later focused his passion on the NYC real estate market. Over the past 20 years, Yair and his family trust have been involved in acquisitions, divestitures and development locations that have generated high returns. During his real estate career, he has maximized the value of some of New York City’s most valuable properties, including The Sheffield 57 at 322 West 57th Street, 620 Sixth Avenue, and many other buildings.
2. Develop a business plan
Once you have a great business idea, the next logical step is to come up with a plan to help you achieve your goals. While some people choose to turn down strategic planning, Yair does not recommend it. As a real estate investor, he wants to optimize his income, which is next to impossible without research. A typical business plan has four broad categories: product development, sales and marketing, people and partnerships, and financial planning. By developing a proposal, entrepreneurs can pinpoint errors in their strategy and mitigate risks before they occur. As mentioned earlier, product development refers to the creation of a unique good or service. For example, your product could be the first of its kind or the only sustainable option on the market. Additionally, sales and marketing involve identifying your target audience and the steps required to convert them into paying customers. Sounds like a lot of work? That’s why you can’t do it alone. Your proposal should describe the specific talents and professional relationships required to carry out your plan. Finally, determine the amount of funding needed to get your business off the ground and consider various funding methods.
3. Talk to a lawyer
New York Small Business Services (NYC SBS) support new businesses from the start. “First and foremost, owners must choose a legal form of business,” explains Yair. New entrepreneurs with no business background may struggle to determine the best structure for their business. Fortunately, NYC SBS offers free consultations with an attorney to help individuals decide on an ideal structure. In general, Yair says you should avoid starting your business as a “sole proprietorship”. As a sole proprietorship, the owner is responsible for all corporate debts and obligations, which could put their livelihoods at risk if the business goes under. As a result, entrepreneurs typically start their business as an S Corporation, C Corporation, or Limited Liability Company (LLC). Yair typically suggests setting up as an S corporation with favorable tax treatment and the option to convert to a C corporation in the future. However, the best strategy for your business will depend on your industry. This can be determined by speaking with a qualified lawyer.
4. Obtain permits and licenses
Make sure you have all the necessary permits and licenses necessary to run your business unless you want to run into legal issues later. Overall, you need to ensure that you are complying with federal, state, and local regulations. Yair works in the real estate investment industry and knows the importance of getting the right permits. In his work, “the Department of Buildings reviews the construction plans to ensure that they comply with building codes and meet current safety standards and zone requirements,” explains Yair. If you are unsure of your business needs, you’re in luck as the NYS Business Wizard provides you with a customized list of approvals you may need to get your business up and running.
5. Apply for funding
Nothing can cripple your business plans faster than a lack of adequate funding. To avoid this danger, Yair suggests that entrepreneurs start working on an elevator parking lot if they are considering borrowing. An elevator parking space is essentially a succinct and compelling speech that creates interest in yourself or your organization – and as the name suggests – it should be twenty to thirty seconds long, and no longer than an elevator ride. Yair reminds us that knowing both your audience and their endgame is important. Two popular types of investors are angel or seed investors and venture capitalists. The first category, angels, is known for helping businesses in the earliest stages of business, before they can prove revenue. In contrast, venture capitalists are more interested in a proven business model or a company that has high growth potential in a relatively short period of time. Since not all investors are created equal, you need to do your research when evaluating financing options in New York City.
6. Scout for Talent
With over 8 million residents, NYC is the most populous city in the United States, more than twice the size of the next largest city, Los Angeles. As one might predict, larger regions have deeper and more diverse talent pools. New York in particular has a large student population, as the city is home to some of the most prestigious colleges and universities in the world such as Cornell, NYU, Columbia, Yeshiva, and Fordham – and many others. Fittingly, it makes sense that more than a third of the population aged 25 and over should have a bachelor’s degree or higher, as opposed to 30% nationally. “The city is full of bright and ambitious people who are ready to work hard,” says Yair of his personal experience with recruiting. At the same time, NYC is very diverse. An amazing 3 million NYC residents are overseas born. There are many benefits to having a diverse workforce, including increased productivity, higher profits, greater employee engagement, lower turnover, more cultural insights, a wide range of skills, and an improved corporate reputation. Hence, the chance of finding diverse, talented people in line with your brand’s mission is promising here in NYC.
Starting a business in New York or anywhere else can be a daunting task. However, introducing your brand to The City of Dreams has a few key benefits. As Yair mentioned, better access to resources, a talented population and large professional networks are just a few of the reasons aspiring entrepreneurs flock to this amazing city.
This article does not necessarily reflect the opinion of the editors or management of EconoTimes