Tips for Running a Business From Your Tiny NYC Apartment

Studies about entrepreneurship and startups agree on one big thing: just about everyone wants to be their own boss. There are 31 million entrepreneurs in the United States, according to Babson College, and that number grows every year!

Aspiring business owners cite their desire for a flexible work/life balance, greater financial independence, the freedom to follow their passion, and/or to make more money.

Whatever your reasons are, here are some concrete ways to make it happen and to get started right out of your tiny New York City apartment.

1. Determine The Legalities

With a full 67% of NYC residents renting their living spaces, it is important to know: Is it legal to start a business in my apartment? Are there any circumstances when it is not legal?

The good news is that in most circumstances, it is entirely legal to operate a business out of your NYC apartment. Professional offices, musical instruction, teaching (with limitations), and art studios are perfectly okay and completely within legal bounds. That opens up possibilities for quite a few careers.

Teaching more than four students or operating beauty salons and barber shops, real estate offices, veterinary medicine, stockbrokers, pharmacies, or kennels and stables is prohibited by law.

Further, zoning laws require an office or workspace to account for no more than 25% of your apartment. The maximum square footage allowed for your home office is 500 square feet -- a legal requirement that almost certainly will not be a problem for the average, tiny NYC apartment. Finally, you must use your home primarily as a home (not a business) and zoning ordinances prohibit "offensive noise, vibration, smoke, dust or other particulate matter, odorous matter, heat, humidity, glare, or other objectionable effects" during your day-to-day operations.

2. Designate An Office Or Workspace

Once you put in the research and ascertain that it is legal to start your particular business in your NYC apartment, it is time to designate a workspace! Simply put, you are not going to get much done working day after day on the couch.

A messy, nebulous workspace causes stress. "Clutter distracts us by drawing our attention away from what our focus should be on" and "constantly signals to our brains that our work is never done," according to Psychology Today. Designate a room to become your office, or -- failing that -- set up a corner of a room with your desk and all of your work things. Keep only work-related materials in that corner. Consider purchasing a room divider or another item to visually remind you that this corner is your workspace and only your workspace. In addition to clearing your mind to help you focus on work, a separate room or separate space will also help you transition from working to relaxing in and around your home.

Another thing to consider is noise -- as well as roommates or your spouse or partner. Currently, up to 5.5 million unmarried couples are living together in the U.S. If you count yourself among them, share your work schedule with your partner and come up with potential solutions about noise (a closed office door, earplugs, etc.).

3. Work Out Where To Meet With Other Employees

Generally speaking, it is impractical to meet with more than one employee in your tiny NYC apartment. Even then, the cramped conditions may distract from the project or projects at hand.

Determine a place to meet with one, two, or more employees. For small, short meetings, a coffee shop can work. If you are having a long meeting or a meeting with several employees, look into shared workspaces. Similarly, you may be able to rent a conference room for an important meeting, especially one that may require Zoom meetings or visual aids.

4. Don't Forget About Networking

It is important for new business owners -- and particularly those working out of tiny NYC apartments -- to take an active role in networking.

Build a network while working remotely by staying active on LinkedIn, attending virtual workshops and virtual events relevant to your line of work, and by seizing opportunities as they become available. For example, if someone asks you to interview you on their podcast or feature you in their blog or article, take them up on it. Whether they are looking for an authority figure about starting your own business or on a particular subject, agreeing to these opportunities means greater exposure for you and your business as well as a strong professional relationship with the party doing the interviewing.

5. Gather Materials And Discover Resources

Finally, gather what you need. This includes physical materials and objects and less tangible items. For example, if you are producing a particular product, gather all the materials you need to create those items. If you are doing office work, purchase a printer, pens, paper, and anything else you may need. Remember, your business will likely require less tangible resources, like increased internet speed and bandwidth. You may need to invest in web design, marketing, content creation, or service schedule software for virtual meetings and task management, like Monday.com or Zoom.

If you will be shipping products or documents and materials back and forth between clients and/or employees, consider shipping costs. Purchase packaging, shipping supplies, and determine the best way to determine and pay postage (whether online or in-person). In 2018, 13 billion packages were shipped in the U.S. alone. You do not want to skip this step!

Make sure to factor all of these materials into your budget. Markdown whether they are one-time or rare purchases (things like expensive electronics) or whether you will need to regularly re-order items to continue to do business.

The prospects for small businesses are not as grim as you might think. An impressive 50% make it five years or more, and your startup -- with its humble beginnings in your tiny NYC apartment -- can be the next to go the distance. Follow the guidelines above to get started.