(Micro)business is booming: Small businesses gather to help each other grow

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By Austin Light

CHARLOTTE — In November 2008, Dorothy Ponds tried to start a clothing business, but the economy didn’t cooperate. She struggled for months, her savings grew smaller and by this fall, she wasn’t sure what she would do.

Then in September she found Area 15, a collection of small businesses housed in a refurbished industrial building in NoDa. Family members encouraged her to move in and give business ownership another go, this time a sewing and alterations businesses called Lizzi Rags.

At Area 15, Ponds said, things would be different — the energy was positive and the rent was low. The building’s funkiness appealed to her, too.

Area 15, located at 15th Street and North Davidson, is managed by co-owner Carlos Espin, a former counselor. Approximately a dozen businesses rent space there, including a jewelry store, artists, non-profits, a Realtor and others.

This is one of several micro-business suites thriving in the Queen City — places where one- to two-person businesses can grow alongside like-minded individuals. According to Jim Powderly, president of Powderly CPA and co-owner of a micro-business office suite on 1235 W. Morehead St., the economy has inadvertently worked in favor of people like him and his tenants.

“As the economic pendulum swung the other way, we were able to take advantage of that,” Powderly said. “There are people that want to downsize, and then there are people that have just started their business and are ready to move out of their living room, to take that next step.”

Powderly and his partner, i3 Realty owner Logan Abrams, rent space to seven other businesses in their 2,600-square-foot space. Their tenants include a Web developer, an attorney, a marketing company and a social media strategist, among others. Powderly and Abrams also run their own businesses there.

According to Powderly, their leasing endeavor grew steadily as the economy shrank, with new businesses moving in to the flexible 9-foot by 11-foot cubicles.

“We’ve been doing better and better in the economy,” Abrams said. “These ultra-small businesses are the kind of things that get started in this economy.”

In South End, Josh McGlinn is a freelance Web developer and the head of Collective Giant, a group of freelancers and other professionals. He said interest from micro-businesses owners and full-time freelancers has him reconsidering the idea of finding a permanent place for them to gather. McGlinn and his partner, Nathan Longbrook, began looking at the concept a year ago.

“When the economy collapsed, we put it on hold,” McGlinn said. “Now we’ve been hearing from a lot of people that are interested in something like this again.”

Making It Work

Despite the differences in their business models, Espin, Powderly, Abrams and McGlinn all agreed on the importance of flexibility and community.

Espin allows tenants to rent space month-to-month instead of requiring year-long leases.

“People can experiment,” he said. “If they’ve had this idea for a business, they can come and see if they can make it work.”

On West Morehead, Powderly and Abrams ask tenants to commit to three or four months, but beyond that they don’t have expectations.

Espin said his informal policy has led to more turnover, while Powderly said they haven’t had a tenant leave since they started renting four years ago.

At Area 15, rents are as low as $250 for a room measuring about 150 square feet, while Powderly and Abrams charge around $500 for cubicles.

McGlinn, on the other hand, doesn’t want to buy space for Collective Giant, so he plans to charge membership fees.

“There may be levels of membership, like if you want a set desk or area you can reserve,” McGlinn said. “Then there will be other desks in floating positions that would be available to all members.”

For Ponds, the aspect of community is one of the biggest pluses about having an office space, and it’s something Espin takes pride in.

“We’ll help tenants move in, build out their spaces, paint them, move furniture, it’s all volunteer, just people helping people,” he said. “That’s my counseling background; I just want business owners to be happy with what they are doing and with where they are.”

Ponds said she especially loves sharing space with artists. “The creative energy is great, and they have all been so helpful,” she said.

Danny Plueddemann, owner of Rohan Castle property management, also rents a room at Area 15. He said he was just happy to have a friendly, open environment in which to do business.

“Before this I thought, ‘There just has to be a less stressful way to make a living,’” Plueddemann said. “It’s great coming to work here. There really is an energy about this place.”

In Abrams’ building, everyone shares information, experience and even clients. The excitement of getting out of the house and growing a business is something everyone shares, Abrams said.

“Jim and I were working from our dining rooms on our businesses before this,” he said. “We’ve been there, and we know what it’s like to make that jump.”

Powderly agreed. “We’ve created a cool, eclectic space where people can be proud of their office. I love that I get to interact with the tenants and discuss business issues, because I’m a business owner, too.”

Rebecca Smoot, owner of Web consulting firm Venture Buzz Media, has been at the West Morehead location since August. The switch from home office to business office was so alluring she was on location and ready to work within two days of seeing the space.

“It’s been a life-saver in productivity,” Smoot said. “It has helped me balance my work and home life … and it’s great being around so many creative, like-minded people.”

Hope for the Long Haul

It isn’t all enthusiasm and growth at micro-business suites, however. Espin said he and his co-owners initially took a financial hit; only recently has Area 15 become self-sustaining.

“No one is making money on this right now,” Espin said. “But in the long run, the owners know this will be a valuable area as it continues to develop.”

McGlinn said he and his partner won’t pull the trigger on renting a space until they secure enough interested members.

And there are tech concerns. Powderly and Abrams wrap Internet, cleaning services, utilities, a wireless printer-copier-scanner and other amenities into the rent. Since they run their own businesses there, they can be hands-on property managers, Powderly said.

For Espin, the pros outweigh the cons. Seeing business owners flourish and helping to strengthen the surrounding area is his ultimate goal. As NoDa develops and Uptown stretches beyond the I-77 border, these businesses can service new clients, Espin said.

For Ponds, who is working hard to “make it work,” being a part of Espin’s micro-business community is “a blessing.”

“This area is in a great transition,” she said. “I think I can take advantage of that and offer customers something they don’t have readily available.”

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