Navigating zoning ordinances can be a surprising challenge for new small business owners eager to get started. From permitted uses and site standards to signage and parking requirements, your community’s zoning ordinance directly and indirectly influences if, how, and where a small business can locate. Even beyond your ordinance, administrative procedures as well as permitting and licensing fees can all add to the paperwork burden, timeline, and the upfront and annual costs endured by a small business owner – who, let’s face it, is likely lacking unlimited capital.

As planners, it is imperative that we make every effort to proactively identify and ease barriers to make small business development as seamless and transparent as possible. Thankfully, becoming “business-friendly” can start very small – from a few tweaks to your zoning ordinance to quick shifts in your day-to-day zoning administration. Here are a few ideas to begin paving the way for small business success:

Amend Permitted Uses to Create Opportunities for Diverse Forms of Small and Micro-Businesses

We recommend amending your zoning ordinance to permit, at minimum, the following uses:

1. Temporary & Pop-Up Uses: Temporary uses, such as seasonal shops, food trucks, micro-retail bays, and pop-up events, let small entrepreneurs test ideas, activate vacant spaces, and engage the public in a low-cost, low-risk manner.
2. Home Based Businesses: Home-based businesses are often the first step in a small business’s growth, prior to opening a brick-and-mortar site; Employing reasonable standards supports modern entrepreneurship and flexible working environments while preserving neighborhood character.
3. Mixed Uses: Mixed-use zoning fosters vibrant, walkable neighborhoods that support live-work opportunities for small businesses while naturally bringing foot traffic and local dollars into an area.

Update Your Administrative Procedures for Consistency, Transparency, and Ease

Beyond ordinance amendments, a step communities can take to improve their zoning administration for entrepreneurial success is to promote transparency, predictability, and customer service at every step of the business development process. While every community’s process differs, here are some universal ideas for inspiration:

1. Create a “How to Open a Business Guide” that clearly outlines your community’s development process, estimated timelines, and any resources available to new business owners throughout the business development process. If possible, host pre-application meetings with business owners to share this Guide and walk step-by-step through each phase of business and site development.
2. Update your fee schedule to accurately reflect associated costs and procedures for submitting a payment. Where possible, consider reducing or waiving fees through a clear, documented process for business registration, licenses, and renewals.
3. Identify opportunities to improve communication and coordination between departments involved in business development. Consider instituting regular interdepartmental check-ins on business development, or a Customer Relationship Management (CRM) system to track applicant progress.

Even minor amendments to your zoning 0rdinance and administrative procedures can create big wins for new business owners looking to not only arrive, but to thrive in your community. Let’s help these entrepreneurs set up shop!

Taking Action at McKenna: To help communities foster vibrant small business ecosystems, McKenna partnered with the Michigan Municipal League to create a set of best practices focused on small and microbusiness success, covering policy, procedures, and partnerships. The Microbusiness Best Practices Essentials Playbook outlines key first steps any community can take to become more small-business friendly. For communities ready to go further, the Comprehensive Guide offers more advanced strategies and a template How to Open a Small Business Guide that can be modified as a reference tool for new entrepreneurs.

Reach out to us for more strategies to audit and amend your zoning ordinance and improve small business success!