The Hidden Costs Of Opening A Business

For years the Apple computer company has used the ad slogan “Think Different.” But they were in for a strange bit of irony when they tried to open one of their super modern-looking stores on Wisconsin avenue in Georgetown, Washington, D.C.. The architectural review board (a.k.a., presentation police) made them redesign their plans four times, in an attempt to fit the new store into “...the fabric of Wisconsin Avenue,” according to board member David Cox. Since the area is considered historic, “The Board” heavily regulates changes to the overall appearance of the town.

Well, with the presentation of the fifth and final set of drawings, Apple finally had a design that pleased most of the members of the board, and all of the plans were approved. As of this writing, the store is probably in its “finish out” stages, with inventory on the way, and new employees wringing their hands at the prospects of good work within a solid company during an economic
downturn. Good for them.

But the board has missed a couple of minor points here and there.

Small businesses employ over eighty percent of the US population. Small start-ups, or even well-established small businesses couldn't afford the cost of five different building designs, just to please the looks police. And let us not even touch on the price of the property itself ($13 mil in 2007).

So several years, and millions of dollars, and who knows how many other profitable small businesses, have been sacrificed, so “The Board” doesn't get its “historic district” sensibilities offended. How pathetic. Yes, it's pretty now. But someone had to change the landscape years ago to make it that way. And it can be equally pretty in the future – maybe more so. Who's to say, if we're never allowed the changes. Someone needs to tell “The Board” that change is good – not bad. Change is progress, and that this peculiar brand of stagnation in the name of preservation is costly.

Ultimately these review boards are nothing more than a hidden tax, in the form of a load of bureaucratic red tape, for any new business that would like to move into an area. Essentially, the only companies that can afford the decent real estate and the biggest changes are the largest companies with the deepest pockets – and the best political connections. The smaller and less connected companies then get pushed out into “business districts,” (the business equivalent of housing projects) which pushes up their costs for doing business, and drives down their visibility, making it even more difficult to start and/or run a small company. Mom and pop be damned; you eighty percent, be damned; “The Board” wants nothing less than multi-nationals. What's worse is they actually think they're doing the city and the people living in it some good.

If only they could learn to think for themselves, they might change their expensive ways, or at the very least, come up with their own slogan. Something like: Think Different – Just Like Us.