How To Start A Business In New Jersey In 5 Steps

You’ve got a great idea for a business, but you know you have a long road ahead until you can start building it. New Jersey is a good state for starting a business, with plenty of customers, resources, and mentors to help you grow.

Step One: Do your research.

No matter how great you know your idea is, you need to do some research so you know who your competitors will be, who your ideal customer is, and how much money your business can make.

If you discover your business would have competitors, don’t be too quick to decide that the market is flooded. It’s a good sign when there are already successful businesses like yours; it’s a sign that there is demand for your product or service.

You’ll need to do market research to create a business plan that will help you secure funding in step three. Libraries and small business resource centers can provide an affordable start to your research, but you might also need to work with a market research specialist or access to paid databases. You can even ask potential customers for their insights.

Step Two: Get connected.

Success does not happen in a vacuum. Even if you’re a solopreneur, you need to network and work with mentors. Visit the Small Business Association – New Jersey District Office, and the New Jersey Chamber of Commerce for classes and networking events. Industry-specific events are also important for connecting with likeminded entrepreneurs and experienced mentors in your field. Don’t throw away those business cards – be sure to follow up with the connections you make after the event, even if you don’t think you have an immediate opportunity for working together.

Step Three: Secure funding.

If you’re planning to fund your business out-of-pocket, keep in mind that very few small businesses make a profit in their first year or two. You need to have a plan to cover your living costs. That may mean staying at your current full-time job or taking on a part-time job to make ends meet, while still allowing you time to work on your business.Taking on a loan or using your credit card is risky, be sure to seek out ways to minimize interest payments if you go this route.

In order to get a business loan or get investors, you need a solid business plan that proves your business stands a good chance of turning a profit. Look into angel investors, venture capitalists, and peer-to-peer lenders.

Step Four: Hire a CPA.

Now that you’ve found a way to fund your business, you need to be very careful about how you spend it. You have to spend money to make money, and when you have a limited budget, you need to make sure you’re prioritizing the right expenditures.

A spreadsheet may seem like a good way to track just a few simple debits and credits, but it won’t grow with your business. Use software like Quickbooks to keep track of invoices, payments and debts. You should also start working with a CPA now – not during tax season. Your CPA can also help you decide how and when to incorporate your business.

Step Five: Get started.

Depending on your type of business, you may be able to start working with your first customer right away, or you may need to purchase or lease equipment, get licenses, order stock, or set up a physical location. This is where having mentors comes in handy; while every business is different, experienced business-owners with similar or adjacent companies can help you figure out which first steps to prioritize.