Location is critical for running a successful business. With over 861,000 small businesses and counting, New Jersey is among the great places for new and experienced entrepreneurs. The state reported a median growth rate of 144 percent, generating $7 billion in total revenue.
Additionally, 132 New Jersey companies made it onto the list of the 5,000 fastest-growing private firms in the US.
Being in the heart of the East Coast, New Jersey offers a range of benefits to new business owners. There’s access to one of the most affluent consumer markets worldwide, an educated workforce, and excellent state support. All these provide new and small enterprises with the best chance to flourish.
Are you looking to launch a new venture? We’ve provided this guide to help you start your new business in New Jersey.
Research the Industry You’re Interested In
What business industry do you want to explore? Industry analysis is crucial not only for planning your business but also for its survival. You can use free resources like the US Census Bureau to understand your competition and target market.
Take this opportunity to explore and research ideas for your venture. After the market research, it’s time to draft the blueprint of your business. You’ll need a comprehensive business plan to secure funding and manage your startup effectively.
Decide on Your Business Structure
Selecting a legal structure is one of the most important decisions business owners must make. The type of business structure you decide on will affect several aspects of your venture, now and in the future. Make sure to go for the most appropriate form of business entity.
Remember that no one choice fits every enterprise. It may depend on your business type and how many owners are involved. The following are the most common business legal structures in New Jersey.
Limited Liability Company (LLC)
Register With the State of New Jersey
All New Jersey businesses must register with the Division of Revenue and Enterprise Services (DORES) for tax purposes and licenses. Each business structure has its unique licensing requirements. The registration process may also differ depending on whether you’re setting up a sole proprietorship, LLC, or corporation.
But here are a few common steps to get registered.
Look for available business names.
Acquire an employer identification number (EIN) from the IRS.
File formation documents.
Obtain a business registration certificate.
Open a Separate Business Account
Even if you’re establishing a sole proprietorship, separating your company assets from your personal ones is essential. Thus, after registering your business, open a separate business account. This strategy protects personal assets and facilitates uncomplicated tax filing. Obtaining a credit card is also an excellent way to build up your company’s credit history.
Explore Different Insurance Options
Getting insured can protect your business and personal assets. No matter what legal structure you choose, ensure to purchase business insurance. It will protect your business from financial loss in case of liability, property damage, or legal action.
New Jersey businesses with more than one employee must obtain workers’ compensation insurance. You can consult a licensed insurance agent to explore options and choose the best for your business.
Other Considerations When Starting a Business in New Jersey
There are other factors entrepreneurs need to consider when launching a business in New Jersey. Besides the legal and licensing requirements, here are other considerations you should keep in mind.
New Jersey is an excellent place to start a business, but every area has its benefits and drawbacks. It will be more challenging to sell your products or services in an oversaturated market.
If you want to increase your chance of succeeding, find a location with high unmet demands that your business can address. It’s also crucial to consider zoning, building permits, and negotiating a commercial lease.
Most business owners need capital to launch their businesses. Nowadays, there are multiple ways to get funding. You can obtain a business loan from a traditional bank or credit union. Alternatively, you can also secure financing from online lenders. Other sources you can opt for include crowdfunding and venture capital funding.
Every business plan must include marketing strategies. It shows how your business will reach prospective customers and provide them with your products or services. What makes your business more appealing than your competitors? How do you want prospects to feel when they engage with your brand? These are some questions you should ask when crafting your marketing plan.
Run and Grow Your Business in New Jersey
You’ll need more than a great idea to run and grow a successful business. Planning and conducting research is critical to assess your chances of making a profit. In addition, there are legal obligations business owners must follow. Reach out to professional legal, tax, and business advisers to ensure compliance with the law.