There is simply no way to remove all of the risks and dangers that are associated with starting a small business in New Jersey. However, you can greatly improve your chances of success with proper planning, preparation, and insight. You should begin by evaluating your basic personality traits. Also, you should carefully assess all of your weaknesses and strengths in order to see if you can be a potential owner and manager of a small business.
Carefully consider each of the following questions and answer them honestly while still remaining as objective as possible:
- Are you a self-starter?
- Do you get along with different personalities?
- Are you good at making decisions?
- Do you have the stamina to run an organization?
- What is your motivation?
- Is your will strong enough?
Creating a Business Plan
After you have decided what type of business you want to start, you should develop a business plan. A business plan is a roadmap for the business, and it should also contain several important milestones as well. It begins as a way to determine profitability and market share and then expands as an assessment tool to determine success, gain financing, and figure out various repayment strategies. This is one of the most important steps that needs to be taken when starting a small business in New Jersey.
- Give a description of the business and its goals.
- Discuss the ownership of the business and its structure.
- List the skills and experience that you bring to the table.
- Discuss the advantages that you have over your competitors.
- Discuss the things that your company will offer to your customers.
- Identify customer demand and identify all of its important demographical information.
- Identify your market and the strategies that you will employ to reach this market.
- Explain how your products and services will be advertised.
- Explain your pricing.
- Develop a return on investment and monthly cash flow.
- Provide projected income statements and balance sheets.
- Discuss your break-even point.
- Explain your personal balance sheet.
- Discuss who will keep your accounting records.
- Explain how the business will be managed.
- Discuss hiring and personnel.
- Discuss insurance.
- Account for the equipment.
- Account for production and delivery (if applicable).
- Purpose of the loan itself
- History of the business and its future potential
- Projected opening-day balance sheet
- Lease details
- Amount of investment in the organization by the owner
- Projections of cash flow
- Resumes of the principal owners and managers of the organization
When an entity is starting a small business in New Jersey, there could be other documentation requirements that will depend on the exact purpose of the loan. If you are seriously interested in becoming a New Jersey Business Owner, it is a great idea to contact your lender for additional items you may need to supply.