5 Mistakes to Avoid When Starting a Small Business in NJ

Starting a small business is exciting! It’s the beginning of turning your passion into a livelihood. But for many first-time entrepreneurs in New Jersey, the early days are full of critical decisions that can make or break the future of the business.

At Venture Investments, we’re committed to helping startups and small businesses across the Garden State. If you're launching your business or still in the planning stage, here are 5 common mistakes to avoid, and what to do instead.

1. Skipping the Business Plan

The Mistake:
Many new business owners think a business plan is optional or something you only need to get a loan. But going in without one is like taking a road trip without a map.

What to Do Instead:
Build a simple but focused business plan that outlines:

• Your product or service

• Target market and competitors

• Marketing and sales strategy

• Startup costs and financial projections

• Growth goals

Even a 2–3 page plan can provide direction and help you make smarter decisions early on.

 2. Underestimating Startup Costs

The Mistake:
Entrepreneurs often focus only on the big expenses, such as rent and inventory, and forget about things like insurance, licenses, marketing, taxes, and buffer cash for slow months.

What to Do Instead:
Take time to create a detailed startup budget. Once you have your number, raise at least 20–30% more than you think you’ll need. This is especially important in New Jersey, where operating costs and regulations can be more complex than in other states.

3. Choosing the Wrong Business Structure

The Mistake:
Many business owners default to being a sole proprietor or LLC without fully understanding the tax or liability implications.

What to Do Instead:
Speak to a professional to decide whether an LLC, S-Corp, or another structure makes the most sense for your goals. Getting this right early can save you headaches and money down the line, especially when you're looking to bring in investors, take on a partner, or sell the business later.

 4. Not Understanding Local Regulations and Licensing

The Mistake:
New Jersey has specific state, county, and municipal rules depending on your industry and location. Failing to get the proper licenses or permits can delay your opening, or worse, result in fines.

What to Do Instead:
Check with the New Jersey Business Action Center, your local municipality, and the NJ Small Business Development Centers (SBDCs) to make sure you're compliant. You can also contact us; we love to help local businesses navigate the startup process correctly from day one.

5. Going It Alone Without Expert Support

The Mistake:
Entrepreneurs often try to do everything themselves: marketing, finances, legal work, which can lead to burnout and costly mistakes.

What to Do Instead:
Surround yourself with a team of trusted advisors, even if they’re part-time or on a consulting basis:

• Accountant or bookkeeper

• Business attorney

• Marketing or branding expert

• Mentor or advisor with experience in your industry

At Venture Investments, we not only provide funding, we offer strategic support, mentorship, and guidance tailored to small businesses in New Jersey.

Ready to Start Your Business Right?

Launching a business is hard, but it doesn’t have to be done alone. If you’re starting a small business or looking for growth support in New Jersey, we’d love to help.