Starting your own New Jersey business can result in a mixture of excitement and terror. You may have little to no idea what to expect, but you know you are taking a heavy risk. Many first-time business owners are not successful, so you may have been pleasantly surprised when your company took its place in the market and began to make a profit for you.
Now, you have a new idea, perhaps one that is radically different from the inspiration that brought about your first business. The success of that first venture may give you confidence to dive right in, but there are some points you should keep in mind before you place both investments at risk.
Don’t skip steps
Opening a second business is not the same as opening your first. You have many different things to consider, not the least of which is the security of your existing company. It is unfortunately common for entrepreneurs to sacrifice the smooth operations of their current business when trying to start up something new. It is also not unusual for successful small business owners to rush into a new venture without carefully considering the good advice business advocates offer, including the following:
- In the planning stages, remember to devote adequate time to running your existing business but set aside specific time each day or week to work on your plans for the new venture.
- Carefully weigh the pros and cons of taking on a partner for the new venture, especially if you are comfortable running your current business as a sole proprietor.
- If you do have a business partner, do not automatically assume the success of the partnership will transfer to the new venture, especially if the two businesses are in different industries.
- Take your time with each of these and other issues before you commit your money and resources too quickly.
You may discover that you are not able to find a place in the market for your new idea as easily as you did with the first, or you may find that you do not have the energy or finances to sustain two businesses. It may be better for you to begin online or on a smaller scale to test your customer base before leasing a storefront or investing in the equipment you need to go full scale.
As always, starting a small business involves numerous laws on the local, state and federal level, depending on your industry. If you have a solid relationship with a business attorney, you will have an advocate who can guide you through any unfamiliar territory and represent you if you face legal disputes.