Sometimes, people have great ideas. These ideas lead to products, services, medications or other valuable creations that eventually help others around New Jersey, the country and the world. However, in order to make these ideas come to life, people often need money. Starting a business in New Jersey is often not cheap, especially if significant research or man power is required in making the product. Unless people are willing to invest significant amounts of their own money into the company, they need some sort of funding.
Businesses big and small need to consider how they want to organize. There are many different entity forms that businesses in New Jersey can choose from including corporations, partnerships and limited liability companies. Each entity form will have advantages and disadvantages for a business. People need to consider how each entity will affect the business in the future and its potential to reach a greater audience.
In the past few years, more and more entrepreneurs have entered the world of craft beer and wine. This interest has also sparked the idea of individuals making artisanal liquors and spirits. New Jersey is finally catching up with this trend. The state recently loosed certain legal restrictions governing the beer and wine-making industry.
Start-up companies face a lot of challenges. New business owners must resolve issues involving funding, entity formation and governmental regulation all while trying to get ahead of their competition. While many of these issues can be daunting, New Jersey businesses are overcoming these business formation issues and going on to be very successful companies.
In 2008, as the national economy began its downturn, many businesses started to lose money. Large corporations saw the value of their stock plummet and many businesses could not survive. However, New Jersey business owners may be interested to know that those businesses that did survive could face business litigation over the losses they faced because of the recession.
The CEO of a now-collapsed brokerage firm could face criminal charges as well as civil commercial litigation if investigators prove he knew customer funds might be included in a $200 million transfer of funds to an account in the U.K.
A recent article in The New York Times highlights an entrepreneur's success starting businesses online. The article profiles Ben Huh, an entrepreneur who took a risk in buying a website filled with funny-captioned goofy cat pictures and managed to turn the purchase into a wildly successful business. In the beginning, the start-up consisted of Huh and his wife, and he purchased the I Can Has Cheezburger website with $10,000 of his own savings and financing he solicited from investors. He has now expanded his "Cheezburger Network" to 53 sites, which attracted a record 16 million unique visitors in May. The company has 40 employees and has not needed additional investment funds.