The sooner the better: Early in the new year is the best time to start a business

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By Glenn Townes

In addition to resolutions, changes and new commitments, the New Year is also the best time to strike out on your own and start a small business, according to the head of the African American Chamber of Commerce in New Jersey (AACCNJ).

John Harmon, CEO of one of the Garden State's largest chapter of the national organization, said despite the unstable economy, the new year ushered in a laundry list of new and special tax credits that make entrepreneurship an attractive incentive to would be business owners. By developing a strategic plan and outlining clear monthly goals and objectives for the year, Harmon said savvy would be owners are on their way to launching a potentially thriving business.  

“Research the market for your product and service and get to know the competition,” he said. “Determine what type of corporation you want to establish--a limited liability company or one that is incorporated.”

Harmon’s remarks follow on the heels of a Census Bureau study that showed African Americans continue to be the fastest growing segment of the business owners in the state. Highlights of the report released late last year showed, New Jersey ranked among the top 10 states in the number of black owned businesses in the past 10 or so years. The state had more than 60,000 African-American owned businesses in 2017--a jump of about an average of 30 to 40 percent from prior years. Another factoid, African Americans spend $1.4 trillion annually, however, African American-owned businesses only generate about $200 billion—surpassing a $1.2 trillion deficit within the Black community—another example of the vast disparity between in the wealth gap between African Americans and the majority community.

Finally, Harmon offers three key alternative ways to fund a start-up business in the New Year:

- Purchase order financing: A short-term commercial finance option that provides capital to pay suppliers upfront and save your cash.

- Contract financing: Funding provided to businesses that do not produce their own products rather they contract out manufacturing to other domestic companies.

- Unsecured line of credit: A business credit card based on personal credit and allowing your business to receive financing without collateral.

To find out more useful tips from the AACCNJ, visit the organizations web site at www.aaccnj.com.

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