General Business

Aiding Businesses in a Complex World

Public- and private-sector entities have the required know-how to make entrepreneurial ventures successful.

By George N. Saliba, Contributing Writer On Sep 13, 2024

While state government is often criticized for its byzantine rules and regulations impacting businesses, the New Jersey Department of State’s New Jersey Business Action Center (NJBAC) is emblematic of select government agencies that are striving to ease companies’ confusion and offer guidance on everything ranging from navigating regulatory processes and obtaining licensing/professional certifications, to providing advice for exporting and procurement. Separate state entities provide business-growth mentoring and financial resources to businesses, while private-sector attorneys, CPAs and bankers help with their own respective expertise.

New Jersey Business Action Center (NJBAC)

Part of a broader business assistance ecosystem in the state, the NJBAC “gets many phone calls from attorneys and CPAs [on behalf of] their clients asking us to help them navigate the government agencies that are so complex,” NJBAC’s Executive Director Melanie Willoughby tells New Jersey Business Magazine. “Sometimes they are not sure what ‘door’ to go in and who to call [at an agency], and so that’s where we come in: We know the door to go in, and we can help advise them on that.”

Whether it’s a bewildering professional licensing letter that arrives in a small business’ mailbox or a company stymied by bureaucracy, NJBAC has grown from assisting a few thousand businesses annually when Willoughby was appointed executive director seven years ago, to now annually helping more than 30,000 companies.

Interrelated government entities can address almost any small business need. For example, NJBAC, the New Jersey Small Business Development Center (NJSBDC) network and the New Jersey Economic Development Authority (NJEDA) constantly refer companies to each other.

Case in point: While NJBAC doesn’t have staff dedicated to mentoring individual businesses and helping create business and marketing plans, it refers companies to the NJSBDC, which does have an array of specialized mentors trained to do exactly that. NJBAC and NJSBDC, in turn, often refer businesses to the New Jersey Economic Development Authority for the grants and loans necessary to help businesses grow.

New Jersey Small Business Development Center (NJSBDC) Network

Small businesses’ success may depend on individualized coaching. The New Jersey Small Business Development Center (NJSBDC) network annually helps between 7,000 and 9,000 companies via both one-on-one consulting as well as through webinars/training. With its 11 centers located throughout the state, NJSBDC mentors its clients in everything ranging from marketing and obtaining capital, to social media, cybersecurity concerns, exporting, financial literacy, improving one’s credit score, and other topics.

Kelly Brozyna, CEO-state director of the NJSBDC network, tells New Jersey Business Magazine, “One size doesn’t fit all. We basically will look at a client, evaluate them, and see what they have done [already]. Do they have a budget? Do they have a business plan? A business plan could be a one-pager; it doesn’t have to be a 40- or 50-page document. But, have you put your thoughts down on paper?”

Companies may specifically need help with: realizing that they are expending too much money in a particular area; achieving a return on investment; and/or understanding their cash flow.

“You’d be surprised at how many people don’t actually need money [but instead] need to understand their cash flow and financials,” Brozyna explains. “And that’s something we can help with.”

New Jersey Economic Development Authority (NJEDA)

Yet, companies also may need capital to grow. If that’s the case, Christina Fuentes, vice president of community and business development at the NJEDA, recommends that small businesses visit the “small business and financing” section on NJEDA.gov’s homepage. There are many separate subcategories/programs with different requirements and purposes, although Fuentes particularly highlights the New Jersey Capital Access Fund and the Small Business Fund. She adds that each product has an applicant checklist so that businesses can understand if they are eligible and what is required for an application.

Fuentes also says, “The beauty behind the products we have now is [that] Governor Murphy is allocating [them] through the Main Street Recovery Finance Program. So, we’ve been allowed to create seven programs with continuous funding. People don’t have to worry about hurrying up and applying,” or worry about not being ready at the time the program is released, as was the case for some pandemic-era programs.

Fuentes and her team are promoting the NJEDA via chambers of commerce, counties, cities, and even through certain mayors who are actively making businesses aware of NJEDA offerings.

She adds, “For your true small business owner, they’re busy running their business [and] they don’t have time to [conduct] research … unless they’re going to stay up late at night. They have families to take care of. Some of them work second jobs as well, because they can’t let go of that job; they need their [corporate] health benefits. So, to think that every small business is going to know about these [NJEDA] resources is hard. That’s part of why we have an outreach team. I am [also undertaking] traditional, old school, boots-on-the-ground approaches as well.”

Banking

If obtaining capital is key for small businesses, financial institutions obviously play a role, although they additionally offer an array of products and services aimed at helping small businesses succeed. Kearny Bank’s Executive Vice President and Chief Banking Officer Anthony Bilotta highlights the bank’s remote deposit capture and merchant services products, as well as a treasury management suite of products.

Security is also important for businesses: Kearny Bank’s First Vice President and Private Client Manager Dawn Marcano says positive pay¾an automated service that allows banks to detect fraud by matching an issued check with the check presented for payment¾is helpful; bank customers input the physical checks’ details online. Marcano explains, “If businesses are putting checks in the mail, they’re getting stolen out of the mail, and positive pay is a [way] to ensure the safety of these checks.”

Meanwhile, an FDIC-insured liquidity suite is also popular at Kearny Bank. Because the FDIC only insures up to $250,000, Bilotta says, “[Clients] only want to keep $250,000 with us. [So,] we will sweep the rest [of the money] into another bank, and the client can [choose] the banks that participate in the program.”

Overall, clients additionally received what Marcano describes as “white-glove service.” She adds, “A lot of people are working remotely these days, so they’re not in the office. They don’t have access to printers and all that kind of stuff. We can fully remote-connect with them through secure e-mail, and that’s how we do 90% of our business.”

It’s all against the backdrop of a difficult high interest rate and loan environment. Bilotta says, “The [banking] climate is challenging. We’re at the peak of the rate cycle. Once the rate cycle decreases, which is going to happen likely [this September 2024] with the first rate cut, [followed by what] looks like a series thereafter, the climate is going to change very favorably for both banks and their clients.”

Law

Attorneys are also closely collaborating with small businesses. Most entrepreneurs are forming LLCs, and attorneys can help create operating agreements that stipulate owners’/members’ voting interests and other guidelines.

Having these and other operating agreement details memorialized in writing is crucial, explains John D. Cromie, partner and co-chair, corporate and business law, at the law firm of Connell Foley. “Life [in general] and the day-to-day challenges of running a business [can] take precedence over making sure there is a written document that governs the relationship by and among the owners. However, we really press people to make sure that it gets put in place. Not having it written down is fine, until it is not fine. … When there’s an issue, everybody says, ‘Geez, why didn’t we do that early on?’”

Additional early challenges faced by small businesses include obtaining adequate capitalization and/or access to a line of credit with a bank. Attorneys can help in these areas by making referrals to lenders that are sensitive to small business needs.

Data security and privacy is also front-and-center. Cromie explains, “New firms have to be very sensitive to [data privacy laws].” He adds, “Small businesses oftentimes may not have the level of sophistication in their IT, and the last thing a new business needs is to have an IT incident where it is compromised. Working closely with our cyber/IT colleagues is critically important.”

Conclusion

With various assistance available for small businesses, Cromie encourages companies to be “disciplined” in addressing all necessary issues. He says, “Know that a strong team of business professionals¾lawyers, accountants and bankers¾are in your corner; they’re really trying to help you. This is not an infomercial for legal work. We [simply] want to be viewed as a resource that you should feel comfortable calling in advance, and I’d say the vast majority of clients¾existing and new¾do that.”

To access more business news, visit NJB News Now.