>>> THIS WEEK ON "NJ BUSINESS BEAT".

>> CONGRESS STEPS IN TO KEEP THE RAILWAYS MOVING.

>>> PLUS UNAFFORDABLE.

THAT'S WHAT NEW JERSEY BUSINESSES ARE CALLING OUR STATE IN A NEW BUSINESS OUTLOOK.

WHAT THEY WANT STATE LEADERS TO DO TO SUPPORT OWNERS AND ENTREPRENEURS.

AND WE'RE GOING SHOPPING, AS WE HIGHLIGHT THE STATE OF RETAIL AT THE LOCAL LEVEL, LEARNING HOW MAIN STREET AND HOME BASED BUSINESSES OPERATE DIFFERENTLY FROM THEIR BIG BOX COUNTERPARTS.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

♪ >>> THIS IS "NJ BUSINESS BEAT" WITH RHONDA SHCHAFFLER.

>> HELLO.

I'M RHONDA SCHAFFLER.

THANKS FOR JOINING ME ON "NJ BUSINESS BEAT."

A POTENTIALLY DEVASTATING FREIGHT RAIL STRIKE HAS BEEN STOPPED IN ITS TRACKS.

QUICK ACTION BY CONGRESS AVERTED A STRIKE THAT WOULD HAVE SNARLED SUPPLY CHAINS AND POTENTIALLY PUSHED THE ECONOMY INTO RESESSION.

AT THE REQUEST OF PRESIDENT BIDEN, THE HOUSE AND SENATE PASSED A BILL THAT BINDS RAIL COMPANIES AND WORKERS TO A PROPOSED SETTLEMENT THAT WAS REACHED BETWEEN UNION LEADERS AND RAILROAD COMPANIES BACK IN SEPTEMBER.

EIGHT UNIONS HAD VOTED TO ACCEPT THE AGREEMENT, BUT FOUR UNIONS DID NOT, RAISING THE POSSIBILITY OF A STRIKE BEGINNING ON DECEMBER 9th.

RAILWAYS HAD SAID A WALKOUT COULD COST THE ECONOMY $2 BILLION A DAY.

PRESIDENT BIDEN, WHO SIGNED THE BILL SHORTLY AFTER IT LANDED ON HIS DESK, DEFENDED THE ACTION TO IMPOSE THE SETTLEMENT, NOTING THE AGREEMENT CONTAINED WAGE INCREASES FOR WORKERS.

THE WORK UNIONS THAT REJECTED THE AGREEMENT BACK IN THE FALL WANTED PAID SICK LEAVE, AND THEY DID NOT GET IT.

REPUBLICAN SENATORS BLOCKED MEASURES FOR PAID TIME OFF FOR MEDICAL AND FAMILY REASONS.

UNION GROUPS AREN'T HAPPY WITH HOW EVERYTHING WENT DOWN, ACCORDING TO TODD, AN ASSISTANT PROFESSOR OF LABOR STUDIES AND EMPLOYMENT RELATIONS AT RUTGERS.

>> UNION MEMBERS ARE NOT HAPPY WITH PRESIDENT BIDEN RIGHT NOW AND CONGRESS.

HE'S DEFINITELY UNDERMINING HIS REPUTATION OF BEING THE MOST PRO-UNION PRESIDENT IN U.S. HISTORY.

>> THE EMPLOYER DOESN'T FEEL THE PRESSURE TO MAKE ANY CONCESSIONS BECAUSE THEY KNOW A STRIKE IS NO LONGER POSSIBLE.

>> A SURVEY CAPTURES THE FRUSTRATIONS OF THOSE DOING BUSINESS IN OUR STATE.

THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION'S ANNUAL OUTLOOK SURVEY FOUND THAT AFFORDABILITY TOPS THE LIST OF BUSINESS CONCERNS.

NEARLY HALF OF THOSE POLLED SAY THE STATE IS SOMEWHAT UNAFFORDABLE FOR BUSINESSES, WHILE 36% SAY NEW JERSEY IS NOT AFFORDABLE AT ALL.

A MAJORITY, 75%, SAY THE LEGISLATURE AND GOVERNOR MURPHY HAVEN'T DONE ENOUGH TO ADDRESS THE PROBLEM.

BUSINESS LEADERS SAY CUTTING TAXES WOULD IMPROVE AFFORDABILITY.

19% WANT TO SEE A REDUCTION IN BUSINESS TAXES.

17% SAY STATE LEADERS SHOULD REDUCE INCOME TAXES.

WHILE ANOTHER 17% SAY CUT PROPERTY TAXES.

AND 13% WANT TO SEE HEALTH CARE COSTS REDUCED.

THIS YEAR'S BUSINESS OUTLOOK SURVEY WAS ONE OF THE MOST DOWN BEADED YEARED.

THAT'S WHAT I LEARNED WHEN I SPOKE TO MICHELLE -- >> THE NJBIA HAS INTRODUCED ITS AN EVENTUAL BUSINESS OUTLOOK SURVEY.

WITHOUT DIVING INTO THE NUMBERS, HOW WOULD YOU DESCRIBE THE STATE OF BUSINESSES IN NEW JERSEY?

>> WELL, THE BUSINESS COMMUNITY DID NOT GIVE A POSITIVE OUTLOOK AS WE GO INTO 2023.

IN FACT, UNFORTUNATELY THIS WAS THE MOST NEGATIVE OUTLOOK WE'VE SEEN FROM THE BUSINESS COMMUNITY SINCE 2009.

AND THAT WAS THE TIME OF THE GREAT RECESSION.

>> SO, LET'S DIVE INTO THAT.

WHAT IS GOING ON, AS THEY LOOK AHEAD TO 2023, THAT HAS BEEN A CONCERN.

>> THIS LACK OF AFFORDABILITY DRIVEN BY COST OF DOING BUSINESS.

THE BUSINESS COMMUNITY SAID TO US WHEN ASKED, WHAT DO YOU THINK GOVERNMENT COULD DO TO MAKE NEW JERSEY MORE AFFORDABLE FOR YOU?

THEY SAID, TOP THREE THINGS, PLEASE, PLEASE REFORM PROPERTY TAX, CORPORATE BUSINESS TAX, AND INCOME TAX.

AND WE'VE BEEN SAYING THIS FOR YEARS, RHONDA.

AT THE HEART OF ALL OF THIS IS THE TAXING ENVIRONMENT HERE IN THE STATE OF NEW JERSEY.

BUT CERTAINLY THERE ARE OTHER FACTORS DRIVING COST OF DOING BUSINESS TODAY GIVEN INFLATION, WORK FORCE SHORTAGES, SUPPLY CHAIN, ET CETERA.

>> I'M WONDERING IF THAT PART OF IT, THE THINGS THAT ARE OUT OF NEW JERSEY'S CONTROL, KIND OF EXACERBATED THE NEGATIVITY IN THE SURVEY, WHETHER IT WAS SUPPLY CHAIN OR INFLATION OR THESE OTHER ITEMS.

>> 82% OF THOSE SURVEYED SAY NEW JERSEY IS EITHER NOT AFFORDABLE OR ONLY SOMEWHAT AFFORDABLE, GOVERNMENT SHOULD BE LISTENING.

WHEN 75% SAY GOVERNMENT ISN'T DOING ENOUGH TO ADDRESS AFFORDABILITY, AND WE'VE GIVEN IDEAS HOW THEY CAN, GOVERNMENT SHOULD BE LISTENING.

>> SO, WE HAVE TALKED ABOUT SOME OF THOSE IDEAS.

AND ONE OF THEM, FOR INSTANCE, WAS THE UNEMPLOYMENT TRUST FUND, TRYING TO GIVE RELIEF TO BUSINESSES THERE.

IS IT TIME FOR NEW IDEAS?

OR IS IT TIME TO, YOU KNOW, REALLY BROWBEAT SOME OF THE LAWMAKERS INTO ADDRESSING THESE ISSUES?

>> THIS GOVERNOR HAS BASICALLY REFUSED TO BRING RELIEF TO THE UNEMPLOYMENT INSURANCE TRUST FUND.

HE JUST DOES NOT FEEL IT'S THE BEST BANG FOR HIS BUCK, TO USE HIS WORDS EXPRESSLY.

THAT WOULD BE WHOLESALE RELIEF FOR NEW JERSEY BUSINESS.

LET'S LOOK AT PROPERTY TAX REFORM, RIGHT?

THE GOVERNOR AND LEGISLATURE ARE PROUD OF THE ANCHOR PROGRAM, BRINGING RELIEF TO HOMEOWNERS AND RENTERS.

THAT'S GREAT TO GIVE THEM SOME MONEY BACK.

BUT NEW JERSEY BUSINESS PAYS 50% OF PROPERTY TAXES IN THE STATE OF NEW JERSEY.

THERE WAS NO RELIEF FOR THEM IN THE ANCHOR PROGRAM.

>> MICHELLE, LET'S TRY TO PULL OUT SOME OF THE HIGHLIGHTS, SOME OF THE MORE POSITIVE FINDINGS IN THIS SURVEY ABOUT 2023.

I KNOW THAT IN TERMS OF STAFFING AND SALES, IT WASN'T ALL NEGATIVE.

>> NO.

WELL, SALES WERE UP.

SALES WERE UP OVER PROFITS, NOT SO MUCH.

WE'RE NOT SEEING PRE-PANDEMIC LEVELS EITHER.

YES, UP YEAR-OVER-YEAR, BUT WE'RE STRUGGLING TO GET BACK TO WHERE WE WERE PRE-PANDEMIC.

STAFFING OVER THE LAST COUPLE OF YEARS HAS HELD SOMEWHAT STEADY.

YOU KNOW WE HAVE A WORK FORCE CHALLENGE.

BECAUSE OF THE CONTINUED INCREASE OF COST OF DOING BUSINESS AND THE INFLATION FACTORS UNFORTUNATELY WHEN WE LOOK INTO 2023.

WE DO HAVE THOSE SURVEYED WHO SAID THEY ARE NOT SURE OR MAY BE MAKING STAFFING CHANGES IN 2023, NOT NECESSARILY TO THE POSITIVE.

>> GREAT, MICHELLE GOOD TO CATCH UP WITH YOU.

THANK YOU FOR YOUR TIME.

>> THANKS SO MUCH, RHONDA.

>> BUSINESSES ACROSS THE COUNTRY CONTINUE TO HIRE, DESPITE NUMEROUS TECH AND OTHER COMPANIES ANNOUNCING LAYOFFS RECENTLY, THE JOB MARKET IS PROVING TO BE RESILIENT.

JOB GROWTH FOR NOVEMBER WAS STRONGER THAN EXPECTED WITH 263,000 NEW JOBS ADDED TO THE EC MU.

THE UNEMPLOYMENT RATE WAS 3.7%.

AND WORKER WAGES INCREASE AT A FASTER THAN EXPECTED RATE.

THIS ALL SOUNDS LIKE GOOD NEWS.

BUT FROM THE PERSPECTIVE OF THE FEDERAL RESERVE, IT IS NOT IDEAL.

THE FED IS TRYING TO SLOW THE ECONOMY AND THE PACE OF JOB GROWTH AS A WAY TO TAMP DOWN INFLATION.

MARKET WATCHERS PROJECT THE FED WILL BE RAISING INTEREST RATES AGAIN LATER THIS MONTH.

>>> ONE JOB ISN'T ENOUGH FOR SOME.

EIGHT OUT OF TEN GEN Z WORKERS AND NEARLY THE SAME NUMBER OF MILLENNIALS HAVE CONSIDERED PURSUING GIG WORK TO SUPPLEMENT THEIR INCOME OVER THE PAST YEAR.

THAT'S JUST ONE OF THE FINDINGS IN A RECENT SURVEY, AND HERE'S WHY.

YOUNGER WORKERS ARE FINANCIALLY STRAPPED.

PRUDENTIAL FOUND ROUGHLY HALF OF MILLE MILL ME LINEALS REGULARLY ONE OUT OF MONEY AND HAVE TO RELY ON CREDIT CARDS OR FAMILY TO HELP THEM OUT.

HIMSELF A MILLENNIAL, ABOUT MON MATTERS.

LOOKING AT SOME OF THE FINANCIAL CHALLENGES THAT YOUNGER PEOPLE FACE, WHAT WERE SOME OF THE HIGHLIGHTS THAT STUCK OUT TO YOU?

>> WE SURVEYED OVER 4,500 U.S.

ADULTS, AND WE FOUND SOME PRETTY COMPELLING INFORMATION THAT UNDERSCORE SOME OF THE REASONS THAT THESE YOUNGER GENERATIONS ARE HAVING TROUBLE SPENDING IN COMPARISON TO SOME OF THE OLDER GENERATIONS.

ONE OF THE DATA POINTS THAT WE FOUND WAS THAT ROUGHLY HALF OF ALL MILLENNIALS REGULARLY RUN OUT OF MONEY AND HAVE TO RELY ON CREDIT CARDS AND FAMILY MEMBERS FOR HELP.

AND FOR US, THERE'S TWO MAIN REASONS.

YOU KNOW, ONE OF THE BIGGEST REASONS IS DEBT.

WHEN WE LOOK AT DEBT, THIS COULD BE CREDIT CARD DEBT, STUDENT LOANS, IT COULD BE MORTGAGES.

AND, YOU KNOW, 55% OF MILLENNIALS WE FOUND THAT DEBT WAS PREVENTING THEM FROM ACCOMPLISHING THEIR PERSONAL GOALS COMPARED TO 44% OF ALL ADULTS.

>> IN TERMS OF THE DEBT LEVELS FOR YOUNGER PEOPLE, ARE THEY WORSE THAN WHAT OLDER GENERATIONS FACE?

>> NO.

FROM A STANDPOINT OF STUDENT LOANS, WE'RE SEEING IT'S MUCH HIGHER THAN SOME OF THE GENERATIONS IN THE PAST.

AND, YOU KNOW, A LOT OF THIS IS THE RISE OF COLLEGE COST.

THAT'S THE BIGGEST DIFFERENCE, WHICH IS LEADING TO, YOU KNOW, TRYING TO TACKLE THAT STUDENT LOAN PAYMENT MIGHT BE LEADING TO CREDIT CARD DEBT.

>> WHEN YOU LOOK AT THE OVERALL FINANCIAL HEALTH OF YOUNG INVESTORS, WHAT NEEDS TO BE DONE TO GET THEM ON THE RIGHT TRACK.

SOME OF THAT DEBT, OF COURSE, I'M SURE THEY'RE WORKING TO ELIMINATE, BUT IT'S EASIER SAID THAN DONE.

>> THE FIRST COURSE OF ACTION I ENCOURAGE CLIENTS TO DO IS FILL OUT A BUDGET SHEET.

WRITE YOUR EXPENSES.

YOU HAVE TO CONFRONT YOUR MONTHLY SPENDING.

LIST OUT WHAT YOUR EXPENSES LOOK LIKE.

SEE HOW MUCH OF THAT IS GOING TOWARDS NEEDS, THINGS YOU NEED TO LIVE ON, AND SEE HOW MUCH IS GOING TOWARDS ENTERTAINMENT, RESTAURANTS, TRAVEL.

SO, AFTER YOU'VE FOUND A BUDGET THAT WORKS FOR YOU, FIGURE OUT HOW CAN YOU TACKLE THAT DEBT THAT YOU MIGHT HAVE.

FIND A COMFORTABLE AMOUNT.

YOU KNOW, BUDGETING IS NOT THE MOST APPEALING THING.

YOU KNOW, FROM OUR SURVEY, WE ACTUALLY FOUND THAT 40% OF MILLENNIALS WOULD RATHER GO TO THE DENTIST THAN FILL OUT A BUDGET.

AND THAT WAS SOMETHING THAT I SEE IT EVERY DAY WHEN I'M SITTING DOWN WITH CLIENTS.

I ASK THEM, HAVE YOU EVER DONE A BUDGET BEFORE.

A LOT OF TIMES, THE ANSWER IS NO.

YOU KNOW, TO SEE THAT NUMBER WITH THE DENTIST, IT REALLY STANDS OUT BECAUSE ONCE YOU PUT THAT DOWN, THAT'S THE BEGINNING OF YOUR ROADMAP.

>> BRANDON, THANK YOU SO MUCH FOR YOUR TIME TODAY.

I ENJOYED SPEAKING WITH YOU.

>> THANK YOU, RHONDA.

>>> PEOPLE WERE SPENDING FREELY DURING THE START OF THE HOLIDAY SHOPPING SEASON FOLLOWING THE THANKSGIVING FEAST, SHOPPERS HIT THE MALLS AND BLACK FRIDAY SALES WERE STRONGER THAN EXPECTED.

THE NATIONAL RETAIL FEDERATION SAYS THERE WAS A RECORD NUMBER OF SHOPPERS IN THE STORES LAST WEEKEND, AND THE GROUP IS CONFIDENT HOLIDAY SALES WILL MEET ITS FORECAST OF INCREASING 6% TO 8% THIS YEAR.

196 MILLION AMERICANS SHOPPED IN STORES AND ONLINE OVER THE WEEKEND.

ONLINE SHOPPING BROKE ROECORDS N CYBER MONDAY WITH $11.3 BILLION SPENT.

WITH THE HOLIDAY SHOPPING SEASON UPON US, WE'RE PUTTING RETAIL IN FOCUS.

FROM THE LATEST NUMBERS TO A LOOK AT HOW NEW JERSEYANS ARE BRACING THE SHOP LOCAL TREND.

THE EARLY NUMBERS TELL US THAT CONSUMERS ARE STILL EAGER TO SPEND, DESPITE WORRIES ABOUT AN ECONOMIC SLOWDOWN AND HIGH INFLATION.

37% OF AMERICAN HOUSEHOLDS SAY THEIR FINANCIAL SITUATION IS WORSE THIS YEAR THAN LAST.

AND MOST, 73%, EXPECT HIGHER PRICES.

BUT SHOPPERS STILL PLAN TO SPEND ABOUT THE SAME AMOUNT AS LAST YEAR.

ON AVERAGE, $1,455 PER SHOPPER.

BUT WITH THINGS COSTING MORE, THEY'LL BUY FEWER GIFTING OVERALL, NINE GIFTS ON AVERAGE COMPARED TO 16 LAST YEAR.

THE MAJORITY OF SHOPPING, 56%, IS BEING DONE ONLINE.

48% ARE SHOPPING AT DISCOUNT STORES.

47% HIT THE DEPARTMENT STORES.

AND JUST 24% SHOP AT LOCAL SMALL BUSINESSES.

AND SHOPPERS ARE LOOKING FOR BARGAINS, ACCORDING TO STEPHANIE -- WITH THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS.

>> OBVIOUSLY WE ARE IN AN INFLATIONARY PERIOD.

WHILE INFLATION DROPPED AGAIN LAST MONTH, PEOPLE ARE STILL VERY PRICE CONSCIOUS.

SO, THIS YEAR MORE THAN ANY YEAR PAST, PROMOTIONS HAVE ALWAYS BEEN IMPORTANT.

BUT THIS YEAR, PRICE AND VALUE REALLY DRIVE WHERE CONSUMERS DECIDE TO SHOP.

AND THEY'LL BE LOOKING FOR THE BEST DEALS AT THOSE LOCATIONS.

>>> ONE NEW JERSEY LOCATION IS STEPPING UP EFFORTS TO DRAW SHOPPERS INTO STORES.

A NUMBER OF HOLIDAY EVENTS ARE BEING HELD IN THE STATE'S LARGEST CITY, NEWARK, TO BRING ATTENTION TO BLACK-OWNED BUSINESSES IN AND AROUND HALSEY STREET.

THAT INCLUDES THE SALE OF THE DIGITAL GIFT CARD THAT CAN BE REDEEMED AT MORE THAN 120 LOCAL BUSINESSES.

I SAT DOWN WITH ASHLEY MAIZE, CHIEF OF PLACE AND REAL ESTATE FOR NEWARK ALLIANCE, A NON-PROFIT WITH A MISSION TO STRENGTHEN NEWARK'S ECONOMY.

ASHLEY, TELL ME WHAT THE NEWARK ALLIANCE IS UP TO THIS HOLIDAY SEASON.

IT SEEMS THAT YOU HAVE A FULL SLATE OF ACTIVITIES AND PLANS TO REALLY BOOST BUSINESSES IN NEWARK.

>> THE NEWARK GIFT CARD IS A REALLY EXCITING INITIATIVE THAT WAS ACTUALLY SPONSORED BY AT THAT TAMARA LAST YEAR.

SHE'S A SMALL BUSINESS ADVOCATE.

SHE'S ALSO BEHIND THE HALSEY FESTIVAL.

IN TAMARA'S WORK TO SUPPORT SMALL BUSINESSES, SHE ADVOCATED FOR THE NEWARK GIFT CARD, THAT NEWARK ALLIANCE HAS REALLY SUPPORTED.

THE GIFT CARD IS A POWERFUL TOOL TO DIRECT FINANCIAL RESOURCES TO SMALL BUSINESSES.

AND THROUGH -- WE JUST FINISHED A FOUR-DAY SALE GENEROUSLY SPONSORED BY PRUDENTIAL WHO GAVE A 50% MATCH SO THAT SMALL BUSINESSES WOULD HAVE THIS TOOL TO HELP GENERATE IN-STORE SALES AND ENCOURAGE ADDITIONAL SPEND.

THE GIFT CARD IN THE LAST YEAR HAS RAISED OVER $250,000 FOR LOCAL BUSINESSES.

WE KNOW THAT 70% OF A DOLLAR STAYS IN THE LOCAL ECONOMY WITH SMALL BUSINESSES OPPOSED TO 40 CENTS ON THE DOLLAR FOR NATIONAL CHAINS.

>> IT IS HARD FOR SMALL BUSINESSES SOMETIMES JUST TO COMPETE AGAINST SOME OF THOSE BIGGER RETAIL PLAYERS.

HOW DO PEOPLE TAKE THE SHOP LOCAL PLHILOSOPHY TO HEART IN NEWARK?

>> THE SMALL BUSINESS COMMUNITY IN NEWARK IS VERY STRONG.

WE OPENED UP THE HOLIDAY SEASON WITH SMALL BUSINESS SATURDAY EVENTS, ACTIVATIONS WITHIN SPACES.

AND BUSINESS OWNERS HAVE REALLY TAKEN AN EXPERIENTIAL WAY TO CONNECT WITH THEIR CUSTOMERS.

WE'RE ALSO REALLY EXCITED ABOUT A NEW INITIATIVE THIS YEAR CALLED THE NEWARK HOLIDAY MARKET.

>> AND I WANT TO ASK YOU ABOUT BLACK-OWNED BUSINESSES IN PARTICULAR.

WE KNOW THAT BLACK-OWNED BUSINESSES, ACCORDING TO SOME STATISTICS, SUFFERED WORSE THAN WHITE-OWNED BUSINESSES DURING THE PANDEMIC.

WHY IS IT VERY IMPORTANT NOW TO LEND SUPPORT TO BLACK-OWNED BUSINESSES, NOT JUST FOR THE BUSINESS OWNERS BUT FOR COMMUNITIES?

>> BLACK-OWNED BUSINESSES OFTEN DO NOT HAVE THE ACCESS TO CAPITAL AND OTHER RESOURCES THAT WHITE-OWNED BUSINESSES.

SO, IT'S REALLY IMPORTANT TO DIRECT OUR SPEND INTENTIONALLY AND SUPPORT ENTREPRENEURS IN THIS WAY.

>> AND FINALLY, TELL ME WHAT YOU'VE SEEN IN NEWARK IN RECENT MONTHS.

ARE WE SEEING NEW BUSINESSES CROP UP?

ARE WE SEEING ANY BUSINESS EXPANSIONS?

>> WE'RE SEEING BOTH, PARTICULARLY ALONG THE HALSEY STREET BUSINESS CORRIDOR IN DOWNTOWN NEWARK.

WE'VE SEEN EVEN DURING THE PANDEMIC NEW BUSINESSES POP UP.

IT'S REALLY EXCITING.

>> GREAT TO HEAR WHAT'S HAPPENING IN NEWARK.

THANK YOU SO MUCH FOR YOUR TIME.

>> THANK YOU FOR HAVING ME, RHONDA.

>>> AND NOW FOR A DIFFERENT TAKE ON SHOP LOCAL, HAL MILLER AND TEEN NA -- ARE THE CO-OWNERS OF A STORE CALLED JUST JERSEY.

THEIR SHOP CARRIES GOODS MADE BY NEW JERSEY VENDORS, CELEBRATING AALL THAT MAKES THE GARDEN STATE GREAT.

WE CHATTED ABOUT HOW THE STORE CAME TO BE.

PAUL AND TINA, IT'S GREAT YOU'RE JOINING ME ON "NJ BUSINESS BEAT THIS WEEK.

ZBLTS HOW DID THE TWO OF YOU COME UP WITH AN IDEA TO COME UP WITH A STORE WHERE YOU ONLY SELIGER SEE GOODS?

>> TINA CAME UP WITH THE IDEA TO USE SCHOOL FUNDING EFFORTS.

THROUGH THE SUSTAINABILITY MOVEMENT FELT THAT WAS AN EXTENSION OF OUR COMMITMENT TO THE LOCAL COMMUNITY, SO WE STARTED A POP-UP STORE IN 2014.

AND NINE CHRISTMASES LATER, HERE WE ARE, GROWING FROM THE ORIGINAL MAKERS TINA ORIGINALLY BROUGHT TO WELL OVER 300.

>> TINA, WHY WAS IT IMPORTANT TO YOU TO REALLY FOCUS IN ON WHAT'S HAPPENING IN JERSEY AND TO GIVE JERSEY VENDORS THEIR DUE?

>> I MEAN, I THINK AT THAT TIME I REALLY RECOGNIZED THE NEED FOR ARTISTS TO HAVE MORE OUTLETS AND ACCESS TO CUSTOMERS BESIDES CRAFT FAIRS AND THOSE TYPICAL VENUES LIKE ETSY.

BY BRINGING THEM INTO THE STORE, WE CAN INTRODUCE CUSTOMER TO THEIR WORK, WE CAN TELL THEM THEIR STORY, AND IT CREATES ADDED VALUE TO THAT GIFT OR THAT ITEM THAT THE CUSTOMERS FIND.

THEY REALLY KIND OF FEEL LIKE THEY BOUGHT INTO THE ARTIST AND THE PROCESS BEHIND THE PRODUCT.

>> PAUL, HOW DO YOU COMPETE?

YOU HAVE A VERY UNIQUE MODEL HERE.

HOW DO YOU COMPETE AGAINST THE BIG BOX STORES, THE AMAZONS OF THE WORLD WHERE YOU CAN GOOGLE JERSEY GIFTS AND THINGS WILL COME UP.

SO, HOW DO YOU DEAL WITH THAT WHILE ALSO TRYING TO GROW YOUR OWN BUSINESS?

>> YEAH, I THINK FOR US, THERE'S KIND OF AN ACCEPTED THAT WE HAVE VERY DIFFERENT CUSTOMERS.

THERE'S BOUND TO BE SOME OVERLAP.

BUT OUR CUSTOMERS ARE ONES THAT REALLY VALUE LOCALLY SOURCED, HAND CRAFTED, KEEPING THEIR CONSUMER DOLLAR CIRCULATING IN THEIR LOCAL ECONOMY, WHERE THEY NOT ONLY SUPPORT THE JOB OF THEIR FRIENDS AND FAMILIES BUT THE SCHOOLS AND CAUSES THAT WE ALL SUPPORT THROUGH OUR EFFORTS, THE OTHER LOCAL BUSINESSS THAT WE SPEND OUR EARNED DOLLARS.

>> AND TINA, HOW HAS YOUR CUSTOMER BASE GROWN FROM THE DAY WHERE IS YOU WERE FOCUSED ON SCHOOL FUND-RAISERS, PROBABLY PEOPLE IN YOUR NEIGHBORHOOD WERE BUYING.

WHO WERE YOUR CUSTOMERS NOW?

>> NOW PEOPLE COME TO US A LOT WHEN THEY'RE TRAVELING.

YOU KNOW, THEY'RE GOING TO BE TRAVELING OUT OF STATE OR OUT OF THE COUNTRY, AND THEY WANT TO BRING SOMETHING FROM THEIR HOME STATE WITH THEM.

WE HAVE PEOPLE WHO ARE BUYING GIFTS FOR FRIENDS OR FAMILY THAT HAVE MOVED AWAY.

A LOT OF OUR CUSTOMERS ARE OUT OF STATE.

WE HAVE AN ONLINE STORE.

AND THEY MISS THINGS ABOUT THEIR HOME.

SO, THEY WANT TO HAVE SOMETHING WITH THEM THAT REPRESENTS NEW JERSEY.

>> FURTHER TO INCLUDE CORPORATE COMMUNITY KIND OF EMBRACING THE SUPPORT LOCAL MOVEMENT AS WELL, AS AN INDICATION OF THEIR CORPORATE COMMITMENT TO THOSE VALUES, TO THEIR CUSTOMERS, THEIR EMPLOYEES, THE COMMUNITIES IN WHICH THEY CALL HOME.

SO, WE'RE THRILLED TO WELCOME AREA CORPORATIONS, LARGE AND SMALL.

>> IT'S BEEN REALLY GREAT TO HEAR YOUR STORY.

I WANT TO THANK YOU BOTH FOR JOINING ME.

>> THANK YOU FOR HAVING US.

IT'S GREAT TO BE HERE.

>> FOR SOME JERSEY ENTREPRENEURS, A BUSINESS IS BORN OUT OF A HOBBY.

THAT'S THE CASE FOR AARON SERTIKA, OWNER OF SOAP COMPANY IN HUNTINGTON COUNTY.

AARON MAKES SOAPS FROM SCRATCH, AND IT'S QUITE LITERALLY A LABOR OF LOVE.

HER BUSINESS SUPPORTS HER DAUGHTER, WHO HAS DOWN SYNDROME.

ERIN SHARED HER STORY WITH ME.

ERIN, TELL ME HOW YOU GOT INTO THE BUSINESS OF MAKING AND SELLING SOAP.

WHAT WAS THE MOTIVATING FACTOR THAT GOT YOU WHERE YOU ARE?

>> LIKE MOST BUSINESSES, IT STARTED WITH A HOBBY.

MY HUSBAND AND I FIRST STARTED MAKING SOAP BEFORE WE WERE MARRIED, DOING THEM FOR FAVORS FOR OUR WEDDING.

FAST FORWARD, WE HAVE TWO CHILDREN, A SON WHO IS EIGHT AND A DAUGHTER WHO IS 11.

AND WE TURNED IT INTO A BUSINESS WHEN OUR DAUGHTER WAS BORN.

OUR BUSINESS IS DESIGNED TO SUPPORT OUR DAUGHTER WITH DOWNS SYNDROME.

SUMMER HAS DOWN SYNDROME, AND I STARTED TO LOOK AT HER FUTURE POTENTIALLY A LITTLE BIT DIFFERENT THAN OTHER CHILDREN.

SO, I WANTED TO MAKE SURE THAT WE HAD SOMETHING THAT COULD FUND HER FUTURE, AS WELL AS PROVIDE HER SKILL SETS THROUGHOUT THE COURSE OF HER LIFE.

SO, ALL OF THE PROCEEDS OF OUR SOAP ACTUALLY GET FUNNELED DIRECTLY INTO A FUND FOR HER ADULT FUTURE.

>> IT'S REALLY SUCH A WONDERFUL IDEA TO DO THAT.

AND I'M SURE IT BRINGS MORE MEANING TO YOUR COMPANY ON MANY LEVELS.

HOW HARD HAS IT BEEN TO GROW A COMPANY, TO GET THE WORD OUT, TO DEAL WITH COMPETITION, ALL THOSE THINGS THAT SMALL BUSINESS OWNER VERSUS TO WORRY ABOUT?

>> LIKE ANYTHING, IT'S BEEN A SLOW GROWTH.

WE HAVE BEEN IN BUSINESS FOR 11 YEARS.

IT STARTS OFF AS SIMPLE AS JUST WORD OF MOUTH.

THEN IT GROWS ONTO ETSY PLATFORMS.

WE DO A LOT OF DIFFERENT MARKETS THROUGHOUT THE YEAR.

WE HAVE ABOUT A HALF DOZEN OR SO DIFFERENT WHOLESALE CLIENTS AS WELL AS PRIVATE LABEL FOLKS.

BUT IT HAS BEEN A PHENOMENAL JOURNEY.

I MEAN, IT'S LEARNING OVER AND OVER THROUGHOUT THE YEARS.

BUT IT HAS BEEN FUN, AND I FEEL BLESSED TO BE ABLE TO DO THIS FOR A LIVING AND TO BE ABLE TO P PROVIDE FOR MY DAUGHTER.

>> HOW DID YOUR DAUGHTER GET INVOLVED IN THE BUSINESS?

IS SHE WATCHING OVER YOUR SHOULDER?

>> AT THIS MOMENT SHE JUST SORT OF HELPS WITH THE PACKAGING ASPECT.

SO, ONLINE ORDERS THAT COME IN, SHE'LL SOMETIMES HELP PULL THINGS FROM THE SHELVES, WHICH YOU CAN SEE BEHIND ME.

THIS IS SORT OF WHERE WE PUT OUR FINISHED PRODUCT AFTER IT'S FINISHED CURING AND THINGS LIKE THAT.

SO, SHE'LL HELP TO PULL THINGS FROM HERE AND WRAP THEM UP FOR THE ONLINE SALES.

>> AND DO YOU WANT TO KEEP YOUR BUSINESS IN THE FAMILY?

>> WE'LL SEE WHERE THE FUTURE GOES.

AT THIS MOMENT, I LOVE BEING A SMALL, LOCAL, HOME-BASED BUSINESS.

WE CURRENTLY WORK OUT OF OUR HOME, AND IT GIVES ME THE FLEXIBILITY WITH LIFE FOR THE KIDS AND DIFFERENT ASPECTS.

SO, IT'S FUN RIGHT NOW.

>> ARE YOU HAVING FUN NOW?

BECAUSE I ASSUME THIS HAS GOT TO BE ONE OF YOUR BUSY SEASONS.

HOW DO YOU PREPARE FOR HOLIDAY ORDERS?

>> WITH HAND MADE SOAP, ESPECIALLY COLD PROCESS SOAP, THERE IS A CURE TIME.

SINCE WE USE OLIVE OIL AS OUR BASE, IT'S A LONGER CURE TIME.

SO, WE DO ABOUT SIX WEEKS BEFORE IT'S READY FOR SALE.

SO, IT IS A CONSTANT PUSH TO BE READY FOR THIS SEASON WHERE WE CAN MAKE SURE WE HAVE EVERYTHING IN STOCK AND READY TO SHIP WITHIN 24 HOURS.

>> GOOD LUCK WITH THE SHOPPING SEASON.

THANK YOU SO MUCH FOR SHARING YOUR STORY.

AND I HOPE THAT YOUR SALES RING UP WELL THIS YEAR.

>> THANK YOU SO MUCH FOR HAVING US.

>>> AND FINALLY THE U.S. CHAMBER OF COMMERCE IS TRYING TO GET THE WORD OUT ABOUT COUNTERFEIT GOODS THIS HOLIDAY SEASON.

COUNTERFEIT GOODS COST THE ECONOMY $500 BILLION A YEAR.

SENIOR VICE PRESIDENT AT THE U.S. CHAMBER SAYS CONSUMERS NEED TO BE CAREFUL WHEN BUYING ON INTERNATIONAL WEBSITES.

AN ITEM THAT'S HEAVILY DISCOUNTED COULD BE TOO GOOD TO BE TRUE.

HE SAYS COUNTERFEITERS ARE TARGETING ALL SORTS OF PRODUCTS, AND HE SAYS IT'S TIME FOR THE BUYER TO BEWARE.

>> IT ENCOMPASSES EVERYTHING -- EVERY IMAGINABLE PRODUCT FROM HEALTH CARE ITEMS TO FOOD PRODUCTS TO THINGS YOU WEAR.

IF BUSINESSES CAN MAKE IT, COUNTERFEITERS CAN FAKE IT.

THERE'S A NUMBER OF THREATS TO OUR ECONOMY.

ONE, BUSINESSES SUFFER FROM THE LOST SALES.

AND THE WORKERS WHO PRODUCE THOSE PRODUCTS DO AS WELL.

BEYOND THAT, THERE'S A THREAT TO CUSTOMER TRUST.

WE WANT TO BE ABLE TO KNOW THAT WHEN WE'RE BUYING A CERTAIN PRODUCT FROM A CERTAIN BRAND THAT IT'S THE PRODUCT WE WANTED, IT MEETS OUR EXPECTATIONS.

>>> AND THAT DOES IT FOR US THIS WEEK.

REMEMBER TO SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

>>> NEXT WEEK ON "NJ BUSINESS BEAT," ATLANTIC CITY IS ABOUT TO MARK ITS 45th ANNIVERSARY OF CASINO GAMBLING.

WE LOOK AT THE INDUSTRY'S PAST AND ANALYZE WHAT'S AHEAD IN THE FUTURE.

THANKS AGAIN FOR WATCHING AND ENJOY THE REST OF YOUR WEEKEND.

♪ ♪