Announcer: support for "NJ Biz Beat with Raven Santana" provided by NJMEP, a partner to New Jersey's manufacturing industry focus on productivity, performance, and strategic development.

More on NJMEP.org.

♪ >> This is "NJ Biz Beat with Raven Santana.

Raven: Hello, I'm Raven Santana.

Thank you for joining me on "NJ Biz Beat."

New Jersey small businesses and the entrepreneurs who run them are the lifeblood of the states economy but starting a business can be difficult.

There are more than 950,000 in the state, and I did not percent of all businesses according to the small business administration.

More than 300,000 are women appear Hispanics are the fastest-growing group with 1 30,000 businesses in New Jersey.

Small businesses are responsible for $35 billion in exports annually, including close to 2 million workers employed and a payroll close to $96 billion.

The top sectors for small businesses are health-care care, construction, transportation and warehousing, real estate, and scientific services.

We wanted to get a sense of what it would take to start a business here but also make the business successful.

I spoke with Lindsay kill Patrick from the SBA about the support is in his owners need to get their ideas off the ground.

Tell us how the SBA helps entrepreneurs launch their businesses.

Lyndsay: the SBA is a federal agency.

Hold the hand of the small business owner and we hold the hand of the resources they need to bring them together.

With our federal dollars, we partner with organizations with our resource partners across the state and the country.

Partner with business centers, one in New Jersey, one in Camden.

We have the New Jersey small business development centers throughout the state, usually on campuses of colleges and universities.

We have seven partners in New Jersey that are retired entrepreneurs that can give a small business owner all the advice they need to.

And we have the veterans business outreach Center, not Station in New Jersey, but they have an exciting team to give resources.

When it comes time to looking for what you are interested or passionate in and turning it into a legitimate business, you reach out to us and we partner you with resource partners who get it started with you.

Not for you, but with you.

Whatever small businesses are interested in what we have, the first thing I say is we have the people to help.

It is really about letting the community know about who we are and how accessible we are.

Raven: It is interesting when you talk about the outreach and resources, because we think the pandemic had such a huge impact on all businesses, especially small businesses.

So when with think about that, are people still trying to start small businesses?

Lyndsay: Of course, small business owners, I don't think the pandemic stopped small businesses from opening, it help them think outside the box, pivot.

Small businesses had to pivot and do things differently.

I think during the pandemic it really caused them to look at how sustainable they are.

We don't know what tomorrow holds, the pandemic folder stack, but small businesses in New Jersey are still opening.

In the year of 2022 we had over 150,000 small businesses open in Jersey.

That seems like a lot because we go down the street and shutters are down, but all small businesses -- but not all small businesses are bricks and mortar.

We have consulting businesses.

The number one industry right now is professional and technical services.

Businesses are just opening.

It is just not on Main Street as often as they used to be.

Raven: A little different.

Let's focus on women and minorities.

What are the biggest challenges?

I feel like it has always been challenging for women and minorities to start a business.

I think there is more help now, but what is the biggest that you find, the challenges, for them?

Lyndsay: The money.

Capital has always been an issue for women and minorities, even when we look at the loans that are awarded to borrowers across the state.

Even though women make up 40% of small businesses in the state of New Jersey, they are awarded less than 12% of these SBA loans.

When we look at the disparity, it is evident.

I think having women really understand what it means to access capital -- I tell people all the time you have to be realistic when you are talking about money.

I had a small business owner who came to us very excited, I have a million dollar idea, here is what I want to do.

Great, how much is in your account?

To go to the bank to apply for the loan, if you need a million dollars, you need to have $10,000, 100,000 others in your account.

If you don't have that, it doesn't mean you are not capable of getting the loan, it just mix it more difficult.

When we talk about capital it is OK to not need a million dollars, it is OK to not want a million dollars, but understanding the financials of your business is important.

Also distinguishing between a passion project, something you really like doing, and something that is a sustainable business is important for women.

I know is a small business owner myself I tend to want things that are nice.

I love it, I'm attracted to it, but sometimes it does not make business sense.

That is where our partners come in.They bring in the reality by helping formulate a business plan or strategically looking at the numbers that you are projecting, helping you look at the revenue, helping you make tough decisions.

I think for women and minorities it is important because that has not always been accessible to us historically.

So there are a number of actions in terms of resources for women, minorities, small business owners who are typically what we would consider as the federal government underserved, the communities that need the most help.

Raven: What should people know who want to launch a small business?

What are some tips?

Now is the time for the reality check.

What do you want people to know?

Lyndsay: First, there are resources that are either low cost or no cost.

Even when I was working in the financial industry, there were small business clients you brought us paperwork that was through an online resource.

Much did you pay for?

$500.

I'm cringing because that $500 could have been invested into an account where you would have had this option at no cost or low-cost.

Making sure they understand what resources are available as first.

Again, the SBA can help with that through our resource partners.

Then I also think that you understanding the difference between what you want to do and what you are capable of doing.

As a small business owner, I want to do so many.

I can do that.

Small business owners are naturally driven, naturally ambitious.

Sometimes we really have to say, can your budget handle this, can your account handle this?

Are you planning for the future?

What if another disaster strikes?

Are you prepared to sustain this business and what you were doing outside of your business, what you are doing at home?

Raven: Thank you so much and thank you for joining me on "NJ Biz Beat."

Lyndsay: My pleasure.

Raven: Small business owners need a lot of support to get started and even more when they open their shops.

From access to capital to a business plan and mentors, there is a lot of help out there for potential entrepreneurs.

But finding that support can prove difficult for even the most savvy and prepared business owner.

That is were New Jersey small business development centers come in.

They provide individual guidance for entrepreneurs who are starting a business or already running one.

I sat down with Kelly, the state director for the program, about how they can help your business succeed.

Your job is to collaborate and connect agencies and small businesses.

Talk a little about the role, why it is located at the business school, and tell me more about how that partnership works.

Kelly: We are a public, private Berkshire.

We get state funds and local funds.

Every state has one look at someplace.

Rutgers business school stepped up over 45 years ago.

One of the original pilot programs, they really have done a great job with supporting the community engagement piece.

Rutgers being the University, the state University, they are landgrab.

Every state in the entire state which is beautiful.

We have 11 centers across the state.

We cover every county, and we have boots on the ground, literally boots on the ground to help anybody who wants to start or grow a business.

When I say Rutgers has really stepped up, the business school has really been a crucial point in New Jersey to make sure they are that conduit between resources, businesses, and also all of the different agencies, because we really are a hub of resources.

We want to help anywhere from small, medium businesses, because we go by SBA standards of 500 or less employees, so that is almost everybody in the state of New Jersey.

Raven: Let's talk about how you were able to assist those businesses, whether they be small or medium.

Kelly: During the pandemic we really were able to pivot quickly to be completely online.

We did not miss a beat.

Literally I think three days.

We did not miss a beat to provide resources to people.

As a matter of fact we were helping even the high school teachers and preschool teachers and daycare providers on how to provide resources online, because nobody did it.

Higher education, yes, but when you get into high school and middle school, they didn't know.

And each of the teachers is a small business person themselves, they are technically a contractor.

So we really did step up.

We are there where the businesses need us to be, where the entrepreneurs need us to be.

Whatever stage of business you were going to be in, Priebus, existing business, even looking to exit because people have exit strategies as well, we are there with boots on the ground and here to help in any stage, any level they need help.

You mentioned one size does not fit all.

We look at everybody as individuals.

It is not like a canned presentation or canned 101 consulting.

And by the way, it is no cost consulting to come to us.

I don't like using the word free because there is no value associated with it, but because we are a public/private partnership, the people have already paid for this resource, so they should take an edge of it.

And you are 100% right that not everybody likes the word small.

Sometimes people have 250 employees or higher, they are like I don't need you, but they do.

We have so many different resources to be able to connect them.

I mentioned the hub.

We have this hub and spoke model.

We have the body, then we are partnered with other agencies between higher education to business associations, chambers of commerce, we work with all of them to make sure that if a business comes to us we want to holistically look at that business, evaluate where they are at, and get them to the right resource.

Part of the big problem businesses, they don't know the right resource and they will go to one and say, you need to go here, here, here, and people get frustrated because nobody answers their phone or they keep getting passed on.

So we are really able to streamline and get them to the right resource quickly.

Raven: Give us some examples of some of the type of businesses you have helped, especially for people watching.

Kelly: During the "P" era, we did a lot with daycare providers and retail and restaurants, helping them stay in business.

Quite honestly, for every one or two businesses that closed because of lack of ability to switch over quickly to whatever the needs were at that point, we helped two or three start or open up.

Did we have a net loss, sure, probably, but a lot of people don't realize there are a lot of businesses opening up during that period.

Because when there is a disadvantage or something -- I hate to say something bad happens, something good always comes from it.

There is always that ray of sunshine.

There are a lot of businesses that we help them actually grow during that time.

So during that time, and we always help with retail and restaurants, but daycare providers were really hit hard.

So we did a lot both in English and Spanish.

I think that is super important because we have every language skill within our small group of consultants that can help between Spanish, Portuguese, Hebrew, German, you name it, Indian, we have the like which skills.

We want to make sure that we are bringing individuals from the community to serve the community.

That goes into the group.

We have a big day coming up and we support our veterans, so we want to have veteran serving other veterans as well.

Raven: You are here to help everyone, big or small.

Kelly, thank you so much for joining me on "NJ Biz Beat."

Kelly: Thank you.

Raven: Recently the state passed a number of bills aimed at supporting new business owners.

Last month acting governor signed two bills into laws that promote business growth and access to guidance.

The first bill creates an annual business matchmaking event where small businesses can connect with government agencies and private contractors.

The second bill sets up a new mentor ship program with the New Jersey business action center to connect new owners with experienced entrepreneurs.

Besides mentor ship and guidance, New Jersey also offers financial support to new business owners reprogram called the angel investor tax credit.

The program gives tax credits to major corporations who invest their money in new and upcoming small businesses in the state.

In the past year corporations have invested $63 million in 28 emerging businesses in the fields of life science, technology, and clean energy.

The program has helped support 140 businesses with 872 million in investment since 2013.

We have talked about the support available to small business owners in the state, but we also wanted to hear from the entrepreneurs themselves were putting everything on the line to open up their dream businesses.

We headed to Bloomfield and sat down with two women who recently opened their own bakery.

Lady figures was created by Lauren and Samara.

It serves as a sister restaurant owned by her husband and fiancé.

We talked about where the idea came from and how hard it was to get their business started.

I really feel like I'm living out my childhood fantasies.

I have some sweetness, I have a funded core, that's a fun decor, but some sophistication.

Tell me about lady fingers.

>> We put two things together that people love.

It just works really well.

Friday, Saturday night we have people coming in for martinis, families coming in for coffee after dinner with sweets weather kids.

We just love it.

We love the ideas.

Raven: What is really intriguing is there is a bar here.

Tell me how that came about and why you thought this was the best way to do this?

>> I feel like after dinner you are always looking for something to do with friends, whether you want a bite or whatnot, and we just think you go for a cocktail, you don't have to go too far.

You have it all in one location with things that you want the most.

Raven: Tell me a little about the menu.

>> We have are classics.

We have a ham egg and cheese on focaccia bread, we have an everything bagel biscuit.

Our desserts are like childhood favorites reenacted.

Everything you had when you were a child, with a little more sophistication.

Raven: Right, and a jersey twist.

>> Everything is bigger and better in New Jersey.

We have cinnamon buns, huge doughnuts.

We want everyone to leave with a little bit of happiness.

Raven: You were talking about how there was a location.

Tell me why this was the perfect location for this business and how people reacted to such a unique type of business.

>> We took a little while to open up because it was around the time of COVID.

It has been a little bit over two years.

The people say they have been waiting two years, we have been tapping on the window.

Bloomfield has been so supportive.

They are so excited to come in, equally as excited about the space.

We can get little cocktails and cupcakes.

Raven: what was your biggest challenge?

>> I think getting the place open.

We ran into a lot of problems.

When we opened up the Brookdale, it was already a restaurant.

So there was a kitchen, a bar, everything was there already.

Here we took a tae kwon do shop and turned it into a restaurant.

We are from hospitality.

We were pastry chefs in New York City, Vegas, so we know how to run a business, but it is our first time doing the build out.

We learned a lot in that two-year process.

That was I think the most challenging part for me actually getting this place open.

But I think the two years was worth the wait.

>> We have done so much to finally get here.

We are super proud we are finally open.

So much work, recipe testing and menu development, it takes a long time.

People think it just gets thrown together.

It's a lot of work.

Raven: It is also expensive to have quality food.

How are you able to remain successful with that?

>> I think we have a very good following.

In those two years that we opened, we were trying to open, we started baking out of the Brookdale.

So this isn't our first Thanksgiving, it is our third.

We have a doing pies, we have been getting clientele.

We have been trying our hardest to gain a following and get a clientele.

So when we opened, off the bat we've had a steady flow of people.

We have a following from the Brookdale.

Fannie's is constantly busy.

Last week and was so busy and we are really grateful for all the support we have from family, friends and the community.

Raven: I really like how you came up with the name.

Talk about how the name came about and why this is a win-win.

People may not realize you were literally walking distance of each, walking distance from the Brookdale.

>> Fannie's is a namesake to my fiancé's maternal grandmother.

It is Italian food, spins on Italian food and a dedication to her.

Raven: I know this is a partnership and you have great Italian food, the bakery, the bar.

Which do you think is the most popular?

I know that's hard.

>> I think we are all popular in our own way.

People come here and say we just had lunch at Brookdale, dinner at Fannie's, now we are here for the nightcap cocktail.

>> This past week and was eating at Fannie's bar, then came in here and was like we just want this desert, can I bring place over to the bar?

We didn't know that, but now we can.

People bought plates of desserts and brought them back to the bar.

People from Brookdale have called and been like, could I have two doughnuts and bring them to Brookdale?

We bring them to Brookdale.

It is a community thing and people love they could just walk places.

When they are finished eating at Fannie's, they come over here for a nightcap.

We have a cocktail list, we have coffee.

And it is a wide variety of people.

>> For sure, and we all have different things, so it is not like anyone is taking anything.

We all just coming together.

>> The main thing is we are making each other busier.

>> Whether you want a drink or something sweet or something really good like pasta, this is the place to be.

Thank you so much, girls!

>> Thank you.

Raven: Before we leave, here is a look at the top business headlines of the week.

The heavily traveled Northeast corridor is getting a funding boost from the Biden administration.

New Jersey and the Northeast region will receive roughly $4.5 billion for mass transit projects.

Senator Cory Booker and the NJ transit CEO joined other federal and local leaders to tout the federal money which will go towards five key projects in New Jersey.

Most of it will support construction on the Hudson River tunnel, $300 million will go towards rehabbing the 90-year-old Oxbridge which crosses the Passaic River.

The rest is going to NG transit -- NJ transit for improvements at Penn Station.

Senator Booker said it is critical for growing the economy over the next decade.

>> The economy of this region depends on the Northeast corridor.

It is like the jugular vein in the body politic of the Northeast.

This project is of such scale and significance that it is not only a day to rejoice as taxpayers for having such a massive infusion of federal funds, but it is also going to affect the lives of thousands of people in this region because it is creating thousands of jobs.

Raven: The fallout continues from the collapse of Orsted's offshore wind plants in New Jersey.

The Danish developer is reportedly tried to get out of a $300 million payment owed to the state if it failed to build a wind farm off the coast.

According to the Associated Press, Orsted sent a letter to the board of utilities, arguing BPU never officially approve the deal.

The B.P.

you disagrees, clamming in escrow agreement was made in a guaranteed agreement was formalized in October.

Orsted announced last week the company is pulling out of its two offshore wind projects because of rising costs.

Orsted is an underwriter of "NJ Spotlight News."

Voters in Salem chose to sell the city water and sewer management systems.

Got a mesial plan passed with a slim lead of less than 150 votes.

System will be sold to New Jersey American water company for it and million dollars.

The company will make $50 million worth of investments in the system over the next decade.

New Jersey American water says rates will stay the same the next two years, followed by 3% annual raises over three years.

Salem's water system is plagued by debt and has failed to meet new state standards, including high levels of.

toxic chemicals The city initially try to sell the system under emergency conditions without public input, but advocates blocked the move and forced this vote.

That does it for us this week.

Remember to subscribe to our "NJ Spotlight News" news channel.

Next week we explore the business around the holidays.

Retail trends to the rising costs of putting a holiday meal on the table.

Thank you for watching.

We will see you next weekend.

Announcer: support for "NJ Biz Beat with Raven Santana" provided by NJMEP, a partner to New Jersey's manufacturing industry focussed on productivity, performance, and strategic development.

More on NJMEP.org.

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