Image: Shutterstock

It may sound strange considering the country’s ecomonic status, but business is good for most African American-owned businesses — especially in Michigan. According to Ken Harris, president and CEO of the Michigan Black Chamber of Commerce, black businesses are “growing at a rate three times the national average,” he told CBS Detroit. He continued, “…there’s more than 79,000 black-owner firms in Michigan; more than 32,000 in the city of Detroit alone, which ranks number four in the entire country.”

Harris believes one reason this may be happening is the younger generation’s passion for becoming entrepreneurs.  “Entrepreneurship is extremely attractive,” Harris told CBS Detroit. “That’s why we have a Chamber of Commerce there now, to really nurture and develop young entrepreneurs; to put the types of resources in place that will allow them to benefit, to build their businesses [to] more than just a one-employee business. [M]ore importantly, to compete globally.”

It’s not only in Michigan where black businesses are growing. According to the most recent numbers from the Commerce Department’s Minority Business Development Agency and the US Census Bureau, the number of African American-owned firms in the United States increased by 60.5 percent between 2002 and 2007 to 1.9 million firms. Because of these stats, African-American businesses are proving themselves very important to the U.S. economy and its recovery. The Bureau reported that “African American-owned businesses also drove job creation over the five-year period, with employment growing 22 percent, exceeding that of non-minority-owned businesses.”

Despite this positive growth, however African-American businesses only represent seven percent of all businesses in the U.S.

Image: Comstock

Your business has been steadily growing. New opportunities keep rolling in. It’s time to go to the next level. With the right strategy you can make your small business a big business.

1.   The Small Business Administration (SBA) website advises that small business owners forecast growth. “Maintaining your momentum means looking forward even as you focus on the present. Forecasting and planning are critical to your continued success,” the site says. (You can also check out the site for financing options to help generate growth.) In an online interview, Shirlene Head, founder of creative brand marketing and events company Heads Up Marketing told us, “I’ve found the best way to broaden my brand… is that I’m always researching, networking and pitching out of my box.”

2.    Look into market segmentation. This “simply means picking a sub-set of the entire marketplace that you can organize your sales efforts around. Out of all the people in the world, who will you try to sell to?,” business consultant James Clear, founder of Passive Panda, writes on the American Express Small Business forum. “Most big businesses are good at carving out their corner of the market. Then they do whatever they can to own that space,” he says.

3.    Partner with others. Clear admits that small businesses are at a disadvantage when it comes to vendor relationships. But, just like the big guys, you can “leverage partnerships” for maximum effect, perhaps finding your spot along the supply chain.

4. “If your business model is easily replicated,” according to the SBA, franchising your business is a good growth option. Or, go shopping. “Perhaps the primary way that most big businesses grow is through acquisitions,” says Clear on the Amex forum. “First, acquisitions are tough. You can easily break the bank with one bad purchase. That said, acquisitions can be a massive source of profit and a means to growth if you make a few key moves.”

5.    Take the lead. “Become a leader in the industry,” writes Clear. “Big businesses often make their name by leading an industry. They make moves when other businesses sit by the wayside.”

6.    Make a to-do list to ensure that tasks both big and small get done. This is critical for a busy small business owner who doesn’t have a staff to delegate to. “Take a page from big business and develop process lists or checklists for specific tasks and jobs. Give yourself a guide to success and a reminder to do the essentials each day. I know that branding is just as important for small businesses as it is for big names,” writes Annie Mueller on the Amex forum.

7.    Stay tech competitive. That means using social media and online resources to all of their advantages.  “Not only use Facebook, Twitter, LinkedIn, but blogs and networking organizations are very resourceful for gathering leads and getting insight on ways to brand and get leads,” said Head in an online interview with us.

8. Always be on call.  “Promoting your brand is a 24/7 job –all the time and everywhere,” Head told Madame Noire.

They say that everything happens for a reason, but for Tasha Burton that statement couldn’t be closer to the truth.

In 2009, while working full-time in the psychiatry department at the School of Medicine at Washington University, Tasha began to mix store-bought shea butter with a curated cocktail of oils to create a product that would soften and extend the benefits of the butter on her tightly coiled hair.

Two years later the University laid her off after more than four years of service. And it would be the beauty experiment she conducted in her kitchen to create a remedy to easily manage her hair that would ultimately lead her to her next chapter: Belle Butters.

Now 30, Tasha runs Belle Butters full-time and has expanded her line from that first product to more than a dozen products that provide benefits for hair, face and body. Her products are sold online and at Tendrils and Curls in Houston, TX, though she’s looking to expand.

I recently caught up with Tasha to learn more about her inspiration, her journey, and her vision for the future of her business.

Madame Noire: How would you describe Belle Butters to someone who’s hearing about your company for the first time?

Tasha Burton: Belle Butters is a handmade natural hair and body care product company that uses the best natural ingredients.

MN: You launched the company as a way to supplement your income while you were employed at Washington University. Was that the only catalyst to launching the company? 

TB: In addition to supplementing my income, I also needed a product that would keep my very coarse, tightly-coiled and dry hair softer longer. I noticed that at the time, there weren’t many products on the market geared towards women with a similar hair type as mine. Most products were only effective on those who had a looser curl pattern and finer hair. I really wanted my products to help fill this void.

MN: How many employees do you have?

TB: None. If things get really busy, I may ask my mom or sister to drop orders off at the post office for me, but that’s about it. I do everything on my own.

Image: Photos.com

Entrepreneurs quickly become comfortable with the word “no.” They may hear it about a thousand times before they get the “yes” that takes their business to the next level.  This rings truer for minority and women entrepreneurs who have the added hurdle of wooing investors who are unfamiliar with the communities they serve.

A New York magazine writer, Kevin Roose, recently came under fire when he deemed the website NaturallyCurly, a leading social network and community for people with wavy, curly and kinky hair, as a dumb investment with “no redeeming qualities whatsoever.” Many felt that Roose ignored evidence that supported investment in the site including the potential market of over 80 million women in the US with textured hair. Roose later updated his article to say he only took issue with the social network component of the idea, but his generalizations underscore an issue many women and minority entrepreneurs face.

Gatekeepers to the business world – investors, manufacturers and the like – aren’t known for their diversity. Largely white, male and upperclass, there is a myopic mindset that makes it all to easy for them to miss the potential and profitability of businesses that target consumers outside of the mainstream. It also creates an additional hurdle of shortsightedness for minority- and women-fronted businesses to overcome.

Kevin McFall, Senior Vice President of NewME Accelerator, an incubator for technology start-ups in the competitive industry of Silicon Valley, traces the root of the issue to a lack of ability to pattern match. “Patterns exist in Silicon Valley of Ivy League dropouts being the ones identified as having all of the big successes associated with their ventures, so some investors look to match that pattern and find others like that to invest in,” said McFall.

“Because there has not historically been a lot of female and multi-cultural entrepreneur success stories, those patterns aren’t as visible or as plentiful as there are of other patterns.” Fair or not, the onus is on entrepreneurs to educate investors on the potential of their ideas and to have the tenacity to not let hearing “no” stop their pursuit of success.

There is no shortage of stories of entrepreneurs who went on to success after major players passed on their ideas. Sara Blakely, the founder of SPANX met opposition from patent lawyers and manufacturers who told her, her idea for spandex-type undergarments to slim and smooth your figure was crazy. She went on to become the youngest self-made female billionaire in the world.

Bethenny Frankel, founder of Skinnygirl Cocktails, has been vocal about major liquor brands passing on her idea because they thought women wouldn’t buy low-calorie spirits. Skinnygirl Cocktails is now the fastest-growing spirit brand in the industry.

These women overcame initial opposition because not only did they have a good idea, but they were able to demonstrate success on a small scale. An idea is only worth something if a sustainable business can be built around it. Seth Godin, author and entrepreneurship guru, offers five basic components of a good business model:

1. Profitable – Do the revenues from sales exceed the cost of supplies and labor?
2. Protectable – Is it difficult for a competitor to enter your market? Have you accounted for potential rip offs of your idea?
3. Self-priming – Can your business sustain itself? Will product sales generate enough profit for you to develop more products to sell?
4. Adjustable – Is your business model flexible enough to adjust its strategy in response to unexpected challenges?
5. Exitable – Have you developed a strategy that will allow your business to function without you?

If you answered yes to the questions above, you’re ready to take your idea to the next level. Tech blogger Paul Graham’s guide to presenting to investors is a good resource.  He underscores the importance of being specific and narrow in your description of your idea, having data with specific numbers, and telling stories about your consumers that illustrate how you solve a problem.

The business world is becoming increasingly niche. Every day we are seeing individuals and companies tapping into the passions and needs of special groups. Investors that want to make money are opening their minds to new markets and ideas. The burden of proof is on entrepreneurs to show their potential and profitability.

Cortney Cleveland is a freelance writer and content strategist in New York City. You can follow her on Twitter @CleveInTheCity and visit her personal column The Red Read.

Suzan McDowell, CEO and President of Circle of One Marketing has worked with companies like the City of Miami Gardens   “Jazz in the Gardens” festival, the City of Rivera Beach Jazz and Blues Festival and the AHCA Medicaid Reform along with Fortune 500 companies and community organizations. She talks with us about working with clients, building a brand, and the basics of marketing.

MN:  What initially attracted you to marketing? 

SM: I was attracted to marketing because my father told me to hurry and pick a major when I was at the University of Texas, so I chose the one that was farthest from math: advertising. But it turns out that I’m a natural-born sales person, which is a big part of being a marketer. I love [moving] people from point A to point B. I get really excited about the creative process, about getting to work on a project from inception to crazy success.

MN: Why did you decide to start your own marketing agency rather than work for a large, established firm?

SM: I did work for large established firms for years: Harte Hanks, the LA Herald Examiner and Cox Radio. Those combined working environments prepared me to do what I’m now doing. I decided to start my own agency because just selling radio became too limiting for me. I wanted to be able to create marketing campaigns where I had input in the entire process. South Florida is one of the largest Black markets in the U.S and [when] I opened The Circle there was (and still is) only one other Black owned agency in Miami.

MN: Visitors see these words when they visit your official website, “Though we’re a small agency, our size has very little to do with our might.” Which business strategies allow you to add large-scale services for your clients?

SM: Well, as one of my former staff members said to me, “Suzan….you girls work like ants!”  That’s the first thing. I think we have a good reputation for turning out a quality product and being fastidious with our presentation, especially when it comes to an event that we market and manage. We have really tried to establish a brand [that is] resourceful, unafraid to try something different, and sometimes crazy in order to get done for our clients what is most effective.

Image: Nialah Ellis

With the latest Census data showing Detroit’s overall population shrank by 25 percent in the last 10 years and national headlines that air out the city’s dirty laundry regarding crime, unemployment and economic instability, it’s safe to say that the Motor City has seen better days.

Luckily there’s a bright spot that shines in the midst of all the negativity surrounding the city: the rise of 20-something entrepreneurial types who have made it their mission to revive the city and restore it to its one-time standing as a destination for some of the brightest minds in the country.

Nailah Ellis, 24, is one to watch. After years of seeing friends and family members react positively to her great grandfather’s infamous homemade tea, her wheels started turning and she began to think about how she could leverage the family recipe and possibly turn it into something greater.

During the summer of 2008, when she was just 20 years old, Nailah launched Ellis Infinity, the holding company that would eventually spawn her first official product: Ellis Island Tea.

We caught up with Nailah to talk inspiration, convincing her father to give up the secret recipe and the challenges of running a small, but rapidly growing business.

by Michelle Thornhill

Research suggests that African Americans are more likely than the general population to have small business aspirations. But I’m sure this is no surprise to you! Many of us grew up with dreams of “being our own boss” and becoming the next neighborhood success story. Owning a successful business can be a realistic goal for many, but it requires dedication, preparation, discipline and knowledge.

At several points during my career, I pursued entrepreneurial endeavors. When I first graduated from college, the job market was challenging – similar to what we are experiencing today. I decided then that if I couldn’t find a job I would create one.

First, I took the time to consider the skills I acquired in college to determine how best to capitalize on them. Given my studies in finance, I decided that I would start a tax service business. I knew that the field was competitive, so I created a niche for my new business by offering pick-up and delivery services.

I was very excited to become a small business owner, but not so eager that I didn’t take the time to deliberately plan and prepare for success. Before pursuing my first client, I made certain to develop a long-term business plan. Having a solid plan allowed me to define my business, outline my products and services, create my marketing strategy (including target audience and geography) and develop a financial plan. It also helped me look serious to potential clients, investors and lenders.

I learned that it is equally important to seek guidance from subject matter experts who specialize in small business. Most states have small business development centers or branches of the federal Small Business Administration (SBA) office that offer free business counseling and services for both startups and established businesses.

Having a relationship with a banker is also essential. You’d be amazed at what your bank has to offer. Whether your business is large or small, a banker can help provide general consultation on ways to help grow your business. While some new businesses don’t initially qualify for lending because of lack of collateral or poor credit history, most banks do offer other business products (like checking accounts), services (like overdraft protection) and tools (like online banking) to help new business owners better run their business.

My local bank became a great resource and provided me free tools and information to help me manage my business. For instance, my bank connected me with community agencies specializing in small business development. In fact, this led to a full-time employment opportunity with the NAACP Community Development Resource Center in Richmond, Va., where I was able to pursue my passion for helping individuals and families achieve financial success.

Some of the best advice I ever received was to make sure I never comingle my personal and business finances. When you’re just getting started, it’s typical to use your personal accounts for business expenses. However, establishing accounts in the name of your business creates a clearer financial picture, allowing you to more easily track and manage business expenses. It also helps lenders and investors when making decisions regarding financing and investments.

Last but certainly not least, make it official. African Americans are infamous for “side hustles,” and finding ways to earn extra income beyond your regular nine-to-five is generally encouraged. If you find yourself with a profitable business venture that is marketable and has the potential for long-term success, go ahead and file the appropriate paperwork to legally establish your business. This could create opportunities to grow your business and increase revenue by providing access to bank and government financing options, as well as other resources.

Long story short, over several years my business grew to serve over 100 clients and I was able to sell it and move on to other career aspirations. I know that this success came from careful planning and management and a willingness to seek advice. I also gained quite a few gems of wisdom as a small business owner that continue to benefit me today:

• Good service breaks down barriers.
• Follow through on what you promise.
• Deliver your best.
• Network and seek guidance – no matter how much you think you know, there is always something new to learn.
• Regardless of whether you work for a company or are self-employed, leverage the skills you have to capitalize on opportunities.

For free tips, tools and resources to help you reach your entrepreneurial dreams, visit the Wells Fargo Business Insights Resource Center at wellsfargobusinessinsights.com. This site offers an extensive library of expert advice, videos, podcasts, articles and more to help manage and grow your business – regardless of the stage.

Michelle Thornhill is senior vice president, Diverse Segments for Wells Fargo & Company. Visit www.wellsfargo.com/aspirations for more information.

 This article has been prepared for informational purposes only. The accuracy and completeness of this information is not guaranteed and is subject to change. Since each individual’s financial situation is unique, you need to review your financial objectives to determine which approaches might work best for you. 

http://www.bet.com

As an Inc.com article points outs, “good entrepreneurs make money. Great entrepreneurs make serious money.” Of course, it’s not just about the financial difference; it’s an attitude adjustment as well. If you find you’re an entrepreneur with a good steady income but still feel you could do better, here are a few qualities you should try to incorporate in your daily life.

Find happiness in the success of others. Value your teammates and help them understand their own role, don’t be afraid to make sacrifices for them. When you can rejoice when colleagues reach their goals, you’ll find your own personal success will grow.

Continually search for new experiences. Although many may view easily changing interests and switching commitments as a drawback, the ability to novelty seek as it is often called can also have its advantages for business growth. Dr. Robert Cloninger, a psychiatrist, tells Inc.com that “Novelty seeking is one of the traits that keeps you healthy and happy and fosters personality growth as you age… if you combine adventurousness and curiosity with persistence and a sense that it’s not all about you, then you get the creativity that benefits society as a whole.”

Don’t think work/life balance, just think life. Entrepreneurship isn’t just about working. It’s about developing a business idea and watching your dream grow into a lucrative reality. You gave birth to the idea and it’s your baby. So of course your business is your life. The difference between good entrepreneurs and great entrepreneurs is that they find ways to include their family and friends into the equation instead of exclude them or their work. They know how to bring passion and personal values into their professional life.

Great entrepreneurs are exceptionally empathetic. They realize that their success is dependent on putting themselves in a person’s shoes and finding business solutions to a problem. They also realize that they can’t stop at emphasizing with clients alone. They must also be able to put themselves in their employees’ shoes. They realize that success also centers on the happiness and effectiveness of the employees.

To great entrepreneurs, money isn’t a reward of good business, it’s a responsibility. Money earned isn’t simply to buy expensive cars and clothes or to throw grand parties. They recognize that money isn’t just to improve their own life; it’s also to assist the people around you. It’s a way to grow your business, reward and professionally develop and train your employees and to give back to the community.

Lastly, great entrepreneurs don’t realize just how great they are. Although they know that their success is a result of personal ambition, persistence and execution, they also recognize that great business wouldn’t be possible with great mentors and employees. They remain humble, continue to ask questions, seek advice, learn from others and give praise where it’s due.

More on Madame Noire Business!

• Behind the Click: Asmau Ahmed, Founder of PlumPerfect.com
• How She Made It: Alia Jones-Harvey, Producer of A Streetcar Named Desire
• The Career Freshman Part II: Getting To The Next Level in Your Career
• Crisis Management Lessons: Handle Scandal Like Your Name Is Kerry Washington
• How She Made It: Jeri Lynne Johnson, Founder of Black Pearl Chamber Orchestra
• Entrepreneur Spotlight: A Sister-Run Business Brings High-End Tea Stateside

http://www.tulsachamber.com

African American entrepreneurship was the topic of a recent summit sponsored by the Small Business Association (SBA), the US Department of Education and the White House. As JohnathanHolifield, the co-founder of The America 21 Project and a participant at the summit acknowledges, “We need to create a thrust to complement existing entrepreneurship and small business leadership to ensure that African Americans as well as Latinos and others are connected to the innovation economy.”

According to the Washington Informer, the forum was moderated by Marie Johns, SBA’s Deputy Administrator.

“Our job at the SBA – which boasts 17 development centers on HBCU campuses across the country – is to ensure that innovative ideas and an entrepreneurial spirit can be harnessed, and then transformed into successful businesses,” she said at the forum.

HBCU representatives were central voices to the forum, including Bennett College President Julianne Malveaux as a panelist. Malveaux, who believes that African Americans were the original entrepreneurs in this country, revealed that Bennett College has been assisting with entrepreneurship over the past four years, with the construction of several of its new buildings. The construction of four of the campus’ buildings was a $21 million project in Greensboro, NC that meant economic opportunities for the area’s residents.

“One of the things that I insisted [on], was that the major contractor made sure 50 percent of the [sub-contractors] were people of color. . . [and] that’s the role we [currently] play” in creating black-owned and operated businesses,” he said.

Rutgers University has focused energies on a “Lemonade Day” in Newark, New Jersey. The project is aimed at helping children from kindergarten to age 12 understand entrepreneurship through developing a lemonade stand.

Meanwhile in Charlotte, NC, Ron Stodgill, the director of the Small Business Incubator/Think Tank on Johnson C. Smith’s campus, relays the group’s initiatives to reach businesses in their local area. Although the group is making strides, Stodgill acknowledges that the growth won’t happen overnight.

To that end, Holifield points out one of the black community’s greatest business weaknesses.

“We have in our communities and in our HBCUs, good programs and good support systems,” he said. “but we lack emphasis on explosive-growth for the kinds of companies that are responsible for the disproportionately high amount of jobs [created].”

More on Madame Noire Business!

• How She Made It: Alia Jones-Harvey, Producer of A Streetcar Named Desire
• The Career Freshman: Five Benefits of Being in an Entry-Level Position
• African Fashion Designers Are Breaking Away From The Traditional
• Crisis Management Lessons: Handle Scandal Like Your Name Is Kerry Washington
• Behind the Click: Susan Nicholas, Founder & CEO of DocPons Inc.
• Entrepreneur Spotlight: A Sister-Run Business Brings High-End Tea Stateside

Wayetu Moore shows off her books. (Credit: Wayetu Moore)

Wayetu Moore has always been curious about how and why things are the way they are. At age 8, she was so fascinated with the financial and social benefits of product/service trading that she began to sell candy in school as an experiment, not knowing that the experience would kickstart a lifelong pursuit of entrepreneurial ventures.

Now, at 26, Wayetu is the founder and chief executive of One Moore Book, a one-year-old publishing house that develops and distributes books for children in countries with low literacy rates and underrepresented cultures.

Keep reading to learn how she built it.

MN: Launching a business is hard work. Who or what was your inspiration?

WM: My parents are the two most inspiring people I know—both individually and as a team. They are both so selfless but also understand how important their lives and legacies are to the people around them. They have such an inspiring love story and are such brilliant and rare people.

MN: Do you have any business partners and/or employees?

WM: My 4 siblings and I are business partners. They were the first ones I asked to join in this venture. They make up the creative team and assist in writing and illustrating our books. In total, there are 7 employees.

MN: At a time when the print industry is being called an antiquated form of media…you decided to launch a publishing house. Why not just go 100 percent digital?

WM: If I were publishing young adult or adult books, I may have considered that, but I don’t see children’s books or the children’s book publishing industry becoming completely digital any time soon.

New parents and parents of elementary-aged children enjoy the tradition of filling their child’s library with stories they will remember. Children’s books are an opportunity for parents to interact with their children, and to physically chronicle their child’s growth.  Also as a writer, I appreciate the emotional and psychological value of holding a book.

MN: How does One Moore Book make money? One Moore Book sells and distributes children’s books. We also partner with non-profit organizations to create culturally sensitive literature for their programs.

Read the rest of this entry »