How Minority Entrepreneurs Can Take Action: Recommendations for Minority-Owned Businesses

Figure 20. SWOT Analysis for Minority-Owned Businesses

Whether you just started a business, have been in business for a while or are thinking of starting one, here are some recommendations to boost your chances of success as a minority-owned business, regardless of what stage you are in.

Get Involved in Public Policy

Decisions are being made without your input that affect you, your community and your business. Medicare, trade wars and trade deals, breaking up technology titans, capitalism and more are all on the agenda, up for debate and all may have an impact on you and your business.  If you do not get involved, your voice will not be heard, and your challenges and the issues that matter to you will not be a priority. Stay up-to-date on current events, have an opinion, know who your representatives and public officers are, join organisations such as Women Impacting Public Policy (WIPP), attend forums and townhall meetings, and get out and vote.

Become Fundable

While access to capital is one of the key challenges for minority-owned businesses, there are some steps that you can take to increase your chances of getting funded. When deciding whether or not to invest in a company, investors consider the 5Ms: management, money, method, metrics, and market. First, make sure to hire a strong management team, an “A team” as they say. Second, work toward becoming profitable, reduce your debt to show a positive net worth, and maintain current financial statements to keep track of how the business is doing.  Method looks at how you are doing it, your operations and processes, while market takes note of your competition, customers, and size of the market. Be sure to show your competitive advantage within your industry and know your numbers. Highlight how well you are doing and track your traction (number of customers, sales, conversions, customer testimonials, awards, etc.). 

Ask for Advice

I have met a lot of minority entrepreneurs who are hesitant to talk about their businesses because they either think someone is going to steal their ideas or they are too embarrassed to expose that there is something that they do not know. You cannot be afraid to ask for help. There is a saying that says that if you do not ask, you do not get. Asking for help makes the learning curve as an entrepreneur less steep, allows you to get feedback on what you are working on and may even lead to getting funded. Reach out to your local MBDA office, chamber of commerce, alumni networks or entrepreneurship groups the next time you need help.  

Surround Yourself with The Right People

You do not need to do this on your own. Build a team around you made up of mentors, advisors and a management team, filling in the gaps you have identified. As an entrepreneur, it is important to have people you can trust who are impartial, that can help you build your business and help you navigate financial issues, legal issues and other business issues. They would serve as a sounding board for all ideas, decisions, and questions big or small.  Look for a lawyer, an accountant and financial advisor and make sure all your bases are covered within your business: marketing, human resources, finance, production, research and development, sales, etc.

Don’t Be Afraid of Being Told “No”

Minority business owners often do not go after opportunities because of fears of being rejected. Highs and lows and yes and no are a part of the journey. Throughout my entrepreneurial journey, I have been told no many times. But eventually you do get a yes. You get the big client, the small business loan, or you get into the accelerator you applied for. Any time you get a no, ask why so that you can improve, make alterations and come back even stronger.

Think of Alternatives

Do not get discouraged if things do not work out for you. Put your critical thinking and problem-solving skills to work and consider alternatives. There is always more than one way to get something done. For instance, if traditional lending channels have not proven successful, think of other ways to finance your business. Funding from friends and family, crowdfunding, public funds and grants, accelerators, venture debt, venture capital, angel investors, and corporate venture capital are all other options.

Still, you should start with your means. The ‘bird in hand’ concept within the Effectuation Theory, tells us to that what we have today is more important than what we will have in the future. To come up with alternatives, ask yourself who you are, what you know and who you know. 

Invest in Yourself

To put your best foot forward as a solo founder and as a leader, make sure you invest in yourself so that you are best prepared. In order to become an expert in your field, you need to put in the hours. Find ways to learn what you do not know. Stay on top of industry trends, reach out to industry experts, take meetings, take advantage of courses, workshops and lectures at local colleges, universities, and business development programs, go to conferences, and invest in memberships. This will only add to your expertise, credibility and influence.

Work Your Networks

In order to build your business network and social capital, you have to get to know your network. Start local. Go to networking events, join a chamber of commerce and/or other local business organisations. Attend industry conferences and trade shows and use social networks to promote yourself and market your status. Host your own meetup events and start your own networking groups. Focus on networking with the right people, people who will make a difference for your business, create win/win situations, give before you receive and become a connector for others.