You likely have heard about the 2001 report from the U.S. Census Bureau that states that African Americans are more likely to start a business, than their white counterparts.That same report reveals that African Americans are also more likely to fail in business within the first five years.
If you are interested in joining the thousands of other Black-owned firms that flop every single year (I'm being sarcastic), pay very close attention to what I have to say.
Here's what happens step-by-step:
1) A wealth-conscious African American decides that he wants a better life for himself and his family.
2) He/she decides to start a small business, or join a network marketing company.
3) Because he/she is so excited and zealous (either of self-motivation or from listening to motivational speakers), they begin to focus more on what they're selling - instead of how to sell it and who to sell it to.
4) Most of their time and energy is spent on preparation (web site development, business cards, letterhead, etc.), but little to no time is spent on realistically planning the marketing strategies and demographically assessing the market they plan to target.
5) Months will go by. Little (if any) revenue has been generated. He/she decides to give it one last try and invest more money into it. They randomly pick an advertising method - such as taking out an ad in a newspaper or passing out flyers. This, again, generates little revenue for them.
6) Now, they're tired and frustrated - and have decided to give up on pursuing a better life, and join the masses of Black entrepreneurs who never made it.
The Major Pitfall: They never had a realistic marketing plan that made sense.
The Solution: Business is 10% what you're selling, and 90% who you're selling it to. Do not spend most of your time and energy on the product. Spend it on the marketing campaign.
It doesn't matter what you're selling; If you don't know how to market to potential buyers (more than just family and friends) - you really aren't selling anything.
I come to find that doing a formal business plan kind of forces you to do the necessary research. By the end of it, you may even decide that the venture isn't worth while at all. Great article....I'll be sure to take the advice.
ReplyDeleteAdditionally, the reason so many of us attempt to start a business, is because educated or not, we can;t find fulfilling career paths or jobs at all for that matter. Especially true for black males. We are almost left with no choice. But we usually don't have a forerunner or know anyone who is in business or have been successful in it, we are unaware & uninformed about various entities that can assist us, and we usually don't have the resources available to use for the start-up. It would be a wonderful thing if we could really get out there like other ethnic groups and work together. It always seems like you can;t find anyone you know (black) that really supports your ideas, let alone has some ideas of their own. Your blog is a big help!
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