5 Mistakes Minorities Make When Going Into Business Ms. Bels Monday, June 10, 2013 The Receipt, Your Money and You Oftentimes, we here of small businesses that were once thriving soon become a thing of the past. What was the reason for the business closing? Was it financially related? Did the partnership meet some unwanted challenges? Many questions are asked, however, no one truly knows accept the owner(s) and/or the individuals that run the company. The key to any mishap is to figure out what the issue is, assess the damages, and eventually fix them. How hard can that be? To some this is the most difficult task: correcting a mistake. Mistakes can be money-driven in which misappropriation of funds can be the cause. Mistakes can also be created by lack of focus and improper planning. In business, there are key components that tend to plague the minority community. What are they and how do we as a community correct them? So often we see foreigners come into our communities and open up shop. Neighbors usually voice their opinions in town hall meetings or via casual conversation after church services. But no matter how long we talk about it, we still see Black-owned businesses (in particular) open and quickly close. To help current or future business owners get on the right track, check out the following 5 mistakes we make and the solutions to successfully go into business: 1. Improper Focus and Pre-Planning How many times have someone you know come to you with a crazy idea for a business and jump right into it without even researching the in’s and out’s first? I’m sure this has happened many of times. People can have a great idea, but fail to properly plan for it. A business will not work unless you thoroughly do your research. We as African-Americans tend to jump on the next big thing quite quickly. We may see someone else profiting off of this business and think you can to. Unfortunately, this doesn’t work most of the time because we didn’t do the research. If we’re thinking of opening up a daycare center, it’s best to do a survey of other centers in the area. Find out which ones are most popular amongst parents. Figure out what the going rates are. Read up on the legalities and licenses needed in order to operate your daycare. Do as much as prior research as you can so that you can avoid having to put out fires along the way. Also, we have to learn to focus more. The internet, friends, relationships, etc are all distractions. Business owners have to learn to keep their eyes on the prize if they wish to have a successful business. Individuals may have to cut friends off for some period of time. Dating may even become a thing of the past. The key word here though is “sacrifice”. You will need to sacrifice some of life’s luxuries in order to build your company. Meditation, walks in the park, or even random spa visits may be needed in order to keep your mind at balance and stress free. Whichever stress-reliever is the best for you, use that time to hone in on business situations and figure out ways to make them better. 2. Failure To Find A Niche Now, this mistake is important in that this is what sets minority businesses apart from the others. The greatest and most successful companies started as a crazy idea that was unique in nature. Facebook, for example, wasn’t your average social networking site. In the past, chat rooms were heavily used by young kids as a way to network and gain new friends. Facebook came along and took that premise but added a new way of socializing and has yet to be compared to or topped. Facebook is highly successful because it stands out on its own as a social internet-based application (as does Twitter). The key for any minority is to create something new. Even if you try to recycle an old idea, find a brand new way to run the business. Also, use a different approach to marketing. If you are great at baking cakes, figure out what is your specialty (i.e. red velvet or alcohol induced cupcakes). Once you know your specialty, research other businesses (or bakers) to make sure they aren’t offering the same services or products. If not, take your niche and run with it. We are sometimes lazy not only with house chores but with ideas as well. It is easy to copy off the next man. But, copying off of someone else hinders the success you could potentially receive. So, be unique with your business and soon you’ll find out that this was your best decision yet. 3. Setting Expectations Too High The unfortunate part about being a business owner is that it may take years before we see success. We go into it thinking everything will jump off quickly and money will start flowing in. That is simply not true. It takes time and effort in order to make a business successful. When planning, try not to set your expectations too high. Setting them too high will only end up in disappointment. Understand that obstacles are normal. No one who has ever entered into some form of business for themselves has experienced an easy road. Business deals may fall through the cracks. Hiring a full staff may take longer than expected. But, don’t get depressed about it. Expect the unexpected and develop strategies that will immediately diffuse those issues as they come. 4. Lack of Teamwork and Partnerships Our society has dealt with oppression for many years. When it comes to business, however, this state of mind spills over into our dealings with one another. So much so that it is very difficult for us to work together. This is something you just don’t see in other cultures. The Vietnamese couple that owns the local nail shop is celebrated by their culture. They hire their own. They pass their businesses down from generation to generation. African-Americans have a hard time doing that. We get so caught up in selfishness and greed that our businesses fail because our partnerships failed. Everyone can not be the boss or lead. Everyone is not smart. We have to value what each one of us brings to the table and learn to work together. 5. Failure to Educate Yourself “A mind is a terrible thing to waste,” quoted from civil rights leader Malcom X. It most definitely is when you are in business for yourself. In order to stay on top of the industry you’re in, you need to continue educating yourself. Read up on new compliance laws and regulations. Find out what are the new employee tax laws via the IRS. Go and get your yearly certification renewed. As a minority business owner, we have no choice but to stay updated. There are plenty online web-based classes on SBA.gov and various other small business sites. You can even go to YouTube and watch a tutorial. The key is to be on top of your game at all times. New developments in your industry are revealed on a daily basis. Don’t get left in the wind for simply not reading the Sunday paper, for instance. Hopefully, these 5 Mistakes Minorities Make When Going Into Business can help you recognize your faults and correct them. If there are others you’d like to share, feel free to leave your opinions in the comments section below.
