4 Tips for a Successful Black Entrepreneur

Author: Talisha Bekavac, Executive Vice President, US Black Chambers

Taking the leap into entrepreneurship requires not only courage, but resilience. Business owners must embrace uncertainty while finding ways to attain stability and growth, often learning along the way in which. But for Black business owners, this leap often requires more. Racial disparities, harmful biases, and heightened socioeconomic aspects that create a harder path in comparison with our non-Black peers can often threaten the progress and financial success of our entrepreneurial endeavors.

These barriers can manifest themselves in many alternative ways. According to data from Intuit QuickBooks Black History Month Survey79% of Black small business owners have experienced racism from a customer previously 12 months. Additionally, nearly half of respondents say fear of getting to beat racial stereotypes nearly stopped them from starting a business.

While these realities can sometimes be discouraging, they’re a good greater accomplishment for the community after we succeed despite these odds, and today many small black businesses are finding ways to beat the challenges they face. At a time when most small businesses lagging in employment, black-owned small businesses are showing growth. Despite only making up 3% Of U.S. firms with employees, 71% of Black-owned businesses reported that that they had hired additional full- or part-time staff previously 12 months, confirming our importance to the general economy.

As Black business owners proceed to make significant strides, listed below are some suggestions to contemplate as you’re employed to grow businesses that should not only sustainable, but thrive, and ultimately create wealth for our communities.

Don’t be afraid to begin small

Every great accomplishment often begins with one small step. Whether which means deciding to open a business or signing up one recent client, these should not insignificant steps to future success. This includes Black business owners, a lot of whom are already taking risks and paving recent trails of their local communities and industries.

Data shows that 70% of Black small business owners say they’re the primary of their family to own a business. They are also revolutionary, with greater than 2 in 5 (46%) noting that they’re the one or a part of several businesses of their community offering their specific products/services.

These steps are something to have a good time, and so they are milestones that lead to non-public and communal success that may encourage others in our community to follow their passions. Each milestone is a testament to what could be achieved with labor and a clear vision. You can start small, deal with quality, and steadily grow your enterprise. This will create a solid foundation for lasting success.

Set high standards

When constructing a business, professionalism is essential to constructing trust and reliability along with your customers. You deliver exceptional quality and repair, and also you need to be paid for that gold standard. Yet greater than half of Black small business owners say they underprice their services, and with economic uncertainty still looming, nearly a third say they haven’t any plans to boost prices in the following 12 months or aren’t sure in the event that they should, given inflationary pressures.

It’s essential to be clear about your enterprise purpose and the worth you bring. Researching what your competitors are charging can be a excellent place to begin to avoid underselling. However, don’t underestimate the total range of costs of your enterprise, including time, materials, and overhead, and set prices that reflect your value. Understanding these costs will aid you construct a realistic but transparent pricing model to teach customers in regards to the quality and craftsmanship of your services or products.

Harness the ability of community

Don’t underestimate the ability of the Black community to construct entrepreneurial success. As a business owner, you will have a powerful opportunity to assist grow our economic power. But that impact could be even greater while you act as a savvy consumer. Nearly 9 in 10 (88%) Black small businesses recognize the purchasing power of Black consumers—greater than larger corporations (83%).

By supporting other Black-owned businesses, we will boost local economies and make sure the Black dollar continues to flow into in our community while we proceed to succeed as entrepreneurs.

Find the balance between your personal and business funds

More than half of Black small business owners use personal funds to cover business expenses, effectively putting their personal wealth aside. There isn’t any definitive manual for starting and growing a business, but there are resources and tools to aid you manage and stay on top of your enterprise funds, from fintech products to organizational support. Nonprofits just like the US Black Chambers and our national network of over 160 local Black Chambers of Commerce have a wealth of educational tools and financial resources to aid you access and effectively manage your funds on the trail to entrepreneurial success.

The entrepreneurial journey begins with a vision and a dream. But it takes determination and resilience to succeed. Successful Black businesses function a powerful reminder that with the best mindset and financial resources, loyal customers will follow—and that support from the Black community will propel us all forward.