Home ASK WOTHAPPEN✔ Expert Tips for Launching a Minority-Owned Business

Expert Tips for Launching a Minority-Owned Business

Expert Tips for Launching a Minority-Owned Business
Minneapolis, MN/USA - June 2nd 2020: "Minority Own Business" Placed on a business in South Minneapolis near the riots.

Launching a business can be overwhelming, let alone a minority-owned business. It’s like the cards are stacked against minority entrepreneurs. They are more likely to fail and face more risks. In 2020, 400,000 small businesses closed permanently due to the effects of the pandemic, and most of them were owned by Blacks, Latinos, and Asian-Americans.

But there’s also some good news. There are over 1.1 million minority-owned businesses in the U.S. that employ more than 8.7 million workers and generate more than $1 trillion annually. If other minority entrepreneurs have succeeded, so can you. Follow these expert tips for success.

  1. Tweak Your Business Idea Till It Becomes Great

Like every great business, you need a great business idea. Your business idea gives investors a reason to invest and determines how profitable your startup will be. If you have a bad idea, you are more likely to face competition. Brainstorm and come up with a solution that meets a need in the market. You can also explore your local community to identify the type of business that can benefit the residents. Or you can consider franchise opportunities for minority-owned businesses.

  1. Write a Great Business Plan

Once you have a business idea, plan how to execute it. A business plan outlines the company’s goals, market analysis, products and services, finances, and marketing and sales plans. A well thought-out and organized business plan significantly increases your chances of success. A good business plan gives an estimate of your initial costs and helps you know how much you’ll need to invest.

  1. Register the Business

When setting up a minority-owned business, make sure you do everything by the book. Meet all the legal requirements and get all the licenses. The requirements will differ depending on your location, industry, and business type. Register your business name, get all the necessary permits and licenses, and register for federal and local taxes. Registering a business comes with tons of benefits.

According to I Need Cash Now, a top lender to companies, minority entrepreneurs can get an instant online title loan with a company car. They can apply for a secured loan and use their company car title as collateral.

  1. Get the Business Certified

When your business is certified as a minority-owned business, you benefit from many public and private programs designed to help these businesses. To get your business certified in the US, 51% of it should be owned by an African American, Hispanic, Asian, or Native American. Some certifications give you access to tax incentives, federal contracts, and funding.

  1. Apply for Business Loans

Most minority-owned businesses are cash-strapped and need funding to survive. You can opt for equity financing, traditional debt-based financing, or crowdfunding. If these are not ideal, take advantage of federal or state loans offered to minority-owned businesses. Compare the terms for each option and choose the one that suits your business. You can also apply for a small business federal grant. Some are only offered to minorities.

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