The number of minority-owned businesses in the U.S. is rapidly increasing, they
have doubled in the last decade. At the moment, 4 million minority-owned
businesses exist in the U.S., generating sales of about $700 billion. If you’re a
person of color looking to turn your entrepreneurship dream into a reality, you
may not know where to begin. That’s why we wrote this post! If you want your
minority-owned business to stand the test of time, follow our tips.
- Have a Great Idea
Statistics show that minority-owned businesses make less revenue than
white-owned businesses despite their growth. So, it pays to have a great
business idea. Ask yourself these questions:
● What interests me?
● What problem do I want to solve?
● Is there a ready market for my product or service?
● Do I have the necessary experience?
● What resources do I have access to?
When you have all the answers, explore your local community to see if there’s a
gap in the market. If there is, you can set up your minority-owned business and
benefit those in your locality.
Alternatively, you can consider franchise opportunities. Many big companies, like
The UPS Store, have initiatives targeting minority entrepreneurs looking to start
their own businesses.
Register Your Business.
Once you have a business plan in place, it’s time to focus on the less fun
part–the legal activities and the paperwork. Come up with a business name,
register your business, and get a business license, tax code, or a seller’s permit
(this will depend on your specific business).
It’s important to check the state, federal, and local government requirements.
When registering your business, make sure you register at the different levels. If
you don’t, your business won’t be a legal entity.
You may also want to consider getting minority-owned business certification.
Although it’s not a legal requirement, it can be extremely helpful. The certification
can help you qualify for some government benefits or help you gain access to
some minority business grants.
No question about it, there are many ways to finance your business–from
traditional methods like loans to modern ones like crowdfunding. You can also
get a title loan fast or borrow the money from family and friends. It’s also
important to know how to qualify for a small-business loan. That way, you’ll
ensure lenders and investors don’t say no.