PINNACLE OF SUCCESS

For those who have been an avid follower and reader of AskRecy, you have seen the numerous responses to emails from enthusiastic entrepreneurs and business owners seeking to either start a new business or grow their existing businesses. Answers to their questions have been straight forwarded, honest and were directed towards helping them succeed.

AskRecy would like to highlight a few success stories. The Houston Citizens Chamber of Commerce last month held its seventh annual African-American Business Achievement Pinnacle Awards in conjunction with Bank One.

There were over three hundred Houston area businesses nominated, from that select list of qualifiers, ten finalists were selected, and four were presented as honorees. Some of the key criteria for selection required the judges to examine the companies’ vision, perseverance and community involvement.

The grand finale were held at the George R. Brown Convention Center which featured Houston’s U. S. Representative Sheila Jackson Lee. The four winners were

• Colbert/Ball Tax Service, founded in 1994, with year 2000 revenues of $1.1 million and 32 employees. The owners are Ja Ja Ball and Al Colbert.
• The Creole Shack Café, founded in 1996, with year 2000 revenues of $750,000 and 40 employees. The owners are Marida and Roland Curry.
• Genesis Vocational Training, founded in 1996, with year 2000 revenues of $483,477 and 17 employees. The owners are Donald Rawls and Toni Scott.
• A-Rocket Moving & Storage, founded in 1959, revenues of $3.8 million, with 45 employees.

It was not easy for any of the above business owners to grow and expand. AskRecy has tried to point this out many times to his readers. Take for example, the real life experience of Ja Ja Ball and Al Colbert, although the two men plastered their office and surrounding area with signs and banners, on opening day, twelve hours later, not a single customer walk in their office. It took four days later, before they saw that first customer. You probably can imagine the look and enthusiastic smile on their faces.

Marida Curry, owner of The Creole Shack Café was reported to have said that her goal was to make her customers feel like they are back home in Louisiana, and to never take your customer for granted because people from all walks of like have eaten at her place, including a few of the Houston Rockets and Houston Mayor Lee Brown.

AskRecy has received numerous questions and emails from people wishing to start and expand their business, and seeking additional capital. Well, lets examine another one the Pinnacle winners, Genesis Vocational Training. Donald Rawls and Toni Scott stated that they first only provided training for nurse’s assistants and now have expanded their business to offer training in computers use and medical billing. They also reported to have said that they are looking into the possibly of purchasing a vocational school in New Jersey. It took the will, desire, foresight, but they managed.

The elder of the group and the most experienced was DeAndre Sam, president of A-Rocket Moving & Storage; he inherited the company from his father, Herbert, who originally had been in the hotshot delivery business. Mr. Sam told a Houston Chronicle reporter that from a very early age he was always by his father's side. Mr. Sam said, "My day care was spent in his package van. A-Rocket Moving & Storage specializes in corporate relocation. Mr. Sam said that his secret to success is, "I start early and stay real late." He also advised, "Be prepared for the obstacles."

AskRecy salutes this years 2000 Pinnacle of Success winners!

I have run a small Hispanic manufacturing business for the last 15 years, named VARGOS SEWING.  With so much experience, I am now interested in becoming a contractor plus manufacturer. My company has previously worked only as a subcontractor and has had a middleman find the work and receive most of the profit.  

Recy, I am very interested in the latter and I would like your advice.  Are there Internet sites, companies, organizations, or support services that I can get in contact with so that I can learn how to become a contractor or how I can find work independently?  I am also interested in the different organizations that are available to Hispanics who have small businesses in Houston.  Who or what do you recommend?  Your help is deeply appreciated.

AskRecy response:

I can understand your dilemma and desire to grow your business from sharing majority of your profits with a "middleman". However, to grow from a subcontractor role to becoming a contractor plus manufacturer, is not that simple. You obviously paid the middleman a great deal for his knowledge and contacts. Judging from your email, you have a large task confronting you, but it can be done.

The first thing AskRecy would do is to start from ground zero, which is to follow the four basic steps towards starting and organizing a business. It appears to me, that some of the basics may be missing as it applies to your business.

Step 1: Business Structure and Name Determine the legal structure of the business and properly file the business name with the state and/or county. Yes, you may have a name for your current business, but is it registered with State of Texas.

Step 2: Business Tax Responsibilities
Determine the potential tax responsibilities of the new business on the federal, state, and local levels. Are you a Schedule C, corporation, partnership, etc? It will become more important as you move forward, seek, and represent your self as a general contractor.

Step 3: Business Licenses and Permits by Business Type
Determine necessary licenses, permits, certifications, registrations, and/or authorizations for a specific business on the federal, state, and local levels. You will and may be required as a contractor to seek additional licenses, permits and insurance requirements, that is greater than you currently have available.

For example, if the "middleman" obtained the business and then subcontract all or part of the work to you, whose license, permits, general liability, workman compensation insurance requirements are you operating under. For example, in one of my business, I am required to carry a minimum $2.5 million general liability,

$500,000 Workman’s Compensation, $500,000 automobile insurance liability, before any of my employees, or subcontractors can enter the business property to perform the required contract job.

Step 4: Business Employer Requirements
Determine federal and state employer requirements. There are various laws relating to employment of personnel. Go to http://www.state.tx.us/Business to complete and register with the state of Texas.

The second thing AskRecy would do is to register the sewing business with The Houston Minority Business Council (http://www.hmbc.org/). HMBC plays a leading role in promoting the interests of minority-owned businesses in the Houston area and nationally. The Council also works closely with other organizations that support minority-and-women owned businesses; such as, the Houston Hispanic Chamber of Commerce, the Houston Citizens Chamber of Commerce, the Minority Business Opportunity Committee, the Acres Homes Citizens Chamber of Commerce, the Asian Chamber of Commerce, the Houston Minority Business Development Center and the Minority Enterprise Small Business Investment Corporation (MESBIC).

The third thing is to register and start using The Texas Marketplace (http://www.marketplace.state.tx.us/) This is a free online tool that the State of Texas uses to facilitate electronic commerce, including government procurement and private-sector trade opportunities. This is a popular place to seek new business.

The fourth thing is to become a Better Business Bureau member and join your local Chambers of Commerce, several of them, not just the Hispanic Chamber. Network is the key. And the final and most important, become a HUB vendor with the State of Texas, (http://www.gsc.state.tx.us/hubbid/vendhow2.html#A4). Register as a WMBE with the City of Houston and also register and notify all of the companies you wish to do business with that you are operating as such. AskRecy can offer additional suggestions, accomplish the above first and the picture will become more clearly for you to grow and accomplish your goal. Good luck!

AskRecy response:

Women are starting businesses at twice the rate of all businesses and staying in business longer. According to the latest data from the Census Bureau, SBA's Office of Advocacy estimates that there are 9.1 million women-owned firms today, employing 27.5 million people and contributing $3.6 trillion in sales and revenue to the U.S. economy.

AskRecy recommends that you start first with the Michigan Small Business Start-up & Development at http://www.mda.state.mi.us/Resource/five.htm and the Michigan District Office for Small Business Administration. You can email them at michigan@sba.gov. The U.S. Small Business Administration is doing more than ever to help level the playing field for women entrepreneurs, who still face unique obstacles in the world of business. The SBA’s Office of Women’s Business Ownership is leading the way, their website is http://www.sba.gov/womeninbusiness/winterest.html. A fourth source is Michigan Minority Business Development Council, Phone: (313) 873-3200.

Good Luck!

From: Kerry S. Atherton (Keene, NH )

My boyfriend wants to start a business - Apache Hot Sauce.  A uniquely flavored sauce like I have never tasted before.  He lives in New Jersey... about 20 minutes from Manhattan.  He is Apache, originally from Texas.  Do you know resources in that area to help him get started, help him apply for grants (or loans), etc? 

AskRecy response.

Apache Hot Sauce. That’s a new one. Whether or not your boyfriend can get a loan to manufacture, produce and sell his uniquely flavored sauce like you have never tasted before is questionable. However, AskRecy did some research and found various types of loans that the government has made available to American Indians, which in some cases was somewhat of a surprise. Go to

http://www.fedmoney.com/grants/b0035.htm and search under "American Indian for the numerous number of grants and loans available. You may have to alter your marketing strategic to qualify. Also go to http://aspe.os.dhhs.gov/cfda/p15124.htm. And then go to the Catalog of Federal Domestic Assistance

By the way, send me a sample! AskRecy is a connoisseur of hot sauces.

AskRecy response:

AskRecy does not write business plans for people, however, I offer advise and try to point the person to organizations and associations that either provide various types of service, either free or at a nominal charge. The SBA has a program call The Business Plan - Road Map to Success. It is a tutorial and self-paced activity that can be download or viewed as a text version. You can use this model as a guide when developing your very own business plan for your beauty supply store. You can find it at http://www.sbaonline.sba.gov/starting/businessplan.html

As a rule, in order to qualify for a business loan or grant money, the lending agency, either a government affiliate, or private lending authority, the prospective entrepreneur must bring something of value to the table in order to assure his/her ability to succeed in the business opportunity. However, your goal to open a juvenile facility, which would house up to 16 male youth from TYC, probation and CPS cases, has some merit and may qualify. That is where a good business plan can be of some beneficial value. If you can explain, demonstrate and outline your experience, background, and where you will get other qualified professionals, agencies to support you and most importantly, who will receive this service, and why is it not currently being provided in your area of location. Go for it!

AskRecy response:

Start-up cash for a janitorial business should be the least of your concerns. I assumed since you currently owned a janitorial franchise in the Washington, DC. area, a shortage of supplies and equipment should not a problem. Since you are considering transferring to the Houston or Dallas area, finding new customers should be a primary item of concern. AskRecy recommends that you join and become affiliated with the Dallas Black Chamber of Commerce or the Houston Acres Home Chamber of Commerce, the Houston Citizens Chamber of Commerce, and the Houston Minority Business Council for networking opportunities. You should also register in the state of Texas as a minority business enterprise at both the State and City level.

AskRecy is not qualified to offer legal advise, however the Houston Lawyer Referral Service, (www.hlrs.org) has over 400 attorney members that can accept cases from 39 different legal categories. All HLRS attorneys provide an initial 30-minute office consultation for a reduced fee of $20. Attorneys participating on the HLRS service are in good standing with the State Bar of Texas and must meet strict guidelines and criteria. The Dallas Bar Association also has a Lawyer Referral Service providing a similar 30-minute office consultation for a reduced fee of $20. Go to http://www.dallasbar.com/public/lrs-public.asp

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