Cheryl Schultz
Small Business Manager
Huntsville/Madison County
Chamber of Commerce
256-535-2017

From: YMCHRIST (via email)

Dear Recy:

I need some serious help. I reside in Charleston, WV and I am wanting to start my own business. I am currently working for the city of Charleston and I make about 30,000 a year. I need a mentor or business advisor or something to help me get started. I really have a good idea for this region. I can't just talk to anyone here because this place is predominantly white and I do mean WHITE. I went to a small business seminar and they looked at me like I was going to rob the place. Also, how do I research the market for my idea?

I would greatly appreciate any suggestions, Thanks

YMCHRIST

AskRecy replies:

It's difficult to offer any specific advice since you did not or want to share your idea. If the idea is really good for the region or area where you reside, then pursue idea. You can research the market for your idea by reading magazine articles or books on the subject matter of interest. Go to the local library for ideas for starting a business. You will fine useful advice for creative business people, also marketing, sales and other business ideas for the consultant, small business owner and entrepreneur. Some suggested reading materials are The Inventor's Desktop Companion: The Guide to Successfully Marketing and Protecting Your Ideas, by Richard C. Levy; Turning Your Great Idea into a Great Success by Judy Ryder; and Putting Marketing Ideas into Action by Keith Hart. You should find one of these books in the library, if not there should be a complete shelf of similar books. Since AskRecy is an advice column designed to focus on minority business opportunities and hopefully providing a little bit of information that may help them succeed, there is one additional suggestion or advice, if you really want to achieve success with your idea, the first customer that either buys your product or service may be White. If not, he or she will be someday and word of mouth is what sells.

From: REGINA (via email)
To: ASKRECY

Recy,

What financial assistance is available to an African American Woman, who wants to start her own business?

Regina

AskRecy:

This is a very broad question. It's not as simple as that. There are funding sources available to minority women, present and future business owners. It depends on several factors – the type of business, even the type of funding, the experience and working knowledge of the business. For starters and with little to work on trying the following organizations:

The SBA Women's Prequalification Loan Program that exist in some states. These prequalified organizations works with Women Entrepreneurs and is dedicated to expanding economic opportunities for women by advancing entrepreneurship and providing resources to assist in successful business start-ups, maintenance of growth, and exploration of new business opportunities. One such program is Columbia College Center for Women Entrepreneurs. For more information, call at (803) 786-3582. Also try calling your local SBA. Although, they typically worked with existing business, SBA have been known to finance start-up business with a well prepared business plan that shows potential and demonstrates the business ability to repay the loan. Some banks with the SBA backing, may take a chance with new businesses. Also these banks may need to improve their Community Reinvestment Resource (CRR) with minority businesses.

Another program is the Women's Business Ownership Assistance and they exist to fund nonprofit economic development organizations to assist, through training and counseling, small business concerns owned and controlled by women, and to remove, in so far as possible, the discriminatory barriers that are encountered by women in accessing capital and promoting their businesses. They may be able to provide some leads and assistance in the area of your field. Their email address is www.fedmoney.com/grants/59043.htm.

Another organization one is called the Women's Business Enterprise National Council. The Certification from this organization is one of the requirements for Minority and Women Owned Business to do business with Wal-Mart. Their website address is http://orgs.womenconnect.com/wbenc.

Hi, Recy
I am a young African American male and I am trying to get financed for a used car lot. I've tried every thing but can't get financed. I have 10,000 dollars and a C+ credit rating. I need $ 60,000 to launch this venture. the money is for inventory. I have a license. Can you help me?

AskRecy Sorry for the delay in not getting back to you sooner, but the holidays and my two sons announcing their marriage plans in the year 2000, clouded my mind with all sorts of financial endeavors.

Instead of trying to find someone to either invest or loan you $60,000, let's discuss what you can do with the $10,000 to grow your used car business. As I have stated on numerous occasions, I find many people have given up on their dream of owning a business, because of one simple fact, No Money or Think they don't have enough funds to get started. You probably don't want to hear this, but you have to start small to become big and successful. You don't need $70,000 to make a success in the used car business. If you're gusty and willing to take the plunge, the potential profits are greater in this business but you must be an adventurous person with the right attitude, spirit and confidence in your own skills and abilities. The average consumer spends slightly less than $17,000 for a new car and consumers are smart enough to realize the importance of investing in lower-priced used cars. The key to making money in the use car business is to buy low and sell high.

You may not realize this but a large number of cars on some used car lots are not the property of the owner of that business. The profits initially may not be as large as you want, but have you considered renting a lot and advertising to owners of used cars to use your place as a point of sale. I'm seen it work for many used car business owners. Consider the traffic it would bring, coupled with a few used cars that you also owned. In some cases you may be able to buy directly from individual car owners. Imagine having a business with over 100 used cars for sale and someone else owns 90 of them. A great way to started.

Another source of used cars are independent auction houses and U.S. Government Auction Sales. At independent auction houses vehicle owners have auctioneers sell their vehicle by getting buyers who are at the auction house to bid against one another. The Treasury department confiscated properties for back taxes and sell vehicles at bargain prices. The Government Services Administration and the Department of Defense maintain mailing lists on persons interested in seized and surplus property sales. You can receive catalogs and other sales announcements in advance of sales and are given the opportunity to inspect the vehicles and other property and submit bids.

AskRecy believes knowledge and advance-reading material is a definite requirement for people seeking to start or expand their business. Those who read this column know that reading material is recommended. There are several paperbacks published by an author, Timothy Johnson, 39 Ways to Sell Your Car Fast, and How to Turn Cars Into Cash

Where can I find info on qualifying and establishing my business as "minority owned?"

Askrecy:

This is one of the easier questions that Askrecy had to answer so far this year. Your email did not list which city or state you want to do business in, but here are some general rules: a M/WBE certification is valid one calendar year from the initial date of certification. Once certified by the City, vendors are sent applications for recertification approximately two months prior to the expiration of the certification.

Certification, however, does not guarantee the award of City contracts to M/WBE vendors, but it does assist them in gaining visibility within the City's procurement process. Once certified, M/WBE vendors are included on a citywide database and also the state, (if certified with the state) that details the products and services they provide by commodity code.

In any event the process is basically the same for each city or state. For example, in the city of Houston, there's an organization called the Houston Minority Business Council. Minority Business Certification from this association is recognized by the City of Houston, Southwestern Bell and other companies in the area.

In the city of Austin, Texas, applications for Certification can be obtained from the Department of Small and Minority Business Resources or the Purchasing Office Vendor Registration. The Department of Small and Minority Business Resources conducts certification workshops monthly and are designed to provide applicants with information on the M/WBE procurement program and guidelines, including certification forms, evaluation criteria, and the City's procurement process.

The general steps are as follows: The Minority Business Enterprise/Applicant receives the Certification application from the Council where the business is geographically located. The application must be fully completed and submitted to the Council with required documentation, and accompanied by a non-refundable processing fee, normally $100.00 and is based on the business structure (sole proprietorship, partnership, corporation). A site visit is normally conducted after all documentation are submitted. Applicant is notified in writing of the decision. If approved, a Certificate of Membership is issued, along with membership information. Certification is renewable annually.

Certification with the State requires an application like Texas to the General Services Commission. The State of Texas Historically Underutilized Business (HUB) Certification requires seven types of documentation ranging from (a) Ethnicity/Gender, (b) Signed copies tax return and schedules filed with the IRS, (c) Commodity Wholesaler or Manufacturer copies employers quarterly and TEC forms, (d) Verification of Business Structure, i.e.. Articles of Incorporation, or Sole Proprietorships, Assume Names verifying business registration, (e) Partnership agreements and proof of capital invested, (f) Verification of Ownership and (g) business headquarters outside of the state certification.

Since I don't know the city and state of where you are located, you can start by either calling the local city purchasing office for information or go to one of the search engines on the Internet, like Excite, HotBot or Lycos and search for "minority business certification" to see what sources are available in your area.

MsLovely Thick (via email)

I would like to know if you can give me any advice on opening my own hair salon. I have very bad credit, and there is a lot of competition. But I would love any advice on how to get a loan with my credit history, and steps in starting a salon. Thank you

Askrecy:

This is one of the easiest businesses to get into and develop, especially if you have the talent to do hair professionally. It also requires keeping up with the latest styles and working a lot of hours. The hair salon business can be started without much money, so you really do not need a loan and since you mentioned that you do not have a good credit rating, the best thing for you to do, is to start a clientele list. Develop a loyal base of customers and they will most likely follow you when the right opportune time arises for you to open your own business.

I happen to know two professional business owners in the hair salon business and have been quite successful for the last 10 plus years. I asked them for advice on how they started and what worked for them. Both basically said the same thing – build a strong client base – take your time and do the customer's hair right the first time regardless of how many people are waiting on your services – word of mouth was the key for their success – make sure that your customer is satisfied with your services. Neither did any flyers or much advertising, but one later did when she went from a one-person shop to a five person shop.

As for equipment – they both said that they purchased used equipment initially from other hair salons going out of business. One said she found all of her equipment for a three person shop by going to businesses selling hair salon supplies and merely asking the owners if they knew of anyone wishing to sell their equipment.

For reading material there are some books available - Fun, Creative, and Profitable Salon Marketing; 67 Ways to Grow Your Salon Business by Allen R. D'Angelo - The Transition : How to Become a Salon Professional by Louise Cotter, Frances London Dubose (Contributor) - Beauty Is My Business; The ABC's of Successful Salon Management by Joseph J. Vizzini and Start and Run a Profitable Beauty Salon : A Complete Step-By-Step Business Plan by Paul Pogue