From: Barbara in Chicago
I own a small business in the Chicago area, and I need to register my business as minority owned. Is this something you can help me with??
AskRecy Response:
The city of Chicago has a Minority and Women-owned Business (M/WBE) Procurement Program that demonstrates the City's continued commitment to the success of minority- and women-owned businesses. The program has played a key role in increasing the business opportunities for minorities and women in the City. Unless the M/WBE ordinance has changed, Chicago established a goal of awarding 25 % of the dollar value of all contracts of $10,000 or more to MBEs, and 5% to Women-owned business and purchases of less than $10,000 are targeted for MBE/WBEs.
Chicago has also met and exceeded its goals of awarding twenty-five percent of the dollar value of all contracts awarded annually to MBEs and five percent to WBEs, since the ordinance was passed in 1990.
The program is located within the Department of Purchases in the Division of Contract Monitoring and Certification and it is this department that certifies minority and women business enterprises and carries out the mandates of Equal Employment Opportunity and Affirmative Action requirements. The rules are simple for minorities wishing to take advantage of the opportunities afforded to them under the M/WBE program. Your business and in most states must be at least 51 percent owned and controlled by a minority or woman and be City-certified. As it is in Texas, the City of Chicago certification is also accepted by other government agencies and some private agencies.
There is no cost for the certification or recertification process. The process is about the same in most states, which is normally 90 to 120 days. You can get a copy of the certification application in the Bid & Bond Room 401 of Chicago City Hall and also at the information counter located in the lobby of City Hall.
The program also offers a semi-annual "How to Do Business With the City" Vendor Fair. This open forum invites vendors to learn all they need to know about the City of Chicago contract award process, new project information and one-on-one interaction with City representatives.
Date: 02/09/2000 7:25:39 PM Pacific Standard Time
From: Lafrazia
I operate a non-profit organization in the Boston area that serves a predominantly African American and Latino population. Currently management is entirely white. At present there are two management level positions open (Director of Facilities and Director of Capital Campaign and Planned Giving). I have advertised in the major local paper for both positions but have had no response from any minority candidates. Any advise on how to better target our recruitment efforts in these fields? Are you aware of any trade associations, journals, and publications, in which to advertise that would be helpful?
Thank you in advance for any help you can provide.
AskRecy Response
Sometimes just merely advertising in the local media is not the answer. You have to have to do some targeted advertising. Have you tried advertising in some of the leading black newspapers? Here are some major black newspapers online:
Perhaps your best source is to go to the African American Newspapers website. There are over 200 listed--Sorted By State. Their site address is www.aasm.com/pubs.html If that doesn't help, then go to various states African-American Chambers of Commerce, the one in Texas is www.taaacc.com.
Several years ago, a person told me that whenever his company has an opening for managerial positions, he believes that word of mouth works for him every single time. He also boasts of using this approach for peers in other companies. He simply mails the job description to all the major black churches in the city and surrounding counties. He claims it's cheaper, it's fast and it works.
Let me know if you were successful in your recruiting.
From: B. Spencer in Dallas
Subj: Changing Jobs in the 40's
I am a 47 year old, single parent. (Children: 1 Daughter age 8, and one a college sophomore at the Univ. of Houston 20) I have worked at the same major utility for 25 years. My B.A..is in Bus. Admin. I have taken two graduate level courses, one in Library Sci. the other an MBA course. I have worked as an accounting associate for the last 11 years. Prior to that I was a secretary. The last few years of downsizing has me in a constant fear of losing my job to one of the many 20 somethings walking in the door. I earn $36,000/yr but others around me (non-black and non-degreed) earn $40+. My last raise was $50 back in 1997. But I confess, I am too fearful of having no job at all to challenge the entrenched injustices where I work. The advantages are the freedom to get my little one to school and back on a flexible schedule. In cases of emergency, she can come to work with me. The medical benefits are decent, and sick days are paid.
I am an intelligent woman, with many interests who is easy to train, and loves to learn. I am considering taking some computer courses but I don't know which path it would lead me toward. I cannot work 12 - 16 hr days.
AskRecy response:
I had to read your profile and questions several times to make sure I truly understand your situation. The fact that you have worked for the same company for twenty-five years and as an accounting associate for the last eleven years indicates that you are a candidate for job security and a person that takes little risk. To receive a $50.00 pay raise in three years is enough to send me packing and seeking another job, regardless, if I were a single parent.
You appear to be in a catch-22. You have the comforts of a flexible schedule that allows you to bring your child to work and a job with good benefits and sick pay. But, you are bored and not challenged! There are numerous other jobs that you can choose from that will suit your profile, but you will be back in the same boat.
The question I should ask - what do you want to do? Really, what is it? Is there a job or career that you think, believe and know that you would be great at doing? Let's forget about the two kids for a moment, and just think about it. Forget about taking the computer courses? I don't think it's for you. A programmer that writes a safe program without risks won't go far in this business. Also forget about a career in Library Science so that you can join the school system, just to be on your daughter's schedule. Unless that's what you really want to do, however, since money and higher pay seems to be a prerequisite, you may be barking up the wrong tree. Teachers are underpaid, but a great many of them love their jobs.
There is an important factor missing in everything you mentioned above. It's all about a job you don't like and what you are sacrificing for your children. What about you? It's not too late to make a career change, especially if the move will bring you success and happiness. Success can be measured as an attainment of wealth, a position of honor, an achievement or accomplishments. It is not always associated with money. I know several single parents with four and five little rascals and are having a whale of a time doing what makes them happy and they are not working a 12 to 16 hours job - I should say a paying job.
My best advice to you at this point in time is for you to think seriously about not just a job change, but position or business that you will find rewarding. Contact me again and let's see how we can make it happen.
You might want to read What Color is Your Parachute 2000 by Richard Nelson Bolles - many people have found it very useful for finding a new career that really works for them.
From: Charles B.(via BlackTexas.Com)
My wife and myself have started our own in-home business and we are in need of some office supplies, such as files, fax machine, copier and notebook computer. Do you know where we can get a grant? or some assistance? Any help you can provide is greatly appreciated.
AskRecy response:
There's an old adage "a little bit can go a long way" and it's true when determining the amount of financing one needs to start a small business. Startup costs are one of the most popular questions that I receive on a daily basis. However such items as office supplies is generally a basis requirement and responsibility for any business owner seeking to start a business. There are some startup costs that don't fit neatly into any category but that still need to be considered if you're to get an accurate picture of how much it will cost you to get your business off the ground.
Since I don't know the type of in-home business you have started, it's difficult to provide specific avenues to pursue. There are grants available from local foundations and also the federal government that focus on certain community needs and shortfalls. For example, does your particular startup business provide a service to disadvantage people? If so, there are grants available. Even the number of "micro-loans," loans under $100,000 made by U.S. banks has increased according to a study recently released by the SBA's Office of Advocacy. Speaking of the Small Business Association, make an appointment at your local office to explore funding possibilities. Also you can go to the library and check out Government Grants and Loans for references on the numerous grants available. Who knows, you may find one source to quality under.
From: Feinfolk (via email)
Dear Recy,
I am an African American (orig. from Kenya 20 yrs ago) living in Northampton, MA. I have developed a business plan with the help and support of the local comm. devel. corp. for a startup company. So far, I have raised about $60,000. I need an additional $75,000.
Do you have any leads on venture capital for minority owned businesses?
Thank you.
Hughes Feinstein
AskRecy response:
There is a key and important factor entrepreneurs, especially start-ups to remember about venture capital firms – the name is sometimes misleading. Venture capital implies willingness for someone to take on the profit and loss risks of young companies. Most of these companies have ventured away from funding start-up companies and have offered funding opportunities towards more established businesses. So be careful, instead of having a venture capitalist as a partner, you may attract the attention of "vulture capitalists." However, there are still some quality Venture capital firms willing to take a chance on good market opportunities.
There is book called The Gold Book of Venture Capital Firms. It is a directory of venture capital firms in the United States. Entrepreneurs seeking capital can find contact information, a short description, and a sampling of portfolio companies in the particular area of business entry. It also has four comprehensive indexes to help start-up business entrepreneurs to focus in the right venture capital firm, including key principals, industry sector, stages of financing, and the name of the venture capital firm.
There is also a Venture Capital Resource Library located at www.vFinance.com. The Wall St. Journal, Entrepreneur and Inc. Magazine all recommended this site for anyone in the private funding arena. However this site charge less than $1 each day, and claims to enhance your deal and direct vast audiences of capital-seekers from around the world to your website and also to check each application carefully and accept ONLY accredited, highly professional and recognized firms. If approved, your firm will be entered into our VSearch database search engine which will provide entrepreneurs with immediate access to your firm's investment parameters and its website.
For reading material go to www.inc.com. This site provides service to the small-business market. There are very good articles written on this subject. Go to the site search book and type in "venture capital" to read magazine articles from Inc. Magazine and other sources.
Subj: Bankruptcy?
From: PitPat444 (via email)
Hi Recy,
I'm in a stressful dilemma! I have a small daycare center in Michigan. It has slowly been going downhill since I had to leave my work there to a new director because of illness and moved here to Texas. Now the company is in financial trouble. Can I file for bankruptcy on this business without losing all my equipment that I will need to start over under a new name? With my experience and better health, along with trial & error lessons learned I know this new way can succeed. but, is it possible in bankruptcy not to totally lose all I have in material things?
Sincerely,
Miss Annabell
AskRecy response:
AskRecy tries within his area of business expertise to offer suggestions and ideas relating to business opportunities. Bankruptcy Law is a very complicated area only a lawyer trained in bankruptcy law can advice you on your particular situation. AskRecy cannot answer your question in all honestly as to whether or not by providing bankruptcy will prevent you from losing your equipment or all of your material things. The laws in the state of Michigan may differ in some respects to law in Texas. Listed below is some general guideline regarding this subject matter and some legal advice firms to call. If they cannot help you, I'm sure that they can tell you who can.
| Chapter 7 | Fresh Start, also Liquidation | Almost all persons and companies |
| Chapter 11 | Business Reorganization | Persons and corporations |
| Chapter 13 | Personal Reorganization | Persons & "Mom & Pop" Businesses, not corporations |
Majority of individuals file a Chapter 7 or Chapter 13. Conditions for Chapter 7 or 13 and some pro and con factors are:
| Type | Conditions | Pro | Con |
| Chapter 7 | Credit card indebtness and signature loan debt. Monthly income is less than monthly living expenses. | Some debts can be forgiven without any repayment requirements. | Limit on the amount of property you can keep and may have to forfeit some assets to your creditors |
| Chapter 13 | Foreclosure of home, IRS levy. Monthly income usually more than monthly living expenses. | Keep your property, save the home from foreclosure, and control IRS with reduced monthly payment plan -- usually for 3 - 5 years. | Limit on how extravagantly you can live. Excess income each month must be paid to creditors. |
University of Michigan Clinical Law Program
363 Legal Research Building
801 Monroe St.
Ann Arbor, MI 48109
(313) 763-4319
Legal Services of Eastern Michigan
547 South Saginaw St.
Flint, MI 48502
(810) 234-2621
Legal Services of Southcentral Michigan
Jean McGuire, Director
70 East Michigan Ave.. 2nd Floor
Battle Creek, MI 49017
(616) 965-3951
Counseling and advice only.
Team for Justice (Main Office)
1035 St. Antoine
Detroit, MI 48226
(313) 965-3242
Provides services including personal and legal counseling, advocacy at decisions points, education, and rehabilitative services.
Subj: Developers
From: McNeely (via email)
I have some land and would like to build a hotel of some sort on it in the near future. Can you provide me with the name of an African American developer or hotel owner. I would like to know what it takes to get the ball rolling.
Thanks.
AskRecy response:
Tony,
If you want to get the ball rolling to build a hotel or motel on your property, it requires more than just the name of an African-American developer or hotel owner. Make sure that you have done your homework regarding the right type of hotel or motel needed for that area. Develop a business plan that allows you to analyze your potential customer base and what amenities the hotel will offer than others in the surrounding area. Also check to make sure that the land is properly zoned for the type of hotel you are planning on building. Don't forget to check with your local city-planning department for the required permits and licenses. I recently read an article about a couple that purchased land to build a restaurant. They assume since the area had several other commercial establishments, it was okay to build. Imagine their surprise when the local residents challenged the city building restrictions.
You can visit an internet site at http://www.minority-web-services.com to find minority construction companies and hotel/motel owners in your area.
Subj: Nail Salon Business
From: B4REEL33 (via email)
Recy, I am interested in starting a nail salon business. This industry seems to be bombarded by the Korean population. In my city there are nail salons everywhere, however not very many of these small jewels are owned by African Americans, although we frequent them quite often. I would like to tap into what appears to be a very lucrative small business. I would also like to know is there grant monies or funding to assist minorities wanting to start their own business?
AskRecy response:
If you want to start a nail salon business and you have the skills. Just do it! It's one of the easiest businesses to get into with very little capital. Why do you think that you need grant money or funding to start a nail salon business? The purpose of AskRecy is to provide, hopefully sound advice to minorities seeking either start a new business or expand an existing business. Contrary to popular belief, there is no money tree just waiting to minorities to walk up to pluck to help them succeed.
You are right in one of your observations, the nail salon business, positioned in the right location and with an established clientele is a profitable small business for someone to make a decent living. I did some checking last week; I purposely went into a nail salon to get a manicure and had a conversation with the person doing my nails. During the course of our discussion, I hinted that this particular location was a little out of the way, and the woman told me that she rotates among three locations that the owner had. I also observed that there were a total of five people either doing manicures, facial and foot massages, plus the toenails.
Other than a few chairs and small tables, why do you think you need a grant or funding to get into this business? The supplies cost is minimal, considering other businesses start-up costs. If you have the talent or going to hire someone to do professional manicures, find a place to rent with near or around good foot traffic.
Don't forget to prepare a good business plan, regardless of the type of business. In your business plan determine your nearest competitors, what services are offered, prices, and their strengths and weaknesses.