Black Businesses
Black Businesses
Twenty percent of small businesses fail by the first year. Thirty percent of them fail by the second year. Fifty percent of small businesses fail by the fifth year. Seventy percent fail by year ten. Eight out of ten black-owned businesses fail within the first eighteen months.
That is a staggering number 80%, look around unless you are in a majority black area our businesses are not there. This journey is not an easy one. We don't have the capital that other races have. Some of the responsibility is on us.
The first year of business is a loss you will rarely make a profit. It takes planning sometimes years in advance. From the space rent to merchandise is all a minus. If you add employees to the mix the loss of the first year can be hard to recover from.
Most of the time it is in a rush, a business should be carefully planned. Most should have a five-year business plan to understand how growth works. This business plan should also lay out the cost to run your business. You must prepare for surprises, things will break.
Cash or credit reserves is a must. Put money back into your business and save as you profit. Understand your industry and the money it generates. Your brand is your standout.
There are other ways to get capital, the SBA (Small Business Association). All the people associated with us tried to get a loan through this program. This organization has never been friendly to black people. They gave us all the run around.
You must have a business plan to get help from the SBA. We all had a business plan that was vetted by professionals, prior SBA knowledge and former employees. None of them saw nothing wrong with our business plans.
Every time we submitted our business plan, they told us to add more. We did this but never got any help. We meet through these free programs and professionals who helped people try to get a SBA loan. It was heart breaking we cannot lie.
To do everything thing that was asked and get turned down hurts. We decided to band together and put up our own money to help each other. We are regular 9 to 5 people, so it took years but finally we are here. We as black people must support each other because no one else will.
Ask yourself a question you see all these different cultures carry and place BLM signs but not spending their money in our businesses. Without money passing, it is all talk. Talk will always be cheap. My blood, time, and hurt is not cheap.
Roots of Black, Tip, Black Reign and coming soon Neon Lights is putting our money we're our mouth is. We are giving every black people a chance to make money inquiry.