It’s a common story that the minority-owned business owner gets rejected in the loan application due to the lack of personal wealth. Therefore, the entrepreneurs tend to raise their capital from the internal investment family and friends rather than external loans and debts. To qualify for a loan application, most banks and organizations require a Diverse Ownership Certificate (DOC), which is used to verify the business classification. If a business is not certified yet, it must be before receiving the loan.
No matter the business size, a business network is a critical factor in growing and expanding a business. Networking is a means for small business owners to to form relationships with others in related business industries, potentially becoming their new customers or partners. The more people a businessman or woman bring in, the more their company’s money grow and expand. It’s too bad at times that most minority businesses are not so lucky when trying to network with more larger and profitable companies because most of those companies don’t see minority businesses lasting very long.
Most people ask why most black owned businesses fail and don’t make any returns as far as re openings are concerned. One reason is the lack of cash flow to a company and that raises issues not only with the minority -owned business, but with the employees as well. Another reason is that a plan is not thought out on how to run the business and there is no solid, realistic idea on how it should be done. There are other reasons as well; Tough competition, no chemistry with the group or the employees, cash flow issues and failure to adapt.
The above reasons are just a few explanations on why minority businesses don’t do so well, BUT there are ideas on how they can improve and not only pull in more customer service and more money, but grow more and more with other business they seem to be competing with: Create access and improve investment, get more involved across the business cycle and promote entrepreneurial resources for and by black business leaders.
With the four above solutions, black-owned businesses have a better chance of improving their sales and expanding the brand that they are selling plus have enough cash flow to grow and pay their employees raises that they so rightfully deserve.
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