How to Start a Minority-Owned Business: 5 Tips for Success
Historically there has been a shortage of minority-owned businesses throughout the country. But if you have a business concept that you are passionate about, nothing should stop you from starting a business. The number of minority-owned businesses is growing every day.
Every entrepreneur is going to have a different journey when starting their business. So if you are interested in starting a minority-owned business, here are five tips that will help you succeed.
1. Create a Business Plan
When you have a business idea that you are passionate about, you need to do some groundwork before you can open your business up. One of the things that will help your business succeed is to create a business plan.
Having a business plan will help you outline what you want your business to do and achieve. Creating a plan will also help you figure out some of the administrative work that needs to be in order when starting a business.
A business plan can include items like market research on the type of business you are opening. It should also include your overarching goals and how you think you will meet those goals. It will also outline how you will organize your business. If you are working freelance, your organization might just be you.
If you are opening up a brick-and-mortar shop, it may include the people you need to hire to run the store. Or if you work digitally your organization may include yourself and the other businesses you’ll work with to get your products out to consumers. You can put all of this in a comprehensive business plan to always be on top of your vision.
2. Register Your Business
Anyone that is starting a business must make sure they register that business. When you go to register your business you will need to have information like your business name. You will then choose how you want to structure your business. Choosing a structure will determine how you pay your taxes, so make sure you look at the details and decide which structure is the best for your type of business.
You will then need to get an EIN or an employer identification number. This is what you will use when you pay your taxes on your business. Lastly, you’ll have to get any permits or insurances that will help your business run smoothly.
3. Look Into Minority-Owned Business Benefits
When you are looking to start a minority-owned business, there are many benefits and programs that you can use to help your business.
You should register your business as minority-owned. You can also work with the Small Business Association to further develop your business and leadership skills. They offer everything from training programs to professional development as well as loan and funding opportunities.
The 8a Business Development Program for example works to create a space for minority-owned businesses to grow and prosper.
4. Apply for Funding
You don’t have to start your business without any help. One of the best things you can do for your new business is to look for funding opportunities. You can apply for loans and funding options through the small business association. You can also apply for private loans and funding programs.
If you’re not sure where to start, NowCorp put together a list of 11+ small business grants for minorities that can guide you.
5. Work Towards Success
Now that your business is registered and you have secured funding, it’s time to do the work. Make sure you hire people that are passionate about your business and vision. They will help push your company ahead.
You will also want to take the time and effort to brand and market your business. If you open up a shop or online store with no marketing, how is anyone going to know about your business? Use free resources like social media to your advantage.
You can also network locally or on the internet with other minority business owners. This way you can build up other businesses and share tips and tricks along the way.
There are many different ways that a business can open and succeed. As a minority-owned business, be sure to look into all of the ways you can help your business thrive. Whether this is finding funding and grants or just speaking with other business owners for advice. New minority-owned businesses are opening every day and are here to stay.