Business Planning for Minority Entrepreneurs
Minority entrepreneurs doing business planning should adopt the same solid business principles followed by other companies -- while leveraging the advantages of being a minority-owned enterprise. Many state and local governments reserve a portion of their spending budgets for doing business with minority entrepreneurs. Strategies for tapping into these budgets should be a key part of business planning for minority entrepreneurs.
Other People Are Reading
-
Structure
-
As part of the business-planning process, minority entrepreneurs must make sure their companies can be legally recognized as minority enterprises. That means at least 51 percent of the company must be owned and operated by one or more minority individuals. This is important for bidding on government contracts and being recognized by public and private institutions looking to proactively do business with minority-owned firms. The Minority Business Development Agency, a part of the U.S. Department of Commerce, recognizes minority entrepreneurs as women of any race, African-Americans, Hispanic-Americans, Asian-Americans, and Native Americans.
Certification
-
Many state and local governments offer free certification as a minority-owned business, a key part of the business planning process for minority entrepreneurs.. The process generally involves paperwork proving the identity and background of the owners, and sometimes site visits, as well. The owners may be asked for copies of their birth certificates and drivers' licenses to confirm their race. They may also be required to show legal documents, such as articles of incorporation verifying the ownership structure. Minority entrepreneurs can find local government agencies offering minority business certification by contacting their city hall or state's department of commerce.
-
Government Contracts
-
Certification allows minority entrepreneurs to officially bid on government contracts. For example, in 2011, the California Department of Transportation reported that it planned to spend 13.5 percent of its budget with minority suppliers. Many large corporations also reserve a part of their spending budgets for minority-owned firms. Learning the bidding process for government contracts and the requirements for successful bidding should be a fundamental part of business planning for minority entrepreneurs. The business planning process for minority entrepreneurs should also include strategies for networking with officials from public and private companies. For example, the Walt Disney Company has its own certification process for minority- and women-owned businesses.
Mentors
-
Minority entrepreneurs can get help with business planning by seeking free advice from the Small Business Development Network. The agency is funded in part by the U.S. Small Business Administration and has offices in more than 1,000 locations around the country. Free consulting services are offered to entrepreneurs of any gender or race; however, many of the counselors are knowledgeable about special challenges facing women and minority entrepreneurs. Those challenges may include issues related to funding and how to become a preferred vendor with a major company and more.
-
