Every business begins with an idea and a goal. Sometimes the goal is to make money, to help others, or a desire to share one’s knowledge or creations. In any event, many people start businesses for different reasons. Statistics from the US business administration show that in 2006, 649,700 small businesses opened and 564,900 closed. From this statistic alone, it seems that many small businesses do not survive for the long haul.Unfortunately, I witnessed this statistic first hand with a black bookstore in my neighborhood. When the store first opened, of course, it was a novelty, and many folks from the neighborhood stopped by and made purchases. A black bookstore? Whoa! I was there almost every week because it was such an enjoyable experience. Where else could you go where you could browse through books that reflected you (or at least someone you knew, lol)? And it was not just fiction. It was here where I first discovered the science fiction writings of Octavia Butler and Dr. Alvin Poussaint. (But I do digress) The point is, within the next two years, the shelves became more bare and dusty and the people scarce. The owner even solicited his customers with money to keep the shop going and collected over $10,000 from us. Even after that effort and support from the community – the store still closed!What happened? Well, I know from my own observation, the wife of the owner would often come into the shop and take cash from the register and comment to her husband that she was going grocery shopping (I kid you not!). They drove the latest model of Mercedes Benz sedan (not a problem with that, but then don’t solicit your customers for $$$ to keep your store open) and often, the store was closed in the middle of the day. There were no sales, no specials, no saving programs, no new book introductions, no children’s story on Saturday – nothing. Certainly, he was personable enough and very willing to help customers, but did not seem to copy the business practices of the larger retailers. As a side note, I ordered a cookbook for my mother, and it took him a MONTH to get the order in.I write all this to say that it’s great to start a business, but for those just starting out, like me, and for those who have been in business for years, know that to do it correctly, to be in it for the long haul and to NOT become one of those statistics it takes hard work, dedication and a determination to achieve those goals and to make your work profitable. Over the course of my blog, I hope to both share my experiences of starting a business, running a business, and the business resources that assisted me along the way.Please, if you have specific questions, feel free to message me or post them in the comments.
Karma, yes!...what goes up....must come down...the spinning wheel goes round and round!
Thank you all for your comments on my blog - I'm so glad that my post was so thought-provoking.
The bookstore was the only real up-front encounter I had with a poorly run business - it really stayed with me because this dude failed even with the support of the community - so it wasn't even about "black folks don't support" it was about his poor business practices.
PS There is a pest-control guy (black) the area (we had termites one year, yuk!) and he was just great. Polite, showed up on time, and put the "extra touch" on his work. I also had a great black plumber, but alas, he retired. Unfortunately, these are both older gentlemen. I have yet to see the younger folks (I count myself as younger, lol) really make their mark, especially in the contracting world.
Karma...You truly have to be careful as to what you put out into the universe. I love to support Black business, all businesses really, when I can but the first time that I get bad service, I complain and dont go back if Im not take care of.
This is a great post and one that ring trues. It breaks my heart to see black owned businesses close down. My husband is an electrical contractor and I have watched many of the black owned businesses close down due to not only marketing but also their business ethics.
I cannot tell you how many corners I have seen cut by other contractors trying to do a favor to help a business get started, only to have my husband come behind them to have to fix the issues that could have been avoided if it had been done right.
And you are right the money gets spent before they even make a enough to float them for a while.
I think lhenry says it best.
My husband helped a well known barbecue sauce creator (every time I see his face on the bottle in the grocery store I have a flashback) and restaurant owner redo his place after he got a bad inspection report and only had about a week to get it all in order. He paid my husband a down payment for materials and my husband and his workers worked 24 hour shifts to get the work done. Guess what?
He did not pay my husband and acted as if he had did my husband a favor by allowing him to do the work because he was one of the most famous man in Chicago. We were out over $5000 and it really set us back.
To this day the restaurant is still open but he is still a crooked business owner doing some crooked stuff.
Another woman is a big time mortgage broker here in Chicago and her son helped her run her company. Well my husband and a few other honest contractors were helping her with a project that had apartments and storefronts. She had it all laid out, had them do the work, paid them about three payments and then started giving excuses as to why she could not pay. They all quit. The son even threatened my husband bodily harm when he tried to get his money. I told him to just leave it alone.
Today her son and daughter are in deep trouble for fraud and they lost the company and all properties.
Not saying that all black owned businesses are like that but it a typical thing because they have not taken the time to find out what is truly takes to run a business.
Wow, those stats definitely require a double take. It's worth everyone look at because being an entrepreneur really isn't for everyone. I think personal passion trumps a desire to make money, when it comes to entrepreneurship because you REALLY need to have a spiritual driving force to keep you at it when times get rough.
On the topic of small black businesses, boy can I say a mouth full. I think that many of us are so used to doing AND even seeing things on a small often inadequate level that we translate those bad tactics into our business. As you said it, that bookstore you mentioned failed to do many of the innovative things that might have helped to keep it in business. I also find that even customer service, GOOD customer service, is often lacking from black business owners ( I can't speak specifically on the ones in my own carribean community ) Many have the attitude that even though your paying them, they are the ones doing you a favor.
With those bad practices always in mind, I always try to make whatever I do stand out. I try to be creative. Compare my work not to those around me, but to industry standards I desire to match, and often take for granted that I buy. I listen to customers, and am always cordial to clients so even in a dispute, we never end on bad terms. We have to both push ourselves to keep going and push ourselves to make our businesses better - not necessarily bigger, but better.
Thank you for sharing this GREAT blog! I enjoyed it so much, I reread it at least 6 times(lol). What hit home for me is when you mentioned "it takes hard work, dedication and a determination to achieve those goals and to make your work profitable". I agree and would go on to say that in order to be successful in any business, one must be focused and dedicated to that business. Nothing happens overnight!
Cee Cee, hope you don't mind me stopping by again. I was downstairs whipping butter and I was thinking about this blog.
I also have seen many black owned businesses close down in my area. Most of them were bookstores. I just recently saw a black owned shoe store go out of business. That was really sad, because I personally knew the owners, and was a customer. However, unfortunately I saw the signs of that store closing when it opened. It's the same pattern I have seen with several black owned stores. A storefront. There is absolutely nothing wrong with a storefront. However, if you do not have the funds to pay rent for a few years without money coming in, if you do not have enough to cover the utilities for those years without money coming in, if you do not have money to pay someone that you hire (at least one other person), if you do not have the money to market your business, than a storefront may not be what is needed at that time. If others are pushing you to get a storefront, it is not a good idea to get one. If you are wanting a store for perception purposes, it is not a good idea to get one.
You are right, you have to be in this for the long haul. A business should be nurtured an allowed to grow and flourish. It has been 10 years for my business, but it has just started to flourish over the last 4 years. Success is not a race.
Comments
Thank you all for your comments on my blog - I'm so glad that my post was so thought-provoking.
The bookstore was the only real up-front encounter I had with a poorly run business - it really stayed with me because this dude failed even with the support of the community - so it wasn't even about "black folks don't support" it was about his poor business practices.
PS There is a pest-control guy (black) the area (we had termites one year, yuk!) and he was just great. Polite, showed up on time, and put the "extra touch" on his work. I also had a great black plumber, but alas, he retired. Unfortunately, these are both older gentlemen. I have yet to see the younger folks (I count myself as younger, lol) really make their mark, especially in the contracting world.
I cannot tell you how many corners I have seen cut by other contractors trying to do a favor to help a business get started, only to have my husband come behind them to have to fix the issues that could have been avoided if it had been done right.
And you are right the money gets spent before they even make a enough to float them for a while.
I think lhenry says it best.
My husband helped a well known barbecue sauce creator (every time I see his face on the bottle in the grocery store I have a flashback) and restaurant owner redo his place after he got a bad inspection report and only had about a week to get it all in order. He paid my husband a down payment for materials and my husband and his workers worked 24 hour shifts to get the work done. Guess what?
He did not pay my husband and acted as if he had did my husband a favor by allowing him to do the work because he was one of the most famous man in Chicago. We were out over $5000 and it really set us back.
To this day the restaurant is still open but he is still a crooked business owner doing some crooked stuff.
Another woman is a big time mortgage broker here in Chicago and her son helped her run her company. Well my husband and a few other honest contractors were helping her with a project that had apartments and storefronts. She had it all laid out, had them do the work, paid them about three payments and then started giving excuses as to why she could not pay. They all quit. The son even threatened my husband bodily harm when he tried to get his money. I told him to just leave it alone.
Today her son and daughter are in deep trouble for fraud and they lost the company and all properties.
Not saying that all black owned businesses are like that but it a typical thing because they have not taken the time to find out what is truly takes to run a business.
On the topic of small black businesses, boy can I say a mouth full. I think that many of us are so used to doing AND even seeing things on a small often inadequate level that we translate those bad tactics into our business. As you said it, that bookstore you mentioned failed to do many of the innovative things that might have helped to keep it in business. I also find that even customer service, GOOD customer service, is often lacking from black business owners ( I can't speak specifically on the ones in my own carribean community ) Many have the attitude that even though your paying them, they are the ones doing you a favor.
With those bad practices always in mind, I always try to make whatever I do stand out. I try to be creative. Compare my work not to those around me, but to industry standards I desire to match, and often take for granted that I buy. I listen to customers, and am always cordial to clients so even in a dispute, we never end on bad terms. We have to both push ourselves to keep going and push ourselves to make our businesses better - not necessarily bigger, but better.
Great post Cee Cee,
lhenry
Thank you for sharing this GREAT blog! I enjoyed it so much, I reread it at least 6 times(lol). What hit home for me is when you mentioned "it takes hard work, dedication and a determination to achieve those goals and to make your work profitable". I agree and would go on to say that in order to be successful in any business, one must be focused and dedicated to that business. Nothing happens overnight!
Much success!
-Teresa
I also have seen many black owned businesses close down in my area. Most of them were bookstores. I just recently saw a black owned shoe store go out of business. That was really sad, because I personally knew the owners, and was a customer. However, unfortunately I saw the signs of that store closing when it opened. It's the same pattern I have seen with several black owned stores. A storefront. There is absolutely nothing wrong with a storefront. However, if you do not have the funds to pay rent for a few years without money coming in, if you do not have enough to cover the utilities for those years without money coming in, if you do not have money to pay someone that you hire (at least one other person), if you do not have the money to market your business, than a storefront may not be what is needed at that time. If others are pushing you to get a storefront, it is not a good idea to get one. If you are wanting a store for perception purposes, it is not a good idea to get one.
You are right, you have to be in this for the long haul. A business should be nurtured an allowed to grow and flourish. It has been 10 years for my business, but it has just started to flourish over the last 4 years. Success is not a race.