August is Black Business Month

Do you know that it’s Black Business Month? That’s right, August is all about recognizing and supporting Black-owned businesses across the country.

Shopping Black-owned brands is awesome, no matter what month it is, but what would be even better is starting your own business during this special time!

That may sound daunting, but it’s totally possible. Do you have an idea, a talent or craft that can make you money? While it may not be possible to host your grand opening this very month, we’ve got three tips to help you get started right now. 

Determine What You Want to Do

Deciding what kind of business you want to open may seem pretty obvious and easy. Afterall, a big part of your decision will depend on what you enjoy doing and excel at. However, your ideas and talents are not the only things you need to consider.

Sometimes a good idea does not translate to an advantageous business venture. Furthermore, certain talents, while impressive, may not be profitable. Thus, prospective entrepreneurs need to focus on what they are good at and if those skills are actually marketable. 

Perhaps, you already have a craft, but have never considered turning it into a business for various reasons. Creators all over the country are accidentally (or intentionally) turning their hobbies into money-making opportunities every day, simply by sharing their processes or finished projects on social media and stirring up interest in their viewers.

Why not test out a business idea you have by sharing snippets of your process or the end product with your social media followers? You may be surprised to see how much potential there is for you to parlay the idea into a side hustle or full-time job!

Of course, using social media is not the only way to decide what kind of business you should start. As a Black entrepreneur, you may be interested in starting a business that specifically fulfills the needs of those in the Black community, but that’s not always the case.

Regardless of who your goods or services are intended for, it’s important to do market research. This, too, will help you grasp an understanding of the marketability and profitability of your business idea. Do not shy away from research even if you have used other methods, such as social media to gauge interest around your product or service.

Reliable numbers don’t lie and you will save yourself money, time and energy by thoroughly researching the category in which your business would fall, your target audience, competition and other important details. 

Research Financing Options 

Another important step in jump starting your business is researching and acquiring funding. Do you know that new businesses are not eligible for business loans right away?

So, if your plan is to simply get a business loan, you may need to think again! Not to worry though, there are several other options, including grants and personal loans. 

Grants

Grants are a godsend. The reason they are so great is because you don’t have to pay anyone back. It’s free money! However, one of the biggest hurdles is that you typically have to apply for them. The application process can include writing an essay, submitting a business plan, agreeing to adhere to certain stipulations surrounding your business, among other things.

While the money may be free, the journey to securing it can be challenging, causing people to shy away. Letting the application process deter you would be a huge mistake for your business because there are some amazing grant and funding opportunities for Black businesses.

So, take some time to research them and determine which ones would be most feasible and advantageous for you to pursue. You should do this before you begin collecting money from other resources.  

Personal loans

Another common financing option for new entrepreneurs is using a personal loan. As mentioned earlier, it takes time before a small company can be eligible for a traditional business loan. Until you can meet the requirements for a small business loan, a personal loan can help you.

The beauty of this funding option is that you can use it for whatever you want. Unlike some grants, there are no rules about what kind of business you can start, nor the goals your business must reach. Furthermore, the application process tends to be much simpler with a personal loan.

Typically, lenders will take into consideration your credit score, your income, your debt-to-income ratio, your employment history and your savings. There are no essays, videos or contests involved. 

Believe in yourself

When it comes to pursuing any new venture, confidence is key. There will be plenty of people that don’t believe in you; you shouldn’t be one of them. Confidence is not only important in propelling you forward, but it will also come in handy when others express doubt in your business idea.

You will have to deal with those that fail to support your dreams, and at times even discourage you from pursuing them. Unfortunately, these people may include your family and friends, the ones we often rely on most to cheer us on. 

Believing in yourself may be easier said than done. One thing that can help is setting goals and crossing them off as you accomplish them. Seeing yourself achieve even small goals will make you feel good about yourself, bolster your confidence and keep you motivated.

Another thing that can help you is to avoid letting minor or major setbacks paralyze you from moving forward. Accept the fact that difficulties will arise. If you do, you will be less likely to become overly discouraged. Lastly, try to find a mentor and an entrepreneur buddy who you can relate to.

Your mentor will help you navigate challenges, forewarn you of trouble and offer experience. Your buddy or buddies will provide the support you might be lacking from family and friends. They may also serve as a shoulder to cry on or a listening ear to vent to.

Remember, everyone needs some sort of support system, no matter how confident they are.
Successfully starting your own business is not for the faint of heart.

However, with a little grit, scrappiness and a plan you can create a business that stands out amongst the rest. Good luck and happy Black Business Month!

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