By Dante Lee
You likely have heard about the 2001 report from the U.S. Census Bureau that states that African Americans are more likely to start a business, than their white counterparts.
That same report reveals that African Americans are also more likely to fail in business within the first five years.
If you are interested in joining the thousands of other Black-owned firms that flop every single year (I’m being sarcastic), pay very close attention to what I have to say.
Here’s what happens step-by-step:
1) A wealth-conscious African American decides that he wants a better life for himself and his family.
2) He/she decides to start a small business, or join a network marketing company.
3) Because he/she is so excited and zealous (either of self-motivation or from listening to motivational speakers), they begin to focus more on what they’re selling – instead of how to sell it and who to sell it to.
4) Most of their time and energy is spent on preparation (web site development, business cards, letterhead, etc.), but little to no time is spent on realistically planning the marketing strategies and demographically assessing the market they plan to target.
5) Months will go by. Little (if any) revenue has been generated. He/she decides to give it one last try and invest more money into it. They randomly pick an advertising method – such as taking out an ad in a newspaper or passing out flyers. This, again, generates little revenue for them.
6) Now, they’re tired and frustrated – and have decided to give up on pursuing a better life, and join the masses of Black entrepreneurs who never made it.
The Major Pitfall: They never had a realistic marketing plan that made sense.
The Solution: Business is 10% what you’re selling, and 90% who you’re selling it to. Do not spend most of your time and energy on the product. Spend it on the marketing campaign.
It doesn’t matter what you’re selling; If you don’t know how to market to potential buyers (more than just family and friends) – you really aren’t selling anything.
Dante Lee is the president and CEO of Diversity City Media, a multicultural marketing and public relations firm based in Columbus, Ohio. His daily blog, www.BlackBusinessCoach.com, offers a FREE email and RSS subscription for Black entrepreneurs and business owners.
