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Whenever you find
yourself on the side of the majority, it is time to pause and
reflect.
Mark Twain, American
Humorist |
Imagine that you have $100,000 to loan.
Two companies stand in front of you, virtually equal in most respects.
One of them has its first six clients lined up, with commitment letters.
The other doesn't. Which one will you lend your money to?
Your first strategy is to look in your
own geographical area for local backing, which is available in some
communities from redevelopment agencies, and from city, county and
regional government agencies of all kinds. Many local agencies have
implemented minority set-asides or contract goals. This is the best
way of lining up business.
And, with your customers all in a row,
funding from everywhere becomes a whole lot easier.
MBDA is an Invaluable
Ally
The
Minority Business Development Agency (MBDA) is one of those real gems:
a government agency that succeeds. Besides information on funding, the
MBDA site offers a wealth of good advice for any small business, minority
or otherwise. The website can be a bit overwhelming, so take your
time going through it.
While you are visiting the MBDA, take a
look at the MBDA Community
Exchange. This is is an online forum where
minority-owned businesses can meet and exchange ideas and information by
categories and topics.
Be sure to register with
MBDA Phoenix Database
for ongoing business referrals. It is an
excellent source of business.
National Minority
Supply and Diversity Council
NMSDC
provides a direct link between corporations and minority
businesses. A quick look through its list of member corporations--those
companies that want to purchase quality goods and services from minorities
on a competitive basis--reveals some of the biggest corporate citizens in
the United States.
The NMSDC, with regional offices in most
states, is a good first step in seeking out your first contracts as you
are launching your new business. You can even join its database of
certified minority suppliers and get referrals to corporate buyers. In
2000, member corporations made purchases from minority businesses
registered with the NMSDC exceeding $54.3 billion.
Decide If
Certification Is Your Best Step
The process does take some time and
effort, can cost up to $350, and periodic renewal fees may be required,
which is why so many small businesses never take advantage of the
opportunities brought by being designated a minority business. You should
decide which certifications are the best for you.
Find more on certification from the
National Minority Business Council and the
Women's Business Enterprise National Council.
Also be sure to register as a minority
business with the
Small
Business Administration.
There are many
state
and local programs that can get you headed in the right direction.
Requirements for
Certification
Each certifying entity will have its own
criteria. But generally, you will need proof that you exist as a small
business and show that 51 percent of the business is owned, controlled and
actively managed by minority group members.
Anticipate being asked about your
business' history, legal and financial structure. You could be asked for
customer and bank references, details about loan activity, financial
statements, balance sheets, tax returns, professional or business
licenses, real estate leases, a list of employees, your driver's license
and more.
Look to Grant Funding
Grants
for minority businesses are often more accessible than for
non-minority businesses. See what you can find that applies to you.
Check Out Other
Resources for Minorities
See out links below for more information
for minority business funding. Your funding source is there.
Your job is to find it.
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