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Opening a business fulfills a lifelong dream for minority entrepreneurs in the United States. Although challenging and time-consuming, nothing is more professionally rewarding than running your own business and seeing your hard work result in financial success. However, if you are ready to launch your minority business venture, you must take some crucial steps to ensure everything goes smoothly. This blog post from Balboa Capital can help. It explains how to start a minority-owned business.
Create a business plan.
The framework of your minority business is a thorough plan that outlines how you will start and run your company. Your plan should include an executive summary, mission statement, business name, website domain name, business description, market profile, advertising plan, and financial information. In addition, most business plans include growth goals for up to five years.
When writing your plan, include as much information in each section, and be very specific when outlining your financials (budgets, cash flow statements, monthly sales projections, etc.). This will come in handy should you ever need a small business loan. You should also develop a business marketing plan.
Hire an attorney.
Starting a business without a lawyer in your corner would be unwise. Legal assistance can help eliminate problems that might occur later on. In addition, just about everything relating to your minority-owned business will benefit from good legal advice. These include choosing a legal structure for your business, creating an employee handbook, developing contracts, and protecting your intellectual property.
Certify your business as minority-owned.
In addition to obtaining a business permit and a city, state, or federal business license, you will need to certify your business as minority-owned. You can do this through the government registration website or with the help of a private agency.
As outlined by the U.S. Chamber of Commerce, to be classified as a minority-owned business in the United States, the company must be at least 51% owned and operated by one or more non-Caucasian individuals¹. These include Hispanic, African American, Asian American, and Native American entrepreneurs. If you are a female business owner, you can certify your small business regardless of ethnicity.
Get business funding.
Once your small business is up and running, you will probably need an influx of growth capital now and then. As you know, it can be challenging to grow and expand your operations without it. When seeking small business funding, you have several options. These include banks, credit unions, and alternative lenders.
Balboa Capital, a Division of Ameris Bank, is not affiliated with nor endorses the U.S. Chamber of Commerce. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.