What will it take for us blacks to focus our spending on black business's?
Any suggestions?
Imagine the media frenzy if we managed to not spend a penny on anything (yes gas!)for an entire week. Not to mention the knee buckle the NY exchange would experience.

quote:

Originally posted by Brown:
What will it take for us blacks to focus our spending on black business's?
Any suggestions?
Imagine the media frenzy if we managed to not spend a penny on anything (yes gas!)for an entire week. Not to mention the knee buckle the NY exchange would experience.

I don’t know what it will take. I think that we as Black people should stop being so indifferent and make a concerted effort to hunt down Black businesses in the community to patronize. And not only that, we have to spread the word.

It will take better black businesses.

Good Afternoon Mr. Brown:

How do you currently locate the Black businesses in your area?

I'd be stuck on the side of the road by the time I found a Black-owned gas station.

It will take a concerted "handshake" between the Black consumer and the Black Business.

The Black consumer has to be dedicated enough to seek out, patronize, and encourage other to patronize Black businesses.

The Black business (owner) has to have quality that matches or exceed his majority-culture counterparts, and not think (or utilize people who think) Black folk are doing him/her a favor by darkening his workplace doorstep.

quote:

Originally posted by ATPWordPro:
Good Afternoon Mr. Brown:

How do you currently locate the Black businesses in your area?

I'd be stuck on the side of the road by the time I found a Black-owned gas station.

I assume many cities have "Black Pages" directories? Also, often Black churches, and other organizations (fraternities/sororities) know and utilize Black vendors.

...or simply find MLK Blvd. In most major American cities, that's as good a start as any.

quote:

The Black business (owner) has to have quality that matches or exceed his majority-culture counterparts, and not think (or utilize people who think) Black folk are doing him/her a favor by darkening his workplace doorstep.

If they do this, they won't have to have a handshake with the black consumer.

When I teach my business class I talk about the fallacy of the concept of buying black. In any business it is the responsibility of the business owner to understand the market they are attempting to serve and be able to execute. If they can't do that they don't belong in business.

Case Study: One of the businesses I helped put in business was a deli on the near north side (the black side) of Omaha. They were located right between downtown (mostly white) and the black side. The intent of this business was to demonstrate minority business success and capture dollars from both the black market and white market.

As time went on, they were frusterated because they couldn't get any black customers. During this time I had one of my staff members do a consulting analysis of their business. They didn't listen to the recommendations. Of their clientele 98% of them were white even though they were tangental to a 70% black area.

The point being this, blacks have no obligation to buy from a black owned business. The black owned business has an obligation to served the black market if that is their targeted market.

What was keeping this business from attracting the market was very simply, price. They were charging $6 per sandwhich, $10 per meal. The business was located next to a McDonalds, a Subway, and a Chinese place, all with meals averaging less than $6 per complete meal. The black area was a poor area and therefore many blacks even though they wanted to support a black owned business weren't willing to cough up additional disposable income to do so.

The recommendations that my consultant made were reduce cost, create a value meal, and bring the pricing more in line with the competition. If they would have done this, and advertised to the black community they would have secured more of the black dollar.

The business has the obligation to the consumer not the other way around.

People kill me with the black buisness aint good enough line. Come on, just because you go to a black business and its not up to par, go to another dont cast black businesses away. You have to support them so that they can compete with the Asian, who runs our community. We dont not support them. Nails, hair, hair care products weave, carryout, you name it we go to the Asians for it and most of these places dont even have the decency to sweep the dam floor. Everytime i go by a carrout it looks like an ally but its full of nobody but black people. Get real, there plently of good black business out there , find them!!!

quote:

Originally posted by Dell Gines:

quote:

The Black business (owner) has to have quality that matches or exceed his majority-culture counterparts, and not think (or utilize people who think) Black folk are doing him/her a favor by darkening his workplace doorstep.

If they do this, they won't have to have a handshake with the black consumer.

When I teach my business class I talk about the fallacy of the concept of buying black. In any business it is the responsibility of the business owner to understand the market they are attempting to serve and be able to execute. If they can't do that they don't belong in business.

Case Study: One of the businesses I helped put in business was a deli on the near north side (the black side) of Omaha. They were located right between downtown (mostly white) and the black side. The intent of this business was to demonstrate minority business success and capture dollars from both the black market and white market.

As time went on, they were frusterated because they couldn't get any black customers. During this time I had one of my staff members do a consulting analysis of their business. They didn't listen to the recommendations. Of their clientele 98% of them were white even though they were tangental to a 70% black area.

The point being this, blacks have no obligation to buy from a black owned business. The black owned business has an obligation to served the black market if that is their targeted market.

What was keeping this business from attracting the market was very simply, price. They were charging $6 per sandwhich, $10 per meal. The business was located next to a McDonalds, a Subway, and a Chinese place, all with meals averaging less than $6 per complete meal. The black area was a poor area and therefore many blacks even though they wanted to support a black owned business weren't willing to cough up additional disposable income to do so.

The recommendations that my consultant made were reduce cost, create a value meal, and bring the pricing more in line with the competition. If they would have done this, and advertised to the black community they would have secured more of the black dollar.

The business has the obligation to the consumer not the other way around.

In a pure economics sense, you may be right, Dell.

But the thread topic was "Securing the Black Dollar" which suggests an implied desire on the part of the consumer to do all he/she can to patronize Black Businesses. As such, I will try to help Black businesses; but they have to help themselves.

But, then, I'll support any business that treats me fairly.

quote:

Originally posted by TruthSeeker:

quote:

Originally posted by ATPWordPro:
Good Afternoon Mr. Brown:

How do you currently locate the Black businesses in your area?

I'd be stuck on the side of the road by the time I found a Black-owned gas station.

I assume many cities have "Black Pages" directories? Also, often Black churches, and other organizations (fraternities/sororities) know and utilize Black vendors.

...or simply find MLK Blvd. In most major American cities, that's as good a start as any.

Unfortunately, they don't. ==> http://africanamerica.org/eve/forums/a/tpc/f/47970854/m/9811084144

But, if I can pull it off, Houston will. An electronic one anyway.

There is an MLK here, kind of out of my way though. That'll have to be a Saturday exploratory trip.

quote:

Originally posted by ATPWordPro:
Good Afternoon Mr. Brown:

How do you currently locate the Black businesses in your area?

I'd be stuck on the side of the road by the time I found a Black-owned gas station.

Good evening. I live in Atlanta so it's really not hard.
I run into people all the time trying to market themselves or their business.

While we may not be as diverse in the business community as we'd like, we can always start somewhere.

We can start by drawing up a plan/vision of what we as blacks want to see. Then once we agree on the final draft, we can begin a grassroots campaign to get as many people to sign up as possible (naacp, black churces, pta's, malls, entertainers, ect...)

Then we have established a network where ppl who want to become business owners have a 'virtual' resource center and a tight network of individuals willing to help.

If anyone's interested, I can send you a summary of a similar proposal I had written up a few years back I wanted to shop around to black churches in Atlanta.

quote:

Originally posted by Dell Gines:
It will take better black businesses.

quote:

Originally posted by TruthSeeker:
I assume many cities have "Black Pages" directories?

Nope, not anymore. But I think that that would be the best source of getting the name and location of Black businesses into Black consumers hands!!

quote:

Originally posted by ATPWordPro:
There is an MLK here, kind of out of my way though. That'll have to be a Saturday exploratory trip.

You might wanna come pick me up first!! I don't think you should go alone.

Ha! Why am I getting spanked Ebony!

I will tell you all what...I am finishing my summer research topic, how is this for the question:

How to you create indigenous African American business growth in a highly urban low income environment.

I am going to write a series of articles for our local black newspaper and in support of Omaha 2020 which is a goal to secure $50Million in investment dollars for black businesses by the year 2020 here in Omaha.

When I am finished I will post them in here so we can have some good conversation.

If you really want to secure the black dollar, you will do exactly what I said. You will create better black businesses.

Our businesses fail at a significantly higher rate, work with much less capital, and do a terrible job of assessing market and penetrating market as a general rule.

So if you want to SECURE the black dollar, you create better black businesses. For example, we talk about the inroads Korean and other ethnic groups have made with businesses in our hoods. Why? They do it because they have a product at a reasonable price that the market demands and that have capital and networks of support that allow them to outlast competition.

If you start by saying the black consumer needs to find the black business it is like saying you need to build a pyramid starting from the top down. Since integration we don't have insulation and buffers from external competition, nor barriers to entry due to language. This means that we have to do business traditionally, which means outcompete other businesses.

To do that means you have to have better black businesses to secure the black dollar.

In my opinion, I would rather have all black folks who were worrying about finding a black business to shop at put the same amount into a capital investment fund to create new entrepreneurs and to help existing entrepreneurs grow and become better.

quote:

Originally posted by Dell Gines:

So if you want to SECURE the black dollar, you create better black businesses. For example, we talk about the inroads Korean and other ethnic groups have made with businesses in our hoods. Why? They do it because they have a product at a reasonable price that the market demands and that have capital and networks of support that allow them to outlast competition.

Dell, how are they doing this? Better suppliers, cheaper labor? Like in your $10/meal vs. $6/meal example, how are they charging $4 less?

In my opinion, I would rather have all black folks who were worrying about finding a black business to shop at put the same amount into a capital investment fund to create new entrepreneurs and to help existing entrepreneurs grow and become better.

ATP sets out her virtual "Ducket Bucket".

Well, Dell ... you get spanked because #1 what you said was rude! And #2, because there are plenty of good Black businesses offering excellent quality service that are not adequately supported simply because people don't know where they are!

It took just short of an act of God to convince my Dad that he didn't need to be outside cutting his grass in this 90-degree Texas heat. We first hired the Black lawn service that cut the grass next door. He accidentally whacked off the top of one of my Dad's favorite plant. He was fired. My nephew sent over his Hispanic gardeners. They did an excellent job ... but I fired them too, in order to hire the Black man who lives the next street over. Not only is his work impeccable, but he and my dad share "green thumb" stories that have helped both of them become better at what they do!

I drive 25 miles from my home to support the Shrine of the Black Madonna bookstore for the same books I can get at Wal-Mart. I've never seen an advertisement for them ... but that doesn't stop me from going to an excellent resource for my reading pleasure.

My "fix-it" guy fixes whatever goes wrong in mine, my 2 nephews, my brother and sister's house! We've yet to have anything need to be re-fixed, just because a black business takes care of it.

Now, what you've said is all well and good and duly noted! There are plenty of Black businesses out here that need help and can definitely be made better. We do not have a history of business ownership as many others do, and our lack of knowledge in that area, I will not argue against.

But ... as it relates to securing the Black dollar ... the solution is to keep it in the community. A better circulation of our dollars within our own communities will help us to learn to be better business people. It will give us the ability to grow and be able to become more competitive. We will want to learn more about how to overcome the obstacles to developing our businesses up to the same level as others.

Securing the black dollar means not putting it into White (or any other) hands.

This message has been edited. Last edited by: EbonyRose,

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BLACK by NATURE, PROUD by CHOICE.
Before there was ANY history, there was BLACK history.

BUY BLACK!!!

The first time I have gotten spanked in years!

Ebony, I would argue that a business is not a good business if they can't "get" enough people to know that they can offer quality service.

Marketing IS an inseperable function of business. It can not be seperated from the business process. You cannot hear that which makes no noise.

Right now I am teaching two classes, a business plan class, and an intro to small business class. 80% of my classes are black from low income backgrounds who want to open businesses in the hood.

In each I hammer in one key principle and that is marketing. I beat them up on A) the need to know what the market is and what the market wants, and B) how to capture that market. I give them the same 'black owned business' speech I made above. That you cannot expect blacks to buy from you because you are black. You need to create a product and capture the black market if you want blacks to support you.

YOU ARE NOT A GOOD BUSINESS OWNER IF YOU DON'T KNOW HOW TO MARKET YOUR PRODUCT OR SERVICE.

Some businesses can be successful because they are small enough that word of mouth gives them the limited number of customers they need to sustain their lifestyle and they aren't ambitious enough to grow it beyond that point. Most business are not successful if they don't know how to market. In either case it is wrong to burden the consumer with the failure of the business. Because most of us DO NOT have the level of disposable income that other groups have, it is also grossely unfair to burden us, the black consumer with paying the additional cost of supporting a black owned business that charges 15% to 25% more. Now if all things are equal, then yes I say buy black. For example, I only buy books at the African American bookstore. When I want a sit down meal, I make it a point to eat at a black owned cafe 75% of the time or so. But that is because they are competitive or reasonably so with alternative choices, and / or they offer niche market products that I can't get anywhere else.

I have worked with over 400 business owners, and trained or consulted over 100 more would be and beginning business owners. 75% of them are black. I have been with some from the beginning, as they started and watched them grow, and others I have helped get funded. I have also seen them fail and had to be sad as they were sad when they shut their doors. Trust me, it ain't fun.

50% of all new business fail in the first year, 90% plus fail by three years. The black failure rate is higher.

If we work to create better black businesses, keeping the black dollar with black businesses will naturally result. It is just the way it works. In buy black campaigns you can always get some limited participation but you will never get the long term economic impacts that you are really trying to create, which are the circulation of the black dollar, the creation of more black jobs, and the overall wealth generation that comes from business ownership.

quote:

Dell, how are they doing this? Better suppliers, cheaper labor? Like in your $10/meal vs. $6/meal example, how are they charging $4 less?

ATP most of the time they leverage their good credit and cash that they bring into the business to get better purchasing options from their supplier. In addition, they manage employee wages and inventory.

It is my belief that we could easily push them out of the market if we simply did the things they do just as well as them. In spite of what most people think, black people are more likely to buy products from blacks if all other factors are equal, IE cost, product selection, service, location factors.

Our critical problem as black entrepreneurs collectively is A) lack of capitalization, and B) lack of entrepreneurial education, both formal and informal.

quote:

Originally posted by Dell Gines:
If we work to create better black businesses, keeping the black dollar with black businesses will naturally result. It is just the way it works. In buy black campaigns you can always get some limited participation but you will never get the long term economic impacts that you are really trying to create, which are the circulation of the black dollar, the creation of more black jobs, and the overall wealth generation that comes from business ownership.

There is not enough incentive for blacks to patronize only black business.
Create more incentives like a precentage of profit supports local education and healthcare, and watch not only blacks flock but minoritys.

quote:

Originally posted by ZAKAR:
People kill me with the black buisness aint good enough line. Come on, just because you go to a black business and its not up to par, go to another dont cast black businesses away. You have to support them so that they can compete with the Asian, who runs our community. We dont not support them. Nails, hair, hair care products weave, carryout, you name it we go to the Asians for it and most of these places dont even have the decency to sweep the dam floor. Everytime i go by a carrout it looks like an ally but its full of nobody but black people. Get real, there plently of good black business out there , find them!!!

I hear you. If you think about it, how many times have you received bad service at a particular white business and went back to them anyway? Black people return to white, Asian and other stores that provide less than acceptable customer service all the time, but with Black businesses it’s like `one strike and you’re out. I remember recently that there was this local bar that wouldn’t let Blacks in if they had locs and braids. Black folks were protesting so they could get in to the establishment. Hell, if they don’t want my business, I would go somewhere else that did. We have to learn to forgive and work with each other. We have to support Black businesses so that they can become as good as some of their non-Black counterparts. We can’t give up on each other.

quote:

Originally posted by Brown:
There is not enough incentive for blacks to patronize only black business.

Beyond your own opinion, do you have any proof of this statement?

In this very thread, you've heard of people who go out of their way to patronize Black businesses. People do or don't do things for a wide variety of reasons.