Black American entrepreneurs ready to expand beyond solopreneurship have several methods for building a team that breeds real growth and longevity, leading to generational wealth. A team mindset can be the difference between your business dying with you or becoming a cultural landmark, as was the case with trailblazers like Madam C.J. Walker and Janice Bryant Howroyd.
Cake reported that retail and food/restaurants are the top 2 small business industries at 15% and 13%, respectively. These industries need teamwork, but the owner can set things up with a solid vision based on the company mission and culture.
What Goes Into My Startup Preparation?
When you're creating your business plan, get serious about your mission statement. Defining your core values and thinking about communication styles before anyone joins can ensure that you attract the right people and know how to hire them.
As you're putting together a budget, your early entrepreneurship may involve bootstrapping from home. However, strategic future expansion means planning well.
The true cost of hiring involves:
- Salaries
- Taxes
- Insurance
- Software
- Onboarding
You'll eventually need a setup for everyone to work from, so plan to invest in commercial leasing or purchasing.
Don't forget about taxes. Your business tax entity can change based on your company type, often determined by the number of employees. If you run into issues once people are onboarded, IRS payroll tax settlement services can help.
Do you plan to run a fully remote company? That means investing in cloud services with system setup, virtual desktops, and central knowledge hubs.
How Can I Work on My Leadership Development?
After doing the work to get to this point, you have the skill set and education to be a boss, so that means acting like one. The hard part may be transitioning from doing all the work to managing people who'll handle it for you.
Failure to delegate will likely burn you out, or one part of your company will lack. Sit down and think about what your strong suit is and figure out what you need to delegate and how soon.
Regardless of your industry, consider taking a project management course.
It can help you develop the tools to:
- Create projects
- Delegate
- Schedule check-ins
- Give others accountability
What Are Some Team-building Strategies?
As you start your business, audit your daily/weekly tasks to see where your help gaps are. Focus on common areas such as:
- Administrative work
- Operations
- Marketing
- Technology
- Inventory
From here, your business growth strategy can include deciding between freelancers, part-time or full-time employees, or contractors. You may need a mix of these options, or decide on one work status for hires.
Start putting together training documents, so you have standard operating procedures for onboarding.
I Need People for Building a Team: Where Do I Find Them?
Instead of only looking in one area, create a diversified pipeline that may include:
- HBCUs
- Community colleges
- Black professional organizations
- Localized job boards
As you hire more people, you can also establish an incentive-based referral program.
A paid internship program can establish a relationship with one or several local universities. Your company can provide mentorship and create a mutually beneficial pathway from college to direct hiring.
You may support another Black-owned business through your team sourcing. Janice Bryant Howroyd is the founder of ActOne Group, making her the first Black woman to operate a $1 billion business. ActOne may be the first or one of several steps you can take to acquire the right talent.
Additionally, her story is an inspiration in how she grew from a staffing service to pivot to several business needs across 30 countries.
Frequently Asked Questions
What Business Has a 90% Success Rate?
There isn't a single business type with a 90% success rate, but certain ones have higher-than-average survival rates. The common denominator is supplying essential needs and recurring problems that people can't avoid.
These include:
- Laundromats
- Vending machines
- Self Storage
- Funeral services
- Senior Care services
As people live longer and prefer to age in place, expect senior care and home health care services to continue to thrive. Dr. Michelle Rankine owns several Right at Home franchises that have made tens of millions of dollars
Self-storage is often successful thanks to low labor expenses, minimal maintenance, and steady rental income.
When placed in a high-traffic area, vending machines from independent operators are highly reliable with low overhead costs. The Beauty Genie vending machine in Chicago's Union Station is a prime example.
People need clean clothes, making laundromats a good recession-proof business to consider. They often benefit from repeat customers as long as they do a good job with machines doing most of the work.
What Is the Safest Business to Start?
Focus on a service business with a low overhead. Find one that relies on your existing skills instead of expensive physical inventory. It won't be 100% risk-free, but you can minimize financial danger by going this route.
Safe categories include professional consulting or coaching using your expertise. Freelancing and digital services, from writing to web development to social media management, require almost zero startup capital, which you can practice from home or even a coffee shop.
Further minimize your risk by starting a business as a side hustle while working a full-time job. Test your cash flow at this time to determine whether you're ready to make your hustle your main venture.
Avoid signing expensive commercial leases or buying equipment until you have consistent paying clients. Protect your company with business insurance and proper legal protection like an LLC, so your personal assets won't be at risk.
Building a Team May Help Build a Legacy
Becoming a business owner is nothing new for many Black Americans, but many can struggle to expand beyond solopreneurship. Taking strategic steps for building a team can help these strivers grow their generational wealth and the local economy that needs their services.
From signing up for leadership training to creating a mission statement to building relationships with universities and local job boards, you have a better chance of expanding your company and leaving a lasting cultural impact.
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