Main Street MBA

2006-05-07T12:58:00.000-07:00

Hot Industries

If you're thinking of starting a business today, you might think that the only hot industry is the tech industry--software, hardware, web-based applications and VOIP. Well, you'd be right. Well...partially.

Tech is enjoying a renaissance leaving the bad ole dot-bomb days in the dust. There are no shortage of companies and industries exploiting the Internet's capacity for reaching millions of people all over the world.

But, what if you are not a computer programmer, a web developer or a well-connected former employee of Google, Microsoft or Yahoo? Can you still create a successful business? Yes.

Here are a few trends and related business ideas that just might spark your imagination and help you select the right business for you.

A. Technology is sexy and sex sells! If you are adept at tech stuff, you can start your own software firm, social networking site or internet jukebox. But, technology is more than computers, more than software and more than websites. Technology companies have many of the same needs as traditional businesses, namely, staff, office equipment, employee services, administrative services, training and trash collection. So, if you want to do business in a tech-intensive market, explore businesses that support upstart or established companies.

Business Ideas:
1. Event Planner--Techies are notorious partyers--from Friday beer busts to product launch parties. If you know how to throw an out-of-this-world party, or bring the "big names" to see the latest release of a software program, you may have a business. Leading tech firms Intel, Google, Yahoo! and biotech biggie Genentech regularly shell out major bucks to keep their talented staff entertained.

2. Training/Seminar Companies--Techies may be great with computers, but they struggle with human contact. Help their employers by providing management, compliance and "soft skills" to engineers and IT staff.

3. Human Resources and/or Staffing Firms--Talent is the most valuable, and elusive, asset for every business. If you've got a knack for spotting it, or a rolex filled with talented friends, you might consider starting a staffing firm or being a lone contract recruiter specializing in technology industry. If talent scouting isn't your forte, but you can manage the heck out of payroll, employee relations, worker's compensation issues and benefits administration issues, hang a shingle and start your own HR outsourcing firm. Finally, if you're willing to take on the staffing and administrative burdens of a few hundred businesses, consider starting a Professional Employer Organization (PEO). You'll take on all of their employees as your own and they will pay you for the use of the staff and cover the costs of providing benefits and other HR services.

4. Business incubator-- Want first-look at up-and-coming startup businesses? Got a burning desire to help young tech entrepreneurs? Well, if you can provide low-cost office space, shared office services and access to professional services, you may be able to barter lower rents for a piece of the action. And, who knows, if the "Google killer" is one of your tenants, you might be a bizzillionaire when they go public.

5. Technical/Business Writing--Techies make a lot of great products that we mere mortals just don't understand how to use. That is, unless they hire a great technical/business writer to provide content for product packaging, instruction booklets and online help manuals.

6. Liquidators-- Ran out of childhood mementos to sell on eBay? Why not help tech firms get rid of old equipment and furniture and earn a bit of money. Sure, everyone with an eBay account can do this. But, anyone making any money on eBay knows that it takes a bit of management to make any money at it. And, it's all about the stuff! You might also consider live auctions that allow the public online and in your warehouse to bid against one another. You get a commission on everything you sell. They provide the product and pay the fees.

7. Web Communities--I'd be remiss if I didn't mention the hottest tech niche around...Social networking ala MySpace.com and FaceBook.com. If you've been toying around with an idea that you're sure will bring plenty of eyeballs to your website, and get them posting and talking, strike now! Sites that bring in millions of eyeballs are selling for unheard of dollar amounts, even without proving their potential to turn a profit.

B. Anything for Baby Boomers and Active Retirees! Baby Boomers are retiring in droves now, joining the already larger number of active, vital elderly Americans who are relocating, traveling the world, dating, dancing, investing and otherwise consuming.

Business Ideas:
1. Relocation Assistance--Gone are the days when all of the snow birds moved to Florida. Many seniors and Boomers near retirement need help finding their dream community and location. They want beachfront property in Costa Rica and lofts in Manhattan and RV's. You can locate communities that meet their need for recreational activities, assistance, proximity to cultural centers and/or lower cost housing. If you are truly a full-service establishment, you might offer "white glove" moving, packing, unpacking and cleaning services, so that your clients have only to show up at their new place.

2. Investment Services--You've seen the ads from AmeriPrise (AMEX). They are targeting Boomers who are the most properous generation ever. If you are a certified financial planner, or can pass the licensing exams, you might consider shifting your focus to Boomers and/or relocating your office/practice to an active seniors' community.

3. Concierge/Errand Services--Got a wierd love of running errands? Wish you could do more AND get paid? You can. You can provide specialized services such as medical transport and prescription pickup/delivery. Or you can do it all by providing a car service that will take seniors whereever they need to go, shop for gifts, take care of shipping needs, and even offer housekeeping services or meal delivery. Seniors can pay per trip or purchase a package of services via subscription.

4. Travel--Seniors are traveling more than ever! Some require special assistance and low-impact trips, while others want extreme vacations to exotic locales. If you are a world traveler who knows all of THE places to go, and can put together an unforgettable and age-appropriate trip, start a travel agency for seniors. Work with a network of providers to package tours, activities, meals, medical assistance.

5. Leisure/Continuing Education--Seniors and Boomers are going back to school. Some are earning new degrees, but most are taking classes on topics about which they are simply curious. Middle Eastern cooking anyone? Flash Animation? If you are an artist, a mason, a chef or a computer guru, you can offer courses in your specialty area at local colleges, community colleges, community centers and libraries.

C. Defense Contracting--The defense industry has never been hotter thanks to the war, terrorist attacks and immigration concerns. if you are an aircraft or computer engineer, know an inordinate amount about security or counter-terrorism, get a business card and go to work.

Business Ideas:
1. Consulting--If you are retiring or leaving a firm in this field, find out if they, like Boeing, has a program to retain staff as consultants. If not, take a good look around, and take lots of folks to lunch, on your way out. Find the need and fill it as an external consultant.

2. Research--Got a small business? Does your small business have the capacity to conduct lab trials or research on new weapons or technology? If so, you may be able to secure funds from the government or large contractors who want to get a product to market or to the front lines.

3. Equipment wholesale/retail--Does your company manufacture a product that can be adapted for use by soldiers in battle or in the middle of the dessert? Do you manufacture repellants, food rations, communications equipment, armour? If you don't own a manufacturing firm, you might consider becoming a manufacturers rep (an independent contractor) or contracting with manufacturers to be the sole retailer of their products to the defense industry.

4. Start-Up--Have your own amazing product that is specially designed or can be adapted for use by the Defense Department, well the government may fund you. The Department of Defense (DoD) SBIR and STTR programs fund a billion dollars each year in early-stage R&D projects at small technology companies -- projects that serve a DoD need and have commercial applications.
The SBIR Program provides up to $850,000 in early-stage R&D funding directly to small technology companies (or individual entrepreneurs who form a company).
The STTR Program provides up to $850,000 in early-stage R&D funding directly to small companies working cooperatively with researchers at universities and other research institutions.
Small companies retain the intellectual property rights to technologies they develop under these programs.

D. Education--Want to improve the education experience for all of our children, or simply the ones in your community? The education space has never been more competitive due, in great part, to No Child Left Behind legislation and the advent of charter schools.

Business Ideas:
1. Charter school/Faith-Based Schools--You may not grow rich in dollars, but your spirit will be rich. You can certainly earn a living, but the impact that you can have on education in your community will be amazing. So, if you are a licensed teacher, or former school administrator, or just have potential business partners who, you can apply for a charter in your state, write proposals for government and private funding, and start recruiting students.

2. Tutoring/Supplemental Education--No Child Left Behind legislation created an entryway for supplemental service providers into the education industry. Now, companies offering private tutoring, after-school and summer programs and other supplemental educational opportunities can provide their services directly to parents of students in at-risk schools, individual schools, or whole school districts. So, if you developed a can't-fail formula for mastering reading-writing-and 'rithmetic, and you can boil that formula down to a replicable and marketable product, now's the time!

3. Learning Materials--If you are a curriculum designer, or have a potential partner who is, you may be able to capitalize your talents by designing curriculum, classroom materials and activities, and/or supplemental materials that can be marketed to school districts, states, charter and private schools, as well as to parents.

4. Education Camps--Got an idea for a learning experience that will engaged kids and make them want to learn? Plan great, age-appropriate activities for kids, then market your program through schools, parent groups and community organizations as an alternative to a summer spent playing video games. Then, find a community center, or rent your own space, and you've got a summer camp.

5. Education Consultants (Assessment/Evaluation)--Assessments are a controversial topic in the world of education now that students must pass them in order to be promoted to a higher grade or graduate. If you are trained in assessment design and/or evaluation, and can write or validate an assessment, school districts, states, education research and development organizations, nonprofits and test publishers may be willing to pay for your services.

6. Education Management Organizations--A few states are finally beginning to see the wisdom in allowing professional management organizations to manage and operate public schools. Though this trend is slow-moving, it is taking off in the unlikeliest places, in Louisiana, for instance. If you are an accomplished school administrator and can amass a team of education administration and institutional management gurus to help troubled schools improve test scores, and otherwise ensure that students are well-educated and provided for, you may be able to get in on this opportunity.

E. Medicine/Biotech/Pharmaceuticals--Okay, if you aren't a scientist, or researcher, you may think it's a stretch to get into this industry. No worries. There are several ways to break in.

Business Ideas:
1. Marketing/Sales--If you can help market a new drug to doctors, or to potential investors, you can make a mint in this industry. Biotech firms spend billions on R&D and patents, hoping to find, if not a wonder drug, then at least, a saleable one. If you know how to get the word out to the right people, those who will prescribe or recommend the product to patients, or those who will bet a few million on the new product's success, act now!

2. R&D labs--Though most drugs are researched and tested in-house at the big pharmaceutical firms, many are also outsourced to smaller R&D labs for fast-track testing leading to FDA approval or patent-able product. If you currently own a small R&D lab, have a crack team of well-credentialed researchers/scientists, and an impeccable reputation for producing scientifically-sound studies, reports, trials, you can market your firm to large pharmaceutical and biotech firms and make millions of your own.

3. Nurse staffing--There is a great shortage of nurses in the U.S. Hospitals, HMOs, and other organizations in the medical industry are willing to pay salaries heretofore unheard of for RNs and LPNs, so if you are a nurse who would like to contract your services to HMOs, malpractice attorneys, private clinics, insurance companies, hospitals, private companies with on-site clinics or home healthcare and assisted living communities, jump on this cash wagon! Another way to cash in on this opportunity is to source and recruit nurses for these organizations.

F. Environment/Organic/Green--With the success of organic foods and retailers like Whole Foods, there's never been a better time to roll out your special recipe for organic kids' meals, design bio-degradable caskets and packaging, or clothing made of recycled plastic.

Business Ideas:
1. Organic Food--You can go the mass retail route and sell your meals through supermarkets and Wal-Mart, or you can go the foodservice route and offer your items directly to schools, daycares and other organizations servicing children. Finally, you could open a boutique retail shop of your own and offer your creations along with other organic goodies to fussy parents in well-heeled communities.

2. Sales/Marketing--If organic vittles are not your thing, you might consider offering "green" products, or technology, or environmentally-friendly products. Products sporting "good for the environment" or "green" labels are doing especially well in most every market--from constuction (think solar panels) to cars to cleaning products. Consider adding these types of products to your existing line, or starting a business to sell these products to environmentally-conscious consumers.

3. Consulting--Wherever there's a new market trend, there's a need for a consultant. If you are an expert in designing environmentally-friendly processes, systems, buildings or other products, or if you can cook the best organic meals ever and design a menu, there's someone out there who may need you to help them re-design their products or services in order that they be able to sell to consumers who are willing to pay a premium for good products that are good for the environment and/or their health.

Resources:
Charters Schools Development Center: www.csdc.org
Center for Education Reform: www.edreform.com
Organic Trade Association: www.ota.com
California Certified Organic Farmers (a great source of info on the industry): www.ccof.org
Small Business Administration: www.sba.gov
Department of Defense: www.defenselink.mil
Information on Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs: www.sba.gov/sbir/
American Nurses Association: www.nursingworld.org
Event Planning: www.meetings.com/Solutions/dsp_industryAssociations.asp
R&D Magazine: www.rdmag.com
Recruiters Network: www.recruitersnetwork.com
National Association of Physician Recruiters: www.napr.org
National Business Incubation Association: www.nbia.org
Society of Human Resources Management (information on HR outsourcing/consulting): www.shrm.org
National Investor Relations Institute: www.niri.org
Government Grants: www.grants.gov
American Educational Research Association: www.aera.net
US Department of Education/No Child Left Behind: www.ed.gov
Marketing Executives Networking Group: www.mengonline.com
Travel Industry Association: www.tia.org
American Society for Training & Development: www.astd.org
International Association for Continuing Education & Training: www.iacet.org

2006-03-27T00:04:00.000-08:00

WHERE THE MONEY IS
Have you considered factoring lately. Factoring is the process by which a finance company or bank lends you money against your receivables in exchange for approximately 20% of the receivables plus fees. If this sounds steep, it can be. But, factoring can be a viable option if you need money immediately to fill a large order or buy a large amount of equipment. Factoring used to be just a high-cost transactional business, but today's factors provide not only access to much needed capital, but also access to their business contacts and other clients and resources.

Other things you should know about factors generally check the credit of both your business and those with whom you do business to ensure that both of you usually pay your bills and that you will be able to pay forthcoming bills. Factors also review your business financial records, and may want to see your business plan or even your location. Once the factor is satisfied with ability to meet your obligations, s/he will arrange for invoices to come to his/her firm, then s/he will advance you the value of the invoice, less 20% and fees. Then, s/he will collect his/her money once your customer pays the invoice. Some factors may hold back an additional percentage from some invoices.

2006-03-26T23:57:00.000-08:00

Biggest Myth About Starting A Business!

There is FREE money from the government in the form of grants for anyone starting a new business.

The Truth
The government provides business loans through the Small Business Association (See www.sba.gov).
The government provides opportunities to do business with branches of government (Register at ccr.gov).
The government awards contracts and grants for research and other services (see grants.gov)

2006-03-07T23:38:00.000-08:00

A MUST-READ FOR ENTREPRENEURS AND SMALL BUSINESS OWNERS

I just finished one of the most interesting and useful books I've read in a long time! The book is called Alpha Dogs by Donna Fenn. The book profiles several small business owners from different industries across the country. The business owners included the owners of Dorothy Lane Grocery, Harley Davidson franchises, an online auction house and a local bike shop. Fenn visited the businesses to find out about their management practices, customer service approaches, employee training and retention programs and business operations and strategy. Fenn finds that though the business owners and their businesses are very different, they share common traits, practices and focuses. For instance, all of the profiled business owners were focused on providing exceptional customer service and rich employee development programs to woo customers from larger competitors and to attract and retain the best employees. Each of the business owners took calculated risks by making changes in the way they marketed or operated their businesses, resulting in fiercely loyal customers willing to pay a premium for the business' products or services.

The book is a great read, and brief to boot (only 100 or so pages).

Where the Money Is

2006-02-28T11:37:00.000-08:00

February 21, 2006--The Keiretsu Forum, a Bay Area
angel investor group, hosted a meeting of it's
members, invited guests and entrepreneurs seeking
investmentors at the World Trade Club in San
Francisco. Approximately 50 Keiretsu members and
nearly as many guests watched attentively as Colin
Weil,the San Francisco Chapter President, explained
the Keiretsu process, introduced the members and the
companies that would present that day.

Four companies presented their projects: (1)Griffin
Investments, LLC, a real estate investment firm,
(2)Voxilla,Inc., a VOIP telephony hardware vendor,
(3)Data Grid PowerAnalytics, a software provider for
nuclear power plants, and (4)Mobile Content Networks,
Inc., creator of a mobile content search platform.

After each presentation members and guests asked
questions about the financial projections, the
business model, the profitability and the exit
strategies. After all presentations concluded,
presenters and any members involved with the
presenting companies were asked to leave the room so
that the remaining members and guests could discuss
the positive and negative aspects of each
presentations.

Griffin Investments was seeking cash to purchase a
628-unit Corona, CA apartment complex that they will
sell to a condo converter over a 5-year period.
Members and guests seemed troubled with the fact that
the presenter did not address the decline in condo
prices and did not satisfactorily answer the questions
of why they would not simply convert the apartments
themselves and what happens if, after terminating the
leases of paying tenants, no buyer is found for the
condo.

Voxilla fared slightly better. Members were impressed
with their first-mover advantage and $2M in revenue
after only 2 years of operation. Members and guests,
however, were not impressed with the lack of detail in
their plan to enter the e-provisioning market. Voxilla
sought funding to build online tools that configure
VOIP telephones for VOIP service providers. Members
and guests suggested that Voxilla pursue partnerships
with Best Buy or another retailer.

DataGrid found no takers for its plan to sell database
subscriptions to nuclear power plants. Members were
turned off by the fact that neither ESPRI (the
regulating body), nor any of the 508 plants worldwide,
have bought in. They were also worried that the
database's purported purpose, to provide a
nondestructive examination and analysis of the
condition of plant equipment, could create unaddressed
liability.

Finally, Mobile Content Networks lost its fight when
the CEO could not explain the company's valuation,
projections or anticipated market share. The company
would compete with Google, Yahoo, AOL and MSN to
provide search results for mobile content such as
ringtones and music. The CEO valued the company at
$10M with no current revenue, projected revenue of
$136M over an unstated period and anticipated a 35%
market share.

Keiretsu Forum holds these forums based on the number
of projects submitted. Keiretsu is accepting new
members. To qualify you must have earned over $200K
for the past 2 years, or have a net worth of $1M+, be
an accredited investor, or a private business
development company.

2006-02-17T11:58:00.000-08:00

BUSINESS SPEED-DATING
On Tuesday, Feb. 13, the Small Business Association (SBA) held its Western Regional Business Match-Making Event in the Oakland Convention Center. The event is held quarterly at venues across the country. The purpose it to facilitate business meetings (and hopefully contracts and transactions) between small businesses, large businesses and government agencies by providing small businesses face-time with decision-makers from government agencies and large firms, who might never meet between the thousands of cold calls and mailers.

Approximately 160 large firms, including Chevron and HP, were represented at the event. Representatives from the larger firms and government agencies set 15-minute appointments with some of the nearly 600 small businesses in attendance. The appointments were opportunities for the small businesses to sell and demonstrate their products and services, while representatives from larger firms and/or government agencies asked pointed questions about the quality and benefits of those products and services. The moderator kept the appointments, and the event, on schedule by making timely announcements.

Business representatives seemed pleased overall with the event. Though it seemed for different reasons. The small business representatives were thrilled to have the opportunity to reach large firms with whom they dreamed of working; representatives of larger firms were satisfied with the opportunity to further corporate supplier diversity and other business goals.

While attending the Chevron-sponsored luncheon, Hector Baretto, the Bush-appointed Administrator of the SBA, talked about the success of the Business Matchmaking events, an initiative he began prior to his appointment. He told the group that due to great demand for events in cities across the country, there would soon be an online business matchmaking workshop.

Other notable attendees included Oakland Mayor Jerry Brown and Ken Yancy, the CEO of the Senior Corp of Retired Executives (SCORE).

Exceptional Entrepreneur: Donovan Moxey-Giving Back To The Entrepreneurial Community

2006-02-12T01:30:00.000-08:00

Born in the Bahamas, a trained engineer and graduate
of North Carolina State University, Donovan Moxey
recognized the market potential of a lip
synchronization technology for online character
development and co-founded LIPSinc in 1998. Moxey
raised nearly $11M in 3 years.

Moxey enrolled in FastTrac Tech, a program of the
Kauffman Foundation, being offered at CED for the
first time. The course met three hours a night on a
weekly basis for twelve weeks.
Mr. Moxey sits on the board of the Center for
Entrepreneurial Development (CED), which provides
training and resources to other entrepreneurs. Moxey
is an intructor for the CED's FastTrac Tech program,
an adjunct professor in the NC Central University MBA
program, and chairs the CED's Outreach Committee.

If that's not enough, Moxey mentors young
entrepreneurs and is a board member of the Triangle
Community Foundation Entrepreneur Partnership, a
foundation that funds in the community foundations and
nonprofits.

Exceptional Entrepreneur: Don H. Barden, Owner $372M Barden Companies

2006-02-12T01:02:00.000-08:00

Barden Companies, Inc. is one of the nation's largest
African-American businesses. Barden acquired
Fitzgerald's in December 2001 and became the first
African American to wholly own a national casino
company. He previously opened The Majestic Star
Riverboat Casino in Gary, Indiana, making Barden the
first African-American in the U.S. to own a casino.
In so doing, Mr. Barden became the only
African American in the United States to own a casino.

Mr. Barden was born in Detroit, Michigan. His career
spans a 30-year
period, during which he founded a successful real
estate development company,owned and operated a cable
television system in Michigan, and owned and operated
five radio stations in Illinois. He is also active in
the global business arena, having established Barden
International, Inc., in Namibia, Africa, in February
1996. The company, which is engaged in the automotive
processing and distribution business, constitutes one
of the largest private investments in southern Africa.

Mr. Barden will keynote the African-American Chamber
of
Commerce's 2006 Annual Gala, Saturday, March 4, 2006,
at the Wyndham Franklin Plaza in Philadelphia, PA.

Source: PHILADELPHIA, Jan. 30 /PRNewswire/

FAST FACT

2006-02-12T00:31:00.000-08:00

Fewer than 25 U.S. Minority-owned firms generate more
than $500M in revenue

FAST FACT

2006-02-12T00:29:00.000-08:00

Minorities in the United States wield an estimated
$2.6 trillion in purchasing power by 2009.

FAST FACT

2006-02-12T00:26:00.000-08:00

Average Annual Revenue for Black Business with Paid Employees.....$736,000
Average Annual Revenue for Hispanic Business with Paid Employees.....$921,000
Average Annual Revenue for Asian Business with Paid Employees.....$961,000
Source: U.S. Census Bureau

Bush Slashes SBA Budget for 6th Consecutive Year, Says American Small Business League

2006-02-12T00:14:00.000-08:00

Thursday February 9, 8:05 am ET

PETALUMA, Calif., Feb. 9 /PRNewswire/ -- For the 6th
year in a row, President Bush has requested a budget
for the Small Business Administration that further
cuts staff and programs to benefit America's 23
million small businesses. Lawmakers on both sides of
the aisle have criticized the proposal.
Although the $624 million budget request is $31
million more than the initial request for 2006, the
budget is artificially inflated with a sizeable
allocation that was not part of this year's budget.
Taken apart, the operating budget would be $429
million, or 28% less than the initial $593 million for
2006. Moreover, the 2007 request cuts SBA staff by
24%, increases costs to borrowers for future disaster
loans, increases fees for small business loans, and
axes a number of programs including the Microloan and
Microloan Technical Assistance Programs, which serve a
large proportion of minority- and women- owned small
businesses.

Republican Olympia Snowe, chair of the Senate
Committee on Small Business & Entrepreneurship, noted
the SBA budget is only 3/100th of a percent of the
overall Federal budget, but "the SBA and its programs
have a tremendous return on investment." Snowe added,
"This steady decline to the SBA's budget could
jeopardize its ability to provide economic stimulus in
the future."

John Kerry, leading Democrat on the Senate Committee,
had this to say, "While President Bush brags about
government costs going down for the Small Business
Administration, he fails to tell the truth that
slashing Federal resources over the years raises costs
for small business owners."

The current budget cuts are consistent with rumors
that the Bush Administration intends to wind down the
SBA and reduce, if not eliminate, Federal small
business contracting programs.

"The actions of President Bush are in stark contrast
to his rhetoric. Even members of his own party are
upset by these relentless cuts," stated Lloyd Chapman,
President of the American Small Business League. "This
new budget clearly shows Bush's lack of commitment to
the businesses where most Americans work. I expect it
to have a significant negative impact on legitimately
small, women-owned, and minority-owned businesses."

Source: Yahoo News, Posted by The American Small
Business League
Contact:
Lloyd Chapman
lchapman@asbl.com
707-789-9575
http://www.asbl.com

2006-02-12T00:03:00.000-08:00

BCG SAYS MINORITY BUSINESSES IMPORTANT, BUT LACK SCALE, SIZE, CAPABILITIES OF MAJORITY-OWNED FIRMS

2006-02-11T23:48:00.000-08:00

THE NEW AGENDA FOR MINORITY BUSINESS DEVELOPMENT JUNE
2005: A Study Prepared by Boston Consulting Group

SUMMARY OF FINDINGS
Marked and measurable progress has been made in
minority business development since
the authors first examined the topic in depth for the
U.S. Department of Commerce more
than 25 years ago in the reports The New Strategy for
Minority Businesses (1978) and
Minority Business Enterprise Development in the 1980s
(1980).1 The evolution from
nascent to noteworthy however was just the first step
in minority business development.
Taking the next step, moving from presence to
prominence, poses new challenges and
therefore demands a “New Agenda,” with a focus on
growing larger and self-sustaining
minority businesses.

The Gains
Once hobbled by a lack of capital, lack of access to
government and private-sector
market opportunities, and a lack of managerial talent,
minority businesses face a vastly
different reality today. Since the 1980s, with
support from expanded government and
corporate supplier diversity programs as well as other
initiatives, minority firms as a
whole have seen their revenue rise by about 10 percent
annually, have created
23 percent more jobs, and have enjoyed an overall
growth rate three times higher than
that of traditional businesses.

The Gap
Even though the number of minority businesses has
reached unparalleled heights, their
proportion does not yet fully reflect the growing size
and importance of minority
communities in the United States—soon to account for
40 percent of the population.
Fueling the disparity is the fact that minority
businesses are disproportionately
represented in low-growth and no-growth sectors. They
also tend to rely on personal
debt and family financing over business loans, equity,
and other tools that are otherwise
commonly accepted in the capital markets. As a
result, minority businesses often lack the
size, scale, and capabilities of their majority
counterparts.

A shift in mind set is required for:

• Corporations—elevating minority business development
to a higher level in
terms of strategic importance and fostering increased
collaboration between
minority entrepreneurs, consumers and employees
• Government—recognizing the critical importance of
minority business in
economic development and fostering the growth of not
just small businesses, but
those companies of size and scale that are positioned
in growth industries
• Minority Entrepreneurs—growing businesses of size is
the major imperative,
requiring the entrepreneur to use all aspects of
corporate supplier diversity
progress and assume broader leadership roles—in their
communities and on major
corporate boards.

Specifically, to achieve greater size and scale
and expand their capabilities, minority
businesses “community” must proactively close the gap
by:
• Viewing minority business development as a key to
U.S. economic development
• Diversifying or expanding minority businesses to
seize opportunities in growth
industries
• Building capacity and capabilities of minority
businesses to provide more value-
added products and services
• Growing these businesses beyond the “sole
proprietorship” model of business
ownership
• Expanding the use of mergers, acquisitions, and
strategic partnerships
• Fully accessing and deploying the capabilities of
the financial markets for
minority business development
• Aggressively responding to major trends in global
supply chain management.

The good news is that minority entrepreneurs can
indeed close the gap with their
competitors in the broader business community if they
operate innovatively; radically
change the way they think about their business, their
customers, and their competition—
and move aggressively. The bad news is that those
businesses that won’t or don’t make
transformative changes to close the gap will
ultimately fail. The growth rate for these
firms will begin to slow, and a limited number of jobs
will be created within our society.

The Challenge
Closing the gap for minority businesses requires that
all the major players in the field—
large corporations, government officials, major
universities, foundations and of course
minority entrepreneurs themselves—shift their mindset
and their focus to embrace a New
Agenda. Past and current efforts—while successful in
making broad gains—will prove
inadequate in resolving the remaining disparity and in
achieving future progress. Efforts
must be consolidated and resources allocated with
precision to home in on the most
promising and powerful opportunity: building minority
businesses of size.

The overarching conclusion is that only large
minority-owned businesses can create the
kind of explosive and transformative growth that is
needed to invigorate minority
communities, inner-city markets, minority
entrepreneurs and business leaders, and both
the local and national economies.

The Benefits—and the New Opportunities
The New Agenda will be challenging to pursue, but, if
successful, its benefits will accrue
not only to the entrepreneurs who succeed but also to
corporations and society as a
whole. Minority communities will enjoy both stronger
economies as well as a new breed
of leadership—one capable of effecting change in the
community and society at large.

Private-sector corporations will benefit from more
dependable suppliers that are capable
of taking on major opportunities and eventually
fostering minority business programs of
their own. Bolstered, all these businesses will
contribute to the economic development
agenda of government—revitalizing inner-city
communities, expanding the tax base, and
creating new jobs.

Funding Source: BCF Will Lend Up To $750K to Certified Minority Businesses

2006-02-11T23:25:00.000-08:00

The Business Consortium Fund, Inc. (BCF) is a minority
business development company created by the National
Minority Supplier Development Council.

The BCF provides contract financing to NMSDC certified
minority businesses across America through a network
of local participating banks and NMSDC affiliates.
The BCF is funded through several sources including
corporations, state governments and foundations.

Purpose:
The Business Consortium Fund, Inc. (BCF) is the
non-profit financial services program that provides
access to capital exclusively to NMSDC certified
ethnic minority-owned businesses which have
supplier/vendor relationships with NMSDC national and
regional corporate members and are experiencing
difficulty obtaining financing though conventional
channels on reasonable terms. Specific contracts
and/or purchase orders are not required to obtain a
BCF loan.

BCF Loan Guaranty/Loan Participation Program (LGPP)
A wide range of debt financing products are available
though the BCF’s Loan Guaranty/Loan Participation
Program (LGPP) including contract/purchase order
financing, working capital, inventory, intermediate
term, and equipment loans. LGPP loans are made by
lenders subject to the BCF’s guarantee or
participation and final approval.

The total amount of a LGPP loan is determined by the
participating lender; however, the BCF’s maximum
exposure may not exceed $750,000 in a participation
loan, or $562,500 on a guaranteed loan.

Specialized Financing
The BCF also provides access to specialized loan
programs and products through strategic alliances with
other national financial services firms including
equipment leasing, commercial and government accounts
receivable, commercial real estate, and franchise
financing.

Long-Term Debt/Equity Financing
Long-term debt and equity type financing is available
through Triad Capital Corporation, the BCF’s
wholly-owned federally licensed Specialized Small
Business Investment Company (SSBIC).

For More Information:

Business Consortium Fund, Inc. (BCF)
305 Seventh Avenue, 20th Floor
New York, New York 10001
Telephone: (212) 243-7360
Fax: (212) 243-7647
www.bcfcapital.com

Grants Available to Local Hispanic Chambers

2006-02-11T22:49:00.000-08:00

The United States Hispanic Chamber of Commerce (USHCC)
Foundation is now accepting proposals for technology
and small business incubation project grants from
local USHCC-affiliated Hispanic Chambers of Commerce.
The grant program, which is being funded by the AT&T
Foundation, the philanthropic arm of AT&T Inc., is
designed to provide technology infrastructure
resources necessary for small, start-up businesses to
get off the ground by eliminating initial
technology-related overhead expenses. Incubation
projects will provide resources such as computers,
access to the Internet, office space, business-related
services, and a network of contacts.
In light of the extraordinary circumstances caused by
Hurricane Katrina, an initial grant has already been
given to the Hispanic Chamber of Commerce of
Louisiana. There are now 19 available grants, each
having a value of up to $20,000. Each chamber will
work with the USHCC Foundation to implement, manage,
and sustain the projects and begin to grow businesses
that will be able to contribute to the economic
stability, growth, and success of the chosen
communities. Grant recipients will be announced on
April 28, 2006. For more information, visit www.ushccfoundation.org.

Business Matchmaking Events Set for 2006

2006-02-11T22:45:00.000-08:00

The U.S. Small Business Administration (SBA),
SCORE-Counselors to America's Small Business, and HP
have announced plans for the continuation of the
Business Matchmaking initiative for 2006. Business
Matchmaking, co-sponsored by the SBA, SCORE, and HP,
matches small businesses with buyers from the
corporate sector as well as local, state, and federal
governments. Since its inception in 2003, Business
Matchmaking has, through regional events held all
across the country, generated more than 36,000
one-on-one appointments resulting in more than $37
million in contracting opportunities for small
businesses. Four regional Business Matchmaking events
are planned for 2006. The kickoff will take place on
February 13 in Oakland, California, followed by events
in Houston (August 2), Philadelphia (September 22),
and Miami (November 16).
A new feature to the initiative, called the Business
Matchmaking Online Network, was also recently
launched. This dynamic online resource will offer
web-based educational tools including the Virtual
Business Matchmaking Workshop, monthly "webinars"
featuring procurement and supplier diversity experts,
access to important downloads of articles, and links
to helpful resources. Complete details on Business
Matchmaking, including the 2006 schedule and the new
Online Network, may be found at www.businessmatchmaking.com.

Web Resources for Minority-Owned Businesses

2006-02-11T22:40:00.000-08:00

Federal Opportunities
www.va.gov/osdbu/links/fedops.htm
American Association of Minority Businesses
http://www.website1.com/aamb/
Asian American Network
http://www.aan.net/home_d.htm
Hispanic Association on Corporate Responsibility
http://www.hacr.org
International Franchise Association
http://www.franchise.org/
LatinExpo/Latinoamerican en internet
http://www.latinexpo.com/
National Association of Minority Contractors
http://www.namconline.org/
National Association of Purchasing Management
http://www.napm.org/
National Association of Purchasing Management -
Silicon Valley
http://www.catalog.com/napmsv/
National Business Incubation Assocation
http://www.nbia.org/
National Internet Community of Hispanic Entrepreneurs
Network
http://www.matrixes.com/niche/nichenet.htm
U.S. Hispanic Chamber of Commerce
http://www.ushcc.com/
U.S. Department of Commerce Minority Business
Development Agency
http://www.mbda.gov/

Minority Business Entrepreneur Magazine Home Page
http://www.mbemag.com/
Minority Bank Deposit Program
http://www.fms.treas.gov/mbdp/
MBN Global
http://www.mbnglobal.com/
TRY US Resources Inc.
http://www.tryusdir.com/
Food Marketing Institute
http://www.fmi.org/
The World Wide Minority Business Network Site
http://www.mbnet.com/
Council for Economic and Business Opportunity, Inc.
http://www.cebo.com/
1997 Economic Census: Surveys of Minority- and
Women-Owned Business Enterprises
http://www.census.gov/csd/mwb/

Minority On-Line Information Service (MOLIS)
http://www.rams-fie.com/

Small-business owners make investments for the year ahead; housing market continues to cool.

2006-02-11T22:30:00.000-08:00

Small-business owners make investments for the year
ahead; housing market continues to cool.

Jan. 27, 2006--With the pace of growth slowing,
business owners took time to invest in new equipment
in December, preparing for an expectedly busy start to
the new year. Heres a look at this weeks economic
developments and how they may impact your business.

Growth Spurt Ahead

A forward-looking report from the Commerce Board on
Monday was upbeat about near-term economic growth --
closely reflecting the guarded optimism of small
businesses in recent months.

The private national research groups monthly Index of
Leading Indicators, based on a gauge of 10 key
economic indicators, rose 0.1% in December to 138.5,
following a 0.9% increase in November.

Six of 10 leading index components made gains in
December, led by consumer expectations, real money
supply, stock process, average weekly initial jobless
claims, and new orders for consumer goods, the board
reported. Vendor performance, building permits, and
average weekly manufacturing hours were among the
components seeing declines, the report showed.

The boards Coincidence Index, which measures current
economic activity, also made gains in December --
rising 0.2% to 121.1, after a 0.4% gain in November.
Industrial production, employees on nonfarm payrolls,
and manufacturing and trade sales were stronger, while
personal income held steady, the index showed.

December marked the third consecutive month of gains
in the leading index, boosting its six-month average
growth rate to 2.1%, compared to just 0.6% in May. The
index shot up rapidly from mid-2003 to mid-2004, when
it began fluctuating within a range of more moderate
gains up until the end of last year.

The latest figures likely signaled a spurt of growth
this spring, followed by slower gains later in the
year, Conference Board researchers said.

Orders Up

An early indication of near-term growth came Thursday,
with the Commerce Department reporting a $2.8 billion
upswing in factory orders for durable goods in
December, led by sudden demand for business equipment.

Overall, durable-goods orders jumped 1.3% in December
to $228.1 billion, after a 5.4% increase in November,
the department reported. Half of the gains, a full
$1.9 billion, came from business and corporate
spending on new machinery and equipment, the report
showed -- the sharpest monthly increase in over a
decade.

Shipments of manufactured durable goods -- such as
machinery, computers, and appliances -- were also on
the rise in December, by 3.5% to $221.1 billion, the
report showed.

Housing Market Still Cooling

Continuing a recent downward trend in the housing
sector, existing-home sales plunged by 5.7% to an
annual pace of 6.6 million, compared to 7 million in
November, the National Association of Realtors
reported Wednesday.

The national median price for existing homes was
$211,000 in December, a 10.5% increase from the
previous year, the report showed.

With home sales already in decline, prices are
expected to follow suit, according to association
president Thomas Stevens. Were coming off of five
years of tight supply, and many sellers are accustomed
to expecting very strong price gains and exceptional
returns on their investment, Stevens said in a
statement. With the supply of homes improving and
buyers having more choices, the rate of price growth
should come down to more normal levels this year.

Jobless Claims Rise

First-time claims for unemployment insurance rose to
283,000 in the week ending Jan. 21, an increase of
11,000 from the previous week, the Department of Labor
reported Thursday. The highest rate of first-time
jobless claims was in Alaska, followed by Michigan,
Puerto Rico, and Mississippi, the department said.

2006-02-10T11:19:00.000-08:00

Minority business owners (Ethnic minorities) are arguably the most underutilized segment of the American marketplace. They are least likely to be awarded lucrative contracts from the government or large corporations, least likely to be tapped as partners in business alliances, least likely to be engaged as research partners or beta organizations, least likely to be adequately funded and least likely to be valuated adequately by potential investors.

That said, minority business owners are more likely to start new enterprises, more likely to lease or purchase real estate when starting a new venture, most likely to locate their businesses in areas in need of development/investment, most likely to employ minority managers and staff from the communitiies in which they operate and most likely to purchase products targeted at business-minded consumers (business-related software, computer peripherals, business how-to guides) and most likely to create a tax base for underdeveloped areas by moving their homes and businesses into those communities.

When I say that they are underutilized I mean that minority businesses have the potential to be pivotal to the success of our nation's economy, if only there was greater investment in their viability. What I am suggesting is not "business welfare", but a genuine commitment to ensure that current resources provided by Federal and state government agencies, or by agencies funded by the government, are the absolute best quality, most relevant, most appropriate and most accessible. And, that corporations that establish diversity supplier programs and diversity initiatives be held to "results-based" standards (what are the results, not the efforts?). If our government and organizations targeting minority communities are to be allowed to reap the benefits (PR, brand, revenue, "Best Places to Work"), then there must be an assurance that they are delivering more than websites featuring Latinas or South Africans, more than just glossy brochures and self-serving promotional events. They must validly and reliably deliver equitable opportunity.

I want to ensure that no one believes that minority businesses are charity cases of any kind; they are the backbone of our economy. Minority businesses employ more minorities, drive down unemployment, increase the number of wage-earners, consumers and tax payers in a community and add over $700 billion per year to the U.S. economy.

What you will see on Mainstreet MBA in the coming months is business owner profiles, commentary, news, resources and of course, critiques of resources, all around the subject of minority businesses.

The goal of the Main Street MBA blog is to be the resource of choice for minority business owners and those who serve and ally with them.