FROM THE WINGCOM LTD VAULT: Business diversity

GMSDC memberships were checked by Ly Eldridge at luncheon

Exploding ethnic population signals great opportunity for Georgia’s minority suppliers  Written by Tomi Morris Johnson.  Photos by Kurk Johnson   ©2002 WingcomLtd. All Rights Reserved. tomij@wingcomltd.com

Atlanta, GA…The Georgia Minority Supplier Development Council (GMSDC) is a small business-networking friend.  Despite the economic devastation the country experienced in 2001, there is new energy, a committed people, renewed confidence, ambitious and heightened goals, and cause for celebration for organization members. 

 

The Georgia group, which is an affiliate of the National Minority Supplier Development Council (NMSDC), has this statement posted on its website: “…we recognize the role and plight of minority businesses in Georgia and nationwide. We are committed to leveling the playing field by creating links to progressive business opportunities through relationships, exposure, resources, and education.

At its three hour Business Opportunity Luncheon heldFebruary 26, 2002 at Maggiano's Little Italy in affluent Buckhead, the Invocation included The Prayer of Jabez, asking for new territory and marketing niches. Business people in Georgia are continuing to identify opportunities in an atmosphere of fellowship, vowing to make things happen.

 

	“GMSDC is an organization that certifies minority businesses and provides them a networking opportunity with corporate America,” said Executive Director George Lottier. In a response to a question about the recession affecting business, he said, “Minority businesses are use to having down times, so it’s not something unusual for them.  We have 160 registered luncheon guests here today, which is up from 100 participants at our last luncheon which tells us that the economy must be pretty good. A down economy makes small business people more aggressive. They can turn a lot quicker on decisions than corporate America can. They can change their pricing structure and the way they approach people.”
James “JW” Waudby, GMSDC membership committee member, (l) takes photo op with George Lottier, executive director of GMSDC.
“These kinds of networking events are important because you meet new clients and have opportunities to become a sub-vendor for someone,” said Kim Gaskins, E-Staffing Solutions Group, Inc. (ESSGI)   “With the economy the way it is, this is extremely critical.”   Moreover, with people moving away from Atlanta because of quality of life issues, how will business in Georgia be impacted?  “I think it will affect us long-term if we lose a lot of people.  I also think that what goes up sky high must come down, and with the bottom falling out of the Dot.com industry, some people leaving Atlanta will be natural attrition. We’ll probably level out. As long as there’s opportunity, we will be able to bring people into Atlanta.  It’s one of the biggest transient cities in the world.”
		(L to R) Kim Gaskins, E-Staffing Solutions Group, Inc. (ESSGI) and Daryl Fox, Regional VP, ACT 1, Technical & Professional Services exchange business cards during luncheon.

 

Although IT contracts seem to have fallen through the basement, there still is a client base and need for services.  “We’re seeing less requirements, and there definitely is a challenge as far as competition, but actually we’re doing very well,” said Daryl Fox, Regional VP, ACT 1, Technical & Professional Services. “We have to stay positive.”  

 

Originally from San Juan, Puerto Rico, Oscar A. Vazquez-Ortiz, Senior VP, Superior Design International, Inc. (SDI) finds Georgia a great place to do business.  SDI is a full service staffing and business solutions organization. “I’ve been here five years, and the growth has been incredible. There’s a lot of opportunity, both for business people and employees who want to find jobs.”           In order for a company to find its niche, either in Atlanta or internationally, networking is critical. “You have got to do what we’re doing here today,” Vazquez-Ortiz said. “You have to join organizations like GMSDC, The Hispanic Chamber of Commerce, etc. That’s where you are going to meet the people who will open the doors for you.  It’s very hard to do it any other way.”

Table 14:  (L to R) Oscar A. Vazquez-Ortiz, Senior VP, Superior Design International, Inc.; Elisa Wells, CIC, ARM, Riskmasters; Tomi Johnson, WingcomLtd; Ralph R. Robinson, Robinson Enterprises International, Nea A. Simone, VP Marketing, SL King & Associates, Inc.

S. T. Peden, Minority Supplier Diversity Leader with GE Power Systems, attended the luncheon to identify vendors who could provide over $20B in equipment and services to his electric utility company. Fortune Magazine announced in February 2002 that GE Power Systems is "America's most admired company," according to a survey of the country's leading business men and women. The company has won the honor five years in a row.

 

Sandeep Gauba, President & CEO, Metasys Technologies, Inc.; Aravind Goli, VP Marketing,

International Technology Solutions, Inc.; Bob Cipriano, GE Power Systems; Brian Robbins,

GE Power Systems discuss possible business opportunities.

 

 “We’re looking for manufacturing firms and will be spending 85% of our funds on direct materials.  Other areas are metal machining, fabrication and logistics. Our number one need is IT services.  Even though there are millions of IT firms, we need to screen firms to make sure they can do business with a global company.”  

 

Attendees were updated on Georgia’s economic demographics in a speech by Debra Duchon, Applied Culture Research Project, Georgia State University.  She announced there are profound populations changes occurring: Hispanic population up from 24,000 in 1980 to 268,000 in 2000.  The Asian population has increased from 13,909 to 150,000 during the same period.  

            

 

“Ethnicity is exploding in Georgia…the whole state is changing,” Duchon added.  Areas affected include Dalton, Rome and Gainesville; the whole I75 corridor; the Vidalia onion belt; and Cobb, Cherokee, and Whitfield counties. Kurdish refugees who came to Georgia after the Gulf War have been accompanied by people from Somalia, Russia, and Bosnia. There is a need for service organizations to sponsor these newcomers in the way of health care, lodging, and education. “Bosnians are starting businesses rapidly, and Nigerians are very commerce minded,” Duchon said.

 

“Ethnicity is exploding in Georgia,” said luncheon speaker Debra Duchon.

 

 

 

 

 

 

 

Cecil Moore, Director of Contractor Compliance for Atlanta Public Schools, was another speaker who instructed attendees on the demographics of students and Atlanta’s need for vendors.  “Although schools in Atlanta are down from 200 to 97, we have a $516m budget, one of the largest in the country,” Moore said.  “Our 57,000 students speak 50 different languages. Eighty percent are on free or reduced lunch. Our buses carry 33,000 children daily.  Our goal is to have the best urban school system within five years.”  

 

Moore said material needs will increase along with staffing services, opening the doors for minority vendors. $120m or 26% of spending went to minority firms last year, and it was projected that this year’s spending with minority vendors could reach 32%. He said the intense bidding bureaucracy of the public sector which issues boilerplate documents deemed “standard stuff” should not frighten off small businesspeople.   

 

Cecil S. Moore, Director, Office of Contract Compliance, Atlanta Public Schools, was a featured speaker.

 

Vendors who spend a lot of time and money on the process and negotiation needed to win bids are sometimes discouraged when projects lose funding. Moore urged business professionals to meet with purchasing agents and request conferences to answer questions.  Moore also requested that business people help the schools and themselves by joining mentoring programs such as Junior Achievement, becoming positive role models, and sponsoring scholarships.

 

 

 

 

 

 

 

Dino Sims, Engenius Consulting Group, poses with Sandra Y. Adams, CEO, Computer Mainstream Corporation.	Jenell McCrory, Karen Mills, Mike Toye, and Regina Teasley discuss transportation services.

 

To learn more about GMSDC, go to the organization’s website at: http://www.gmsdc.org.

This information is the opinion of the author and, therefore, should not be construed as libelous.

FROM THE WINGCOM LTD VAULT: It's all about the Benjamins!

 It’s all about the Benjamin$:

Springboard forum raises ownership vs. equity questions 

by Tomi Morris Johnson

tomij@wingcomltd.com

©2002 WingcomLtd. All Rights Reserved. 

 

March 15, 2002…To grow a successful business, owners often take on investors.  How much ownership should be forfeited in order to secure financing, however, is a delicate issue requiring well-informed, decision-making skills and networking alliances. Another sensitive, hot button is the definition of “minority or women owned” business if the investors are white males.  So said Amy Millman of Springboard, a non-profit educational group aimed at increasing women’s participation in the equity capital market. 

 

Millman was the featured speaker at a forum held at La Madeline Restaurant in Buckhead.  A dozen women, including SecureWorks Founder and Chairman Joan Wilbanks, were joined by one man at the meeting.

 

Springboard started in 1999 with the intent to “make a significant difference in propelling women into the new frontier of venture capital,” Millwood said. “This was a challenge because there were so few women investors. This is an uncomfortable playground for women.” Millwood said Springboard began educating participants on procurement, bank financing, training, technical assistance, and infrastructure but soon realized “we weren’t dealing with the next frontier which is venture capital - ownership with an equity-based, enlargement assistance.”  

 

Headquartered in Washington, D. C., Millman said her organization’s goals are to increase women-led firm’s access to investment opportunities and to assist women entrepreneurs in navigating equity markets.  She focused on the importance of women thinking “it’s o.k. to only own 5% of a $1 billion venture. Just don’t be in business for the recognition of building something,” she said of some women’s egos.  Women also need to position themselves on boards of profitable organizations, but ultimately “it is all about what YOU want.”

 

“Eighty percent of the women we worked with during our first year got funded,” Millwood said. “They were screened, coached, polished, and taught the language that the investors were speaking. It’s also about the community that is being built around enterprising women. Now we must get to the next level by making strategic contacts, building relationships, making a pipeline to the right investors, and closing the right deals.”

 

Joan Wilbanks is Chairman and Founder of SecureWorks, an Atlanta-based, network security service started in 1999. The company is privately held but has funding from Mellon Ventures, GE Equity, SBK Capital, Alliance Technology Ventures, ITC Holdings and Noro-Moseley Partners. SecureWorks presently employs 50 people.

“I always felt that either you work for somebody, or you work alone,” said Wilbanks who has recently become engaged to be married.  “After working 20 years in a man’s world, I attended Springboard functions and found that woman gladly share information. You get a chance to connect and realize that you’re not going crazy!  We have two things that go against our nature all the time: 1) we keep insisting that if we want it done right, we’ll do it ourselves, and 2) if something’s done wrong, it’s our fault.”

“Springboard allowed me to get connected to other business leaders in the country and gain courage… Nobody was talking about the economics of the business; they were talking about their business as they see it,” Wilbanks said. “You’re taught in the world to strip down, cut your hair, wear a business suit, don’t laugh in meetings, but Springboard empowers you to say ‘who you are is good enough.’  Just use your voice.”

Wilbanks said it is good to discuss strategic plans with other women in business before you make an ownership/investment move you may later regret. “After I talked to another woman on the phone for 30 minutes, she finally decided, ‘I’m not stepping away from my own company by hiring a CEO.  If I have a problem, it’s my management team’s problem.’ She was tired of running the entire company - from sales, to business and technology development, to chairing the board.”

Wilbanks said you have to have a winning attitude to succeed in business. “You and your family have got to get to the point where there is nothing to lose.  You have to have the attitude that you’re going to do it with or without help.”

Moreover, how can you define a business run by a woman but financed by white male investors as a “woman-owned” business?  “When you do venture financing, it is no longer your business,” said Wilbanks. “When you take venture capitalist’s money, you report to their board. If you don’t like the way that feels, don’t do it. You can pass on that decision.”

Some of the questions worth pondering before trying to sell your business to venture capitalists are:

1.      How large is your market (in numbers)?

2.      What are you giving away?

3.      What are you building?

4.      How is the culture of your business (woman-owned) an advantage?

5.      Will an investment decision change the ownership of your company and its ability to get business as a preferred minority/woman contractor?

6.      What is the best way for you to raise money for your business: borrow it, give up equity to venture capitalists, provide a product or service at a profit, or a combination of all three methods? 

Millman referred women entrepreneurs to the research of Harvard Business School Professor Michael Porter. In an interview for CIO Magazine, Porter suggests that business success is based on marketing, service, designs, and customer support. “All those things are consistent, interconnected and mutually reinforcing. As a result, competitors don't have to match just one thing, they have to match the whole system.” (http://www.cio.com/CIO/porter_100195.html)

 

For more information about Springboard, contact GWU at Mt. Vernon College/Somers, 2100 Foxhall Road, Washington, DC 20007, or 202-242-6282, or go to http://www.springboard2000.org.

 

 

This information is the opinion of the author and, therefore, should not be construed as libelous. 

 

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FROM THE WINGCOM LTD VAULT: AmericasMart

 

Andre Benjamin (Dre 3000) from Outkast and WingcomLtd Model Ilea Johnson Celebrity and international peddlers still selling their wares (wears) in down economy By Tomi Morris Johnson Digital images by Tomi Morris Johnson and Kurk D. Johnson  tomij@wingcomltd.com. ©2002 WingcomLtd. All Rights Reserved.

July - October 2002, Atlanta, GA…If you are a retailer looking for unique inventory ranging from the most drop dead gorgeous items to hip-hop urban wear, your one stop shop is AmericasMart.  From Atlanta’s hip-hop community to Zimbabwean villagers, people of color and female entrepreneurs come to the international marketplace to sell their wares (wears). The Mart features over 35,000 vendors from around the world.

 

WingcomLtd traveled to the Mart to peep two-time Grammy winner Outkast’s new collection, fashions from Montreal, Canada, and to seek sales advice from vendors. Keys to sales success ranged from flexible thinking, faith, excellent employee relations at the factory, and products with cultural stories.

 

Outkast Clothing Company Collection		Professional model for Outkast Clothing Company

 

Big Boi, Dre, and professional models were in the Penthouse Fashion Theatre, Floor 15 of the AmericasMart for the October 20^th fashion show and Buyer Party.  According to Rolling Stone Magazine, Outkast is a “Southern-fried rap duo… who burst onto the scene in 1994 with their first single, Player's Ball (which) helped draw attention to the raw talent going unnoticed in the heart of the nation.”

 

The show was a treat with runway attitude and rock hard models wearing affordable, comfortable garb. The male models, pleasingly pleasant eyefuls, really had something going on and showed out with flavor.

 

▲Fashion show guests

▲Antwan Patton (Big Boi) holds fashion show award presented to Outkast for clothing line at AmericasMart in Atlanta.

▲Celebrity model

 

Buyers and their friends were dressed for the occasion and sported new century fashions. Celebrity models carrying cell phones also graced the runway. Much of the collection featured jeans.  According to Marshal Cohen, co-president of NPD Fashionworld, 18-34 years olds are driving the $1.1 billion jean market that has increased 12.8% from 2001 to 2002.

 

 

Outkast’s guests were treated to live and scratched music and were served complimentary hors d’oeuvres on several food kiosks amidst ice sculptures.  OutKast’s Nicky Rose was caught with a piece of his birthday cake.

 

Montréal Collections ►   ◄Pictured with Model Ilea Johnson ( c ) are Gisèle Clark, assistant marketing manager, Quebec Trade Office, Atlanta, and Jean-Pierre Leclerc, conseiller en affaires internationals, États-Unis.

 

The Montréal Collections Fashion Show, co-sponsored by Designer Frank Lyman and Atlanta’s Quebéc Trade Office, was also held earlier in the week and featured Canadian clothing designers that included D’Orax, Jex, Florentine, Soft Works Cartise International, Ell Jay Collections, Body Guard, Jolibel, C’est La Vie Collection, Mondor, Petit Lem, Grenier, Donna Fashions, Tribal, Romeo & Juliette, G. G. Sport, La Mere Michele, Lucien Daunois, Leslie Belle, Dino Gasperi, Irma Paytler, Featherweight Furs, and Designs by Q.

 

At the International Show in July, WingcomLtd’s Tomi Johnson visited and interviewed vendors showcasing products from around the world.

 

▲Becky and Terry Holcomb, Holcomb Trading Company, Nashville, TN, recipients of the Best of Category Award, International Gift and Home Show

“I’ve loved the show this year and have had a great time enjoying everything. We’ve been in business two years. We won this award because we’ve worked really hard and designed everything together as a team. The people who have manufactured these items have taken great care in quality and made them in limited quantity. To be successful selling in an international marketplace, you must have a lot of faith in your products before you start selling them.”

 

◄Maureen Edwards, Cobridge Stoneware, Cobridge, Stoke On Trent, England “Our factory is located in an impoverished area and we employee a lot of people, mostly women.  We have, which is very unusual, a daycare for our women employees where they can leave their children from 8-5 when the factory closes.  The children are fed all day and looked after. The mothers can go in to look at them whenever they want. We make high quality, handmade stoneware.  The pictures on our pottery are most unusual, and we use an oxidized firing process for an identifiable image. In order to be successful in making and marketing high quality pottery, you must be very focused, have a desire to produce a good pot, and you must also have a good, happy workforce.” Cobridge Stoneware

 

Ebony Art				◄Shenaz Dedhar, African Mystiques based in Dar es Salaam, Tanzania with a warehouse in Phoenix, AZ “I was born in Africa and have lived my whole life there. I specialize in craftworks in a black wood called Ebony. I have about 200 carvers who specialize in this work. About 50 polishers do the high quality polishing. My material is on the culture side based on a group called the Maasai, the most popular people in Tanzania. I would like to highlight this one piece, which is 28” and is made from a half log. It took about 3 weeks for the carver to do his work, and another 2 weeks to polish and finish the piece. It depicts a Maasai family with wives and babies who wander from one place to another.  My advice to African American men and women living in the United States wanting to be successful in business is to know or learn more about their culture, where they came from, believe in that culture, which is a very unique, African culture.”
Zak Tadlaoui, spokesperson for Ameerah Imports, Atlanta, GA ► “The market has been decent this year. We always hope that there will be more traffic and that people will like our products. Hopefully, the economy will be better so we will do better. Moroccan arts and crafts, which we sell, are uniquely made by Berber tribe people from the Atlas Mountains. Moroccan art is very colorful and can adapt to any kind of room because of its fiery, multi-colors, which are wonderful. Being successful minority businesspeople, it’s always nice to stay together as a stronger group, accomplish more and deliver better goods.”
▲Aaron Lemaster (l) and Sam Kidd, Cherokee Heritage Pottery and Arts, Tahlequah, OK  “Our business is actually two entities run out of Cherokee Museum and Heritage Center.  The pottery is more of a cottage industry in which artists took the mound-style designs from throughout the South East.  The Cherokees originated in the SE and mass-produced the pottery images. The arts portion of the business is more of a rural, economic development co-op program comprised of mostly elderly Cherokees who make traditional arts and crafts. Our job is to assist them in marketing and sales. You are not going to find any of these products anywhere else at the Atlanta Market or any other market unless you come to where we are. They are only marketed national through trade shows. They are all one of a kind and very distinctive. Native American art is important because it not only helps native people economically, but it is also very educational, tells you about what Indian people are doing and about their cultural past. In order to be successful in business, look where you come from, wherever your geographical heritage is from, whether it be African American, Native American…You’re not only selling works, you’re selling a place and a story.” Sam Kidd ( r ): “I work at the Cherokee Heritage Center with exhibits, archives, and collections. The continuation of the arts is important because it is our culture, our traditions, and keeps the youth and the elders together. It also helps the tribe maintain itself as one nation and helps it continue to thrive. I do not really have a favorite type of Native American art, whether it is the basketry, pottery, clay work, textiles, graphics, color, - all aspects of Cherokee history are unique. All of them are useful – the baskets, the blowguns, even our ball sticks and marbles were part of our sports. The games continue. We were designated the end of the Trail of Tears in conjunction with the National Park Service. We have a bead wall there. Each bead represents a person. The white represents those who survived the Trail of Tears; the black is for those who died, and the red are those who were missing and we do not know what happened to them. This is according to the government’s statistics. Some of the jewelry we are selling here today is made from commemorative pieces for the bead wall.”
Divyesh Mehta, President, India’s Heritage, 5th Avenue, New York, NY►  “I’m originally from Bombay, India. Business in Atlanta is pretty good because we have a lot of repeat customers coming by and ordering.  We have a new line, which has done very well. We specialize mainly in handmade, antique and embroidered fabrics.  People love our line here. We have our own manufacturing unit back in India, our prices are very good, we have competitive fabric colors that no one else is offering, and we have unique designs that make us popular. Our best sellers are our decorative pillows, bed coverings and window panels, and my business is split equally between these items. This market has been a little slower than the last two seasons, but the good thing is our repeat business, which is very good for us. The keys to our business success are innovation, new ideas and products, and consistency in quality.”			Pillows made from antique Indian fabrics.
▲Mr. & Mrs. Geoff Bushby, Dejavu Africa, Harare, Zimbabwe “This market has been good for us because it was our first show. Any business we did is good because we started from a zero base. Not a great deal of sales, but I’ve made a great deal of contacts. This has given us an insight into what direction we need to take to succeed in this market.    We sell three particular products that are unique to Zimbabwe. Our soapstone sculptures are recognizably from the Shona people in Zimbabwe. Our Benga baskets recognized worldwide and made only by the women in a cooperative.  All of them are unique and handmade. Our batiks, or African prints, are Bushman tie and dye with the guinea foul which are very popular.    With the current economic situation in Zimbabwe, our tourism has been struck by 60 percent. The artists who are producing these products used to have an inflow of tourists which was their lifeline.  Now, with the reduction in tourism, those artists have no way of generating an income. There is an abundance of products, they just can’t sell it. Our business offers rural artists a linkage and a lifeline. I’ve tied up an arrangement with 42 artists, and they know what we’re doing. I’ve shown them my disc with products on CD-Rom. I’m purchasing their product, putting it out there, and keeping them going. Otherwise, they would have nothing to do. It’s a very sad situation.   In the American marketplace, you have to be very flexible in your thinking.  You cannot adopt the same way of thinking that we do in the African marketplace. If you’re an African, don’t come here with high expectations and expect to make millions overnight. You’ve got to meet a lot of people and develop relationships. The biggest side for me was the learning curve. The direction I was headed when I came here has changed 90 degrees to how we intend to do it now.”
Liz Coursen, Publisher, American PostCardArt, Sarasota, FL.►  “I have been selling a lot of my art to African American professionals and see it becoming a trend because it is part of their heritage. It’s important to remember how things were, how things are now, and how things have changed. What I sell is part of American history. People enjoy seeing the images. In order to make it in business, you have to be prepared to sacrifice a lot of your time. Most of my energy goes to my business. You also have to strike a balance between your professional and personal life, particularly with your family. It’s a very fine line and is sometimes very difficult to do. One often suffers. Then you have to get back to that middle ground as fast as you can.”

 

		◄Vera Vardeman, VR International, Memphis, TN “This show is pretty good for me and my merchandise. I always do pretty well. I sell wholesale antiques and reproduction wall decorations, panels, and carvings from China. I don’t have many competitors because most of the other vendors sell materials made by machine. To be successful in business you should research the market, find unique products, and get the right price from the right source.”
Laurence Vilain, PR representative, BeauméCollection, Paris, France► “One of our featured artists is La Roche Laffitte who specializes in watercolor painting on paper, silk, and polychromed lacquer panels. Inspiration for his paintings comes from different ethnic tribes.”

 

SIDEBAR: Most of the items featured by these vendors can be bought through WingcomLtd’s executive gift service, a certified M/FBE and a member of AmericasMart Atlanta. Please email tomij@wingcomltd.com for more details.

 

This information is the opinion of the author and, therefore, should not be construed as libelous.

©2002 WingcomLtd. All Rights Reserved.

FROM THE WINGCOM LTD VAULT: Affirmative action

 

Economic affirmative action…you’re on your own! By Tomi Morris Johnson Digital images by Kurk D. Johnson  ©2002 WingcomLtd. All Rights Reserved.

August 8, 2002, Atlanta, GA…In the American Land-Of-Business, acting affirmatively is all about two things – whether you can make money or save somebody some money. Anything past that is all smoke and mirrors. It does not matter what your idea, dream, ethnicity, wardrobe, sex, group affiliation, education level or good intentions are.  The bottom line is – can you consistently deliver at a competitive, value-added price? If so, you still need a savvy cadre of relatives, associates, and netweavers to help you navigate the complex terrain of wealth building in the United States.

“Hope remains where company is true.”

The Lady of the Woods, Lord of the Rings, Fellowship of the Rings

◄(L to R) Forum Moderator Dr. Julianne Malveaux asked panelists Terrell Slayton, Leonard Clark, Thomas Dortch, Janice Mathis, Bill Campbell, and Sallie Daniel whether affirmative action was “hope or hype.”

Those were the messages acknowledged at the 2002 Economic Issues Summit “Affirmative Action: Hope or Hype” presented by the National Black MBA Association, Inc., Atlanta Chapter and the 100 Black Men of America. Sponsors of the event held at the Westin Peachtree Plaza Hotel included Procter & Gamble, Northwestern Mutual Financial Network, Bridgestone, National Minority Franchising Initiative, Marta, BellSouth, and Minority Professional Network.com. The turnout was light, with many corporate tables left unattended or half full.

Yes, I agree companies do seek minority contractors and are bound by federal law to offer an equal opportunity playing field when doing business. There are mandates, executive orders, and best practices policies urging equal opportunity. It still appears, though, that minorities are not getting their piece of the pie from a lopsided economic table, which makes appeals for affirmative action grow louder.

The number of minority-owned businesses grew more than four times as fast as U.S. firms overall between 1992 and 1997, increasing from 2.1 million to about 2.8 million firms, according to the Commerce Department's Census Bureau. In Georgia during 1997, minority owned businesses were 6.41% of the total businesses operating in the state (http://www.census.gov/epcd/mwb97/ga/GA.html). Minority firms, however, won less than 2% of total state contracts in 2001. That, my friends, is a pitiful example of fairness and a call to step aggressively for change.

Minorities are expected to represent 50% of the US population by 2050. “This will create opportunities for consumer and business sales in those communities where minority business, if correctly positioned, could have a competitive advantage,” according to The New Realities for Minority Business report released by the US Department of Commerce Minority Business Development Agency. ◄While the number of minority businesses are growing, those picked by big business is declining. The way some minority vendor programs are designed, a M/FBE almost has to be a successful, established business to meet corporate supplier guidelines or must collaborate with another firm with a track record of success.

The report further states the number of corporate suppliers are decreasing because “procurement is moving from a cost center to an activity of strategic importance…Large, merged companies usually streamline their operations by seeking larger, first-tier suppliers who can deliver high volumes at consistently high quality, provide rapid execution, and have substantial capitol resources.” (http://www.mbda.gov/documents/strategies.pdf).

The reports suggests that corporate business strategies have changed over the last 20 years. That means a change in minority/majority joint ventures, competition with technologically advanced e-commerce companies, enhanced customer service, anti-set aside rhetoric and increasing lawsuits, increased credit regulations and scoring,  and a dwindling of small contracts for 8a firms. If you are not big and highly capitilized, unable to acquire mezzanine financing, or have a fuzzy market niche, your abilitiy to do business on a large scale is nullified.

On top of all that, minorities and women still have this race and sex thing to contend with which is exacerbated by a legacy of poverty. While fraudulent Enron was loaned $250m as soon as bankruptcy papers were filed, disadvantaged business people are given rudimentary credit advice from financial advisers: a $15 delinquent account on a Rich’s charge card could jeopardize securing a line of credit. Loan officers look at what may seem trivial in today’s debtor economy, make decisions about your credit worthiness, and make judgments on your ethical and moral character based on a credit report.

▲Michael McGill Harris, president of Harris and Associates Consulting, says he is tired of all the talk surrounding Black business success and is ready to see some action. “We need to have a collaboration project with the major people in responsible roles – Oprah, Farrakhan, T. D. Jakes, Creflo Dollar, etc.- all minorities should sit down at the table. We need to get beyond meeting and talking and think about inclusion and netweaving,” Harris said.

▲Dr. Julianne Malveaux said she was surprised to learn that less than 2% of Georgia’s state contracts were awarded to minority-owned businesses. “Fixes to our plight are political participation, leveraging, youth involvement, and sometimes boycotting. We have to be committed to closing the wealth gap,” Malveaux said.

Before trudging to a lending institution or a corporate client, you had better check your asset to debt ratio and balance sheet. Your “angel” network of friends and family better be in place. Your research on how the Jewish, Asian and Hispanic communities do business better be up to par as well as how the top rated companies in your field are doing. Your ability to market your product(s) or service(s) as the best out there better be documented and packaged. Your savings must be in a LARGE piggy bank, and it helps to have a personal banker. Your self-esteem has to be ready for rejection and poised for the next test. You have to be able to bring something to the business table of value and not afraid to ask for the moon. You have to find a niche.

Your system of doing business must be validated in case stress overcomes you, claiming your body and company. Your philosophy of building a business must override your ability to be self-employed. Your team of accountants, tax experts, lawyers, insurance providers as well as management team/employees better be well trained. Your technology tools must be executable. You must read, work, and prepare to be flexible. ◄Minority Business Development Center’s Clem Wilmot (l) said you must bring something to the table of entrepreneurship, including research. Georgia Minority Supplier Development Council’s George Lottier says you must impress on clients that you have the best product.

Daniel McCoy, Jr., CEO of Star Relocation Systems, Inc., said knowing the right people is key. “One dilemma in becoming successful is wadding through paperwork and trying to find out who you need to talk to. Performance is a gimmee; what we need is exposure through networking and self-empowerment,” McCoy said.►

You also need to rationalize whether you want to “own” your own business, or have the lender/venture capitalist actually own everything you possess. You have to think past the ‘90’s when Dot.com economics paid off big but failed fast. Think twice about antiquated wife’s tales of paying in cash and owing no one, and heavily weigh advice from the brothers who say, “Use the white man’s money first.” All this must be done within a 25-hour day with you coming up with the extra 60 minutes.

The Minority Business Development Agency has these suggestions for increasing the success rate of minority firms:

1. Stress the compelling importance of minority firms to the world’s economic infrastructure
2. Encourage joint ventures, strategic alliances, mentor programs, consortiums and partnerships
3. Explore new markets
4. Develop new sources for capital
5. Support new technology initiatives
6. Leverage government resources

▲“We need to get away from a vision of doing things to a plan of action and implementation,” said Apostle Dr. Jamie Pleasant, pictured with wife, Kimberly, who are with Kingdom Builders Christian Center.	▲After the forum, attendees were invited to a reception sponsored by “Mac” McDonald, owner of Vision Cellars wines. “I sell fine pinot noir and have my own, personal banker,” McDonald said.

To be a successful entrepreneur, you have to do what you love AND do your financial homework. Most importantly, you must be willing to play the game. Relate to this story a friend, Maggye, emailed me:

A young boy, Bernie, moved to the country and bought a donkey from an old farmer for $100.00. The farmer agreed to deliver the donkey the next day. The next day the farmer drove up and said, “Sorry son, but I have some bad news. The donkey died.” Bernie replied, “Well then, just give me my money back.” The farmer said, “Can't do that. I went and spent it already.” Bernie said, “OK, then just unload the donkey.” The farmer asked, “What ya gonna do with him?” Bernie told him, “I'm going to raffle him off.” Said the Farmer, “You can't raffle off a dead donkey!”  Bernie answered, "Sure I can. Watch me. I just won't tell anybody he is dead.” A month later, the farmer met up with Bernie and asked, "What happened with that dead donkey?” Bernie said, "I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $898.00.” The Farmer said, "Didn't anyone complain?”  Bernie said "Only the guy who won. So I gave him his two dollars back." Bernie grew up and eventually became the Chairman of WorldCom.

INTERVIEW with LONNIE SABOOR, Atlanta Development Authority and REUBEN MCDANIEL, III, Jackson Securities

▲Workshop speakers Lonnie Saboor (holding the money) and Reuben McDaniel, III from Atlanta say do not expect financial institutions to change their rules, because they won’t. You have to find ways to claim capital from a myriad of sources to succeed in business. When borrowing money, “benefits have to outweigh the debt,” Saboor said. “You have to be careful not to over leverage,” McDaniel added.

Q:  Some older Black Americans have the business philosophy of paying for everything in cash. In today’s million dollar, competitive market, that may not work and you may need capital to run a business. What is your advice on building a business on credit?

Saboor:  The whole thing is leveraging – you want to position yourself to be able to leverage your operation by going to another level. You want to use a very systematic approach in which you can get access to a line of credit for $250,000 to $500,000. You have to ask yourself, “What are the benefits to me of borrowing money?” The benefits have to outweigh the debt.  Can you use this money, for instance, to hire a new marketing person who can bring in X number of dollars? Yes, you want to continue to pay your bills and be as liquid as you can, but at the same time, you want to be able to take advantage of opportunities to access capital for growth.

McDaniel:  Paying for everything in cash is an antiquated mentality. If you have 100% credit, it means you have an infinite return on your equity. You want to try to leverage your business as much as possible so that the actual capital you put in gets the highest return. On the flipside of that, credit is dangerous. From covenant and credit perspectives, you have to be careful not to over leverage. If you plan to pay cash for everything and never borrow, the ability to grow your business will be hamstrung. In today’s environment, credit is just another tool that can be used to do business.

Q:  I get very shaky when I hear people talking about empowerment zones and the use of government money to start minority businesses. There are examples of Black people signing away everything to get some business locations on Main Street, who wind up going out of business in two to three years. Sometimes Blacks get guaranteed government loans but don’t have the business background or enough capital to be successful. How can minorities keep from falling into this type of trap?

“The history books are filled with example after example of statues – local, state, and federal – designed to keep Blacks from participating in the economy.  If you can’t participate in the economy, you are not part of the culture.”Arthur A. Fletcher, Nixon’s Assistant Secretary of Labor for Employment Standards, 1969

Saboor: The key is treating government money like any other kind of money. The key still is accessibility. Just because you are able to get in a business with 10% equity does not mean that is a good thing because with that comes 90% debt.  There may be some low interest money, but you have to treat that debt as any other debt.  It is not a grant that does not have to be paid back. With loans come responsibility, restrictions, and requirements which may include signing away your home, personal guarantees, and liens on all your assets. This is very serious. You must be prepared to take advantage of opportunities, but don’t do anything financially unless you know you’ll be able to get out of it.

McDaniel:  The empowerment zone is just a tool. No one should go into business because of the empowerment zone. They should go into business because it’s something they’re good at, enjoy, and something they can make a profit. Unless you have a fundamental business opportunity, you should not be in an empowerment zone or anywhere else. The empowerment zone has such good economic features that people who had not thought of starting a business try to get into something they never should have tried in the first place. We can’t get overly exuberant about the empowerment zone, but must really try to find businesses and business owners who can fit into that zone and can make it work.

People will go to good quality businesses. The empowerment zone in Atlanta has an excellent location. One thing about real estate is location, location, location, but if it is not filled with good, quality proprietors, it’s not going to work. My advice is find something that you love to do. Once you figure that out, find out the best vehicle to use – whether that is working for a small business or major corporation. Too many times in the past, you see someone or groups who understand the economic advantages of the empowerment zone and sort of force some businesses into it. That’s how you come up with failures.

SIDEBAR: FROM A CORPORATE PERSPECTIVE:  How do minority-owned companies do business with the big guys?

▲Ron Frieson, VP, Chief Diversity Officer, BellSouth Corporation	“You must understand and be aware of existing opportunities. A number of corporations have policies in place that allow a tremendous amount of minority participation in getting contracts. Diversity, or inclusion, is a big part of our business. “Most companies who come to us are experts in their business, but they must have a strong infrastructure, the ability to manage their cash flows, access to capital so they can carry inventories, and the ability to be around long-term. Obviously, if you are a supplier to a company as large as BellSouth, we are very concerned about how long you are going to be in business. “You must do business throughout our operating region. Many small businesses do not like the idea of growing as fast as we would like them to grow.  There is a fear that they will depend on us too much as being their largest customer. We do not want to be your only or largest business customer and encourage multiple customers. We want to be a partner in the network of businesses that do business with you.”
Credit Card Users Beware! (Things aren’t always what they appear.)

Ever wonder why some people can get introductory, credit card rates as low as 0%, fixed rates, and then find themselves facing 19.9% rates within a few months?  According to many credit card companies, “fixed rate” does not mean permanent or unchanging, for they can raise your interest rate depending on their evaluation of you as an unsecured customer, even if you pay all your bills on time!  Credit card companies have instituted policies to make the poor stay they way if they use credit too much.  Do not fall into this trap! If you do not need it, do not buy it – you’re only making the credit card company rich!  If you always pay on time, creditors probably know you will continue to pay on time, even if the interest rate goes up! If you have a credit card, make sure you read your entire statement and any bill inserts because it may contain information regarding rate changes.

IMPORTANT: Predatory Lending and You!  - Georgia’s new Predatory Lending Law involves home mortgages and does not necessarily pertain to credit card rates. To report issues regarding your credit card rates, you should contact the Georgia Department of Banking and Finance at http://www.state.ga.us/dbf/dbf.html.

The information in this article is the opinion of the author and, therefore, should not be construed as libelous.

Send comments or remarks on this subject to:  tomij@wingcomltd.com.