(ThyBlackMan.com) Being your own boss and having the satisfaction of reaping the fruits of your labor are primary inspirations for starting your own business. The desire to become a small business entrepreneur has spread like wildfire through the black community. A recent survey showed a 45% increase in minority-owned businesses from 2015 to 2018, with African-Americans topping the list with a 400% year-over-year increase from 2017 to 2019. 62% of these business owners are black males, and the best news is that 57% of the respondents claimed their business as profitable. While there is no shortage of ideas and tips on starting a new business, now’s the time to consider a few crucial precautions before making your big entrepreneurial debut.
Protect Your Business, Employees, and Yourself
According to the Small Business Administration, only about two-thirds of businesses with employees survive at least two years, and about half survive only five years. There are several reasons for this. Part of it can be blamed on poor planning and structure and lack of a good business plan. Obtaining small business insurance is essential as without proper coverage, an on-the-job injury or damage to a customer’s property could wipe out your entire business if you are not adequately protected. Also, keep in mind workman’s compensation for your employees is required by law in most states. Take the extra steps to provide safety training and a safe workplace for your employees. Check with OSHA on all laws and regulations and be sure to place all required posters in the workplace where they are visible to your staff. 
Keeping It Legal
Legalities are a big factor too. Retaining a business lawyer and/or accountant can prove valuable in keeping you in compliance with the laws. For starters, you want to make sure you have your business name registered and trademarked, so you actually “own” the name and it hasn’t already been registered. Paperwork when starting a business is no fun but can save you from plenty of headaches down the road. Establishing a business is tough enough. Check with federal and state governments to see what licenses and permits are required for your particular type of business. You will also need to acquire an Employer Identification Number (EIN), which is sort of a social security number for businesses. Some states will require you to get a Tax ID number. Decide on the type of accounting system you want to use and hire a well-qualified business accountant. This step is critical to keep you on top of your checks and balances and to ensure you are not loosing too much money.
Plan For The Lean Years
One other important precaution when starting is when you are putting together your business plan, include a realistic calculation on how much you need to live on. Keep in mind, it is not uncommon for a new business to not see any profit coming in for the first 1 to 3 years. This part of your plan will help you decide if you need income coming from another source to live comfortably and cover your bills and essentials. This money could be coming from a part-time job outside of your new endeavor, or possibly from your working spouse as you focus on running the business. Most business experts advise on keeping start-up loans to a minimum and using as much start-up capital you have saved instead. This will also help to ease tension off the reins until your business can stand firmly on its feet.
If you plan on starting your own business, Lord willing, you will become one of the positive statistics stated in the first paragraph. Follow these tips to protect yourself and your business and do a ton of research. Most importantly, the key to every successful business is to have passion and drive, along with the knowledge that gaining, delighting, and retaining customers are your greatest essentials to keep your business alive. To quote Warren Buffett, “No business has ever failed that has delighted millions of customers.”
Staff Writer; Bobby Ford
