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Episode #1812
Business Strategies
Brown: Natalie Bullock Brown,
Host
Fulbright: Genevia G. Fulbright, Guest
Smith: Tyrone Smith, Guest
Falls: Luther
T. Falls Jr., Guest
Voiceover:
What will it take to move your business to the next level?
We’ll talk about strategies for success and how to create
them next on Black Issues Forum.
Voiceover:
This program was made possible from contributions to UNC-TV
from viewers like you. Thank you.
[THEME
MUSIC]
Brown:
Good evening. I’m Natalie Bullock Brown your host
tonight. Thank you for joining us. According to the 2000 census,
there are close to 2 million small businesses, but only 820,000
of them are black owned. The black enterprise magazine 2002
small business report says, “Small businesses employ
over 50 percent of the private sector workforce and account
for over half our nation’s Gross Domestic Product.”
Clearly, these businesses are critical to the entire economy
and tonight we’ll talk with business strategists about
what it will take not only to keep these businesses surviving
but thriving. I’d like to welcome to the program Genevia
G. Fulbright, vice president and marketing director for Fulbright
and Fulbright, CPAs. We also have Tyrone Smith, president
and founder of Watchful Network Incorporated based in Greensboro.
Smith is an insurance advisor and specializes in business
insurance planning. And finally, we have Luther T. Falls Jr.,
owner of the business marketing company, New Horizons Marketing
in Greensboro and also secretary of Watchful Network Incorporated.
Now, let me start off with a statistic that I’ve read
which is basically that: of all minority owned businesses,
African-American businesses lag behind as the last in terms
of revenue generating businesses. Asian-Americans come first,
then Hispanics than African-Americans. Why would this be?
Why don’t you start Genevia.
Fulbright:
I would say sometimes, lack to access the capital is probably
one of the major problems as well as networking. It’s
probably another issue, lack of a network that has been established.
Brown:
How important is networking Tyrone?
Smith:
Networking is critical in business. I think it’s
important to network because when you network you have the
opportunity to use your third party influences and sometimes
when you network it’s better to talk to somebody through
a referral as opposed to using a cold call approach.
Brown:
How successful would our businesses be, would African-American
businesses be if they had more opportunities to network or
how can we nurture these sorts of opportunities?
Smith:
We would be much more successful if we networked more effectively
because most business is done on a referral basis. The way
that we would be able to access that type of relationship
is that we have a lot of business relationships and personal
relationships that we don’t utilize effectively already.
If we realized that we needed to be talking with each other,
communicating with each other, there’s email now and
other types of ways to stay in contact with people on a regular
basis as well as getting out and meeting new people and not
being afraid to do that. You’ll meet new people that
you could possibly do business with or someone that you know
may able to do business with and that would be much more effective
for us. We’ve always had that in the African-American
community but we don’t utilize it well. Someone down
the block knows someone else who may be of assistance with
their business but they don’t communicate well in an
ongoing basis throughout the year.
Brown:
Well, Genevia why is this? Why do some African-American
entrepreneurs and business owners have a problem, or maybe
a discomfort with networking with others like themselves?
Fulbright:
I think sometimes it’s a matter of competition.
Instead of us looking at a situation and thinking, “That
could be a freely competitor that could help and if we garner
our resources and work together, we would probably be able
to serve more potential customers.” You don’t
have to necessarily join another firm or combine the firms,
but if you have strategic alliances you certainly can get
more of the market share. I think that is one of the major
issues is maybe a concern of a competitor.
Brown:
Could you just briefly explain, what do you mean by strategic
alliances?
Fulbright:
Strategic alliances, for example, when we started our
practice, we had a CPA who basically nurtured our enterprise
and assisted us. We shared resources in terms of research
materials, that was before the internet, before CD-ROMs with
research materials, but we shared the hardback books. If there
was a question or issue that we could not deal with and vice-versa
we would help each other. That way we could garner more of
the market share than if we were competing against each other
and decided to buy our own books initially as well.
Brown:
Tyrone, how did Watchful become a company? What was the
inspiration for your company?
Smith:
The inspiration was looking at a need, in terms of networking
within the African-American community because—and looking
at our conditions like right now we earn about 576 billion
but we spend about four percent of our income with one another
in business. I just asked the Lord and looking at the problems
that we faced to use me as a vessel to bring about change.
A lot of times people complain about their problems, but let’s
work towards workable solutions.
Brown:
Right. Luther, what role now that you have done this work
with Watchful and also with your own company, New Horizons,
what role do customers play in this whole networking scheme.
Falls:
Well, they’re the primary consideration with any
business enterprise and other organizations too. You have
to do what the customer needs and what will satisfy the customer.
With Watchful Network in particular, we interact with a lot
of different types of people in all types of socioeconomic
levels, not just within the African-American community, we
have a very broad base network of people that we come into
contact with, and we always like to know what they’re
thinking. The kinds of things that they may be involved in
that we can assist with as well as letting them know what
we’re involved in that they can assist with. It builds
a high quality long-term relationship, both for business and
for community activities because we interact with non-profits
and other types of organizations outside the business community.
Customers are the number one thing. If someone’s unhappy,
you have to address that immediately and make sure that you
take care of them because they’re going to tell someone
that you did a bad job. That’s one of the things, Genevia
was talking about some of the problems. We run into that all
the time. If you don’t satisfy your customer, you’re
basically shooting yourself in the foot.
Brown:
Tyrone, let me get back to you. When you said that you
wanted to—you created Watchful as a way to become part
of the solution and not be a part of the problem. What are
some other problems that Black business owners face that would
possibly be solved by the sorts of things that Watchful does?
Smith:
I have to say, lack of unity. If you study the Asian community,
the Caucasian community, most of them support one another
in business. That’s something that we used to do, as
Luther commented on earlier that we got away from. I just
feel that it is important for us you know to network in business
and we try to eradicate change through our organization by
doing different things you know, from the business expo and
also business owners roundups. I think in business, it’s
important for you to have the proper attitude so what we try
to do within our group, is to try and deal with the wrong
attitudes that some people have and try to convert it into
a more positive type of way of doing things in business.
Brown:
Right. Genevia, what sort of ideas do you have about how
African-American business owners and entrepreneurs can more
frequently and more effectively come together?
Fulbright:
I think that if they join professional groups there are groups
like Black MBAs the Chamber of Commerce, a lot of times they
have a lot of times they have a minority initiatives and minority
issues committees as well as meeting with their professional
advisors. A lot of times their professional advisors can provide
referrals for the particular business owners as well and network
for example with CPAs (CPAs have typically within it a group
of individuals within the same industry) and they can always
reach out and talk to their clients and say, “I know
that this particular client is trying to grow in this particular
area that one of our other clients might have an expertise”
and basically networking. Getting those two clients together
so that they can help grow their enterprises and I think that
if they work together, than that way, than if they join professional
groups and actually get out a progressive network then they
can definitely grow their enterprises.
Brown:
Sure.
Smith:
One of the things that I’d like to point out is
through our organization is that we stress the importance
of reciprocation. Because a lot of times in business, people
have a tendency to you may send them a referral or a contact
but they’d be so excited they forget to give it back.
So, that’s been very successful with us in dealing with
trying to strengthen the network and relationships among African-Americans.
Brown:
It seems to me, and I’ll get to you Luther in one
moment, but it seems to me that not all business owners, African-American
business owners in particular, know about the various resources
that you guys are talking about like the trade organizations
that you were speaking of. How do we better the communication
lines and just the flow of information so that business owners
and entrepreneurs know about all of the various resources
that available to them Luther?
Falls:
The best way to do that is to have a positive mental attitude
that “I’m going to go and seek information.”
If you feel that way, then you’ll talk to people who
are already in business and find out information , as Genevia
was saying earlier, about organizations that may be of interest
to you , you professional groups and all types of broad-based
organizations and find out which ones you think are going
to be most beneficial to you. You attend different meetings
talk to different people and decide how you want to allocate
your time. With the power of the internet now, you can always
go on the internet and not be afraid of the technology. You
must be comfortable with the web if you are going to be successful
in business. If you’re not going to be comfortable with
the web, you’re going to have a lot of problems because
all the information is there. You can do search engines and
you can find anything you pretty much want to find out online.
I have been successful with public service announcement information
where people didn’t convey information to me directly
but I got it through media; UNC-TV or public service organizations
or other types of media organizations, newspaper, television
stations, all of that. You have to get out there and do some
leg work.
Brown:
Now, wait a second. You guys are youthful, you have energy,
you have ambition. Not everyone who has a business is not
necessarily thinking – is not necessarily as forward
minded as you, may not feel comfortable with pursuing this
sort of information. What would you suggest for someone who
is doing what they do, happy to be doing that but needs some
help jumping to that next level where they are actively pursuing
information especially if that’s not their personality,
what would you suggest?
Falls:
I would suggest for a person like that who pretty much does
their business and is very successful doing their business
to find a family member or a friend or even look at reasonably
cost professional services for people who can assist them
in doing that, so they can concentrate on the product or service
or whatever you do and do that well and have someone who is
an assistant or more that one person as an assistant to go
out and do a lot of the interacting; the networking, the marketing
and some of the other things that may be necessary to make
the business successful. You’ve got to find somebody
to help you because there is no—one person—no
one is an island. In business, in order to be successful you
have to have the people in place if you don’t want to
do those sorts of things yourself.
Brown:
Genevia, let me get back to you on this issue of technology.
Why is it so important, you and Tyrone and Luther seem to
think it’s very important and I can see why, but why—some
of our viewers may not understand why they need to be technologically
savvy.
Fulbright:
I guess the way I look at it, if you don’t have a web
site and you have a small business, then you’re already
behind the eight ball. It’s going to be very difficult
because as people used to ask for a business card, now they
just ask for your web site. They take your business card to
obtain your web site, if you don’t have a web site that’s
easy enough to remember. Sometimes they don’t even really
keep up with the business card but they link and select that
as their favorite for the web site and it just is a way to
market your business, to give the potential client as much
information as possible about your enterprise without you
know, having had that initial contact. So, they could do as
much research on you prior to meeting you than you could basically
go for the sale when you get with them face to face because
they already know enough about your background, they know
about your experience level, and you know whatever else—of
products you might be selling. It’s just very, very
important. Also, if you looking at access to capital, one
point that we brought up that’s one thing that the bankers
know, they look at as well. They ask for a website to see
if “you’re really in business,” and that’s
another thing.
Brown:
So, the web site kind of validates your business, it kind
of makes…?
Fulbright:
It helps, yes it helps.
Smith:
It goes a long way because a lot of business people and
professional people now are utilizing the internet on a regular
basis. They have PCs in their offices and homes and laptops
and all kind of other ways to access the web. It also, just
to add to what Genevia was saying, gives you 24 hour access
to people who are interested in your business or your organization.
Some people are night owls. They’re on the web midnight
until the wee hours of the morning. You could have somebody
hitting your site 24 hours a day finding out—and that’s
been one of the things that has been very successful with
us, we’ve had ours for about a year now, on the internet
and it’s been fantastic for us. She said also, linking
to other sites so people could go to other web sites and then
they can link to yours and go backward. People that are using
the internet it’s as you said, you’re basically
out of the game if you don’t have one these days.
Brown:
Well, Tyrone, we’re talking about websites and other
resources to market themselves. What else can they do to put
themselves out there and to help people understand what their
business is about, who they are and what sort of services
they’re trying to provide?
Falls:
Actually you’re going to need a palm pilot today
and a cellular phone.
Browne:
You’re serious. You need these things in order to
be a successful business owner?
Falls:
It’s because a lot of people, especially if you’re
in sales, nine times out of ten you’re not going to
be at your office. So, you know, if you have a customer, or
a potential prospect to call, it’s important that you
be accessible. You’re going to need voice mail as well.
Brown:
What about just in terms of getting the word out about
your business, do you need to send out flyers? Will a web
site be enough? Do you need to deal with direct marketing?
What sort of things does a small business owner need to think
about in order to really take that next step?
Falls:
There’s multiple things you can do. You can do seminar
workshops and from there work off of your referrals and maybe
go on the radio, and go on television and let people know
on TV what you’re doing in terms of what kinds of products
and services you have to offer.
Smith:
Some of the basic, traditional things that you might be
referring to Natalie, you have to have a business card. When
you meet someone and you have a discussion with them, you
need to be able to leave a business card or a flyer, a one
page flyer, something that represents you and your business
organization that you’re involved with and then hopefully
get a business card or at least get the person’s name
and phone number and preferably email or fax or something
like that way of communicating with them after the meeting.
You can do a lot of one on one contacts there but nothing
replaces the old fashioned business card and a flyer or you
know, someone has been referred to you by a third party, as
Tyrone said. You can do some basic stuff without the technology,
but the technology puts you on a whole different level.
Falls:
Also what you can do is write an article in the newspaper
about your product or service.
Brown:
How often will newspapers be willing to run whatever you’ve
written as is without editing it or—how do you get a
news medium to do that for you?
Falls:
The possible is it to write a different news article every
week.
Brown:
And just send that in?
Falls:
And just send it in.
Brown:
Have any of your client done this and been able to actually
garner clients though this method?
Falls:
In my line of work, I’m normally from time to time—I
will write an article and submit it to the newspaper talking
about insurance.
Brown:
This helps people understand more what you guys do or
what you do in particular.
Smith:
And you select who you’re going to submit it to.
Sometimes local or weekly newspapers will be more interested
in printing an article like that that might be sent in you
know just approach as opposed to a major daily or something
like that they may or may not print it. But local papers,
and weekly papers, neighborhood and community-type papers
are the best places for that kind of thing.
Fulbright:
Build a relationship with the reporters. I’ve had
a lot of success with that with our business as well as with
our clients and also building a rapport with the reporters
and then they would be more interested in receiving your information.
Also sending press releases when you’ve had anything
significant happening that you think is newsworthy and you
got to make sure you put the spin on it that it is in fact
newsworthy. That’s what I would suggest.
Brown:
Of all the things you guys have been talking about I think
someone who might be thinking about starting a business might
be a little daunted by all that goes into keeping it going.
What actually does it take to start a business? How much hustle
do you have to do, Tyrone?
Smith:
I would recommend, especially if you are interested in
starting your business is maybe talk with someone who is already
in business, that’s doing the kind of service that you’re
interested in. You can avoid a lot of pitfall and a try not
to reinvent the wheel by doing that.
Brown:
Right, and Luther, anything else?
Falls:
Do some research, I think that Genevia referred to that;
some things that they did were very successful when they first
started. Do some research on what type of business enterprise
you’re going to get involved in. Know what you want
to do. First of all, decide that you really want to do this
and that needs some thought, prayer, whatever you do to make
major decisions. Once you’ve done that, go out and do
some research and talk to people who are already doing what
you’re doing and see what kind of resources are out
there. There are things, such as in the State of North Carolina,
they have the small business technology development center
and they have several locations around the state where they
have small business consultants who can actually talk with
you from, “I just want to do a business,” to actually
going to business plan phase, referring you to other resources.
There are other organizations, retired executive groups that
you can talk to. These are like advisory type groups for people
who are thinking about starting something. So, you got to
know what the resources are out there for you and if you want
to do it, there’re a lot of different support systems
to help you out. We’re available too.
Brown:
Genevia, what’s the reality in terms of, once someone
decides they’re going to start a business, what’s
the likelihood that that business is going to be around a
year, two, three, you know years later?
Fulbright:
I want to say it depends. It depends on how much research
they have performed, it depends on how well they’re
capitalized. It depends on how serious the person is, sometimes
people want to, I say, make a leap from a worker to an entrepreneur,
but they don’t really know what it takes. So, really,
they want to make sure they’ve done all the research
they can, have a network of people who are working with them
and that may be relatives family members, who if you don’t
have the particular skills, that there are people around you
who probably do. They’ll be able to work with you, especially
during the start-up phase to kind of help you get your business
going. In fact, I’m actually writing a book that is
due out in February 2003, called, Make The Leap: Shift
From Corporate Worker to Entrepreneur, and what I’ve
done is I’ve co-authored it with another CPA and we
have quite a few individuals who are contributing chapters.
We go from the, “Let’s start a business,”
to how do you buy a business, to how do you buy a franchise,
pros and cons of all. That would be a resource. For individuals
as well as there are numerous other books that are already
you that are related to that tactical topic.
Brown:
Let’s talk about money, and the fact that you said
how well a business is capitalized is going to have something
to do with how successful they are long term. Tyrone and Luther,
tell me about trying to fund your business ventures and how
that difficult that is. How do you keep the money coming in
because I’m sure you have to continue to have some sort
of cash flow to keep growing the business, how does that work?
Smith:
Well, when we first started the network that was one of
the things that—when we just threw some fillers out
there to let people know that we were talking, thinking about
starting a network. A lot of people said you’re going
to need a lot of capitalization , how was you going to raise
your money? We realize that there again in the African-American
community there’s $576 billion dollars there and sometimes
you just have to go get it. I think in order to be successful
in business or in your personal life it’s your attitude,
not your aptitudes that will always determine your altitude.
So, that’s the bottom line. If your business, you know
if the economy is slow you just may have to work more hours.
You know, if the market you’ve been working traditionally,
and you’re not making the type of contacts or the sales,
you going to need to upscale your market. Then just play the
numbers because it’s all about the numbers and doing
the work in order to get the type of results that you want.
Brown:
Thank you. Now, Luther I’m going to give you the
last word, let me ask you one last question: Does it pay for
a business owner to go to someone else and actually give them
money to market the business owner’s company or to do
the networking for them or should owners really look at doing
the work themselves?
Falls:
I think that really depends on the actual business enterprise
because if you have someone that can do there job well, or
perform they’re business well and has interpersonal
skills, and can go out and actually be aggressive, they can
actually, they can also do the marketing as well. If they
don’t have the time or they feel like they don’t
have those types of interpersonal skills, then they need to
hire someone. Check references. Find out who you feel is reputable
and has a track record before you make those kind of decisions
because that’s critical to your business.
Brown:
Real quick, how do you give someone money to do something
for you if you’re struggling to get the capital to do
the business in the first place? Okay, I’ll give it
to Genevia, real quick.
Fulbright:
Make sure that you obtain capital, get investors, family
friends, borrow for your 401K if you have to and make sure
that you have the funds that are available to help you make
your business successful.
Falls:
There’s a lot of money out and there ways to get
it.
Smith:
I was going to say you should also develop a strong business
plan.
Brown:
That sounds like the foundation of what we need for business
owners to begin. Thank you so much. I’d like to thank
Genevia Fulbright, Tyrone Smith and Luther T. Falls, Jr. for
their expertise on tonight’s program. If you’d
like to learn more about the work of our guests or the issues
we’ve been discussing around creating business success,
please visit the Black Issues Forum website at www.unctv.org/bif. We would also like to hear
you feedback and your suggestions so send us an email or you
could call the BIF line at 919-549-7167. Be sure to join Black
Issues Forum each Friday night at 9:30. I’m Natalie
Bullock Brown reminding you to be encouraged no matter what.
Have a good night.
[THEME
MUSIC]
Voiceover:
This program was made possible by contributions to UNC-TV
from viewers like you. Thank you.
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