By Michelai A. Graham

COVID-19 presented more challenges than one for businesses, and the pandemic took an even more tremendous toll on minority business owners.

With minority business owners experiencing a cash crunch, not many could secure loans to keep their doors open.

In 2020, 400,000 small businesses decided to permanently close due to the effects of the pandemic — many of which were in underserved communities. Whether you’re in the idea phase or already established, this guide will help you get your minority-owned business off the ground.

Before you dive into this guide, check out this blog on how to start a business if you’re still in the idea phase.

When you finish reading this piece, you’ll have everything you need (and more) to thrive as a minority business owner — from how to get certified as a minority-owned business, to funding options and growth resources.

Get Certified as a Minority-Owned Business

After you’ve nailed down your business idea, plan, and registered your company, it’s time to get certified as a minority-owned business. This certification isn’t required, but it will help inform consumers and potential partners about your company’s leadership.

You may also need this certification may also if you want to apply for government-funded minority business grants and loans, or other programs.

Illinois, Ohio, California, and New York have local agencies to get certified as a minority-owned business on a state level. There are various ways to get certified from local state and business agencies, so it might be best to consult them directly based on where your business is registered.

Here are a few other high-level agencies to consider getting a minority-owned business certification from:

• The National Minority Supplier Development Council (NMSDC): Headquartered in New York, NMSDC manages 22 regional affiliate councils around the U.S. NMSDC offers minority-owned business certifications and business development programs. The council has a network of more than 1,750 corporate members and has matched more than 12,000 minority-owned businesses with these member corporations. The certification process includes an online application, fee, interview, and site visit upon approval.
• The Small Business Administration’s 8(a) Business Development program: The federal government committed to awarding five percent of all federal contracting dollars to small disadvantaged businesses with an 8(a) designation each year. This is an SBA-specific minority-owned business certification needed if your company plans to compete better for federal government contracts.

These same organizations and agencies may offer women-owned and LGBTQ-owned business certifications, as well.

Apply for Minority Business Grants

Minority founders often start bootstrapped, launch crowdfunding campaigns, or even try and raise initial funding through family and friends.

You can take various routes to fund your startup, but if you’re on your own when it comes to financing, seeking grant funding is a great start. Grants.gov distributes more than 1,000 small business grants for an open search, and this is where all federal government agencies post their grant opportunities.

Here are a …read more

Source:: HubSpot Blog

Author: Aaron