The Coli: Entrepreneurship Resource Thread

Warren Moon

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I've seen a lot of one-off questions here and there in multiple threads about starting a business, maintaining a business etc. I wanted to officially start a thread addressing how to start a business, getting funding, getting contracts/customers.

A few of the business ventures I want to highlight in this thread:

  • Online Businesses (IG, Amazon, Shopify, ETC)
  • Apps (Games, B2C etc)
  • B2B businesses
  • Consulting Businesses
  • Real Estate (Flipping, Wholesaling)
  • B2C Businesses
  • Government Contracting
  • Business Funding (Loans, VC, Grants, Revenue Financing)
  • Entrepreneurial resources (blogs, podcasts, books etc)
  • Businesses
This thread is supposed to be a thread constantly adding information. If you are in a certain field and/or have certain experience in certain industries. Please contribute as much as possible.

Positive vibes and feedback only, please. I will add as much as I can as quickly as I can, but I am a busy guy.

I am a black male so a lot of the information I'll be posting will probably be tailored to black males because of my experiences, however 75-90% of what I'll be posting will be opportunities for anyone.


Let's help each other build generational wealth :salute:
 
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Pyrexcup

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I sold my consulting business. We worked on stripe integration for large entities and startups. I now work for a larger consulting firm as a vp.

but I’ve been an entrepreneur my entire life. I’ve had 5-6 businesses. 50% success rate.
:ehh: interesting I\m guessing you outsoruced all the technical bits to asia and handled the client facing part?


what would you say has been your favorite business out of the ones you've had. Me personally, I haven't had a proper business yet however I've played around with most internet type of business you can have. The main issue for me is time, cant run a full time business as I have a day job so dam near impossible to set up calls with cleints if im at work unless I figure out an effeceint way to outsource it . Operational wise I know how to run a business, I have a friend who has a online media company and I've seen the operations behind the scenes of how he runs his business
 

Warren Moon

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:ehh: interesting I\m guessing you outsoruced all the technical bits to asia and handled the client facing part?


what would you say has been your favorite business out of the ones you've had. Me personally, I haven't had a proper business yet however I've played around with most internet type of business you can have. The main issue for me is time, cant run a full time business as I have a day job so dam near impossible to set up calls with cleints if im at work unless I figure out an effeceint way to outsource it . Operational wise I know how to run a business, I have a friend who has a online media company and I've seen the operations behind the scenes of how he runs his business

Everything was done in house actually, which was a selling point of ours.
 

Pyrexcup

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Everything was done in house actually, which was a selling point of ours.
fair enough, how come you choose to have everything done in house rather than outselling. Also the business that have been successful is it business you've had knowledge in that industry before or have you gone in blindly? furthermore when starting a business how much do you think niche matters? as in do you go into untapped markets or just go for markets that are profitable and try to find a usp in that market?
 

Warren Moon

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fair enough, how come you choose to have everything done in house rather than outselling. Also the business that have been successful is it business you've had knowledge in that industry before or have you gone in blindly? furthermore when starting a business how much do you think niche matters? as in do you go into untapped markets or just go for markets that are profitable and try to find a usp in that market?

I pivoted into this business from attempting to target small community banks to sign up with zelle.

Niche is everything, it’s the biggest reason businesses fail or succeed. I’ve always ridden the wave of a market growing quickly, like stripe and I used to be an amazon seller. You can be very successful doing that.

but obviously the biggest and most successful companies create markets themselves. That’s what I want my next venture to be in. Literally creating a product/service that doesn’t exist currently.


It’s up to each business owner tho. Anecdotally 7/10 business owners enter into established markets.
 
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Warren Moon

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Funding

The biggest issue most people have starting or continuing a business is funding. I'll provide a few methods below.

Low Barrier of Entry Funding

Grants (Free Money!)

National Science Foundation https://seedfund.nsf.gov/ Tech Companies


(If you thought all these startup organizations were raising money from venture capital firms, theyre not. A lot of them get free money from the government. But like anything else its a game you need to play and understand. Details below.)

For 40 years, America’s Seed Fund powered by NSF has helped startups and small businesses transform their ideas into marketable products and services. We focus on high-risk, high-impact technologies — those that show promise but whose success hasn’t yet been validated — and each year, we award $200 million in funding to entrepreneurs across the country. We are a congressionally mandated program — Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR).


Up to $1.75M / 24+ months. Receive up to $256,000 in seed capital to conduct product Research and Development (R&D) over six to 12 months. During this period, your company will be immersed in the NSF network and you’ll receive training and mentorship from seasoned entrepreneurs and innovators. After you complete your Phase I award, you’re welcome to apply for a second-round investment of $1,000,000 over 24 months. During the course of that award, you can apply for supplements that may add up to another $500,000.

Program basics
When you decide to apply for funding, you’ll submit a Project Pitch. You’ll hear back within three weeks if your idea is a good fit for the program. Once you’re invited, you’ll submit a Phase I proposal for up to $256,000, which will cover at least six (and up to 12) months of work. You’ll find out whether your proposal was accepted or declined within four to six months of the proposal deadline.
If you’re awarded Phase I funding, you’ll be expected to:
Explore product-market fit
Determine your technology’s feasibility
Design and test prototypes
Identify any relevant legal or regulatory issues
Develop a plan to scale and market your technology]


Now in order to really get this funding you need to be approved. Find a proposal writer! and pay for them to write your proposal. The chances of you getting funded increase to 80%. They know what to write and what to put into the your application that check the box on what the government needs to see.

Loans

CDFI's

Community Development Financial Institutions Fund (the CDFI Fund) is an America in which all people and communities have access to the investment capital and financial services they need to prosper.

CDFIs are helping people succeed whenothers wouldn’t give them a chance.

Community development financial institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream.
By financing community businesses—including small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing—CDFIs spark job growth and retention in hard-to serve markets across the nation.


The CDFI Fund was created for the purpose of promoting economic revitalization and community development through investment in and assistance to Community Development Financial Institutions (CDFIs).

This is a great place to start looking for grants/low cost loans. This program helps to make sure areas around the country have access to capital. From affordable housing to business loans. Go to your state and look at each program to find out if they're giving out low cost business loans with lower barriers of entry.

Searchable Awards Database




504 Loan Program


SBA 504 Loan program is a powerful economic development loan program that offers small businesses another avenue for business financing, while promoting business growth, and job creation administered by Certified Development Company (CDC).

Honestly, I think this program is for more mature companies. This loan helps you buy real estate (land for franchises or own restaurants) or equipment. They want to make sure that if renege on the investment they have a tangible asset to sell.

Again, its my own personal belief that this is a better fit for established business but always monitor all the programs, you never know when you may need it.

Link: Real Estate and Equipment: CDC/504 Loan Program | The U.S. Small Business Administration | SBA.gov


SBIC (Equity/Debt)

SBA’s Office of Investment and Innovation (OII) leads programs that provide the high-growth small business community with access to two things: financial capital and R&D funds to develop commercially viable innovations.

I'll be perfectly honest, the heyday of SBIC investments has passed but there's still money out there. SBIC's get matching funds from the government to make equity and debt investments. They became really popular in the 1970's-2000's.

You want to know how Black Entertainment Television was helped started, via an SBIC investment. You'll be surprised how many businesses depended on the government for funding or contracting. I'll get into that later.

SBIC's in their current state are very mature and honestly have been taken over by white republicans. They removed the requirements for investing in the "up and coming companies" and now most the money goes to the upper middle class people, who already have money.

You may still find 1-3 funds in your state still making investments in poorer communities. But theyre all dying out. Link: Investment capital
 
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Warren Moon

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Government Contracting Placeholder

Before I post this information, I'd like to be honest with you. If you plan to pursue this program; You need to have your shyt together! Again, if you plan to pursue this program you need to be efficient and organized.

If you do so, you are 100% guaranteed to make $4 million dollars in revenue.

The 8(a) program.


Shout out to the congressman who built the biggest injection of wealth into the black community ever. :salute:

I gotta pay homage to breh. :myman:


THE MAN RESPONSIBLE FOR MORE BLACK MILLIONAIRES


CONGRESSMAN PARREN JAMES MITCHELL

parrenmitchell003-200.jpg

Parren James Mitchell was born on April 29, 1922 in Baltimore, Maryland. His parents were of humble beginnings. His father, Clarence M. Mitchell, Sr., was a waiter, and his mother, Elsie Davis Mitchell, was a homemaker.

As a young man, Parren Mitchell served as an officer in the 92nd Infantry Division during World War II and was wounded in Italy. He returned as a war hero and received the Purple Heart medal for jumping on a live grenade to save the lives of three other soldiers. His selfless effort should have merited a Silver Star or Medal of Honor, but Blacks could not receive such medals at that time.

In 1950, Parren Mitchell applied to graduate school at the University of Maryland, the President of the College Park campus rebuffed him by saying it was "inadvisable for Blacks to attend the College Park campus." Mitchell and the NAACP sued for admission and prevailed becoming the first African American to receive a post graduate degree from the main campus of the University of Maryland. He was a champion of civil rights and led local activists during the civil rights era. Today, the University of Maryland graduates more African Americans per year than any other state university system in the nation. This was the start of his long productive life in fighting for the underserved communities.

In 1968, Mitchell decided to run for Congress and challenged nine-term Democratic incumbent Samuel Friedel in the Democratic primary and lost. He sought a rematch in 1970, and this time he narrowly defeated Friedel by only 38 votes. He won the general election in November, becoming the first African American to represent the state of Maryland in Congress.

Mitchell was one of the 13 founding members of the Congressional Black Caucus (CBC), playing a significant role in crafting the identity of the new organization. As of 2019, CBC has 55 members.

During his sixteen years in Congress, he served on multiple committees, among them, he was Chairman of the House Small Business Committee. Through this committee and as chair to the Congressional Black Caucus he won a reputation as a staunch supporter of black-owned businesses. In 1978, Public Law 95-507 created a pilot program for contracts to be set-aside to socially disadvantaged businesses, which Black-owned firms would fall under. Because of this, Mitchell has been called the father of the federal set-aside program, allowing ten percent of federal business contracts to be awarded to minority owned businesses.

It is this landmark legislation which paved the way for today’s 8(a) Program and every other small business program. “I worked very hard in Congress to get laws on the books to benefit minority business,” Mitchell told Sonny Goldreich in the Baltimore Business Journal. “Everywhere I speak, I say, ‘This is the second phase of the civil rights movement. We cannot expect to be full-fledged citizens until we fully participate in the economy.’”



A Brief History of the 8(a) Program

To fully appreciate the magnitude of Parren Mitchell’s impact in society, we’ll need to better understand the 8(a) Business Development Program. The 8(a) Program allows for minority business owners with control of 51% or more of a small business to obtain admission as a certified 8(a) company. Through this certification, 8(a) companies can win set-aside contracts which other non-8(a) companies are excluded from. The greatest benefit of the 8(a) certification is Sole Source Contracts (SSC). Sole Source Contracts are direct award projects to one company. There is no bidding or a competitive procurement process. It is awarded purely on the capabilities of the company and the trust from the contracting officer. Most importantly, SSC’s have a high ceiling of $4 million. A certified 8(a) company can receive a direct award up to $4 million without having to compete with any other companies.

Below is a brief history of the 8(a) Program.

The creation of the current 8(a) Program evolved through multiple stages. It’s genesis rests in the cradle of World War II. In 1942, Congress first authorized a federal agency to enter into prime contracts with other agencies and subcontract with small businesses. This was to support the procurement of goods and services to support the war efforts from small businesses which often didn’t understand procurement regulations and policies. This agency was called Smaller War Plants Corporation (SWPC). The SWPC’s subcontracting authority expired along with the SWPC at the end of the World War II.

In 1951, at the start of the Korean War, Congress created the Small Defense Plants Administration (SDPA), given the same powers that the SWPC. In 1953, Congress transferred the SDPA’s subcontracting authorities to the newly created SBA, with the intent that the SBA would exercise these powers in peacetime, as well as in wartime.

When the Small Business Act of 1958 transformed the SBA into a permanent agency, the authority of subcontracting small businesses to the SBA acting as the prime was included in Section 8(a) of the act, thus the name, 8(a) Certification Program.

In 1967, Presidents Lyndon Johnson created the President’s Test Cities Program (PTCP), which involved a small-scale use of the SBA’s authority under Section 8(a) to award contracts to firms willing to locate in urban areas and hire unemployed individuals, largely African Americans, or sponsor minority-owned businesses by providing capital or management assistance. However, under the PTCP, small businesses did not have to be minority-owned to receive subcontracts under Section 8(a).

In 1968, the Small Business Administration’s 8(a) Program was enhanced to allow for federal purchases from socially or economically disadvantaged owners of small businesses. However, the 8(a) Program was not effective and rarely utilized. The SBA mainly focused on supporting loans and not contracting.

On March 5th, 1969, President Richard Nixon, with advice from Robert J. Brown, established the Office of Minority Business Enterprise. Today, it has transformed to become the Minority Business Development Agency (MBDA).

In 1977, The Public Works Employment Act as amended by Congressman Parren J. Mitchell required that 10% of each Federal Construction project be awarded to minority businesses. This set the stage for the use of set-aside programs.

In 1978, Public Law 95-507 mandated that bidders for federal contracts in excess of $500,000 for goods and services and $1,000,000 for construction must submit a small business utilization plan which includes percentage goals for minority businesses. Today, large firms have taken this cue and formed diversity programs and small business programs.

Also, in 1978, Congress amended the Small Business Act to give the SBA express statutory authority to support subcontracting with social and economically disadvantaged firms, which specifically include Black owned businesses and other minority owned businesses.



The Father of the 8(a) Program.

Many hands went into the establishment of set-asides and the 8(a) Program, but no other had a louder voice and more profound effort to see that contracting dollars were set-aside to the Black community. As a Congressman, Parren Mitchell aggressively insisted that the billions of federal contracts be made accessible to Black owned companies.

It is through these and many other legislations which Parren Mitchell fought for that I dubbed him with the moniker as the “Father of the 8(a) Program.” He is a GIANT through the countless regulations which he sponsored and supported. Parren Mitchell’s service in Congress paved the way for the most powerful entrepreneurial program for the Black community and other socially disadvantaged groups. Every small business program which came after owes its roots to Parren Mitchell.

Set-aside programs, sole source contracts, minority certifications, women business enterprise programs, Alaskan and Tribally owned corporations, Vet First contracting initiatives, Ability One, HUBzone certification, DBE, MBE, WBE, diversity programs and many other such small business initiatives can be traced to the work which Parren Mitchell and his peers fought for.

For the magnitude of impact which Parren Mitchell has accomplished, he is an unsung hero in the annals of American history and in the Black community. Very few people know who he is or the impact he has made. So are the entrepreneurs who he has helped. They are the millionaires next door. They quietly go about their business of providing value and services to government agencies. They grow their companies from a few employees to millions in revenue and in some cases, billions in revenue.
 
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Warren Moon

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This is by far my favorite black centric podcast. Earn Your Leisure


These brehs are killing it :salute:. Mutilple industries with black millionaires in those industries. It's an incredible podcast. If you're start from ground zero, spend 3 hours a week just listening to this podcast for motivation
 
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Let's say you want to start a business but you don't exactly which type of people to start. How can you gain clarity on this matter?
 
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