cartierhoe
Veteran
Bookmarked
The Coli: Entrepreneurship Resource Thread
- Thread starter Warren Moon
- Start date
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- Tags
- entrepreneurship
I have an idea for African/African-American Inspired Pocket Squares. I like men's style and I noticed that there is a gap that needs to be filled with our imprint in the classic menswear world.
Would you guys, for example, wear a pocket square with an Ernie Barnes print on it?
Would you guys, for example, wear a pocket square with an Ernie Barnes print on it?
humminbird
Veteran
I formed an LLC a couple of days ago
I’m very excited but not ready to reveal my product yet
I really need to learn about taxes and which business credit card I should get
I’m very excited but not ready to reveal my product yet
I really need to learn about taxes and which business credit card I should get
DEANBIGBROTHERALLMIGHTY18
All Star
My purpose for wanting to start a business are the following
1. Independence- To have some control over my livelihood
2. Wealth- I want to create meaningful wealth that I can enjoy and can pass down to my children
3. Have pride and true ownership in the deliverables that I produce
4. Tired of being underemployed: Currently, I'm on active duty Army and I have my college degree but somehow my income never reflects my educational level.
Sidenote: What lessons or moves I need to make to capitalize on this Corona Virus pandemic
Yinny
Sweet and Sour Patch Mom
Add a space for professionals necessary for establishing, running and complying with business requirements (lawyer, CPA) and recommended/useful contracted services.
Great idea
I'd be interested in learning more here. It's something I'm striving for, but not necessarily today.
I’m going to go into this in-depth. It’s the biggest reason for black millionaires that have built businesses.
Reading through your thread and realized I didn’t answer your first two questions.
I’ve had little to no knowledge in a couple of my companies and thought I knew a lot about the other companies.
Either way you’re going in blind, especially at my age, under 30. There are regulatory, employee relations and just general competitiveness you’re unaware of before your presented with the problem.
I chose not to offshore bc once your code or the operational functions of your company is outsourced, your idea will be replicated and on top of that, you can’t do anything about them stealing your intellectual property.
With b2b companies it’s a strong selling point to them that you’re secure, and that they won’t have any of their ip be released To everyone by going offshore.
Stripe for example doesn’t have “official partners” yet, bc they’d be bombarded by offshore companies. Although we were never an official partner of that company, they referred us to their clients. Most of which were US based companies, worried that their information would be released by someone they didn’t trust.
telling them their data would never leave the United States was a huge selling point. Especially bc they were dealing with financial information, which is highly regulated.
I'm still struggling to pick a proper niche originally I wanted to sell e-commerce services to small and medium business since retail is changed forever due to covid-19 helping companies setting up a wordpress page adding shopify, woocommerce etc and upselling webdesign or some other service. I'm having second doubts however since im planning to outsource all the work regardless what niche i'm worried about the quality of code I do come from a tech background so i can write code however I dont want to be spending hours correcting code due to quality, I plan on approaching clients myself and then hiring freelancers on upwork and fiverr to do the work and just add markup on the prices . Ideally the services I sell must be between 1-3k
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 will 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 to the black community ever.
THE MAN RESPONSIBLE FOR MORE BLACK MILLIONAIRES
CONGRESSMAN PARREN JAMES MITCHELL
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.
MORE BLACK MILLIONAIRES
Through the groundwork which Parren Mitchell initiated and laid, Secretary of HUD Alphonso Jackson often says,
“There is no other program that has produced more Black millionaires in this nation than the 8(a) program.”
As an example, one of the most successful 8(a) Program graduate is World Wide Technology, Inc. WWT was founded by Dave Steward and has grown from a few staff to over 4,000 employees. WWT made Fortune’s 2018 “100 Best Companies to Work For” list. Additionally, WWT appeared on the 2018 “Best Workplace in Technology” list by Great Place to Work and Forbes’ Largest Private Companies list. WWT has an estimated revenue of $11 billion annually. Celebrity Net worth ranked Dave Steward as the 2nd richest Black man in the US, with a net worth of $4 billion, higher than:
Oprah Winfrey: $2.8 billion
Michael Jordan: $1.9 billion
JayZ: $1 billion
Tyler Perry: $600 million
Denzel Washington: $220 million
In comparison, think about what Dr. Martin Luther King, Jr. did for civil rights and social justice. Think about how Oprah Winfrey changed the landscape of media and entertainment. Think about what Jackie Robinson did for professional sports. That is what Congressman Parren Mitchell did for small businesses and economic justice. He is an unrecognized hero for the magnitude of impact which he has made.
ECONOMIC COMPARISON
Let’s do a quick economic impact comparison to other industries.
This chart compares the set-aside program which Mitchell fought for with other industries.
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The 8(a) Program has 6,000 companies. These companies won approximately $25 billion in contracts annually. All companies in federal set-aside programs, such as WOSB, HUBZone or SDVOSB, won a total of $44 billion in contracts. (Source: usaspending.gov)
National Football League (NFL):
32 teams x 53 man roster = 1696 total players
68% or 1153 NFL Players are African American
Estimated Total NFL Salary: $6 billion x 68% = $4 billion going to African American Players
Hip-hop/Rap Music:
In 2017, Goldman Sachs reported that R&B and hip-hop lead the music industry with live music streaming, publishing and recorded songs with an estimated $26 billion in revenue.
8(A) Program
8(a) Business Development program
Program benefits
To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) Business Development program.
Disadvantaged businesses in the 8(a) program can:
Compete for set-aside and sole-source contracts in the program
Get a Business Opportunity Specialist to help navigate federal contracting
Form joint ventures with established businesses through the SBA's mentor-protégé program
Receive management and technical assistance, including business training, counseling, marketing assistance, and high-level executive development
You can compete for contract awards under multiple socio-economic programs, as they apply.
8(a) program qualifications
To qualify for the 8(a) program, follow this eligibility checklist:
Be a small business
Not already have participated in the 8(a) program
Be at least 51 percent owned and controlled by U.S. citizens who are economically and socially disadvantaged
Be owned by someone whose personal net worth is $250,000 or less
Be owned by someone whose average adjusted gross income for three years is $250,000 or less
Be owned by someone with $4 million or less in assets
Have the owner manage day-to-day operations and also make long-term decisions
Have all its principals demonstrate good character
Show potential for success and be able to perform successfully on contracts
The federal government fully defines who qualifies for the 8(a) program — including what counts as being economically and socially disadvantaged — in Title 13 Part 124 of the Code of Federal Regulations (CFR). You can also get a preliminary assessment of whether you qualify at the SBA’s Certify website.
Get certified as an 8(a) small business
Before you can participate in the 8(a) business development program, you must be certified.
To get certified as an 8(a) business, simply use the certify.SBA.gov website. You’ll need to have a profile at SAM.gov before you can use the certification website. The information you’ll need to provide will vary based on your business structure and whether you’re already participating in other SBA programs.
After you successfully complete your certification process through certify.SBA.gov, you should update your business profile at SAM.gov to show contracting officers that your business is in the 8(a) program.
You’ll receive a letter in the mail informing you if your application was approved or not. If you’re accepted into the program, your profile in the Dynamic Small Business Search will show your approval date and exit date for the program.
Your certification will last for a maximum of nine years. You'll need to complete annual reviews to maintain your good standing in the program.
Overview and directions: https://www.sba.gov/sites/default/files/oed_files/Contracting_8a_Overview.pdf
What is the 8(a) Business Development Program?
Benefits of the Program
The following is a list of benefits of participating in the 8 (a) Business Development Program.
Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing. While we help 8(a) firms build their competitive and institutional know-how, we also encourage you to participate in competitive acquisitions. (No bid contracts for up to 4 milly for your company
)Repeat: $4 million dollars!
8(a) firms are also able to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract. Also, see the Mentor-Protégé Program for more information on allowing starting 8(a) companies to learn the ropes from other experienced 8(a) businesses.
Requirements and Goals of the 8(a) Business Development Program
The overall program goal is to graduate 8(a) firms that will go on to thrive in a competitive business environment. There are some requirements in place to help achieve this goal. Program goals require 8(a) firms to:
Maintain a balance between their commercial and government business.
Limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primary NAICS code.
To make sure 8(a) firms are on track to accomplish their goals and are following requirements, the SBA district offices monitor and measure the progress of participants through:
Annual reviews
Business planning
Systematic evaluations
In addition, 8(a) participants may take advantage of specialized business training, counseling, marketing assistance, and high-level executive development provided by the SBA and our resource partners. You can also be eligible for assistance in obtaining access to surplus government property and supplies, SBA-guaranteed loans, and bonding assistance for being involved in the program.
This Brother seems to have a great channel about the program
https://www.youtube.com/channel/UC9iC4ASAgGm_Z3b77PZGqIw
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This is where it’s at. I’d like to get into government contracting when I figure out what I want to contract for.
research, research, research. Find an area with high margins.