“Business owners who reinvest in the business, stash cash, build equity and invest in other income generating vehicles are the ones who surpass the million dollar mark and scale their way to legacy. ” - Lisa Anderson
Happy Black History Month! This is such a great time to be celebrating our heritage and an even better time to be in business. The environment is changing. I hope you can feel it.
I am celebrating Black History Month by focusing on building wealth and legacy in black owned businesses. This week I delivered our Million Dollar Masterclass and reviewed the key things black owned businesses need to do to begin building legacy now. As I prepared to deliver the Masterclass I came across these startling statistics about the state of black owned businesses.
According to it's 2020 small business report, SBA Office of Advocacy reports:
I even reviewed the 2020 Forbes list of billionaires in the United States. Only 1.1% of 614 billionaires are black. Further, the list of black billionaires dropped by 46% in 2020 as compared to 2019.
So what's causing black owned businesses to lose value?
In a nutshell, it's an over reliance on instant gratification.
I’ve seen it a lot throughout my career. Black business owners have prematurely taken value from their businesses to take extravagant vacations, buy large homes, purchase luxury vehicles and draw money from the business at rates in which their profits and equity can not sustain.
I even saw these bad habits forming in black owned businesses recently when a friend polled small businesses in her Facebook group. She asked the group, if you could double your income today what would you do with that extra cash. Very few said reinvest in the business. Most said take a vacation, buy a house or pamper myself. It's this over reliance of instant gratification that's stunting the growth of black owned businesses and why I'm dedicating time to educate the community about ways to use money as an investment tool that grows legacies.
According to Psychology Today, over-reliance on instant gratification behaviors can create problems by changing our brains, distracting us from more meaningful pursuits, and leading to destructive financial, social, and health outcomes.
Business owners who reinvest in the business, stash cash, build equity and invest in other income generating vehicles are the ones who surpass the million dollar mark and scale their way to legacy.
As I mentioned at the top of this newsletter, the paradigm is shifting. The government and others are recognizing the value black owned businesses bring to the environment. Hence the reason they are putting programs in place to help black owned business thrive. For example:
But this alone won’t change the plight of black owned businesses. What they need to truly be successful are dedicated resources to help them think and act like millionaires. This is the very reason I started my business 24 years ago; to show small, minority and women owned businesses how to build equity, increase cash and invest in things of value. In most cases, business is a long term, value building process. Certainly one should reap some benefits as the business grows, but taking all of the benefits now hurts chances of success.
Here’s your call to action this week. Take notice of the equity section of your Balance Sheet. Are you building equity? Do you have more equity than debt? Are you building room to invest? Most importantly, do you have a resource that stays in your ear about growth, investing and legacy building?
I would love to talk with you about how we can help you build legacy now!
Ever wondered what it means to build a legacy? Our clients have learned what it takes and have achieved success during the most difficult time in history. During the 2020 pandemic, they experienced upwards of 67% growth, signed multi-million dollar deals, doubled their team, and sustained operations while others around them struggled. Guess what? You can be just like our clients!
Let's explore what it takes to build your legacy. Gain information and insight about building your pathway to freedom, flexibility, and legacy! Let's start building your legacy NOW!
CoVID-19 has drastically impacted the viability of small businesses. To improve the economic conditions, 15 industry experts joined together to provide support, strategies and advice on maintaining business continuity. Access to other resources are also available.