Posted by So you’re ready to leave the racist plantation of corporate America to start your own passion business. I get it. Microaggressions and flat out racist behavior happens in many workplaces. That’s unacceptable. After a while, you get so frustrated and drained, that you wanna just bounce up outta there. Indeed, across various media, we hear business brothas and sistas encourage the rest of us to stop working for “the man…them folks” and start our own business.
But…let me tell you a little cautionary tale before you do that. I actually met a younger, attractive single mom years ago, maybe a year or two after my divorce, where we came across each other at some social function and explored dating. But she was in a terrible financial bind. Like many of you, she got tired of the politics at work as it stressed her out. I don’t think it was racism, but it was bad nonetheless.
Her child was like, under 5 yrs old or something like that. Her friends and family encouraged her to save up some money, quit, and start her own business. She hesitated for some time, but after something at work was the last straw, she took that leap of faith and started her own business. I think it was either beauty or fashion related, I forget. And some of you know how I feel about those passion fields lol. But she seemed smart as she was telling me her story.
She used most of her savings, which included part of her rent. And I think you know the rest. She and her child were homeless. Where were those friends and family who encouraged her to take that senseless risk? She was in tears thinking about the fact that her child had no roof over her head or food to eat.
Now…set aside your emotions for a second. Are you sure you’re equipped with enough savings, enough business acumen and enough extra hours to launch and sustain a business for at least 3 years? If you take your current income and multiply it by 3, can you realistically make that amount with your new business? If so, how?
What unique product or service can you offer the public that makes these strangers want to break bread with you?
Who’s your target demographic?
What’s their net income and disposable income?
Do any government regulations apply to what you offer?
Do you know the difference between a sole proprietorship, an LLC, an S corporation and C corporation?
If you have a family that depends on your income, can you look yourself in the mirror and say “I accept the risk of my family possibly starving and going homeless if things don’t work out.” Remember: Your life and your babies’ depend on you being honest.
I hope you get my point. I know brothas and sistas who convince you to start your own business mean well, but if I were to tell you to quit your racist job and become a rapper, would you do it? Lol I thought so. Starting your own business out of emotion, because the workplace is racist, is the same, or worse than, trying to become a rapper. Almost all small businesses fail in the first year. Almost 90% of those that barely survive the first year fail in year 2. Years 3 through 5 are the make or break years. If you make it to year 5, you should be good.
You will have people in your ear who may tell you how they are making boss moves with their new LLC, making, say, $75,000 a year.
But do they know how much their expenses are?
Do they even know the difference between operating income, net income, and gross revenues?
Most of these so called “boss” business people don’t properly track their expenses, so when they brag to you and gaslight you into starting your own business, you will be using bad faith testimony to throw away your savings on a dream without a plan.
I’ve been doing business for over 30 years. I started my own S corporation right here in Texas in 1996, a few years after having been a sole proprietor. I’m a business process and digital technology consultant. I advise top executives of major corporations, so I know business very well. I say all that to advise you to be realistic about your chances. Everyone feels special, but not everyone is cut out for business, no matter how passionate they are about the business idea.
The question to ask yourself is if what you’re experiencing at work is truly racism, or just someone with a bad attitude for whatever reason? Are there adjustments you can make at work, such as moving to another group or reaching out to HR for solutions? Do you have the right skills to get a job at another company?
It’s important to try these options first because the economy is going through shaky times right now. And if you’ve watched my videos, I always say business is war. The workplace is going through a transformation from the industrial era to the digital era. AI solutions like ChatGPT are rapidly taking over so if you’re not equipped with those kinds of skills, you may have to stay where you’re at until you save up enough money to get some training in digital skills. It doesn’t have to take long. If you work for Walmart or Amazon, for example, both companies usually offer skills training benefits so that you can earn a certificate in supply chain technology, among others.
STEM careers are where it’s at, and the kind of STEM you get into better be tied to AI or machine learning. By moving to a STEM career, you can make more money to save towards starting a STEM business. Notice I said STEM business. The digital revolution means if you want to take a chance at starting your own business, STEM is the best shot you’ve got.
I plan to start up a live streaming series opening up my platform to give free advice if you’re frustrated in your job and are thinking of starting your own business. Another emotional topic that leaves our community at a disadvantage is the decision to kick kids out when they turn 18 without an education or career plan. This is a terrible approach that many of us still think is effective. In actuality, it’s one of the main causes of our people ending up choosing the lowest paying jobs, and then we blame racism and sexism for being underpaid. Let me know if you like this idea so I can plan the live stream. Until the next video, take care, business warriors.
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