The Minority Business Certification program is a venture-driven initiative to help African American, Asian American and Hispanic-owned businesses grow. There are more than 44 million business owners in the United States, and they have different needs and challenges. This program has been created to help minority business owners secure certification in four key areas: finance, management, operations and sales.
What is the Minority Business Certification?
The Minority Business Certification (MNBC) program is a venture-driven initiative to help African American, Asian American and Hispanic-owned businesses grow. There are more than 44 million business owners in the United States, and they have different needs and challenges. The MNBC program has been created to help minority business owners secure certification in four key areas: finance, management, operations and sales. The certification is a voluntary program intended to improve the management practices of certified minority business owners. It’s also a way to build a network of other certified owners and share experiences and best practices.
How to become a Certified Minority Business Owner
Finance: Show that you have a proven process for raising the capital you need to grow your business.
Management: Demonstrate that you have the skills to run a successful company. This includes hiring qualified staff members, managing their performance according to their skills and experience, and maintaining a healthy and productive work environment.
Operations: Show that you have a proven process for operating a business. This included planning for future growth, managing assets and inventory, and setting strategic business goals based on your company’s vision.
Sales: Demonstrate that you have the ability to drive sales for your company through effective business strategies. This includes marketing, pricing, and selling your products and services to prospective customers.
Steps to take to become a certified minority business owner
Raise capital: Your first challenge is raising capital. Companies with low growth rates are less likely to be acquired, and even a small business can be worth millions of dollars. Start by identifying a specific amount of money that you would like to raise, such as $100,000.
Hire employees: Businesses with low growth rates also struggle to find qualified employees. You can’t train new hires overnight, so your goal is to grow your company to the point where it is ready to hire full-time employees. To get there, you will need to hire part-time employees, and then find ways to scale their efforts.
Organize your business: The ownership structure of your company is important because it can have tax consequences, including whether you pay taxes on the money you make from it or your investors. You can choose to organize as an LLC or a corporation.
Track expenses: The next step is to track your expenses and identify areas where your company can save money. You can collect this information with a basic accounting system, or by hiring an accountant.
Hire a business advisor:
As your business grows, you will need a business advisor to help you navigate the challenges of scaling your company, including hiring qualified staff members, managing their performance according to their skills and experience, and maintaining a healthy and productive work environment.
Evaluate your investment strategy:
Your next step is to evaluate your investment strategy and find ways to reduce your overall risk. To do this, you can use a risk-assessment tool, such as the Risk Assessment for Entrepreneurs (RAFE) model.
Maintain your certification: The final step is to maintain your certification. To do this, you will need to participate in a business management class or an operational strategy training program.
Benefits of becoming a certified minority business
Access to Minority Business Grants:
Businesses can receive grants from the federal government, state government and local government that they do not apply for.
Access to Financing:
Financing is critical to growing a business, and it can be extremely difficult for small businesses to secure it. – Access to Resources: Companies with revenue tend to have more resources, including marketing budgets, salespeople and distribution channels.
Access to Market Research:
There are benefits to conducting market research before investing in new products and services, including identifying unmet customer needs and identifying potential new customers.
Access to Talent:
Companies with revenue are usually in a position to hire talent from within and outside the company.
Access to Partners:
Successful companies are usually partnered with other companies, universities, governments and other organizations that have resources to share.
Requirements to become an MNBC certified owner
Be an owner of a minority business: You must be one of the owners of the company you want to certify.
- Be a U.S. citizen: To obtain certification, you must be a U.S. citizen.
- Be at least 18 years old: You must be at least 18 years old to become certified.
- Hold a high school diploma: You must hold a high school diploma or equivalent (GED) to become certified.
- Have a net worth of at least $750,000: You must have at least $750,000 in liquid assets to become certified.
- Have adequate insurance: You must maintain insurance coverage for your business.
Tips for remaining in the program
- Take Business Management Classes: Maintain certification, and participate in a business management class every year to maintain your skills.
- Take Operational Strategy Classes: Maintain certification, and participate in an operational strategy class every two years to maintain your skills.
- Keep Track of Expenses: Maintain certification, and keep track of all expenses that go towards your business.
- Invest in Your Business: Maintain certification, and invest your certification fee back into your business.
- Maintain Good Reputation: You must maintain a good reputation while in the program, or you will lose your certification.
- Report to the DOJ: You must report to the Department of Justice every year, or you will lose your certification.
Conclusion
As an owner of a minority-owned business, your goal is to grow your company to the point where it is ready to IPO, or sell to a larger company. The first obstacle is that only 2.3% of all companies that begin as startups are acquired by another company within five years. To get and stay certified, you need to show that your business has the potential to succeed in all four areas of the certification process. The Minority Business Certification is a venture-driven initiative to help minority business owners secure certification in four key areas: finance, management, operations and sales. The certification is a voluntary program intended to improve the management practices of certified minority business owners.