In 2018, only 5% of UK SMBs were ethnic minority-led. While that number has indeed grown in the last year, compared to other minorities black workers were still least likely to be self-employed. But while there are fewer black and ethnic minorities in the UK, new data reveals that 5.7 black entrepreneurs per 10,000 people received a business startup loan from the government, compared to 2.4 white entrepreneurs per 10,000.
Considering that the startup landscape is generally dominated by white male entrepreneurs, these are certainly encouraging numbers, and we’re definitely here to see these businesses scale. So if you’re among those entrepreneurs just starting up, here are four tips to get your small business off the ground.
Just get started
The best way to figure out what works and what doesn’t is to get started — and be prepared to adapt. Taking the first step, whether that’s launching a social media account or designing your prototype, is the difference between your business being an idea and becoming a reality. From that point, look everywhere for inspiration and be open to changing tack — going back to the drawing board doesn’t mean you’re not moving forward.
Create a pitch deck
A good pitch deck is what attracts the attention of investors, customers and suppliers, but when you’re first starting out it’s also an essential tool to have on hand for your own sake. By mapping out your business model onto a pitch deck, you’re getting familiar with your strengths, weaknesses and any challenges you might face — and providing clarity for yourself.
Creating a 10-slide presentation about what’s special about you and your idea can get you thinking strategically about how you’re really going to make this business a success. A pitch deck usually includes answers to the following questions, at least:
- What’s the problem you’re solving?
- What’s your solution to this problem?
- How big is the market?
- How will you make your money?
- Where will you be spending your money?
- Who is the competition?
- How will you use your unique attributes as an entrepreneur to make the business successful?
Streamline payment options
Next, work out your payment methods. It’s 2020, and your target customers are expecting more and more convenient ways to pay securely, as illustrated by NatWest’s biometric key fob payment test. This provides an easy and secure method of payment up to £100 and works with all existing modern contactless hardware for startups, meaning a clean, quick and efficient method of processing payments anywhere they can without the need for any hardware.
If you operate in a physical space, such as a store, pop-up or market, you’ll want to handle payments securely and be prepared for the fact that many people just don’t carry cash anymore. FIS Global explains how modern card machines can accommodate a host of business setups, including taking payments on the move, at the till, or even around a shop or restaurant floor. Embracing scalable card options like thee, as well as other new technologies, is recommended for a modern startup to stay competitive.
Don’t be afraid to fail — stay positive
Although failure can teach valuable lessons, it’s normal for minorities to feel more inclined to be risk-averse. Leaving your comfort zone carries a higher price, in the form of discrimination or microaggressions, and Harvard Business Review points out this is especially the case for black individuals.
However, there are countless examples of ventures that failed before they succeeded, and one failure doesn’t have to spell the end. Like we said in the first point, be prepared to pivot if it’s not working out, and reach out to people whose insights you think can help. There are more and more networks and support systems for entrepreneurs of colour, meaning that you’re not navigating the world of business alone.
At times running a startup may demand a lot of your emotions, your social life, and even your finances — but stay positive! Remind yourself of exactly why you started, and surround yourself with a trustworthy support system, and you will get back on track.
