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Crafting a Business Plan for Minority, Woman, and Veteran Business Enterprises
No matter how many people in leadership positions deny it, sexism, racism, and ableism are rampant across all industries. Minorities, women, and veterans often have limited access to resources and face more obstacles when they want to start their own businesses.
Many studies over the years have shown that MWVBE (Minority, Woman, and Veteran Business Enterprises) have built very strong reputations. They have helped the economy grow and provide employment to millions of Americans.
The promise of these numbers must be highlighted when creating a business plan that will set you up for success.
Important Statistics in MWVBE
Opening doors to minority-, women-, and veteran-owned businesses is more important than ever.
According to the 2022 Annual Business Survey, 5.9 million companies in the U.S. employed workers. Women own about 1.3 million, or 22% of the total, while minorities own about 1.2 million, or about 21%. Some 5.2% of companies, or about 304,823, are owned by veterans.
Here are some interesting facts from the U.S. Census on MWVBE:
- Women-owned businesses add $922.2 billion to the economy and contribute close to $500 billion in annual payroll for the 10.5 million workers they employ.
- Veteran-owned businesses employ around 3.3 million workers and contribute a payroll of $179.9 billion and $922 billion to the economy.
- Of all minority-owned businesses, a little over half are Asian-owned, with 24% in the Accommodation and Food Services.
- Asian-owned businesses contribute $1 trillion to the economy.
- Black-owned businesses employ about 1.4 million people with a payroll of about $53.6 billion and over $180 billion in receipts.
You can leverage these crucial data points when creating a business plan for your MWVBE.
Steps in Creating a Business Plan for MWVBE
Opening a business entails several critical steps, one of which is the creation of a business plan. It is an important document that will give you a map of where you want to take the business in the future.
Most importantly, it can help you get funding. Women and minority business owners, especially women of color, are often granted fewer funding opportunities and usually at higher interest rates. So, how do you write an effective business plan for your MWVBE?
1. Research Your Target Market
Before you start any business, you need to make sure your concept has a future in your niche and that you have a market for it.
Minorities, women, and veterans usually open businesses that cater to their own communities’ needs. For example, women of color have launched hair and makeup businesses to cater to hair or skin tones that mainstream companies oen neglect.
Your business plan must indicate its importance to your community and provide proof of a robust market.
2. Write an Executive Summary From Your Point of View
The executive summary is at the top of the first page of the business plan and encompasses the important points of your new endeavor.
Explain how your business will solve a problem, change the industry, and contribute to the economy. As a woman-, minority-, or veteran-owned business, you must also emphasize how you can help your community and employ those within it.
3. Include a Business Description
Describe your products or services and why they are important to the industry, particularly women, minorities, or veterans. Thoroughly explain your business’s unique selling points and why it is worth investing in.
4. Perform Market Research
Outline data-centric market research that supports your executive summary and business description. Use easy-to-understand statistics for prospective investors to understand your market and your contribution to it.
Make sure to include the following:
- Target market demographics
- Size and purchasing power of your target market
- Pricing details
- Competitor analysis
Incorporate data about underserved sectors that your business will help, whether through your products and services or employment opportunities.
5. Map Out the Management Structure
You must also clearly outline certain technicalities, such as the type of business ownership, management structure, and employment details.
As a minority, women, or veteran-owned business, you can emphasize the percentage of employees you will onboard from your sector.
6. Outline a Sales and Marketing Plan
Sales, marketing, and advertising are critical to business success. Your business plan must include a clear strategy to spread the word about your brand and reach the target audience for your products or services.
7. Create a Financial Forecast
Talk about how you intend to acquire the capital for the business and generate healthy revenues. If you sign up for a loan, this section must include payment plans.
Enumerate business expenses and predict when you can pay off your initial debts and truly start making money.
Get Help Making a MWVBE Business Plan
Outlining a detailed, effective business plan is a complicated process. But the Fayetteville-Cumberland Regional Entrepreneur & Business Hub is here to help! Contact us to set up a meeting with an FSU HUB business counselor who can assist with and review your business plans.
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