blackinkrevenge
Step
Very inspiring . thank you OP.
First of all, not all businesses have that objective. For example, private, family owned businesses like Dr. Bronners (and Johnson Publishing before Desiree Rodgers ran it into the ground) do not have acquisition as a goal. Other companies including certified B corporations like Traditional Medicinals (43 year history, 50 million in annual revenue and 170 employees) have charter statements that clearly say their goal is to remain independent and never be sold.
Secondly, my point was that we (not only Black people but Americans) need to encourage more mission-driven and value-based businesses. One of the reasons for our current economic situation (few jobs, limited social mobility) is the short-term profit, mergers and acquisitions culture of corporate America.
Finally, the question is what business books are you reading? Don't let Boyce Watkins, Robert Kiyosaki, organo gold, HerbalLife, and Uber get you confused.
That's the trick with sweet potato desserts - not too sweet.Lol are we twins?
Literally once I was craving that sweet potato cake but didn't want to drive all the way to Nord. Went to Starbucks and it was absolute TRASH. The real sweet potato cake is so moist. Not too sweet. And the perfect amount of icing. I won't be fooled again going to Starbucks.
I disagree, because when you sell you have now placed another black owned, black employing business in the hands of OTHERS. OTHERS who look at nothing but numbers, their communities, various things that can alter or taint the brand you worked so hard to build.In business selling as the exit strategy is always a/ THEE desired path you WANT to get acquired by a company. You want to be able to sell your business for legacy money.. money that will pass down generation to generation.
I just saw on YouTube some lady sold IT Cosmetics to some major makeup brand (Lancôme or L'Oréal)I can't remember but she was the founder and she sold that sh!t for $1.2BILLION dollars.
What business books you reading sis?!
You don't want to work IN your business, that's just a self created job... you want to work ON your business and grow it to the point where you exit and cash out!
God bless that landlord.
April Richardson has always considered herself a “fixer.”
A lawyer by training, Richardson once worked for a lender that foreclosed on homes and businesses. She eventually switched sides to help people avoid foreclosure, offering legal advice to struggling home and business owners in Washington, D.C., Maryland and Virginia.
That's how she met Derek Lowery, who sought her help saving Delectable Cakery LLC in Hyattsville, Md. His bakery, where he sold sweet potato cakes using his late mother’s recipe, was facing eviction.
His story resonated with Richardson, and she fought to postpone the eviction. The building owner agreed with one condition: Richardson would join the company and turn it around.
In 2013, Richardson became an investor and president of Delectable Cakery, which she renamed DC Sweet Potato Cake. She brought in new employees and new cake flavors, and landed deals with retailers such as Wegmans and Safeway grocery stores, Starbucks, Nordstrom and QVC.
Richardson also secured investments from City First Bank in Washington, D.C., Prince George's Financial Services Corporation in Maryland, and the Maryland Small Business Development Financing Agency.
DC Sweet Potato Cake sends retailers frozen cakes and cupcakes in flavors like classic sweet potato, red velvet sweet potato, and chocolate sweet potato. Customers can also order cakes on the company’s website.
Richardson attended Walmart’s Open Callpitch event and landed a deal in August. Cakes will be sold in 250 regional stores next year. Richardson said she’s planning to open a new bakery in Hyattsville at the end of October, and is looking for additional retail space in Baltimore. ( Interview lightly edited for brevity and clarity.)
When you first joined the company, did you predict so much success for DC Sweet Potato Cake?
Yes, I knew it – day one. I learned more about Derek’s mother’s story – she was an African-American woman who had been baking forever for her family and she had never gotten her product in the market. It became personal to me as a black woman to say I can make another elder in my community’s product a national product.
What was it like to pitch to Walmart?
At my pitch session, it was really neat because one of the executives at Walmartalready knew about our product.
What I don’t do, which is a rule of thumb, I don’t sell our product. I tell people about our story. You can find cake anywhere. You can find amazing cake from any amazing bakery. But I think what separates our product is the people behind it. We’ve fallen down, we’ve gotten back up, we’ve fallen down. And this time when we stood up we got help from bigger organizations to hold us up, such as Nordstrom, Safeway, Wegmans and QVC.
If you are chosen, it’s like American Idol getting into Walmart. They give you a green ticket and media is right there. The best part for us has been the media exposure because, to me, it’s not about Walmart putting products in stores. It’s about Walmart reaching down and pulling up small companies like mine and propping us up so that we can continue to provide jobs and build right here in America.
What marketing strategies have you used to increase brand awareness?
Everything has been word of mouth. Last year we put together our first campaign as a test. We did a campaign called #WeBakeWeLoveWeInspire. That was when a lot of the major protests were happening around the country in regard to the African-American men that were being killed by police officers.
We were in a meeting that day and everyone was sad about it and we couldn’t take it anymore. I sent one person to Staples to make a poster board that said #WeBakeWeLoveWeInspire with our logo. I sent someone else to the kitchen to get as many cupcakes as possible. I told everyone to put on their “I heart DC Sweet Potato Cake” T-shirt and bring the camera and go downtown.
We didn’t know what we expected, but all I wanted to do was pass out cupcakes and hear what inspires people. It was our way of bringing a positive message to all of the turmoil.
https://www.bizjournals.com/bizwome...m-cake-shop-i-tell-people-about.html?page=all
I disagree, because when you sell you have now placed another black owned, black employing business in the hands of OTHERS. OTHERS who look at nothing but numbers, their communities, various things that can alter or taint the brand you worked so hard to build.
Corporate gentrification vs creating generational wealth...
Based on the question asked, which is a fair one, it seems as if the font is asking how the process of building a business like this typically works. Maybe others have the same question. So, if you are interested, here are some of the answers.
Most states, cities and in rural areas most counties have economic development agencies which have small business assistance programs. For example, in New York State there is the Empire State Development Corporation and local agencies as well. There is also the federal government’s Small Business Administration. In addition, many banks especially community banks have funds set aside for loans to small businesses. In many instances there are preferences for minority and woman owned businesses. Just google “small business assistance” plus your state, city or county.
Usually, what is required as a first step is a solid business plan. A lot of these agencies will provide help in developing such a plan. Some provide a mentor to help develop the business plan, often someone retired, who has experience in that type of business. Once that plan is in place, then applications can be filed for loans at very low interest rates to capitalize the business. Depending upon the business plan, this money could be used for all types of business development expenses. Often, more than one loan is needed because no one lender will want to take on all of the risk.
So, what is likely to have happened regarding this business is that the original owner had a good product, but lacked capital and a solid business plan to grow the business. Richardson either knew the economic development system or found out about it. A plan was put together and $700K in loans were obtained. Because the government and private lenders want to be sure that the folks borrowing have skin in the game, Richardson kicked in $100K. Chances are her money and the loan money were put in gradually. Not clear from the article what the money was used for, but it is likely that some went to pay off debts, some went for baking equipment, some went for labor expenses and other overhead, some went for supplies, and some went for marketing and promotion.
So, the $700K in loans would be paid back from revenues over a number of years, with 10 years being common. The $1 Million in gross revenue per year is not profit. When rent, payroll, supplies, and other expenses are deducted, what remains is likely sufficient to pay back about $75K or $80K per year, with profit on top of that. Over time, if the business pays back the loans ahead of schedule, has a solid track record and good management, then it could be sold to a larger company.
That’s a rough overview of how these things typically work when the right people have the right plan. Hope this helps the budding entrepreneurs who might be reading.
if you can get it from Nordtrom, its MUCH MUCH better. something about how they store it at starbucks, takes away all the icingI need some of that cake in my life. There isn't a nordstrom anywhere near me.
ETA: I see they are partnered with Starbucks, I will be snagging one whenever they get there.
You disagree with what? My position on the reason why MOST people start a business?
I never mentioned anything about a black owned business, so wut chu talm bout sis?!
I agree with you but thats good for the white folks. The black community needs a business that can grow into a corporation that has the means to acquire other businesses.
Tristian Walker could have sold to Gilette and called it quits. He's smarter than that. Bob Johnson sold BET, he may have some generational wealth but what is his legacy? He created BET and sold it to the Jews??
Based on the question asked, which is a fair one, it seems as if the font is asking how the process of building a business like this typically works. Maybe others have the same question. So, if you are interested, here are some of the answers.
Most states, cities and in rural areas most counties have economic development agencies which have small business assistance programs. For example, in New York State there is the Empire State Development Corporation and local agencies as well. There is also the federal government’s Small Business Administration. In addition, many banks especially community banks have funds set aside for loans to small businesses. In many instances there are preferences for minority and woman owned businesses. Just google “small business assistance” plus your state, city or county.
Usually, what is required as a first step is a solid business plan. A lot of these agencies will provide help in developing such a plan. Some provide a mentor to help develop the business plan, often someone retired, who has experience in that type of business. Once that plan is in place, then applications can be filed for loans at very low interest rates to capitalize the business. Depending upon the business plan, this money could be used for all types of business development expenses. Often, more than one loan is needed because no one lender will want to take on all of the risk.
So, what is likely to have happened regarding this business is that the original owner had a good product, but lacked capital and a solid business plan to grow the business. Richardson either knew the economic development system or found out about it. A plan was put together and $700K in loans were obtained. Because the government and private lenders want to be sure that the folks borrowing have skin in the game, Richardson kicked in $100K. Chances are her money and the loan money were put in gradually. Not clear from the article what the money was used for, but it is likely that some went to pay off debts, some went for baking equipment, some went for labor expenses and other overhead, some went for supplies, and some went for marketing and promotion.
So, the $700K in loans would be paid back from revenues over a number of years, with 10 years being common. The $1 Million in gross revenue per year is not profit. When rent, payroll, supplies, and other expenses are deducted, what remains is likely sufficient to pay back about $75K or $80K per year, with profit on top of that. Over time, if the business pays back the loans ahead of schedule, has a solid track record and good management, then it could be sold to a larger company.
That’s a rough overview of how these things typically work when the right people have the right plan. Hope this helps the budding entrepreneurs who might be reading.
So are you able to look at a business idea without the specifics,just based on concept and tell whether or not it's a viable one?
What do you do for a living?Most people aren't using traditional business plans anymore either!
When they are going for angel investors and funds from a bank they are using a one page business MAP!
Pitch fast, be concise, show me all I need to know in a flash.
What do you do for a living?
3 years later and I just found this post and I’m taking notes! Thank you for this insight.Based on the question asked, which is a fair one, it seems as if the font is asking how the process of building a business like this typically works. Maybe others have the same question. So, if you are interested, here are some of the answers.
Most states, cities and in rural areas most counties have economic development agencies which have small business assistance programs. For example, in New York State there is the Empire State Development Corporation and local agencies as well. There is also the federal government’s Small Business Administration. In addition, many banks especially community banks have funds set aside for loans to small businesses. In many instances there are preferences for minority and woman owned businesses. Just google “small business assistance” plus your state, city or county.
Usually, what is required as a first step is a solid business plan. A lot of these agencies will provide help in developing such a plan. Some provide a mentor to help develop the business plan, often someone retired, who has experience in that type of business. Once that plan is in place, then applications can be filed for loans at very low interest rates to capitalize the business. Depending upon the business plan, this money could be used for all types of business development expenses. Often, more than one loan is needed because no one lender will want to take on all of the risk.
So, what is likely to have happened regarding this business is that the original owner had a good product, but lacked capital and a solid business plan to grow the business. Richardson either knew the economic development system or found out about it. A plan was put together and $700K in loans were obtained. Because the government and private lenders want to be sure that the folks borrowing have skin in the game, Richardson kicked in $100K. Chances are her money and the loan money were put in gradually. Not clear from the article what the money was used for, but it is likely that some went to pay off debts, some went for baking equipment, some went for labor expenses and other overhead, some went for supplies, and some went for marketing and promotion.
So, the $700K in loans would be paid back from revenues over a number of years, with 10 years being common. The $1 Million in gross revenue per year is not profit. When rent, payroll, supplies, and other expenses are deducted, what remains is likely sufficient to pay back about $75K or $80K per year, with profit on top of that. Over time, if the business pays back the loans ahead of schedule, has a solid track record and good management, then it could be sold to a larger company.
That’s a rough overview of how these things typically work when the right people have the right plan. Hope this helps the budding entrepreneurs who might be reading.
i am bumping this thread so people who live close to her cake shop can support it!