Hispanic Business Owners Benefit from California Bank Services
Big business has always struggled to meet the needs of minority markets. Some businesses decide that their core competencies lay in concentrating on the needs of the majority and letting niche markets have the minority customers. Two of these minorities are women and Hispanics. Interestingly, neither of these are true minorities. In 2002, there were actually 16 million more women than men in the United States, over a 10% difference. Women were minorities only as they were underrepresented in management positions. As this trend has changed, new markets have opened as women began marketing to women, and companies grew by using managers who understood the needs of the majority gender in the U.S.
Similarly, Hispanics are no longer a true minority in California. The 2011 US Census Bureau estimated that 39.7% of California residents are Caucasian, while 34.3% are Hispanic. In Los Angeles, the 2005-2009 American Community Survey determined that Caucasian residents made up 29.4% of the population while Hispanics comprised 57.5%, almost double the amount. Businesses understand that they cannot ignore this huge source of revenue, and additionally know that Hispanic business owners will have an edge in marketing to the Latino community. Potential Hispanic business owners can work with their local California bank to help them start their business.
There are no longer any grants available to entrepreneurs who wish to begin a startup. For many Hispanic business owners, SBA loans often provide the best option. Although minority business owners do not receive any special consideration, the SBA (Small Business Administration) does actively court startups with female or Latino management. Although the SBA does not offer direct loans, it provides a lender guarantee, which reduces the risk of loans made from banks or other lending institutions.
Hispanic entrepreneurs can start by assembling their business plan and determining the amount of startup capital they will need. Then they can visit the SBA representative in their city’s municipal building. This representative will be able to analyze the business plan, and make recommendations for lending institutions and strategies. They will be able to provide all of the necessary documentation for obtaining the SBA loan guarantee, and guide potential business owners through the application process.
One of the most powerful tools available through business banking services are the various mentoring programs. Entrepreneurs have long taken advantage of the SCORE (Service Corps of Retired Executives) program to connect potential business owners with experienced businesspersons. Not only does this experience help beginning businesspeople avoid the pitfalls of starting a venture, the experience becomes part of the business plan, and increases the likelihood of getting a loan.
Hispanic business owners can find mentors through a variety of channels, other than the SBA. These include meeting a mentor in a class or workshop, getting a recommendation through the placement center of a nearby university, or professional organizations focusing on the particular product or service for the new business. In fact, the best mentor will have experience and contacts in both the product and the marketing environment for the new business. New business owners should choose their mentors, not only for their business acumen, but also for their ability to communicate their knowledge in a useful fashion.
Through their California bank, Hispanic entrepreneurs can find all of the resources they need to start a successful business. These include essential services such as mentoring, and funding. This allows Latino businesspersons to take advantage of the huge Hispanic market by starting their own business.