OBG: b&b127 How Entrepreneurs of Color can close the racial wealth gap
As we continue our coverage of CFED’s 2016 Assets Learning Conference, we go deep on another critical topic for People of Color and closing the racial wealth gap.
Entrepreneurship is another form of ownership and a way to build wealth in the US. While certainly more risky than homeownership in some ways, it is also a way to take skills and talents that you have and create value for your community.
In this episode, we walk you through some of the biggest challenges entrepreneurs of Color face, particularly Black and Latinx folks, as they try to start, build, and sustain their small businesses, along with some of our thoughts on how to overcome these obstacles.
Pam: Ownership and property, and owning a business and having something that’s yours that if you build it right it can’t be taken away from you is something that does lead to generational wealth, and that’s what closing the racial wealth gap is really about is how can you build a legacy, how can you build wealth that you can pass on to your children which they can pass on to their children which they can pass on to their children?
Pam: You’re gonna feel uncomfortable with whatever price you make something, honestly. Part of it is when it’s a product it’s a little easier because you have something to compare it to, you have something that’s more concrete that someone is gonna hold in their hand a buy and be willing to pay for because they value it on a very tangible level…feel okay with starting low, with the understanding that you are going to raise your prices as quickly as you possibly can.
Pam: To take the emotion out of it, one thing is to set a rule for yourself. When you hit a certain milestone, so for me it was every time I got two or three clients I was gonna raise my prices a little bit. Every time you do X, every time you hit Y, raise your prices a little bit to the point where it feels uncomfortable again. When it starts to get too easy to sell what you’re selling, that’s a sign you need to raise your prices.
P: Are you starting a business just for the sake of starting a business? ….Owning a business is one way to build wealth. So is homeownership. So are a lot of other things. …I encourage you to build a business if you actually have a reason to do it.