“Buy Black” is not just a rallying cry for Black History Month. There are many entrepreneurs who have built sustainable businesses around the concept that succeed year-round. Nielsen reports that the Black consumer buying power is $1.2 trillion annually. And while those stats may make an impressive “Available Market Size” section in a business plan or slide on a pitch, the reality of successfully tapping into a consumer market is more nuanced than opening up shop—physical or digital—in a crowd.
If you build it, there is no guarantee that they will come. Especially, with the rising accessibility to entrepreneurship and a growing number of women of color striking out to build businesses on their own. Whatever the endeavor, there will be competition. But that shouldn’t be a deterrent. Competition means market validation which, in turn, shows that people will actually want what you’re selling. Those who survive competitive markets have not only done the research on their customers, invested in building a strong brand and consistently iterate for better processes and operations. They also evaluate the business case for their ideas before launching—the reasons for launching, the options available for execution, the measurable benefits expected, the risks and costs involved, and the outlook for the future.
Below, four Black women entrepreneurs share how they have strategically launched and are growing “for us, buy us” marketplace businesses that serve the Black community entirely from Black artisans and business owners. These social enterprises work to maximize profit and opportunity for other Black businesses owners and create the potential for the generational impact of keeping and growing wealth within Black communities.
Dr. Lakeysha Hallmon, Founder of The Village Market ATL
Shani Syphrett: What problem does your company solve?
Dr. Lakeysha Hallmon: The Village Market solves the problem of lack of resources, a lack of support and a lack of opportunities for Black businesses. We provide a space to attend training, workshops, receive mentorship and be embraced by a community of like-minded entrepreneurs. Our quarterly marketplace experience provides Black businesses with an opportunity to sell their products to thousands of buying patrons and provides the community with access and a means to patronize vetted Black businesses.
Syphrett: How has The Village Market evolved over time?
Dr. Hallmon: I built slowly but intentionally. As many built online models, directories, e-commerce opportunities to support Black businesses, I desired to add another layer by creating a physical community. I wanted to create a place for people to actively engage, support and show up for each other. And, I felt that events would be the best business model for that. We started with a series of free classes where we gathered successful business owners in an intimate setting. There, we matched business owners who have had success with those who were hungry to learn. It was a pipeline for getting people what they needed and we were intentional with ensuring that Black business owners were learning and being supported by other Black business owners. We continue that model within the Village Market experience today.
Syphrett: How has serving the Black community played a role in your business growth?
Dr. Hallmon: I have worked intentionally to make the Village Market a part of the conversations and become the go-to for “support” and resources. I have worked to make it become a part of the fabric of our community and one of the most sought after marketplace experiences. I have also allowed the company to grow new branches of businesses and engage in strong strategic partnerships. We decided to bootstrap and not take on investors or sponsors, so we handle all of our overhead costs. But, I have made investments in my company so I can continuously grow and evolve. And because we want to ensure that the dollar circulates from us first, we hire Black contractors for our events.
Anika Hobbs, Founder of Nubian Hueman
Syphrett: What value does your company bring to your market and where have you seen success?
Anika Hobbs: Nubian Hueman is a social enterprise that specializes in sourcing and curating unique goods, fashion, and art by designers representing the global African Diaspora. We’re actively breaking the myth that artists cannot live through their creative abilities. We bring together popular culture and fair-trade shopping in a modern brand experience that promotes collective interaction, community development, and global responsibility. Our success has been in partnering with close to 400 artists and designers, from 6 different continents, and over 25 countries.
Syphrett: What has been the benefit of launching Nubian Hueman as a brick & mortar store first and how do you see the business evolving?
Hobbs: Having a brick & mortar store has allowed us to speak directly with our customer base and receive feedback on our assortment and where there may be gaps. Our customers are 95% Black and we know that they want to buy from Black and Brown brands from actually speaking to them. So we make that option available in an unapologetic, comfortable, and welcoming space. Nubian Hueman is a representation of how buying Black is a model of sustainable business. We will be opening our second store in Baltimore, MD in the second quarter of this year and we are building our social impact arm through incubation and targeted workshops to develop the brands and designers we work with. We are also looking to move into design, manufacturing, and a wholesale platform within the next 5 years. We’re building a financial ecosystem around a generally underserved but financially powerful population.
Syphrett: What are the major costs of running your business?
Hobbs: The major costs are rent, inventory, shipping, and research. What is unique to us is our buying process. Most boutiques either produce their own goods or go to market shows (eg. Magic in Las Vegas or New York). Our buying process requires a major portion of research into global independent artists and staying knowledgeable about importing so that we can work with designers outside of the US. We also work closely to build trust and create agreements that ensure our artisans are paid in a timely fashion. Our counterparts may work on a NET-30 or NET-60 when purchasing inventory but we provide payment upfront in order to begin production. This adds an additional risk on our end as well.
Syphrett: What were the risks involved with launching the business and what have you done to mitigate them?
Hobbs: The risks were having a rotating assortment with brands that were unable to produce a wholesale quantity of products. We also were facing the myth that Black business are only limited to shea butter or t-shirts and potentially receiving pushback for not being inclusive of all races and nationalities. We mitigate those risks by building relationships with the artisans and, many times, coaching them in the wholesale process and on how to scale. It may take 5-6 months for a product actually hits our shelves, but it is important to us to provide that support. Being able to relay that their product is in a store has provided our artisans with further scaling opportunities with retail giants like Walmart, Target, or Whole Foods.
Dr. Kristian Henderson, Founder of BLK + GRN
Syphrett: What problem does your company solve?
Dr. Kristian Henderson: BLK + GRN solves two problems: one, Black women’s lack of access to high-quality non-toxic products; and two, Black artisans’ lack access to retail platforms to scale. Black women spend $7.5 billion annually on beauty products, yet 75% of the products marketed to Black women are formulated with ingredients that are considered toxic and linked to cancer, hormone disruption, and reproductive damage. Black women are looking for higher quality Black-owned products that are beneficial to their health, but there isn’t an easy way to purchase these green products.
Syphrett: What is the business model for BLK + GRN and has it stayed the same since you began?
Dr. Henderson: We always knew we would start with an online marketplace, because of the lower start-up costs to establish the proof of concept. Our biggest revenue driver is the goods that are sold. We only make money when our customers purchase products from our marketplace. That was our main focus the first year and in our second year, we are moving into doing more pop-up and event-based events to support our online store. We know that our customer is looking for community, so events are proving a good way to talk to our customer in an intimate and authentic way.
Syphrett: What were the risks involved with launching the business and what have you done to mitigate them?
Dr. Henderson: There is a pervasive stigma associated with Black-owned businesses. There is an assumption that the products will be low quality, the customer service will be bad and that the consumer will have to compromise in order to support Black-owned businesses. We are laser focused on breaking this stigma. Our team of experts test every product that we carry to ensure quality and effectiveness. We pride ourselves on providing excellent customer service—taking a “yes first” approach—to ensure we treat our customers with the dignity and respect they deserve. Lastly, we have designed our social media presence and website to exude quality and luxury. We won’t erase the stigma overnight, but every day, we are hoping that each positive interaction helps change the conversation around buying Black products.
Syphrett: What would you consider to be the benefits of buying Black?
Dr. Henderson: Buying Black is an acknowledgment of the tremendous buying power of the African American community and the realization that we can improve our communities by supporting small businesses and entrepreneurs. I often say that every time I shop, I consider my purchasing decision as a vote. I am voting on who gets revenue and who doesn’t. Who gets to thrive and who doesn’t. It is important to me that my purchasing decisions to align with my values. Buying Black is one of the cornerstones of ensuring Black communities thrive.
Michelle Dalzon, Founder of The Black-Owned Market (theBOM)
Syphrett: What value does your company bring to your market and where have you seen success?
Michelle Dalzon: theBOM hand selects Black businesses and places them in a physical marketplace setting. At our market, the business-owners come first. We provide white-glove pop-up experiences for each brand by getting to know their voice and aesthetic and using that information to create a custom display. We’ve been in business for 2 years now and have hosted five pop-ups thus far including a partnership with Blavity Inc’s 21Ninety to curate a shopping experience for their Summit21 conference in 2018.
Syphrett: How did you test the market for your business concept?
Dalzon: The first option I considered was a pop-up business model because it allows you to test ideas with low risk since the space is only temporary. I also used pop-ups for customer discovery. I could find out demographic, spending amount, the potential for repeat customers, and overall interest in the concept. After the first one in 2016, I knew I had something but I wanted to test it in different seasons and with different themes to see where interest peaked most. Now, after having hosted 5 pop-ups, I can see that the summer and winter— around the holidays—are the best times for pop-ups. Everything for me is driven by my mission first and followed by consumer behavior.
Syphrett: What would you consider to be the benefits of buying Black?
Dalzon: I am the child of Black small business owners who are Haitian immigrants and I’ve spent the past eight years of my life working in top companies in marketing and advertising. I have the unique skills to make sure this succeeds because I have experienced it first hand. My parents’ beauty supply store is the reason I was able to afford private high school and college, and it was also my first job. Just by the store existing it provided a source of inspiration in our small community. In the ’80s, there weren’t many blueprints to follow and my parents created that blueprint. I didn’t realize how much of an influence this had on my life and the potential it had to influence the generations to come. Legacy is so important. You must create something the next generation can own. That is how generational wealth begins and is sustained. I will do everything in my power to continue their legacy and touch as many black business in an impactful way as possible. For many, I want theBOM to be the launching pad to be in stores like Target or eventually want to own a store one day.
Syphrett: What’s on the horizon for theBOM?
Dalzon: Our next phases are in the works as we speak. We started as a pop-up, but there is so much more in store. The e-commerce version of theBOM will be launching this Spring and will bring the physical marketplace online in a very unique way. People outside of NYC have been asking if we could come to their city, so we knew there is demand, but it just is not economical for us at the moment. People have traveled from Ohio, Boston and Guatemala just to attend and I think this is a solution that will make everyone happy. We’re also planning for the launch of a standing store. The first location will be in collaboration with my parents who owned their beauty supply store in MA for the past 30 years. I am starting the journey to raise a seed round and this full-circle moment is something that I am extremely excited about!
These interviews have been edited and condensed for clarity.
