3 Mistakes Black Businesses MUST Avoid
Since the recent explosion of police brutality, there has been a lot of attention focused on equality and uplifting minority-led organizations. We have witnessed philanthropists like Mackenzie Scott (Jeff Bezos’ ex-wife) give well over $60 million to HBCUs and catchy social media campaigns that encourage consumers to show solidarity by shopping at black businesses. It’s a shame that we usually only see such an effort after a national tragedy, nonetheless it is great to see these campaigns move people to action. But there are a few unintended consequences that could mislead Black Businesses into building a brand that will not last after the fiery passion for supporting black businesses dies out:
1. Marketing campaigns that focus on being a “BLACK” business instead of a “GREAT” business
In this current environment, there is a potential benefit to publicizing yourself as a black-owned business. You will likely get an opportunity to sell your product or service to customers that have been affected by the content campaigns that have driven them to want to “buy black.” That’s good. Now the problem arises when your brand is saturated with marketing about being a black business. We have to keep in mind that a lot of this support results from an emotional response to systemic racism, and emotional responses don’t last. You cannot just be known for being a black business and think your business will thrive after the trend fades. You have to be a good business. It is much better to be known for providing quality products than being respected as a brand because it is black-owned. Black is the adjective; business is the noun; the business is the most important part of that term. Allow people to buy into your brand for what it provides to the customer and what it represents as an organization. Gain a permanent position in the customer’s mind based on the message you want them to receive about your brand, not based on what the owner looks like. Your brand will then survive political trends and be respected as a business instead of being viewed as an outlet for sympathy.
2. Marketing campaigns that focus on gaining support from FRIENDS instead of LOYAL CUSTOMERS
Another type of social media campaign that has gotten a lot of attention from black business owners is the “support your friend” messaging. As a business, you want your friends to support you, but you cannot build a business on sporadic support from friends; you need a loyal customer base. The reality is, your friends may not be a part of your target audience, and that’s ok. Please do not force your product down their throats. You don’t see Elon Musk publicly guilt-tripping his friends into buying Teslas; he is focused on his targeted customers. Customer loyalty is the key to longevity in business. You need your customers to be loyal to your brand and not just your friendship. Otherwise, your business will not have an identity and will fail once your friends feel like they have supported enough.
3. Diluting a brand by Creating new products TOO frequently
As tempting as it may be, please avoid selling every product that comes to mind. We live in a start-up/freelance economy where technology has made starting a business much more accessible than in previous years. Do not allow the low barriers to entry into several markets lead you to dilute your brand identity by creating products that do not make sense. Ensure that every piece of merchandise you sell is aligned with your core business; otherwise, you lose the opportunity to let your customers know what you do better than everybody else. This is especially true for start-up brands. Suppose your customers don’t know your specialty or purpose. In that case, it is only a matter of time before they find the company that has positioned itself as a specialist in the market and abandon your business. Do not dilute your brand. Please keep it simple and perfect your core business offering before branching out. If your idea is too fantastic to keep secret and does not align with your current product or service offering, launch another brand and see where it goes. Avoid brand dilution at all costs.
