McNeil, president and CEO of IMAGES USA (No. 6 on the BE Advertising Agencies list with $86.5 million in billings), fully appreciates this evolution by using technology to give his firm its competitive advantage. “Years ago digital was something that a lot of people didn’t understand. Nowadays, digital is the industry that we’re in. It’s no longer just a part of it,” he asserts. “For every single plan, every single client, every single opportunity that we bring to the table, there is a direct digital focus within the opportunity.”

IMAGES has expanded this thrust as the climate has grown increasingly brutal for black-owned agencies. These firms must contend with competitive pressure from larger general market agencies that have developed in-house multicultural marketing shops, as well as potential clients’ decreased ad spending to reach African American consumers in favor of the faster growing Latino market. Despite these challenges, McNeil forges ahead with a staff that stays ahead of consumer trends and understands how to strategically deploy a mix of digital solutions for clients.

GO DIGITAL OR DIE
Why is this important? Take a look at the statistics. Americans spent 22.7% of their time online engaged in social media in June 2010, compared with 15.8% for the same activity in 2009—an increase of 43%, according to Nielsen. “Given the tumultuous last few years and given the tectonic shifts in how we communicate with people via apps and mobile, some agencies are less prepared than others to really meet some of the new needs that are cropping up,” says Greg Head, president of HEADFIRST Insights & Strategy, an Atlanta-based marketing research firm. “Bob does a tremendous job of acquiring great talent out of large agencies and different organizations.” This seems to have given IMAGES a competitive advantage, Head adds.

McNeil, one of Black Enterprise’s Top Executives in Marketing & Advertising, agrees social media is an industry-wide game changer. “Another game changer is talent. I’m really excited about some of the young people that we’ve seen that come out of college to our agency with a fresh perspective and new ideas.”

Understanding that social media is a two-way constant stream of communication is key. “When you go on to social media you no longer control the conversation with the consumer and you don’t want to,” says Ricki Fairley-Brown, partner and chief marketing officer at IMAGES. “You want to plant a seed. Social media provides this wonderful platform for a conversation that you can just throw seeds into and create the conversation, but if the consumer says they don’t like something you’ve got to deal with that, too.”

A SIX-HEADED MONSTER
With clients that include Amtrak, KFC, and Hillshire Farm, IMAGES mainly offers six services. They are:
• Advertising. This area includes media planning, buying, and placement.
• Creative services. This involves the design and implementation of advertisements for television, radio, print, and digital—all standard mediums that people use to try to reach an audience.
• Market research. This helps clients determine the potential of a particular ethnic market—its size, scope, buying power—and a particular product’s market share.
• Public relations. This includes crisis communications and media relations.
• Strategy. If a client has another ad agency and they’re happy with the creative product but not the results, IMAGES may be retained to help the client develop a marketing strategy.
• Field marketing. IMAGES provides creative concept  testing services in any U.S. market to offer clients feedback on what consumers liked or disliked about how a product was marketed, as well as how competitors are positioned in the market.

In each of these areas, technology plays a vital role. “IMAGES’ overall strategy from a digital standpoint is to implement digital and social vehicles where it’s relevant for our client,” says Genifer Stewart, the Amtrak account supervisor at IMAGES. “We don’t want to force clients into the digital world if it doesn’t really make sense for their business.”

For Amtrak, IMAGES crafted a digital campaign in 2010 to increase ridership among the millennial generation that centered on a contest where students would upload a travel-themed video and compete for $3,000 in prizes. The 2011 video contest incorporates Facebook and Twitter, Stewart says. “We’re doing a lot of things that are video based, and by utilizing digital and social media to expand these campaigns, we’re strengthening our reach.”

For Hillshire Farm, IMAGES created a banner advertisement on Pandora, an Internet radio service that boasts more than 75 million listeners in the U.S. “We have an insight around our African American moms who are very, very busy. We know that with this consumer segment the role that technology plays in her life is really important,” says Kristin Kroepfl, director of marketing for Hillshire Farm. “The other piece of the puzzle, we also know that recipes are really important to her as sources for inspiration on how to cook with our smoked sausage product. So the program that we did with Pandora was all about combining these three insights together: her busy life, the role of technology, and her need for the meal suggestion.”

SHARPENING THE DIGITAL FOCUS
So the IMAGES team took those insights and added an interactive element. “The idea was you spin a recipe wheel and you’ve got different recipe options that spin out of that—from a Caribbean meal to a traditional soul food meal—that featured any one of our varieties of smoked sausage,” says Kroepfl. “Consumers just picked from those recipes and there is a link back to our website.” According to Kroepfl, the end result was a 90% rise in the number of visitors from Pandora to the “Mama’s Kitchen” section of the Hillshire website, an 85% increase in the number of visitors to the “Mama’s Kitchen” section, and a 43% rise in the amount of time visitors spent on “Mama’s Kitchen” pages.

According to Fairley-Brown, another one of Black Enterprise’s Top Executives in Marketing & Advertising, the idea is to build some sort of Internet presence for every brand IMAGES works on that’s either relevant to the commerce of the brand, like building volume, or relevant to a community-related angle. “One example is the work we did for Hillshire Farm,” she says. “IMAGES built upon the foundation of the [Hillshire Farm] website and transformed it into a welcoming portal, with content and imagery that was relevant to black women: ‘Mama’s Kitchen.’”

Looking ahead, McNeil is hoping to land new clients, particularly in the automotive and pharmaceuticals industries. “We think the auto industry is rebounding well and I think both the U.S. and the foreign automotive makers have all shown good profits and good returns. As their revenues continue to rebound, hopefully they’ll continue to increase marketing to multicultural consumers,” he says. “And with the baby boomers now at retirement age, we’re looking at this large population that is going to be more dependent on medicines and drugs to help people live life more comfortably or to fight illness and diseases.”
Regardless of the new industries IMAGES pursues, technology will remain an integrated component of the firm’s sales pitches. And as new apps, devices, or platforms emerge that connect manufacturer with consumer, McNeil looks to stay on the leading edge of those changes. “I think our industry is in a hyper-evolution. Things are changing fairly as fast as we can actually keep up with them.”               

One of the keys to bringing about change to an organization is inspiring employees to work more efficiently and effectively. However, there are right and wrong ways to do that, says Melva Tate, president of Strategic HR Partnerships, a human resources consulting firm in Birmingham, AL.

Here are some tips to consider:

Do create a progressive discipline policy. Similar to the three strikes and you’re out rule, a progressive discipline policy gives employees a couple of chances to fail and try again. Such a policy awards persistence and improvement, while ensuring that employees are aware of what’s expected from them in the long-term.

Do get a neutral party involved. Different managers may approach change in different ways. To make sure that an organization is consistent in its efforts to transform processes and procedures, let a human resources employee or consultant provide input on the big picture.

Don’t expect success overnight. Every change has a learning curve attached. Expect mistakes to be made and be open to tweaking the changes as you go along.

Don’t leave employees out of the process. When an organization is making major changes, employees should be allowed to give more input, not less. This is a good time plan a retreat. “Find a way to get outside of the office to keep employees engaged,” says Tate. “You want to keep people connected.”

POP QUIZ:
Are you really ready for change?
The number one Do is … have a plan. Strategic steps must be implemented throughout the process of changing your organization in any way. For starters, it’s vital to do an assessment identity and prepare for remedying the challenges beforehand. Next, if the determination is made to terminate ineffective employees too needs to be done appropriately. And finally, once your company’s wheels have been retightened (or replaced) it will take a proactive effort to maintain the momentum (Check out “The Outcome of an Organizational Overhaul” in our December 2010 issue for tips on how to come out of change on top and your bottomline up).

Tell us what you think: Would how far would you go to get your company on the proper path to profits? Terminate your workforce? Create a new business model? Let go of clients?

One of the keys to bringing about change to an organization–smal or large–is inspiring employees to work more efficiently and effectively. However, there are right and wrong ways to do that, says Melva Tate, president of Strategic HR Partnerships, a human resources consulting firm in Birmingham, AL.

Here are some tips to consider when striving to affect positinve change in your own company:

Do create a progressive discipline policy. Similar to the “three strikes and you’re out” rule, a progressive discipline policy gives employees a couple of chances to fail and try again. Such a policy awards persistence and improvement while ensuring that employees are aware of what’s expected from them in the long-term.

Do get a neutral party involved. Different managers may approach change in different ways. To make sure that an organization is consistent in its efforts to transform processes and procedures, let a human resources employee or consultant provide input on the big picture.

Don’t expect success overnight. With every change there’s a learning curve. Expect mistakes to be made and be open to tweaking things as you go along.

Don’t leave employees out of the process. When an organization is making major changes, employees should be allowed to give more input, not less. This is a good time to plan a retreat. “Find a way to get outside of the office to keep employees engaged,” says Tate. “You want to keep people connected.”

POP QUIZ:
Are you really ready for change?

The number one Do is have a plan. Strategic steps must be implemented throughout the process of changing your organization. For starters, it’s vital to do an assessment identity and prepare for remedying challenges before you confront them. Next, if the determination is made to terminate ineffective employees, this needs to be done appropriately. And finally, once your company’s wheels have been re-tightened (or replaced) it will take a proactive effort to maintain your momentum. (Check out “The Outcome of an Organizational Overhaul” in our December 2010 issue for tips on how to come out of change on top and with your bottom line up).

Tell us what you think. How far would you go to get your company on the proper path to profits? Terminate your workforce? Create a new business model? Let go of clients?

Read more small business advice…

• 7 ways to profit on Small Business Saturday
• How to prepare your company web site for holiday shoppers
• Watch: Nick Cannon on what it takes to be a successful young entrepreneur

In a recent chat with the Wall Street Journal, recording artist Soulja Boy detailed how he's used a social media strategy to gain profits.

Tell the truth: When you saw the name Soulja Boy in the headline, you grimaced, right? After all, what could the average professional or entrepreneur learn from a guy who has blown his nose with $100 bills and flaunted his perceived wealth via a video showcasing money stuffed in shoe boxes and lavish diamond-encrusted pendants? (And let us not forget his infamous “shout out” to slave masters and controversial lyrics, which have received significant backlash.)

But on Oct. 29, the 20-year-old platinum-selling recording star–whose smash “Crank That (Soulja Boy)” made him one of the youngest artists to have a No. 1 single on Billboard’s Hot 100–sat down with Lee Hawkins of the Wall Street Journal to discuss how he used social media to expand his brand and ultimately, his profits. Despite his controversial missteps, such a discussion brings to light social media marketing strategies that could benefit almost any burgeoning entrepreneur or BE Nexter.  

See the video below, and then read our tips for what you can learn from it.

Strategically using social media to build a fan/consumer/follower base on an independent grassroots level can provide a big boost to a company bottom line:

• Positioning: Soulja Boy told the WSJ that as a high schooler he used a free music community site that incorporates social media called SoundClick to download his music. He says he “built his name” on the site, reaching Top 10 among artists and decided to expand, creating a Myspace profile where he began to get requests for performances.
• Linking: He linked the pages so that users who visited his SoundClick profile would also be directed to his Myspace page, (which has now amassed more than 86 million views). With linking the pages, he says plays of his songs began to increase and, after he reached his first million, he says he then began making money from the downloads, generating over $100,000 via SoundClick with a deal that lets artists sell their songs for $1 (with 50% going back to SoundClick.) He says he averaged about 19,000 downloads per day via SoundClick.

Check out our related content on maximizing your social media strategy:

Social Media: The New Currency

What’s Your Social Media Strategy

Engaging with a consumer/fan base and presenting an idea/concept/product in a way cool enough to go viral can also expand your brand exposure and profits:

• Independent DIY: As an unsigned artist, he created his own YouTube channel (which has garnered almost 30 million views) as well as his other Web pages, where he’d feature self-made videos. The “Crank That” dance which went along with his single “Crank That (Soulja Boy),“ (which broke records in 2008 with more than three million for digital downloads of the song) became viral and helped boost popularity for the single.
• Viral Vision: The You Tube instructional video had more than 20 million views since being added to You Tube, and sparked the creation of tens of thousand of homemade videos featuring the dance.  Subsequently, the single rose to the top of the Hot 100 Billboard chart. Soulja Boy tells WSJ that he now has an ad-sharing deal with You Tube, generating quite a bit of revenue outside of what he takes home from the usual record deal funds.

Paying attention to new innovations in technology could help grow your business:

• What’s next: Soulja Boy says to promote his new album releasing later this month, he is using a service called SayNow.com that allows users to subscribe to a phone number he is assigned, and when he leaves a voicemail message on that number, all of his subscribers (he currently has 4.9 million of them) will get his message. The rapper noted that he thinks it’s an even more effective way to actually talk to your fans than using Twitter–which limits you to 140 characters.

Read more: Check out our related content on how to increase your presence and monetize your brand via Web:

How to Capture the Eyes (and Wallets) of Web Users

How-to: Effective Marketing on Twitter

How to Increase Your Online Presence

What strategies have you used via social media to expand your brand/customer base/company exposure?

A number of things need to be considered before you become a franchisee

The economic climate is preventing many franchisees from reaching their full potential, says Miriam Brewer, director of education and diversity for the International Franchise Association, a trade organization in Washington, D.C. However, conditions are slowly improving. “Right now, franchisees are trying to grow in this economy,” she adds. Here are a few factors that will determine whether that will happen:

Healthcare—Health reform was signed into law in March.  The general desire for every small business owner to offer insurance will affect franchisees, says Brewer.  “They may not be able to grow their business as they would have before.”

Financing—The IFA educates its members on how to maneuver through the economic downturn and identify reliable sources of capital. “Now, when you try to obtain a loan, the criteria is going to be much more stringent,” says Brewer. “You definitely have to come prepared. Most [financial institutions] are looking to see if you have 30% to 40% of the capital to match what you’re trying to get from them, so you’re going to have to be even more strategic in planning and deciding what franchise is the right one for you. We’re trying to prepare people so that before they go to a banker, they have their money in hand and/or a plan of action to get the money. The days of getting 100% financing are gone.”

Options—Franchising is inviting because you have choices. It’s just a matter of making the right one for your budget. “There are so many different options and so many different investing points where you can come in,” says Brewer. “There is something for everybody.”

Franchisors—In light of the downturn, some franchisors offer in-house financing to help prospective franchise owners and existing franchisees looking to restructure their debt. “Some of our members did some creative things to give existing franchisees some support,” Brewer says. “Because there’s nothing worse than bringing in 100 new franchisees but you’ve lost 20 or 30 of your current franchisees because they weren’t able to restructure some things. So I’m proud that some of our member franchise systems work to keep their franchisees afloat during the rough economic patch. We all know that for any franchisor to be successful, they have to keep their franchisees successful, in business and in the system.”

Marketing, training, and education—A franchise system that provides ongoing support in marketing/advertising, training, and education can be helpful. Brewer emphasizes the importance of marketing and advertising. “While a franchisee can be helped, financially, to stay in business, if people don’t know that your business is there then you’re setting yourself up for failure,” she says. “It’s equally important. So many franchisors are providing additional training and support to their franchisees, and also educating them to connect with the people within their respective city’s economic development office or entity. While you may be able to get an initial reduced franchise fee by 10%, that’s a one-time thing. But if the franchisor helps franchisees connect with the business resources in their community and also learn about tax breaks and tax credits available, that’s ongoing and will affect their bottom line beyond the first year with long-term implications.”

Planning—“If someone wakes up one morning and says, ‘I want to buy a franchise,’ that would scare me,” admits Brewer. “It is a process that you’re going to have to live with for–at minimum–10 years. It would be easier getting out of a marriage than getting out of the franchise.” Brewer advises potential franchisees to take their time, educate themselves, and prepare financially before signing on the dotted line. “Doing some long-range financial planning in terms of where you want to be five to 10 years from now and putting those things in place before you go into business would make for a smoother transition.”

Brown and Cottrell-Brown are helping take back ethnic haircare

Husband and wife team Eric Brown and Renee Cottrell-Brown seek to make history and profits in ethnic haircare.

Last year, they became the new owners of Johnson Products Company, the manufacturer of haircare products Afro Sheen, Ultra Sheen, and Gentle Treatment when the Procter & Gamble unit was acquired by RCJP Acquisition Inc., a partnership formed by the Browns and private equity firms Rustic Canyon/Fontis Partners LP and St. Cloud Capital. The transaction was valued at more than $30 million.

What made that deal significant was JPC’s rich history. Founded by entrepreneur and one of BLACK ENTERPISE’s 40 Most Powerful African Americans in Business, George Johnson, the Chicago-based company grew to become a mainstay among the BE 100s for roughly 20 years as well as the first black-owned company with shares traded on the American Stock Exchange.

In fact, JPC supported a number of black institutions, including syndicated television show, Soul Train. By 1993, JPC, after years of internal management turmoil, was sold to IVAX Corp in a deal valued at $67 million, making it the first BE 100s haircare manufacturer bought by a majority-owned company. P&G acquired JPC in 2003.

Today, the company, which is now based in Dallas and grossed $23 million in revenues for fiscal 2009, is once again minority-owned. Brown and Cottrell-Brown serve as CEO and executive vice president, respectively.

The ethnic haircare veterans both held senior management positions at Pro-Line International Inc., a subsidiary of Alberto-Culver and another former BE 100s company. In fact, Cottrell-Brown is the daughter of Pro-Line founder Comer Cottrell, who is also listed among BLACK ENTERPRISE’s 40 Most Powerful Blacks in Business. Gabrielle Greene, an African American financier and partner of RC/Fontis Partners, is JPC’s chairman.

In an exclusive interview with Editor-In-Chief Derek T. Dingle, the Browns detailed their strategy to remake JPC for today’s consumers.

BLACK ENTERPRISE:  Share with me the ownership structure of JPC.

Eric Brown: The majority of the company is under minority ownership. There’s a Hispanic investor out of Los Angles, RC/Fontis.  Between RC/Fontis and ourselves, we represent about 60%. Renee and I have about 20% and the ability, over time, to take on as many shares as we like.  At some point in time, hopefully, we will be able to come back to you and say, “We’re 100% African American-owned.”

(Continued on next page)

BE: What is your growth strategy that’s going to distinguish JPC in the ethnic haircare market?

Brown: Our vision is very simply to be the number one ethnic haircare manufacturer in the world of ethnic beauty care products.  We’re not going to limit ourselves just to hair.  But right now, that’s the area that we operate in.

Now what is going to get us there?  We look at innovation a lot differently than just products and formulas that go into those bottles and jars that we sell.  We look at innovation in terms of process.  We look at innovation in terms of how we communicate to our consumer.

BE: In terms of communication with the consumer, how has it changed from the way JPC used to reach them, whether it was through Soul Train or other marketing strategies?

Brown: We’re evolving in a sense that I think a lot of companies have gotten away from that.  Multinational companies like P&G, in general, like to do things as broad as possible.  They’ll spend a million dollars on a commercial and hopefully catch everybody in that net.

When Johnson was being built, it was almost a consumer-at-a-time approach where it was involved with setting up things at churches and parks. I think the reason everybody knows Johnson is because they got involved with people and their lifestyle. We want to have an emotional involvement and responsibility with our consumer and the community that our consumer lives in.

We did a model search, and you don’t know how many times I’ve had people come up to me and say, “I remember Johnson Products because of some scholarship that they did.”  Or, “I remember Johnson Products because they had a beauty school.”

Cottrell-Brown: I don’t believe that one medium can deliver the message.  I truly believe that it takes a well-rounded marketing mix.  You need the PR piece to touch the community.  You need to be in radio.  You need to be outdoors.  Today, I just think [technology is] great because with social media you really can engage the consumer and live with them day in and day out with Facebook and Twitter.

BE:  Share your strategies in digital media and social networks.  How have you connected with the consumers?

Cottrell-Brown: We just mentioned the model search; that is a legacy promotion.  It was basically communicated in the past to the consumer via print.  For the first time, we used Facebook.

Once we had them involved in the contest, we began to communicate back to them.  We actually started a little sorority of these different models.  We had over 1,200 girls and we were talking to them all the time.  Guess what?  On Facebook, they started talking to each other.

So, it really created the awareness of what we were doing [and] the awareness of the brand.  They became these little ambassadors for us. We had over 40,000 registered unique voters [and] 250,000 hits over that 90-day period.  So it was pretty incredible.

(Continued on next page)

BE: What are some other consumer outreach efforts?

Cottrell-Brown: Our first initiative was a giving promotion.  We actually raised proceeds by collaborating with a retailer such as Sally Beauty Supply.  We leveraged our General Treatment brand as a form of brand recognition to raise awareness for domestic abuse. What brand name better speaks to domestic abuse than General Treatment?

We committed about $50,000. On the Southside of Chicago, we basically gutted a kitchen and put in a salon inside. We call it the General Treatment Beauty Center.  We actually hooked up with some of the beauty schools there in the market place.

BE:  Do you have a special focus for male consumers? How has research helped you approach that market?

Cottrell-Brown: When we conducted focus groups, we took in a name we thought was hip. We chose Urbane because [it] means handsome, sophisticated.  We took it into the focus group and those guys were like, “They must think we can’t spell.  This must be Ebonics.”  Because they thought it was Urban.

They saw Ultra Sheen [and] they were like, “That’s for me.  Now, I get that.  That’s what we want.”  So, that’s how we came up with the new brand Ultra Sheen Men.  It came right out of their mouths, something they could resonate with.  We’re looking forward to getting that in the marketplace in the next month.

BE: What’s your approach to the international market?

Brown: We take a little bit of a different approach when we talk about international because it is more about hair texture than skin color.  So our marketing approach and out-of-the-box tactics take on a little bit of a different light.

Hair texture allows you to speak to a much broader audience. Certainly, when you’re talking about West Africa, there are people who look like us.  When we talk about places like Latin America or the Caribbean, you get a much broader range of hair texture as well as skin color.

But we know that people of African descent require certain products to be able to maintain their hair. We think we can really make some significant gain because we have relatively very little international distribution.

BE:  So what will JPC look like in the next five years?

Brown: Five years from now, I’d like to be sitting across from this table and have you, “Eric, did you ever envision that you’d be talking about an IPO [initial public offering]?”  Wouldn’t that be great to be able to say that Johnson Products, which was one of the first publicly-held African American companies, would be public again?

Grow your business idea beyond your initial vision

If you have a thriving business that is due for expansion, it may be time to think about turning your enterprise into a franchise. Becoming a franchisor can be a cost effective way to grow your business with reduced risk of debt since franchisors only invest in the initial unit. There’s also the potential for steady returns given that franchisees pay into the franchise, and there’s less liability and involvement for the franchisor in the day-to-day operations than would be required for running several operations on your own. Here are a few quick tips to get you going:

Determine franchise-ability: To start, determine if you have a franchise-able business model, says Mark Seibert, CEO of iFranchise Group, an Illinois-based franchise consulting firm. Can you sell the business? Do you have a product or business that works well in multiple markets and is the concept itself able to be duplicated? Is your business currently profitable?  Visit iFranchise.com for a comprehensive list on what makes a business franchise-able.

Work out the legalities: When it comes to turning your business into a franchise, it’s important to fill out a Franchise Disclosure Document. “You need a lawyer who specializes in this,” advises Seibert. “There are 23 different points of the disclosure and it has a prescribed format.”

Be patient: Building your franchise can be a slow process. It can also cost between $50,000 and $150,000, says Seibert. Check with your state for registration requirements, and regulatory and legal rules.

Develop an operational manual: To get started, you’ll also need to develop an operations manual for quality control purposes, Seibert says. This manual will be used by franchisees as best practices, guides, and policies, and as a structured system to be used for reference.

Develop a marketing plan: “Develop a marketing plan that’s geared toward the franchisee,” Seibert advises.  “Make recommendations as to what media you should be in. Include tradeshows, print mail, and public relations strategy.”

Have an end in mind: Above all, it’s important to have a vision, says Seibert. Where do you ultimately see your company? From there, create a plan that will enable you to bring that vision to fruition.

For more on turning your business into a franchise, visit

FranchiseFoundations.com

iFranchise.net

"Passion Parties" have emerged as a booming business opportunity.

The weather is heating up and it’s time to figure out how to use Summer Fridays; class-free, sunny days; and outdoor events to make a few extra bucks. Here are some quick, down and dirty ways to add additional revenue to your personal bottom line during the summer months.

Sell ice cream. When I was in junior high school, me and a group of friends hooked up with a local summer camp and sold ice cream to campers during their lunch hour. Mama Burns helped us find a local wholesaler. Though we had to give the camp a cut, the three of us walked away with a few hundred dollars each at the end of the summer.

Start a tutoring service. Time off from school can be an issue for parents who want their children to be academically competitive. This is where you step in. Update your resume and write up a one pager that lets parents know your subject of expertise (algebra, calculus, literature, biology, etc.) and how you can keep their child on his academic toes during the summer. Start with neighbors, friends, and even postings on Facebook and Craigslist.

Keep ‘em cool with water. If you don’t mind the heat, selling cold, bottled water is a surefire way to make money in the summer. Finding a 24-pack of water (1/2 liter bottles) for about $4.00 a case (on sale) isn’t too difficult. You’ll likely have to throw in a few extra dollars for ice for your cooler, but you can still make at least a 50% profit. Check with your area’s permits department for any requirements or restrictions.

Tap into your inner salesman. Turn a garage sale into a money-making machine as a commissioned tag seller! Sell your own goods to spark interest from neighbors, passersby, and friends. While they shop, let them know you can do the same for them for a commission on the sale. Also, offer to sell their items online at eBay, Craiglist, or a host of other forums. With vintage duds being a hot commodity today, Mrs. Maybeline from down the block may have a gold mine in her attic.

Become a “Passion Party” host. “Passion Parties,” where women gather to gab and browse erotic toys, is a booming industry. Even on a budget,  some women are willing to open their wallets and shell out some cash to add a little excitement in the bedroom. “Passion Party” hosts make a commission on anything they sell, and it’s not as hard to get started or to make a sale as you may think.

So what’s your summer side hustle? How did you go about getting started? What tips do you have for others trying to figure out how to start their side hustle?

Come back next Wednesday for Part II of my Summer Side Hustle series.

For more on side hustles:
Savvy Solutions: How to Get Paid as a Consultant

Renita Burns is a writer and content producer at BlackEnterprise.com.

1.    Identify your target customer. If people who support a certain type of charity aren’t likely to buy your product, you’re wasting your time. Start backward by first identifying the age, income bracket, and lifestyle characteristics of those who will most likely support your product.

2.    Learn customers’ interests. Once you know your customers you can determine their favorite causes. If most of your customers are in their early 20s, it might not make sense to partner with a PTA. You’ll want to find organizations that serve people similar to your current customer base.

3.    Have a stake in the group’s success. Remember that the group you partner with reflects upon you as a business owner. Make sure the organization is one you can stand behind since customers will judge you based on the organizations your business publicly supports.

Tamara E. Holmes is a frequent contributor to Black Enterprise.

With a penchant for making money and a grasp of their life’s passions, these young money savvy students successfully run burgeoning businesses. Check out who they are and what they do:

K-9 Kouture

Jada Marie Nicome founded K-9 Kouture last fall, drawing from her passion for fashion and her pet.

With a passion for fashion and a love of dogs, Jada Marie Nicome founded K-9 Kouture last fall after developing the business plan for an in-class competition. “Ever since I was little I wanted a dog so I could dress him up,” Nicome says. “I never thought I could create a business out of it.” But indeed she did, winning the class competition, and joining the market of pooch clothiers.

Pet owners can choose from K-9 Kouture’s line of sweaters with quirky quotes and jazz up their puppy’s apparel with rhinestones or Swarovski crystals. Since launching K-9 Kouture last November, the 18-year-old has sold more than 50 units of her signature sweaters, raking in $800 to $900.

Nicome expects to sell 180 units in the upcoming year ranging from $30 to $50 a pop, depending on size and design. The Maryland native is also working out a deal with the Progressive Animal Welfare Society (PAWS) to provide signature hoodies for its dogs.

Simply Last Video Production

A screen shot of a Simply Last Video on study skills

When Jonathan Bryson’s family was preparing for his grandmother’s 90th birthday celebration, Jonathan wanted to do something special. Noticing the countless pictures his grandmother had socked away, he decided to produce a video featuring the photos. “After that a lot of people began asking me about it,” says Bryson. “I started doing it for them as side projects and turned it into a business.”

He launched Simple Last Video Production in 2007, specializing in filming and editing video for parties, special events, and other special occasions. The company is growing through word of mouth, and in 2008 Bryson generated $2,300 in revenue. Now a sophomore in college, he’s taking advantage of the various events and organizations and expects to bring in $7,000 in revenue by the end of 2009.

“In entrepreneurship there’s no one to really push you. Here, you have to motivate yourself, but it’s easy because I’m doing something I really love,” Bryson says.

Innovative Event Concepts

Brandon Haynes developed the courage and perseverance to start his own business after being homeless.

A battle with the Maryland school system helped Brandon Haynes develop the courage and perseverance to start his own business. After being evicted from his Maryland home in 2001, Haynes along with his mother and four brothers were forced to seek shelter with relatives in Washington D.C. But when the family couldn’t provide proof of residency for either school district, a federal court battle ensued, forcing Haynes to miss most of his junior year of high school.

After months of fighting, Haynes was allowed back in his Maryland school where he was forced to play a tough game of catch up. And it was while taking an entrepreneurship class his senior year that Haynes developed the idea for his event planning company.

“I always had a passion for planning events,” says the 24-year-old. “When I was six-years-old I lived at the bottom of a big hill and I wanted to plan a soap derby.” Now, Haynes plans proms and sporting events, and has even parlayed his entrepreneurial endeavors and disadvantaged past into speaking gigs.

Between event planning and public speaking he expects to close out the year with $30,000 in revenue. He charges $1,000 to $2,000 per speaking engagement and commands 15% of the total budget for events he plans.

While he specializes in sporting affairs, Haynes will plan almost any event, with weddings being the only exception.  “I want to have a replica of the NBA All Star Weekend here in DC,” he says. “I’d like to have a large community event.”
Divinity Chocolates

Alisha Wiggins used her experience in a family business to start her own, Divinity Chocolates, specializing in customized treats.

After working for her godmother’s chocolate business for five and a half years, Alisha Wiggins decided to branch out on her own to create Divinity Chocolates. The 17-year-old says it’s not easy running her own business, but it’s definitely worth it.

“I answer to myself. I have the authority to decide what I want to market,” Wiggins says.

Divinity Chocolates specializes in custom chocolate treats. Even with balancing high school and her business, Wiggins has managed to generate $1,000 in revenue since launching in February.

Recently, she’s slowed down from the actual day-to-day business to focus on school and building the Divinity Chocolates Website. “I’m also applying for my vendors license, and I’m working on getting my original recipes patented and my logo trademarked,” says the Cleveland native. She expects to generate $1,500 in revenue by the end of this year.

Luxes Industries

Blaine Mickens is founder of Luxes Industries, a holding company for Estate Groomers, a landscaping business.

Blaine Mickens learned how to get his friends to part with their money at an early age. In 7th grade he set up shop at school selling candy. By the time Mickens graduated high school, his company, Sweet Tooth, became a candy distributor at three local schools.

But the now 19-year-old is setting his sights higher with the launch of Luxes Industries, a holding company for Estate Groomers, a landscaping business and Young Picasso Painting, a commercial and private real estate painting company.

“I’ve been leveraging my own personal brand and my own personality to keep the companies going,” says the Cleveland native.

Mickens started Estate Groomers in the summer of 2004 when he began landscaping to make extra money. Business thrived and the company grew. “I have roughly five part- time employees.” He later started Young Picasso Painting where he hires independent contractors for local paint jobs.

But the enterprising mogul refuses to rest on his laurels. He’s working on launching a Website called MogulsAndBarons.com that will feature video interviews of a range of entrepreneurs. He’s also in the planning stages to launch Flawless Mobile Detail under his holding company. The car maintenance business will provide vehicle detailing services to clients at their homes.

Further Reading

Part 1: Youth Use Entrepreneurship As a Pathway to Success

Part 2: Lesson Plans For Young Entrepreneurs

Part 3: Teen Tips for Entrepreneurship