Conference goers chose from informative and motivational sessions that covered topics such as raising capital, government contracting opportunities, properly using social media for business growth, and tapping into the green economy. A popular, two-day youth education program gave Teenpreneurs, ages 13–19, an opportunity to learn entrepreneurship fundamentals such as leadership skill development and formulating a business plan. It also exposed them to educators, entrepreneurs, and corporate professionals.

One of the most insightful moments occurred when Charles Ogletree, author and Harvard Law School professor, facilitated an intimate conversation with black enterprise Chairman and Publisher Earl G. Graves Sr. and his son Earl “Butch” Graves Jr., the magazine’s president and CEO. The senior Graves shared his experiences raising Black Enterprise from a magazine startup 41 years ago to the iconic multimedia enterprise it has become.

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Other popular events were the Small Business Awards luncheon hosted by Ariel Investments L.L.C. and the Black Enterprise Elevator Pitch Competition, which this year awarded an unprecedented $30,000 total in cash prizes to three winners who gave impressive pitches. At the conference, be honored the following small businesses and entrepreneurs:

PITCHING FOR $10K
Entrepreneurs compete in BE’s annual elevator pitch competition

The game show-styled Elevator Pitch Competition involved 10 entrepreneurs vying for a grand prize of $10,000 by pitching their ideas to a packed audience and panel of judges. PepsiCo, the competition sponsor, opted this year to award all three winners $10,000.

The judges were:
• Earl “Butch” Graves Jr., President and CEO of  Black Enterprise
• Star Jones, Author, attorney, TV personality
• J. Anthony Brown, Comedian and radio personality
• Magnus Greaves, Founder and CEO, TheCASHFLOW

GRAND PRIZE WINNER: $10,000
Brandon Butler • The Web Site Shop
What he does: Website designer
Location: Atlanta
Business model: Brick-and-mortar retail
Web design shop

THE PITCH
“Every business needs a great website. But many times the hardest part about getting that great website is finding a reliable Web designer. I’m Brandon Butler and I’m the founder of The Web Site Shop. We’re the first ever brick-and-mortar retail Web design store. We’re conveniently located right here in Atlanta, Georgia, inside Northlake Mall and we’re open seven days a week. Many of our clients don’t know where to start to find a great website, and many clients have had [situations] that cost them a lot of time and money with getting a great website done. Because we’re in a convenient retail location, our accessibility makes us accountable but our skills set us apart. It is our goal to make the Web design process as simple for our clients as ordering a hamburger at McDonald’s. If we were to win this competition it would help us streamline the Web development process. It would also help us finish our franchising program so that we can expand our business. You can follow us online at www.thewebsiteshop.net or on Twitter, @officialwebshop. Thank you. Please let us help you take your brand to the next level.”

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JUDGES’ COMMENTS
Brown: Being a comedian and watching my man pick up that mic and just take control of it is what it’s all about. I’m like OK, this dude knows what he’s talking about. You say where you are, how to get in contact with you and that’s very important when you’re trying to set up a website.

Graves: I thought it was an excellent presentation. Again, I think the brick-and-mortar part is important because a lot of times, even though the website is like, sort of, in the clouds, people still want to, especially novices, touch and feel who they’re talking to and meeting with. There’s a real need there and I think you’ve met that need. But does it cost more to go in to [the store to see] you? We don’t know that based on the presentation.

Jones: I agree with Butch that people do need to touch and feel and see who’s designing their website, especially for people who are not techies. And, don’t take this the wrong way, but you’ve got a little geek look to you and I like that if you’re designing my website.

Greaves: I think the fact that there is a personal part is really good and the accountability that you mentioned, which too often with designers online you never see them again. I think it’s an outstanding idea. I have a bunch of questions regarding sort of the pricing and the profitability of it. But you certainly delivered a great pitch.

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SECOND PLACE WINNER: $10,000
Jennifer Burrell • The Frock Shop
What she does: Rents women’s designer
and vintage dresses for special occasions
Location: Chicago
Business model: e-commerce, apparel
and accessory rental

THE PITCH
“Have you ever wondered why women spend hundreds on dresses that we only wear once? Enter The Frock Shop. The Frock Shop is an online service that allows you to rent designer dresses at prices starting as low as $50. We rent dresses for weddings, galas, and parties. So how does it work? Think Netflix for fashion. Just rent, wear, and return. We take care of the dry cleaning. Our mission is to fill the needs of women who love high fashion and want to look glamorous for all of their nights out without the anxiety of investing in dress after dress. We’ve been operating for 14 months, and our sales grew 70% for the first quarter of this year. Our company started becoming profitable in March. If granted $10,000 we would use it to expand our inventory and enhance our website. So, if you want to look like a million without having to spend it, visit www.frockshopchicago.com.”

JUDGES’ COMMENTS
Jones: I will rent from you, no question. You did an excellent job. I’m the woman on the panel, so I’d be the first to tell you that that works; that idea is fine. You’re going to get this money so you can expand this to an evening, a bridal, and an interview section on your website. So then I want you to ‘upcharge’ that bridal, because you know weddings cost a little more.

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Graves: I thought it was a brilliant presentation. You were not nervous. You obviously practiced this and rehearsed this. You ended right on time. You were articulate about exactly what this [money] would be used for. You had a reasonable price point for people to come in and obviously a need. Because I have 21-year-old twin daughters who tell me they need something new every time they go out to something, now I have the Frock Shop as an opportunity.

Greaves: You’ve obviously proved the concept out there. At first I was thinking, ‘Well, would people go for this,’ but then you said it’s been 14 months and it sounds like people are going for it. So I think you did a great job.

THIRD PLACE WINNER: $10,000
Douglas Wiggins • Body Quest Protein Ice Cream
What he does: Manufactures high-protein, low-fat ice cream
Location: Atlanta
Business model: e-commerce ice cream distributor, distributes ice cream to major retailers by request

THE PITCH
“Good evening, my name is Doug Wiggins. One of America’s favorite desserts is ice cream. But what about an ice cream that not only tastes good but is also good for you? That’s right: Body Quest Protein Ice Cream. Body Quest Protein Ice Cream is a low-fat, high-protein ice cream that has 16 grams of whey protein in a 4-ounce serving. The average adult needs 55 grams of protein in their diet on a daily basis. That’s equivalent to four baked potatoes. Why eat potatoes when you could eat ice cream? Body Quest comes in four delicious flavors: vanilla, chocolate, strawberry, and lemon. Body Quest is currently served in over 200 locations across the U.S. and one coming near you. So whether you’re an athlete looking for more protein, a person experiencing a medical condition, or just a healthy consumer looking for an ice cream alternative, Body Quest is a good fit for you. And remember, at Body Quest what we represent is better living through dessert. Body Quest. And remember to visit us on the web at Bodyquesticecream.com.”

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JUDGES’ COMMENTS
Jones: I liked that you pulled out some of the nutritional elements. I liked that you used the name of the product, Body Quest, multiple times so that the rest of us would hear it and remember it. The only thing I would give you as advice if you make it to the next round is I want to know what you plan to do with the money in order to expand where you are now.

Brown: I think the only problem in his pitch was that he kept backing away from the mic and your tone kept going down. Other than that, you had what the product was, how to find it, and what it was about in a very short time.

Graves: How much does it cost, meaning does it cost the same if I buy a pint of regular ice cream or a pint of Body Quest? I also think that the word ‘protein’ to some people is a positive thing and others it’s not necessarily so. If you can just call it Body Quest Ice Cream and let people understand it was about improving your body without using the word protein, because sometimes when people see that something is good for you they don’t want to spend the extra money to get it.

Greaves: I’m curious to know what the competition is. I’m curious to know what the production is and there are kind of a lot of questions around that, the cost. But eating ice cream instead of potatoes sounds like a pretty good idea. So I think you have a good angle and a good tagline.

SMALL BUSINESS AWARDS WINNERS

BE NEXT AWARD
The BE Next Award is presented to a fearless entrepreneur age 21 to 35 tapped to be a future business leader.

BE Next Award WINNER
Hassan Iddrisu and Hussein Iddrisu Roadstarr Motorsports Inc. • Los Angeles
www.roadstarr.com

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Fraternal twins Hassan and Hussein Iddrissu have done pretty well for themselves since starting luxury-auto customization shop Roadstarr Motorsports with John Spio, their cousin, in 2003. Roadstarr’s revenues reached $11 million in 2010 with projections of $16 million for 2011.

Since its inception, Roadstarr has counted many celebrities as repeat customers, including Shaquille O’Neal, Ben Affleck, and T.I.

The 34-year-old brothers’ journey began 20 years ago when Hassan, co-founder and co-president, then a student living in London, saw a Porsche 911 while on a field trip in Germany. He’s been in love with stylish rides since and, along with his brother and cousin, has built Roadstarr into one of the most respected customization shops in Los Angeles. Roadstarr also operates a location in London.

INNOVATOR OF THE YEAR
The Innovator of the Year Award is given to a business that is flourishing in an innovative industry or approaching business/entrepreneurship in a groundbreaking manner via its products and/or services.

Innovator of the Year WINNER
Andrè Woolery
MagnoGrip Inc. • San Francisco
www.magnogrip.com

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Ever found yourself dropping screws just as you were finishing a home project or work on your car? Well, this has happened to Andrè Woolery, 35, too many times to the point of frustration—and genius.

These handyman mishaps led Woolery, founder and CEO of MagnoGrip Inc., to create his first product, the Magnetic Wristband, in early 2005. From there he developed a line of magnetic work gear under the MagnoGrip brand, including the Magnetic Nail Pouch, Magnetic Work Suspenders, and Quick Snap Magnetic Tape Measure Holder.

MagnoGrip Inc. was officially launched in December 2005 with only $1,000. The company is on pace to generate $4.5 million in revenues this year compared to the $1 million it made in 2010. In June, MagnoGrip inked a deal with Walmart that will put the Quick Snap Magnetic Tape Measure Holder in 1,100 stores nationwide this fall, Woolery says. The company already has five products at more than 1,700 Lowe’s stores and 10 products at 135 stores in five regional Home Depot markets.

Woolery, who enjoys the process of taking an idea from concept to reality, says MagnoGrip plans to expand its business by continuing to develop and launch innovative products and by reaching into global markets.

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SMALL BUSINESS OF THE YEAR
The Small Business of the Year Award is presented to the small business owner whose efforts and/or entrepreneurial pursuits exemplify the passion and commitment needed to overcome adversity as well as attain success.

Small Business of the Year Winner
Ian Y. Blount and Angela N. Cauley • Coalescence L.L.C. • Columbus, OH • www.coalescencellc.com

Agriculturalists Ian Y. Blount, 41, and Angela N. Cauley, 39, created Coalescence L.L.C. in 2005 with a few goals in mind. Sure, they wanted Coalescence, a custom food blending company that counts Tyson Foods, Kellogg’s, and vegetarian food manufacturer Morningstar Farms as clients, to be successful and provide great service.

But the husband-and-wife team’s primary goal was to build generational wealth for their family and provide a vehicle of employment for underrepresented people of color where they could showcase their talents. “We are proud that 93% of our staff is made up of minorities,” Cauley, co-founder and CEO, says of the company’s 41 employees.

They’ve been successful with their plans, as evidenced by the company’s rapid growth to a $24.5 million enterprise. “We have also grown from our initial 7,500-square-foot facility in 2005, to our current state-of-the-art 35,000-square-foot facility,” says Blount, co-founder, senior vice president, and chief operating officer.

Cauley and Blount envision their company becoming the premier solutions provider in the food and beverage industry. “The strategic goal for our organization is to become a one-stop shop for our customers,” he says.

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TEENPRENEUR
The Teenpreneur Award recognizes an entrepreneur or group, age 13 to 19, committed to advancing the rich tradition of black business achievement.

Teenpreneur Award Winner
Adam N. Holland and Jonathan K. Holland
AJ’s Hawaiian Iceez L.L.C. • Brandywine, MD
www.ajsiceez.com

Brothers Adam Holland, 16, and Jonathan Holland, 14, started AJ’s Hawaiian Iceez L.L.C. three years ago in an attempt to help their parents pay for their and their younger sister’s private school tuition.

Although they researched ahead of time and had even seen a similar business do well, the teens didn’t realize the success they’d reach with their Hawaiian shaved ice company. Revenues for AJ’s Hawaiian Iceez have more than tripled since the company started in July 2008, growing from $10,800 to $36,618 in 2010.  The seasonal business runs from the second week in April until the first week of October. “Our work ethic, by far, is our most important contribution to our business. We were taught that success is intentional, and we intended to always be successful,” says Adam, adding that the company also purchased a custom shaved ice trailer in January 2010.

The brothers have expanded their business to selling office items during the off-season such as silicone USB flash drive wrist bands that are custom printed with school names, custom laptop sleeves, and a private-label water that they sell with their shave ice frozen desserts. In addition, Jonathan is working on a book for tweens called Likeability: The Characteristic That Every Kid Should Possess.

This year’s theme, Rethink Business, is not just the banner for this issue’s package of articles—it’s a directive to current and future entrepreneurs. It is also echoed in our 2011 Black Enterprise Entrepreneurs Conference + Expo hosted by Nationwide held at the Atlanta Marriott Marquis Hotel from May 22–25. Little more than a decade into the new millennium and it’s clear that entrepreneurial success in the 21st century requires an entirely new approach. Things taken for granted—increasing real estate values, stability of established global financial institutions, and unassailability of the automotive industry—can no longer be assumed.

The wayside is littered with the remnants of ventures whose management teams made fatal assumptions. Those that survived understood past performance is no guarantee of future success and that as business conditions change and the economic climate shifts, so must their companies. And in the digital age, knowledge truly is power. This is one reason we continue to chronicle the state of black-owned business and highlight the successes (and missteps) of their CEOs—to keep our audience informed of not only the business climate but also how companies are evolving to succeed within it.

Entrepreneurship has never been for the faint of heart, and that’s truer today than ever before. Today’s leaders must be fearless, tenacious, and adaptable in the face of a changing environment. The entities that vaulted to Company of the Year status make a strong case why it’s important that you adopt a new approach to conducting business.

Take Bernard Beal, CEO of this year’s Financial Services Company of the Year, M.R. Beal & Co. As a brash child, he was so sure of himself that he once took an exam that required 66 out of 100 questions be answered correctly to pass. Beal answered only 66 questions and left the rest blank. Each one he answered, however, was correct. Whether it was confidence or arrogance that fueled him, Beal went on to excel on Wall Street before launching his highly successful firm that eventually landed one of the largest minority-led municipal bond underwriting deals in New York City history.

Our Auto Dealer of the Year, Bob Ross Buick/GMC and Mercedes-Benz is a profile in the strength and tenacity of a family business. Many entrepreneurial ventures fail following the death of a founder. But Ross’ wife, Norma, and daughter, Jenell, along with his son, Robert Jr., took up the reins and continued to grow the business. When Norma took ill and passed away during the worst downturn the automotive industry has ever seen, Jenell stepped in and not only kept the company afloat but also added a new brand to its list—Italian automaker Fiat.

“At Black Enterprise, we embrace stories of entrepreneurs that beat the odds to achieve great success or develop the mousetrap that was once unthinkable,” says Editor-In-Chief Derek T. Dingle. “How do we do it each year? We have our own daring editorial and events teams who may rethink our approach but never lose sight of providing information, instruction, and inspiration for our audience.”

From newly-minted and established business owners to White House policymakers, attendees of our Black Enterprise Entrepreneurs Conference + Expo are fired up.

During my segment on Warren Ballentine’s nationally-syndicated talk show yesterday I talked about the steady stream of emails, tweets and calls I received describing our event’s game-changing potential. In fact, our conference brought more than 1,200 African American entrepreneurs to Atlanta last week for three days of instruction from brilliant strategic minds, inspiration from top business leaders and induction of new contacts into business networks. It was the only place on the planet you could have found MC Hammer, Angela and Vanessa Simmons, Carol Daughter‘s CEO Lisa Price, Professor Charles Ogletree, former Deputy Commerce Secretary Dennis Hightower, master dealmaker Magnus Greaves, investment powerhouse Eddie Brown, Deputy SBA Administrator Marie Johns and Publisher Earl G. Graves, Sr., to name a few, offering business counsel and camaraderie to attendees ranging from teenpreneurs to BE 100s CEOs.

For me, this gathering represents one of the high spots of my year. As Editor-In-Chief, it’s a gratifying and validating opportunity to meet scores of entrepreneurs who share stories of their trials and triumphs, many of whom thank BLACK ENTERPRISE for serving as their coach and champion. I’m always equally humbled and awed by how so many have built thriving enterprises with creativity and sheer will as their major resources.

As I shared with Warren, our conference offers education and renewal to our staff as much as it does our audience. This year’s theme was aptly-framed “Rethink Business,” which introduced new trends and innovative approaches for the 21st Century economy. Those who attended discovered some valuable lessons. Those who were unable to come to Atlanta can discover what they missed through videos here on BlackEnterprise.com this week. In any event, the following seven tenets I uncovered can place your business on the path to growth and prosperity. 

• Look for sweet spots in emerging industries.

The panels I moderated on the green economy provides a perfect example. My panelists didn’t agree that the sector was “the next big thing,” they told conferees the time to pounce on opportunities is now. For instance, William S. Parrish, Jr., CEO of NobleStrategy, a thriving construction management firm, stressed that African Americans must learn about “green opportunities” and “legislation that is creating a new divide.” A professional with a LEED (Leadership in Energy and Environmental Design) accreditation, he said Black firms must embrace sustainability as a means of enhancing their business model, distinguishing themselves from competitors and significantly reducing operating costs. Another panelist Warren Crawley, president and co-founder of Green Grease Inc., identified an exclusive niche. Based on advice from his 16-year-old son to collect cooking grease from residential homes and recycle the substance into biodiesel fuel, he launched a firm that now counts individuals, corporations and governments as clients. So your next big moneymaker may come from that can of bacon grease in your kitchen.

• Follow the new rules of business financing.

You can still find capital to expand your company—but it will cost. That message was delivered loud and clear during the jam-packed session on business financing moderated by Editorial Director Alan Hughes. Terry L. Jones of SyncomVenture Partners (No. 7 on the BE PRIVATE EQUITY FIRMS list with $410 million in capital under management), said investors are willing to invest in viable companies with potential to produce huge returns—that is, if business owners are willing to give up more control. And even in this post-recession economy, bank loans are available to entrepreneurs willing to “put some skin in the game,” according to Leonard Walker Jr., Atlanta business banking division manager at Wells Fargo. Such funding, Walker said, may require as much as a 30% down payment though.

• Go digital or die.

Our conference devoted a number of sessions and boot camp drills to web technology and social media. We placed such a strong emphasis on social media platforms like Facebook, Twitter and LinkedIn because they represent the best tools to reach new markets and target customers. In fact, during Multimedia Editorial Director Sonia Alleyne‘s one-on-one with rapper/entrepreneur MC Hammer, he said he viewed Silicon Valley as “the seat of power” in the “relationship-based economy” and maintains the current environment presents the best opportunity for tech start-ups. Hammer said he was developing an business incubator with Internet entrepreneur Wayne Sutton, another conference speaker, for African American entrepreneurs. Bottom line: Companies that ignore the digital space do so at their own risk.

• Know the terrain when pursuing contracts.

Many Black entrepreneurs miss their destination: gaining lucrative government and corporate assignments. Why? They don’t have the right map to begin with. At our session on doing business with government, Lourdes Martin-Rosa, president of Government Business Solutions, directed entrepreneurs to visit American Express OPEN’s website to access Victory in Procurement (VIP), an educational program designed to help small business owners boost their business as they navigate through the government contracting maze. (American Express Open served as the sponsor for that session.) During another seminar on supplier diversity, conference sponsors Nationwide Insurance and mega-retailer Walmart provided session attendees with a step-by-step process for getting passed the door of corporate purchasing offices: Be specific the products and service you’re offering; know the company’s priorities and supplier standards; and clearly distinguish your company from the pack. Says panelist Leon Richardson, CEO of Southfield, Michigan-based ChemicoMays L.L.C. (No. 88 on the BE INDUSTRIAL/SERVICE COMPANIES list with $28.5 million in gross revenues), a chemical management services company that serves automotive and pharmaceutical manufacturers: “Don’t use your minority status as your value proposition.”

• You got to be in it to win it.

Entrepreneurship is about taking risks and pursuing every feasible opportunity. Sometimes failure provides the most valuable lessons. For those who dared to be involved with one our major attractions, the Elevator Pitch Competition, they came to grips with that philosophy on a public stage. In the contest, 10 companies battled for a cash prize using their best 60-second business spiel. Competitors included a women’s apparel rental company, a website repair shop, a healthy ice cream producer and a female valet service, among others. The entrepreneurs had to face a tough collection of judges: BLACK ENTERPRISE CEO Earl “Butch” Graves, Jr., attorney and TV personality Star Jones, comedian and radio personality J. Anthony Brown and Magnus Greaves of business start-up financing and consulting firms, The CASHFLOW and 100 Urban Entrepreneurs. Those eliminated by judges gained valuable advice on how to perfect their pitch, critical to engaging investors as well as the opportunity to gain a shot at a capital injection. And as evidenced by this year’s competition, it pays to take calculated risks: our judges selected three entrepreneurs to each receive the $10,000 cash prize and the 8-week mentorship program jointly operated by The CASHFLOW and100 Urban Entrepreneurs.

• Build your business network.

Dennis P. Kimbro, the Clark Atlanta University business school that conducted a seven-year study on millionaires, said the No. 1 stumbling block for Black entrepreneur is not money since two-thirds of the 1.3 million African American concerns borrow less that $10,000 dollars. The problem, he asserted, is “the team building stage, finding like-minded individuals who will give your dream wings.” Solving that equation comes, in part, through solid management. The other aspect is building a solid business network. Our opening keynote speaker framed a primary objective of conferee when he said: “The reason why you got up at 6:00 and showered to get here at 7:00 to make sure that you listened to the speaker at 8:00 is to meet the individual in front of you, the individual behind you, the individual to your left and right. Networking is a critical skill. It’s not who you know, it’s what you know about who you know. People don’t care about you until they realize how much you care about them. It’s not all one sided.”

• Learn to be a hustler.

In achieving entrepreneurial goals, Kimbro took a chapter from an old school text but the message was just as powerful in a new school era: “You got to hustle. Those who make things happen all share this quality. No matter how intelligent or able bodied you may be, if you don’t have a sense of urgency and the need to explore your potential, you will fall short of the mark. Hustle is doing something that everyone else is certain cannot be done. Hustle is getting the customer to say yes after he or she said no. Hustle is believing in yourself when no one else will. Hustle is winning and encouraging others to win. Hustle is heaven if you’re a hustler and hell if you’re not.”

I’m a lousy networker. It’s not that I do the wrong things. It’s that I often neglect this critical part of my professional life, and I’m full of what I think are “legitimate” excuses. Not enough hours in the day… Not enough days in the year… Not enough energy once I’m done with work and chauffeuring my kids and baking for the church bake sale and… Well, you get it. But I’m constantly trying to do better, because I know how critical networking is. So I study it.

I’ve interviewed, observed, and greatly admired great networkers. I’ve read their books, gone to their seminars, and drank enough of their Kool-aid to have boldly preached the gospel of good networking myself on occasion, like now. I do so with the conviction of a true believer who understands that when done well, networking can be the single most effective tool in your kit for building a business, a brand or career. That said, when done poorly, it can kill whatever chances you’re hoping to create.

So when I see people making huge networking mistakes, I cringe, as I did at the Black Enterprise Entrepreneur’s Conference (EC) in Atlanta last week. Don’t get me wrong, I met scores of fantastic and inspiring people there and countless great connections were made at that event—relationships that will bear fruit in the form of business partnerships, new concepts and products, and profitable deals that will yield Black Enterprise headlines for years to come. Look for them! But in the meantime, beware of the major mistakes that too often set people back as they strive to get ahead.

The attendance at this year’s EC broke all previous records—a great sign of the vitality and drive of our nation’s Black small business owners. But, among those large numbers of attendees, there were a few serious gaffes on display and I feel compelled to out some here, in hopes that those who made them will read this, recognize themselves, and adopt a better approach next time.

Why do I feel justified, given that I’ve admitted my own challenges on this front? It’s sort of like that old saying that those who know do, and those who don’t teach. So indulge me, and know that I offer these real-life examples of what NOT to do, with love.

• The Card Queen:

Seated at lunch, waiting for the program to begin, I noticed a woman sprinting from table to table, giving out cards. I thought she was snagging the chance to distribute marketing materials for her business to as many people as she could—a brilliant move if it had been the case. Or, maybe she was handing out invitations or exclusive coupons for her services. It was none of the above. This woman, who made her way to my table soon enough, was literally giving her business card to every person in the room, barely lingering long enough to say her own name, no less learn anyone else’s. Was she an environmentalist who ordered too many cards and didn’t want them wasted? Did she make a bet to see how many cards she could give out in record time? Was she multi-tasking by getting her name out while doing a sort of workout? I couldn’t imagine. When she walked away from us, my table mates and I sat there, dumbfounded, each staring at her card, which had an ironic motto printed in bold at the bottom: “Connecting with a Purpose.” Really?

• The Name Dropper:

Certain people—say, Oprah, Bill Gates, President Obama—have easy access to enough well known people that they probably can’t help dropping big names pretty regularly. And yet, they are probably still careful not to, because it’s obnoxious. And, unless you happen to be Oprah, Bill Gates, or President Obama, suggesting that you personally know the world’s A-listers also tests credibility. So, even if you happen to have met, done business, and partied with Oprah, Bill Gates and President Obama, you might want to share that information sparingly, as in not all at once, not to absolutely everyone you see, and not within the first 30 seconds of saying hello.

• The Stalker:

Seriously, stalking is creepy. It doesn’t matter how nice your dress or suit is, how expensive your shoes, warm your smile, or well intentioned you may be. If we barely know each other and every time I look over my shoulder (or at my Facebook page) you are either watching (commenting), waving (poking), or waiting to be noticed (writing on my wall)…. Again—it’s weird. And a little bit scary. Spread yourself thinner. Way thinner.

• The Showman/Showgirl:

We all know technology has afforded us faster, more efficient and dynamic use of our time. But if we just met, the room is full of people, and there are others waiting to be introduced to one or both of us, please do not pull out your iPad2 and proceed with your entire marketing presentation/business proposal/media kit. Happy to see you’ve got the latest gadgets and know how to use them, but it is neither the time nor the place. Furthermore, this approach makes you a major…

• Time Stealer:

Several mind-numbing minutes into one insistent gentleman’s impromptu iPad presentation, another conference participant politely interrupted with a message that I was needed by a colleague in another room. Relieved, I apologized to the Showman and headed for the door. Once outside, the messenger stopped me and said, “I hope you don’t mind, but I made it up. That guy caught me before and that’s 15 minutes of my life I’ll never get back. I was just trying to help you out.”

“Thank you,” I said, meaning it with all my heart.

The Hero—now that’s a huge networking DO!

Earl "Butch" Graves, Jr. addresses the attendees

Good morning, entrepreneurs. The first full day of Black Enterprise Entrepreneurs Conference + Expo hosted by Nationwide is about to kick-off. If you were unable to make the trip to Atlanta (May 22-25), don’t worry, you can watch the Pepsi-sponsored Livestream of the event’s opening remarks and keynote address: “Rethink Business Today!” hosted by Nationwide, at 8am.

Take a look at the EC schedule here, join the virtual conversation, dynamic panels, workshops and interviews with some of the greatest minds in business by logging on to BlackEnterprise.com/ec/.

LIVESTREAMING THIS MORNING

8:00-8:15am | Opening Remarks

8:30-9:15am | Keynote Address: ‘Rethink Business Today!’ hosted by Nationwide

Click here for today’s full schedule.

(Image: ThinkStock)

Purchasing a franchise is one thing, but converting your small business into one is another. Here are 5 things any entrepreneur looking to franchise his or her business concept should know beforehand. Take this info into consideration to avoid the risk of failing twice with one venture.

1. Is this a good idea? Is your product or service marketable across the country? How about across the globe? What makes your company distinguishable from others out there? Is what you do teachable?

2. Law and order. Connect with a franchise attorney through the International Franchise Association (www.franchise.org), a Washington, D.C.-based industry trade organization. An attorney will help you ensure that your business is structured to transition into a franchise.

3. Play-by-play. If you haven’t already done so, create an operations manual. A consistent protocol is a must. It takes ample time and capital to become a franchiser. Make sure you have both.

4. Are you ready? Will you need a loan? Do you have the funds to hire a franchise development staff?

5. No overnight success. You should have at least five years of experience running your business before you try to become a franchiser. It takes time to generate substantial revenue and measurable growth to use as leverage.

Looking for ways to expand your business’ reach? Join us at Black Enterprise’s annual Entrepreneurs Conference, taking place May 22-25, 2011 in Atlanta, Georgia. Visit blackenterprise.com/ec for more details. As an incentive BE is offering you a discount on early registration: Just enter code BEDG295 and receive $200 off. Don’t miss this opportunity to receive valuable strategies and resources to help take your business to the next level.

Going from a single-entity operation to a franchised business is no easy task, but companies can pull it off if they take the right steps. Unlike many other industries struggling to recover on the heels of the Great Recession, the International Franchise Association reports that the franchising industry is poised for growth in 2011. It predicts more than 19,000 new franchise establishments will be formed this year, resulting in nearly 200,000 new jobs added to the U.S. economy.

But how exactly does a business successfully replicate itself, and where should business owners start? Before you move forward with plans for franchising, be certain your business is in line with the following five steps.

• Make sure your business concept can effectively be duplicated.

Owning and operating one company is very different than running multiple businesses as a franchise. “Anytime a company wants to engage in franchising, the most critical step is demonstrating that the initial concept can be cloned beyond that one or two outlets that the current entrepreneur may own,” says Patrick Kaufmann, professor and franchising expert at the Boston University School of Management.

And keep in mind a red flag should go up if the business is too dependent on the people running it. Relying more on a person or team of people for your business’ success than you do on the actual business concept could mean you’re not ready to franchise. You should have full confidence in your business’ ability to flourish based on concept alone.

• Create a solid training system for your franchise.

“Franchising depends on your ability to systematize the knowledge that you have,” says Kaufmann. This means business owners must implement a roadmap in the form of operations manuals to maintain consistency throughout each franchise. Franchising is about selling knowledge and a certain way of doing business, so you must provide franchisees with adequate instruction, training, manuals, support and techniques.

A franchisee should be able to refer to the manual(s) in your absence and have a clear understanding of how the business will be run. “How can you teach someone to work your business if you don’t have an operations manual in place?” asks Miriam Brewer, director of diversity for the International Franchise Association. “That is a recipe for disaster.”

• Research and hire a franchise attorney.

Franchising is a federally regulated industry, and not following the law can get you into trouble. So before you file any paperwork, hire a lawyer with franchising expertise; a lawyer with experience in business or corporate law just isn’t enough. “Most attorneys will say they know all about [franchising] when in fact they don’t,” says Burton Cohen, founder of Florida-based franchise consulting firm Burton D. Cohen and Associates L.L.C., and professor of strategic franchising at Northwestern University’s Kellogg School of Management. If you need a starting point, the American Association of Franchisees and Dealers has a list of franchise lawyers by state (www.aafd.org/legaline.php).

• Work with your franchise lawyer to develop a Franchise Disclosure Document.

The International Franchise Association defines an FDD as a document that discloses information about the franchisor and franchise system to the franchisee. In the document, there are 23 sections covering everything from the franchisor’s history and finances to contracts and franchisee fees. Any franchise sale must comply with FTC rules, one of which is the filing of the FDD. This underscores the need to hire a lawyer with franchising experience: “You don’t want someone creating your FDD who is just learning [franchise] law for the first time,” says Andrew Sherman, lawyer and author of Franchising & Licensing: Two Powerful Ways to Grow Your Business in Any Economy (AMACOM; $45). “No matter what, those documents have to be right, or you’re subjecting yourself to federal and state penalties.”

• Have a plan for recruiting franchisees.

Don’t forget franchisees are a significant part of the franchise system, so a sound recruiting structure must be in place to attract them. Brewer says businesses should ask, ‘What would make a prospective franchisee decide to go into business with me? What is my plan for recruiting?’ In addition to making sure your business concept is solid, your contracts are fair and you offer ongoing training and support to your franchisees, consider having a “discovery day,” where prospective franchisees come to learn more about your business. This gives you an opportunity to make a good sell and see if those interested in your company will be a good fit for catapulting your business toward franchising success.

For more on franchising your small business pick up the April 2011 issue of Black Enterprise.

Ready to take your small business to the next level? Join us at Black Enterprise’s annual Entrepreneurs Conference, taking place May 22-25, 2011 in Atlanta, Georgia. Visit blackenterprise.com/ec for more details. As an incentive BE is offering you a discount on early registration: Just enter code BEDG295 and receive $200 off.