The branding genius—famous for padding the bank accounts of megastars like business partner Jay-Z, Mary J. Blige, Lady Gaga, LeBron James and pretty much the rest of the entertainment world—says it’s high time advertisers peeped the tremendous buying power of the millions of people who consume the culture worldwide, and catered to them, accordingly.

“My ‘aha’ moment came a few years ago when I was traveling with Samsung [for Valentino],” says the former music industry executive, responsible for marrying Beyoncé and Tommy Hilfiger for her True Star fragrance; Justin Timberlake and McDonald’s as part of their ‘I’m Loving It’ campaign; and Chris Brown with Wrigley’s gum, among other supremely lucrative deals. “It didn’t matter where I was… Berlin, Seoul, Korea, Tokyo, wherever… hip-hop dominated the landscape. I was even in one of the oldest towns in France, known for its art galleries, artifacts and such; and what did I see in the middle of it? A jewelry store called ‘Bling.’ If that’s not telling I don’t know what is.”

Now, Stoute wants advertisers on the come-up (and those looking to reinvent their brand) to follow his blueprint for reaching this generation of Black, Hispanic, Asian and White consumers, many of whom, he argues, share the same “mental complexion” based on mutual experiences and values. He points to the collective bargaining power and subsequent election of President Barack Obama as proof.

“A lot of my clients and friends contribute stories about their business successes in this book, including [Interscope/Geffen Records CEO] Jimmy Iovine, Russell Simmons and Jay-Z,” says Stoute of the hundreds of pages of interviews and case studies he compiled. “Who better to listen to than the folks who have done it?”

The marketing director and CEO of Carol’s Daughter—a hair and body care line that boasts a board of investors that include Hollywood heavyweights Will and Jada Pinkett Smith—is also taking his message on the road: this month Stoute will teach a course on his book at NYU. He says college kids are his target audience. “This book is a reference guide for any young person in the fields of advertising, marketing and communication,” Stoute explains. “It tells them not only how to speak to the next generation of consumers but how to move the [hip-hop] agenda forward.”

• Census Data Shows Wealth Gap Widens Between Whites and Minorities

The wealth gaps between whites and minorities have grown to their widest levels in a quarter-century. The recession and uneven recovery have erased decades of minority gains, leaving whites on average with 20 times the net worth of blacks and 18 times that of Hispanics, according to an analysis of new Census data.

The analysis shows the racial and ethnic impact of the economic meltdown, which ravaged housing values and sent unemployment soaring. It offers the most direct government evidence yet of the disparity between predominantly younger minorities whose main asset is their home and older whites who are more likely to have 401(k) retirement accounts or other stock holdings.

Read more at the Associated Press…

• Obama Losing Support Over Jobs Record Among Liberal And Black Voters

Amidst new research showing historic disparity in wealth between whites and minorities, President Obama is facing plummeting approval over his jobs agenda among core supporters, including liberal Democrats and African Americans.

Read more at the Huffington Post…

• McDonald’s to Make Happy Meals Healthier
  

Under pressure from health and children’s advocacy groups, McDonald’s Corp. is making changes to its famed Happy Meals.

The fast food chain will add a serving of fruit or vegetable to all of the meals, which are aimed at children, and shrink the portion of French fries.

Read more at the Los Angeles Times…

Also, UBR Contributor Renita D. Young talks with money expert and BlackEnterprise.com contributor Lynnette Khalfani-Cox, a.k.a. The Money Coach. A New York Times best-selling author, personal finance expert, and radio and television personality, Kalfani-Cox’s latest book is The Money Coach’s Guide to Your First Million: 7 Smart Habits to Building The Wealth of Your Dreams (Advantage World Press).

In addition, in my “Alfred’s Notepad” segment, I call on The Urban Business Roundtable community to share their ideas for speakers, sessions and topics for the next Black Enterprise Entrepreneurs Conference, to be held in Chicago in 2012. The nation’s largest gathering of Black entrepreneurs annually attracts more than 1,200 business owners and aspiring entrepreneurs, including many of the nation’s largest Black-owned companies.

And finally, every week on UBR, you’ll get motivation and inspiration from author and entrepreneurial icon Farrah Gray, a weekly wrap-up of business news from USA Today business correspondent Charisse Jones, our Patient Investor Report from Ariel Investments and key economic intelligence for small business owners from our UBR economists Derrick Collins and Rasheed Carter.

If you have a question you want answered or a topic you want addressed on The Urban Business Roundtable, connect with me at BE Insider, the social media network for people who are serious about Black Enterprise. You can also find me on Twitter and Facebook.

Alfred Edmond Jr. is the senior VP/editor-at-large of Black Enterprise and the host of the Urban Business Roundtable, a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com. Check back each week for UBR Spotlight, which features additional resources, advice and information from and about the topics, entrepreneurs and experts featured on the show.

Headlines from around the web (Image: File)

• Southern Baptists Elect First African American into Leadership

The predominantly White Southern Baptist Convention has elected an African American to preside as first vice president of the nation’s largest Protestant denomination. Reverend Fred Luter’s appointment was made during the church’s annual conference in Phoenix.

• Stevie Wonder Inducted into Apollo’s Hall of Fame

Stevie Wonder joined musical greats Michael Jackson, Aretha Franklin and James Brown, to name a few, in the Apollo Legends Hall of Fame Monday night. The legendary singer was recognized during the historic theater’s famed spring gala, which raised over $1.2 million.

Tony Bennett presented Wonder with the honor. “It’s a moment to cherish and remember, relishing in the memories of the times that I’ve been at the Apollo, as well as this night, the great people that came out to support me being here,” the activist said in an interview. “It’s a great thing to be one of those people in the Hall of Fame for the Apollo.”

• President Obama and Job Council Map Out Ways to Increase Employment

President Barack Obama met with his Jobs and Competitiveness Council, led by General Electric Chief Executive Officer Jeffrey Immelt, Monday at Cree, Inc. in North Carolina. The jobs council advised the commander-in-chief on ways to create one million jobs over the course of two years.

In an opinion piece published Monday in The Wall Street Journal, council members Immelt and American Express chairman and CEO Ken Chenault unveiled a series of the committee ideas, ranging from supporting energy efficiency in public buildings to helping small business employers receive loans and greater assistance from the Small Business Administration.

• CareerBuilder Survey Reveals 25% of Blacks Feel Discriminated Against on the Job

A recent CareerBuilder survey uncovers that one in four African Americans reports feeling discriminated against at work. The 2011 Diversity in the Workplace survey, which looked at over 1,300 workers and the top 20 markets in the U.S., by population, discovered continued discrepancies in pay, career advancement, and feelings of intolerance.

The corporation gathered information for six diverse backgrounds, including African Americans, Asians, Hispanics, women, workers with disabilities and lesbian/gay/bisexual/transgender (LGBT) between February 21 and March 10 of this year.

“While companies have made strides in creating an inclusive workplace for all workers, there is still work to be done, especially in the areas of hiring, compensation, and career advancement,” said Dr. Sanja Licina, senior director of Talent Intelligence and Consulting at CareerBuilder.

• McDonald’s Feeling the Heat After Racist Sign Hoax

Over the weekend, this fake sign made its way around the Twitterverse. It’s an old online hoax that has found new legs as it gets passed around with the hashtag #seriouslymcdonalds. Chalk up another PR foible for the fast-food empire. Claiming that McDonald’s is charging African American customers an extra $1.50 as an “insurance measure due in part to a recent string of robberies,” first appeared on the Internet’s notorious 4chan bulletin board last June. But for reasons unknown, the pic appears to be stirring controversy once again.

Read more at AOL Black Voices…

• (Images: Thinkstock; Lonnie Major)

Today, young people are making moves sooner than previous generations. Not holding back in pursuing their dreams, goals and aspirations, they are redefining how business is done and the results are immediately seen in the impact they have on the business landscape today, as well as tomorrow. But just what does it take to be a young boss? While a number of factors are involved, there are a few must-have traits for success. Here’s a roundup of a few BE Nexters who embody the advantages of youth and why it can give one a leg up to the competition. 

• EARLY BIRD GETS THE WORM

• “I look back and I always say, ‘The hits I took as a kid, if I had to take those same hits today, I wouldn’t make it.’ When you’re young, you’re unafraid and unstoppable,” ~Tina Wells

• Tina Wells, 30, Owner/CEO, Buzz Marketing Group

• Wells’ journey into entrepreneurship began at 16. She wrote product reviews for a newspaper, eventually starting a business to help clue companies in on what teens want. Now in its 15th year, Buzz Marketing Group’s revenues are over $4 million. “I never said, ‘Oh, I’d like to own a marketing agency.’ I didn’t even know what that was at 16,” says Wells. “I knew I was a kid who was passionate about fashion, beauty, entertainment, and pop culture.”
• All grown up, Wells is now a savvy businesswoman continuing to redefine the way companies identify, interpret, and respond to young people. Her Voorhees, New Jersey-based market research firm, has positioned itself as a key player offering companies from PBS to Sesame Workshop to American Eagle effective marketing and research strategies—related to beauty, fashion, lifestyle, and entertainment—for 6 to 24-year-olds. Besides Buzz Marketing, Wells is now an accomplished author having released the tween book series, Mackenzie Blue, as well as the youth marketing handbook Chasing Youth Culture And Getting It Right, which will be released this spring.

• BOUNCING BACK FROM ADVERSITY

• “As a teenage mother with no higher education and very few resources to start a business, I had every reason to quit. Instead, I chose to lead a life of faith and leave a legacy that screams, ‘No excuses!” ~Sirena Moore

• Sirena Moore, 29, Founder/CEO, Elohim Cleaning Contractors Inc.

• The Bristol, Pennsylvania-based industrial and commercial construction site cleaning firm continues to generate revenue that’s a far cry from the $200 Moore, her father and younger brother pooled together back in 2002 to launch the business. But what Moore lacked in capital she made up for it in determination.

• During the first three years of business, they added full-time employees to the payroll one at a time. “I worked during the day to make ends meet and my brother also kept a job,” recalls the 29-year-old. “I added myself last.” Among the top priorities of the company was to operate debt-free, which it managed to do successfully since inception until November 2009 when they secured their first line of credit. This feat worked in their favor during the economic recession. This past year the firm received its 8(a) certification which gives minority- and women-owned businesses competitive positioning in applying for federal contracts. Elohim Cleaning Contractors generated $2.7 million in 2009, and surpassed $3 million in 2010. The company looks to reach $10 million in revenue for 2011.

• MAKING SCIENTIFIC SMARTS COUNT

• “While I would never claim to change the world, I hope to inspire generations of leaders with the quantitative creativity critical for true innovation and progress.” ~ Sheldon Gilbert

• Sheldon Gilbert, 35, Founder/CEO, Proclivity Systems

• Being considered a “nerd” might not be such a bad a thing anymore. Science and technology are standout growth industries for the U.S., with the Bureau of Labor Statistics projecting a 22% increase in the number of such jobs from 2004 to 2014, or more than 2.5 million job openings. And the global marketplace is constantly on the prowl for new innovations to change the way we do any—and everything. This is what lured Sheldon Gilbert into entrepreneurship. The creator of Proclivity, a behavior predicting software, he knows the ins and outs of data mining. “Every time you click a link, it’s a request for information you’re making to a server,” explains Gilbert, who tutored students in chemistry on the side while he spent a year writing the software. “We can then mine the data stored on the servers to create a profile of a person’s likes and dislikes—or proclivities.”
• With this software, the 25-person firm Proclivity Systems has increased online sales by as much as 30% for clients such as Barney’s New York, by predicting which offers to present to which customers, says Gilbert. Launched in April 2006 with $750,000 from angel investors, the startup recently raised an additional $5.5 million in venture capital in order to expand Proclivity’s platform and services into new vertical arenas and channels, as well as bring on senior management, says Gilbert.

• TAKING RISKS, THINKING BOUNDLESSLY

• “There’s a huge disconnect between the mindset of young people and the companies trying to create products that young people buy,” ~Jason Smikle

• Jason Smikle, 25, Co-Founder, Managing Director, TUV Online/TUV Media Networks

• A creative entrepreneur and risk taker, Smikle teamed up with friends, Ebele Mora and Fabricio Sousa during his sophomore year of college to launch Truly Unique Vision (TUV). The team has since reaped the rewards from this venture, evolving into a Chicago-based new media company that helps brands connect directly with young people (18-24). The company has successfully led efforts in creating video campaigns with companies such as Foot Locker, Toyota and McDonald’s. Marrying a grassroots style of youth engagement and digital media at colleges nationwide, TUV has also helped BET refine its content through an innovative approach to reaching its audience. “There’s a huge disconnect between the mindset of young people and the companies trying to create products that young people buy,” says Smikle. “Clients will have a one-stop-shop into the college market.” With a growing client list the company expects 100% growth in year-over-year revenue.

• THROWING CAUTION TO THE WIND

• “Above all be fearless. Because the world is a scary place and stepping out on your own is risky,” ~The Broussards

• Lorielle and Brandon Broussard, 30 and 34, Barackawear Inc.

• Everything doesn’t always go as planned. In August 2007, the sibling duo quit their day jobs to go full force with their clothing line, Barackawear Inc. The Los Angeles-based company aggressively touted T-shirts and other apparel with the ’90s-inspired slogan: Barack the Vote, in support of the then-Illinois senator and presidential candidate who became the nation’s first Black president. Their risk-taking teamwork paid off and the popular T-shirt line generated $600,000 in revenue in 2008. But betting on President Barack Obama was just the beginning.

• Business-savvy and ready to expand, the two went on to launch YOTOWN, a line of nonpolitical shirts featuring personalized maps of any U.S. city. And after realizing that their passion for YOTOWN had waned, the Broussards stopped production on the clothing line in October 2009. Today, Lorielle and Brandon are putting their energy and enthusiasm into Purple Stuff TV, a sketch comedy Web-based series which they are currently shopping around to television networks. Based on their previous success, their prospects remain promising. “We got an investor for Purple Stuff TV based on our success with Barackawear,” says Lorielle.

In order to meet the President’s lofty goal, we have to ask the following questions: Where are the recharging stations to reboot the electric vehicles? And what’s going to encourage Americans to buy an electric vehicle, when we haven’t even warmed up to hybrids yet?

Green Machine: the 2011 Kia Optima Hybrid (Image: Press)

According to hybridcars.com, hybrid sales dipped over the past three years, as the overall new-vehicle market rebounded in 2010. Added to that, the government literally pulled the plug on subsidizing hybrids (and diesels) at the end of last year—shifting funds to electric cars and plug-in hybrids for 2011. (Currently, the Chevy Volt and Nissan Leaf are the only two semi-affordable mass produced vehicles in production qualifying for this incentive).

While the media has led us to believe that everyone is driving green, the reality is that hybrids only represented approximately 2.5 percent of the overall market in 2010, equating to only 28,592 vehicles. These dismal numbers are a far cry from what the President is asking of America (and the automakers) as it pertains to this big push toward electric vehicles.

Furthermore, minorities really haven’t jumped on the green bandwagon. The latest study conducted by J.D. Power, a marketing research firm measuring consumer behavior, revealed that minorities (African Americans, Hispanics and Asians) purchased 14.1 percent of the hybrids sold in 2008, as opposed to 20.4 percent of gas-powered vehicles. Based on these numbers, one can only assume African Americans are underrepresented in the hybrid market, since this group represented only 6 percent of all-new vehicles sold last year, according to a recent report commissioned by Toyota Motor Sales USA.

Lexus goes hybrid with the 2011 CT200 (Image: Press)

Ford Motor Company recently found this to be the case, as they sought the assistance of a research firm to conduct focus groups in three metropolitan cities with African American hybrid (and luxury) owners in the age set of 30 to 49, who had purchased their vehicle new. While it was relatively easy for Ford’s research firm to find luxury car owners, they hit a wall when searching for African American hybrid owners.

In order to get the country moving toward driving green, it’s going to be incumbent upon our government, along with the automakers, to work hand-in-hand to make this happen. Minorities, more specifically African Americans, need to be looped in the marketing plan, helping Americans go green. As the fast food chain McDonald’s has learned, marketing to African Americans in the mainstream media (outside of the typical Black TV programming) literally helps drive the success of the company. The government (and manufacturers) should do the same with the automotive community by taking the following steps:

• 1. Automakers need to go beyond general marketing and connect with each minority group. Toyota is finally doing this with the Prius via commercials and grassroots HBCU educational tours.
• 2. The automakers need to market more appealing hybrids to capture minorities. Both Kia and Lexus have new sporty hybrids that will be hitting the market soon. (Most consumers aren’t into the bubble, space-age look. That just isn’t cool or sexy for most consumers.)
• 3. Automakers have to price their hybrids like non-hybrids. Ford has done this with their new MKZ luxury sedan. Both the gasoline-powered sedan and hybrid model are priced the same.
• 4. The hybrid battery needs to be subsidized by the government. Most consumers aren’t in a position to pay for a few thousand dollars to pay for the hybrid battery once the manufacturers warranty expires.

So, if Obama’s administration expects for consumers to go green, the best means is to grow the business through the minority community. Once they go green mainstream will follow suit… just ask McDonald’s.

Jeff Fortson is an auto analyst and editor of JeffCars.com, an educational car-buying site for women and minorities.

Be sure to read these BEing Green-related content…

• 4/11: Green Machines – 11 Eco-Friendly Cars for 2011
• 5 Easy Ways to Go Green for a Cause
• 7 Jobs That Could Be Green

Brown, CEO of New Horizons Baking Co., shows no sign of slowing down since completing a textbook turnaround of his company.

Operations are humming at the 56,000-square-foot Norwalk, Ohio, bakery. The facility’s 160 employees, nearly all wearing bouffant caps and what appear to be white lab coats, toil alongside large mixing, baking, and packaging machinery. Elaborate conveyers prepare, mix, bake, and pack plain, seeded, and double-cut hamburger buns at a rate of roughly 4,000 dozen per hour.

Just about 140 miles away in Fremont, Indiana, a facility of similar dimensions produces not only buns at the same rate, but also 2,000 dozen English muffins per hour. All told, the process consumed some 65 million pounds of flour last year—mostly for McDonald’s restaurants in Ohio, Pennsylvania, West Virginia, Kentucky, and New York.

Here Tilmon F. Brown, CEO of New Horizons Baking Co. (No. 58 on the BE Industrial/Service companies list with $67.45 million in revenues) is in his element. And at 65, he’s showing no signs of slowing down. “I think what I’m doing now keeps me very young and active, and I enjoy what I’m doing,” he says. “Coming to work is not a labor. It’s a pleasure.”

It wasn’t always the case. When Brown acquired a minority stake in New Horizons in 1995, he discovered redundancies, operational inefficiencies, and lackluster quality controls. The latter was the reason the company was about to lose its largest client: McDonald’s. But within a span of 18 months, Brown and his team restructured the workforce and operations, and invested in new technology as part of a textbook turnaround. For those efforts the company enjoyed steady growth year over year and a 3.2% rise in recession-torn 2009 that catapulted New Horizons up 11 spots on the 2010 be industrial/service companies list.

The Accidental Entrepreneur
Brown became an entrepreneur late in life. At the age of 50 while vice president of sales at Continental Baking Co. (which is now part of Hostess Brands Inc.), his plan was to put in five more years and retire at age 55. However, that wasn’t in the cards. In May 1994 he received a call from Baltimore businessman John Paterakis Sr., who 20 years prior had handled some outsourced baking business for Continental. “He said, ‘Hey, Timmy, are you ready to go to work for a living?’” Brown recalls. “The only caveat was that I would, in fact, leave Continental and not second-guess myself about making that decision.”

Paterakis and his partner, Peter Grimm, were looking to acquire the facilities and felt Brown would be a solid addition to the team. Brown looked over the offer and felt it made sense. The business had a major customer locked in, and with decades of experience, Brown knew the baking business inside and out. On the downside, the bakery carried a hefty amount of debt and quality control had slipped. “If I had maybe started selling widgets instead of baked goods, it might have been more difficult,” he admits. “But to go from bakery to bakery was no big deal.” Brown signed on the dotted line and acquired a 20% stake in the business. By 2002, Brown’s stake would increase to 51%, while Paterakis and Grimm owned 24.5% each.

The Turnaround Guys
The business was on the block for a reason. The bakery had been successful in the past, but had been bought out by a venture capital firm that did very little reinvestment. Inefficiencies cut into profitability. Little was invested in technology, and processes were only 60% automated. As a result, headcount numbered more than 330 employees, much higher than it should have been. “We [purchased] some robotics. We did some highly efficient technological replacements that enabled us to increase our productivity almost two-fold,” recalls Brown. “So, with fewer people, we were putting out twice as much product.”

All told, the payroll was reduced to 260, mainly through attrition. “If we knew that we were going to add a piece of equipment that was going to make the job better and maybe eliminated a person, we waited until we had something through attrition,” says Bob Creighton, senior vice president of sales. “Somebody retired, somebody left our company for whatever reason; if we had a void we wouldn’t fill it, so we never really had to lay anybody off.”

Prior to Brown and company acquiring the business, the funds earmarked for new equipment totaled $300,000 per location. In the first 15 years, Brown and his team invested more than $30 million and its two locations are now more than 85% automated. “This company that had the business before us had such a low capital investment budget that it was almost impossible to think that you could run two bakeries on the kind of investment they were willing to make,” Brown says. “And as a result, the bakery showed it. They were dismal places to work in, poorly lit, poorly equipped, and coming to work had to be drudgery.”

Part of that turnaround plan was to diversify the company’s client base. At the time of the acquisition, 95% of the company’s business came from McDonald’s. These days that number is closer to 60% now that New Horizons supplies local and regional bakery chains like Perfection Bakery and Nickles Bakery, as well as prepackaged sandwich makers and food service companies for municipal school systems. “If you wanted your own brand of eight-pack hot dog and hamburger buns, I would make that product for you, put it in your bag in your label, and sell it to you,” Brown says.

Cooking Up Success
The entire process from raw materials to shipping takes five hours. The baking process starts with ingredients such as flour, sugar, water, and shortening. Depending on the recipe, varying amounts of each ingredient are blended within a supersized mixer large enough to hold a small car. Roughly 1,800 pounds of raw ingredients are mixed until dough is formed. A dough pump then pushes the dough into an extruding machine that divides the mass into eight parts. Each piece is scaled to a specific weight and then flour is added to allow the dough to be manipulated. The dough rests for about 90 seconds before going into large sheeting rollers, where it is flattened and moved into large pans with small cups built into them for the desired shape or size. The pans then go on a conveying system called a proof box, where the dough is exposed to specific amounts of heat and humidity to get the yeast to grow within the dough and expand to a specified size.

The conveyor brings the dough to an oven to be baked at about 500 degrees for seven to eight minutes. Once the dough is fully baked, a device called a depanner uses suction to automatically remove the buns from the pan. The empty pan goes off in one direction and the buns are automatically conveyed to a cooler to reduce their temperature to around 150 degrees, cool enough to slice and package. Once out of the cooler, the buns are whisked into a bulk packing machine that wraps 30 buns at a time in 31-inch-wide poly. The air is sucked out of the packaging and all the ends are heat sealed. From there, the sealed buns are stacked and transported to shipping. The company’s fleet of 25 trucks then takes the finished product to its final destination.

While the company’s largest client was less than happy with the bakery’s previous ownership, the golden arches now speaks highly of New Horizons. “Under Tim’s leadership, New Horizons Bakery Co.’s expertise and insight combined with their energy and willingness to collaborate, has helped us to make great strides in a number of important areas—most important, driving long-term growth against the core McDonald’s U.S. business strategy,” says Marion Gross, vice president, supply chain, McDonald’s USA. “Tim has an unwavering commitment to quality, to value, and to people—always putting the system first, above all else. We appreciate his partnership, leadership, and commitment to our business.”

Hundred-Million-Dollar Man
Brown is at the age where most have an eye toward retirement. In fact, one of his goals is to pass the business on to his children, all of whom work for the company: Aaron Brown, as plant manager of the company’s Norwalk bakery; Melissa Williams, as human resources director; and Trina Bediako, as executive vice president.

“All three are working with me, learning from me, and my immediate objective is to try and pass on 44 years of knowledge to those three in some way, shape, or form so that I could spend a lot less time here,” he says. “Hopefully, you know, in the not-too-distant future, I’ll be able to be away a couple of weeks out of the month or more and know that everything is in good hands.”

To that end, Brown has been grooming Bediako as his successor. Having joined the company in 2002, Bediako is learning the ropes and shadowing her father, focusing mainly on building upon the company’s McDonald’s accounts. “I’m in school every day. And to be by his side and learn from him every day is an experience I can’t even put into words,” she says. “I want to keep this business strong and make it grow. That’s the desire of my brother and sister too. We want a legacy to pass on to our children.”

Brown’s other objective is a bit more ambitious and involves nine digits: He wants New Horizons to grow into a $100 million force among food manufacturers. For starters, he could be on the prowl for an acquisition at the right price. Though the company has had its best sales year ever, he’s looking to add capacity. He’s already put another muffin line in the Norwalk location that should boost output by 25%. “I’ve set some targets for [us] that, you know, we need to be thinking about a hundred million dollars as a threshold, and I think we can get there.”

Since then, we’ve continued to present a range of such options, from the most affordable franchises to those in which you can earn money from home. We’ve also highlighted a bevy of successful entrepreneurs to demonstrate to readers how they, too, can participate in this arena. This year we took our coverage to a higher level. Led by our foremost experts on entrepreneurship and business trends, Editorial Director Alan Hughes and Small Business Editor Tennille M. Robinson, we’ve developed our latest editorial franchise—pardon the pun—the 40 Best Franchises for African Americans. Our listing takes a critical look at hot spots and adds another layer of scrutiny by weeding out companies that were found lacking in areas of most concern to our readers—revenue potential, startup costs, and inclusion and diversity efforts.

Our crack research team, headed by Vice President of Research Stacia Tackie and Market Research Analyst J. Wesley Miller, worked in conjunction with the International Franchise Association, the industry’s trade group in Washington, D.C., to compile this issue’s list. With the IFA’s help, black enterprise scoured the universe of thousands of franchises in a half-dozen growth sectors and cherry-picked the most viable options for African American entrepreneurs. What makes our list so functional for prospective business owners is that they can find an array of industries, from automotive repair to business services, and an eclectic collection of franchisors from iconic McDonald’s to fast-growing Golden Krust Caribbean Bakery & Grill, owned by Lowell Hawthorne, a Jamaican entrepreneur who has realized his dream of bringing island-flavored cuisine to the masses.

This cover story details the compelling narrative of co-preneurs who are building wealth by taking advantage of franchising opportunities: retired U.S. Army personnel Donald and Gwendolyn King, who earn more than $100,000 in their spare time with a youth sports franchise. “Franchising offers qualified individuals the chance to get into entrepreneurship on a full- or part-time basis,” says Robinson. “If nothing else, the recession and subsequent recovery proved that everyone should be prepared with a safety net. And for some, that has been the franchising industry.”