Transcript Slide 1

Marshalltown Hispanic Business
Development Project
A United Business Community,
A Better Future
Marshalltown’s Hispanic Population
Marshall County 2004 estimates: 4,800 / 12.2%
of the population
Steady movement into other sectors:
– Restaurant and Hospitality
– Construction and Landscaping
– Other Services
MANUFACTURING, HEALTHCARE, CUSTOMER
SERVICES
ENTREPRENEURSHIP ?????
Business brings a community together
PROJECT VISION
• A unified Marshalltown business community
• Hispanic Small Business owners make significant social and
economic contributions to the greater Marshalltown
community. Marshalltown’s private sector, local and state
government, and key community organizations are working
together to support the development of all small businesses.
• Marshalltown becomes a national model for Hispanic small
business integration and development
PROJECT MISSION
Development and integration of Marshalltown’s
Hispanic-owned businesses through adequate
resources and technical assistance
Phase I
Timeline: February 1 to May 31st, 2006
Measurable Results:
• Marshalltown Area Hispanic Small Business (HSB) Report,
presentation of quantitative and qualitative indicators of HSBs
– Start Up Characteristics
– Marketing, Sales and Employee data
– Community Relations and opinions of MACC
• Comprehensive Database of Registered and non-registered
HSBs
• Relationship Building with existing business and identification
of 10 potential MACC Hispanic Business Advisory Committee
• SWOT analysis of HSB community in Marshalltown
• Community event highlighting Research findings and Hispanic
Small Business Fair
Marshalltown Hispanic Small
Businesses
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42 Registered, Operating Hispanic Businesses… and counting
55 Total… and counting
Business Types
Number of Businesses
Retail Services* (clothing, others)
16
Auto Repair, Tires, and Towing
10
Restaurants
9
Food Products (“groceries”) and Services*
6
Entertainment, dancehall
4
Construction and Painting
3++
Food Products and Bakery
2
Laundromat
1
Auto Insurance Provider
1
Hair Stylists and Barbers
0
Hotel/Motel
0
Other (bands, healers, auto dealerships, etc.) 3++
Total
55
*e.g. money transfer, translation, tax preparation
** Total is more than 100% due to rounding.
%
29
18
16
11
7
5
4
2
2
0
0
5
99**
Survey Results
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Business Start-up Characteristics
Sales and Marketing
Employees
Community Relations (MACC)
Start-up Characteristics
Where do business owners come from (n=18)?
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Mexico, Jalisco
Mexico, MIchoacan
Mexico, Zacatecas
Mexico, Guerrero
Mexico, Puebla
Mexico, Guanajato
Cuba, Havana
6
3
2
1
1
1
1
Total Accumulated Start Up Investments (n=14)
Utilized personal savings and/or family loans
Applied for bank loans for start-up/expansion
Bank rejected loan application
Returned to same bank (or other) and received loan
Previous Experience owning a business
Developed a Business Plan before starting
$1.1M
17
10
6
7
7
0
Sales and Marketing
• Total Avg. monthly sales (n=11):
$265K
• Total Avg. annual sales (n=11):
$3.1M
• Total Average # of clients (n=12):
– Weekday:
335
– Weekend:
783
– Month:
11,802
• 5 have a business accountant
• 10 use more than one media venue for
advertisement
• 9 Advertise in English (Print: Penny Saver, Radio:
101.1 & 99.5)
Employment
• Total employees (n=18):
– Full time:
– Part time:
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65
46
19
Employing family members:
Owner and Operator:
Insures employees (n=16):
Total Annual payroll (n=13)
13
16
0
$716,600
Community Relations
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Know about MACC (n=18):
Approached by MACC:
Very important to support Latin Bus:
Very important to support Anglo Bus:
10
10
18
16
• Perceive that regionalism divides Mexican/Hispanic
community:
14
• Donated to community:
17
– Mainly church, public schools, the police department,
Worldvision, Cancer Society, and the fire station.
• Favorable opinion of MACC:
8
• Not very favorable opinion:
6
• Would like to Join MACC affiliate (Yes:12 / Maybe: 4 )
Key Lessons Learned
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Intake interviews should solicit information about the educational and
literacy level. Gauge written materials and verbal consultation accordingly
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Conduct several follow-up visits, personal contact is critical
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Understand the expectations clients bring to consultation process. May
explain reluctance to service providers, universities, chambers, SBDCs,
banks, and local governments. Be extremely (brutally) honest when doing
outreach, under promise and over deliver, there is a lot of mistrust
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Learn about business practice in client’s home country. There are key
differences among Hispanics from different regions, especially within Mexico
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Businesses should implement visuals to make businesses more Anglofriendly, provide a welcoming experience. Adopt sales systems that are
more attractive to Mainstream Marshalltown Community. Achieve balance to
express business's ethnic uniqueness without appearing foreign
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Approach institutions where the community naturally congregates:
churches, workplaces, quinceañeras, soccer games etc. Seek individuals
who are known in the community , cold visits have 80% failure rate. Work
with family members in the research and implementation process
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Traditional means of advertising in writing and internet do not generally work
Phase II
Timeline: June – November 2006
Measurable Objectives:
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Partnership with Iowa Valley Community College to provide Technical
assistance and Training for start-up and existing businesses in both
English and Spanish.
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Tailored Bilingual information Packages for Hispanic Start-ups
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“Registering the Unregistered” Outreach effort: Target unregistered
home occupation and provide registration information and assistance.
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Planning and implementation of Marketing and sales integration
project between Hispanic Businesses and mainstream consumers.
Focus of downtown shops and business in the Mall.
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Provide trainings for MACC member bank, legal, risk management,
accounting and other small business service providers.
Key Partnerships
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Small Business Development Centers / IDED / SBA
Elected Officials, City and County Government
IDED Main street Program, Marie Steenlage
Young Professional Organization (MACC Young Professionals,
Marshalltown Jaycees)
Faith Community, Catholic church and others
Professional Organizations and Citizen Groups (Rotary, Kiwanis,
Optimists, etc.)
Local Philanthropy
Iowa Valley Community College
Marshalltown Established Business Community
Small Business Providers (Banks, Accounting, Insurance, Legal, etc.)
Local Media (Radio, Print, Web, etc.)
Northwest Areas Community Foundation
Community supporters and spokespersons
Other….
Max Cardenas
Diverse Innovative Solutions, LLC.
107 E 5th Street, Suite 203
Des Moines, IA 50311
[email protected]
c: 515-988-5624
w: 515-277-1693