by Jeffrey McKinney
27 June 2024
The New York Life panel offers strategies to help black small business owners grow and build individual wealth.
Much like baseball, outstanding achievements in business are calculated by analyzing data from the players and the team. These statistics can help business owners take steps to become more competitive, adapt quickly to changing business conditions, and possibly even spur steady revenue growth.
New York Life (NYL), which has had a presence in Birmingham, Alabama since 1902, recently hosted “Swing for Success: Driving Growth for Black Business Owners & Entrepreneurs.” The panel, attended by 150 local small business owners and others, presented financial tools and strategies to help entrepreneurs expand, accumulate wealth and build economic prosperity.
The panel included Leilani Rivers, planning consultant at NYL, Nan Baldwin of the Birmingham Business Alliance, and Danielle Hines, CEO and founder of CREED 63. Stacey Graham, managing partner of Central Alabama General Office, NYL, moderated. The event included a fireside chat with former MLB player and business owner Dexter Fowler.
NYL, the nation's largest insurance company, has about 30,000 policyholders in Birmingham and nearly 85,000 in Alabama. In 2023, the company provided $12 billion in life insurance and paid out about $124 million to beneficiaries in Alabama.
The insurer has around 1,500 black agents who offer life insurance, retirement planning and financial advice, among other things.
The panel took place during Juneteenth week and was part of a tribute to baseball's Negro Leagues. It came at just the right time, given some of the horrifying statistics on black entrepreneurship. For example, there were 2.6 million black-owned businesses in America, and about 8 out of 10 failed within the first 18 months because they lacked the necessary resources and funding.
According to a report from the City of Birmingham, black residents make up 74% of the city's population, but only 50% of businesses are black-owned. By comparison, white residents make up 22% of the population, but 47% of businesses are white-owned.
Panelists spoke about what helps them succeed and provided insights that black entrepreneurs should consider to build or sustain their success. Some of the key takeaways were:
YOU ARE ONLY GOOD AS YOUR TEAM
Graham noted that in 2021, 161,000 U.S. businesses had employees with a majority of Black or African-American owners (up from 124,000). In 2017, he said, their revenues grew by about 43% during that time. “Many of you in the audience contributed to that.” Hines was asked to share her experience running a small business and some of her key learnings over the years.
Among other things, she said she always tells people that if their company is perfect when they start it, it's too late. Secondly, she said you need to have a team around you and understand what you're good at and what your blind spots are when you start your company.
She noted that there were some things she felt were lacking as a small business owner that she struggled to overcome as she grew and developed her business. “So it's about really understanding what your strengths are and identifying your weaknesses so that as you grow, you can really be a well-rounded small business owner and small business owner.”
Rivers added that as an employer, investing in your team is crucial to retaining good talent. “So you also have to give them the tools they need to be successful and further influence their potential goals and invest in their success.”
Financial planning is essential for entrepreneurs
Rivers explained that workers often get a job, are automatically enrolled in a 401(k) plan, and are given the opportunity to receive employer match. However, as a small business owner, you don't have that luxury. She stressed that the sooner you start saving for retirement, the better off you will be. “It's imperative to be proactive and not sacrifice a comfortable life in retirement. You should just get to work and try to make your dream come true with this business. You can do both, and financial independence starts once you learn about it and take proactive action.”
WHERE YOU GET ADVICE IS TRULY MATTERS
Panelists discussed that the purchasing power of the black community is about $1.8 trillion. Yet only 13% of African Americans will receive an inheritance. They also talked about the importance of wealth transfer, a hot topic. Rivers explained that life insurance as an asset – along with financial planning, wills and education – can help pass on a financial legacy and close the wealth gap. When a salesperson approaches you, Graham advises challenging them. “You don't need a product, you need a plan.” Ask how this fits into my overall plan. “This is how you can use holistic advice and planning to your advantage and get where you want to go.”
The importance of network building
Baldwin recommends getting your name and brand out there to be successful as you grow your business. But make sure you do everything you promise, what service you offer or what need you meet, because your reputation precedes you. “I can't stress enough how important it is to build your brand through networking and relationship building.”
CREED 63 business owner Hines made some comments on the panel discussion.
“Birmingham is a hidden gem with so much history. Events like this encourage and revitalize the city, especially the entrepreneurs and small businesses that come together all day long in and [day] We create spaces, services and products.”
She added: “We have decades behind us since we experienced so many important milestones and events, and our small business owners know and appreciate the shoulders we stand on. Events like this help facilitate focused conversations about history, present and future.”
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