Haitian-Owned Businesses: Why We Often Fail
 By Maryse A. Nelson

 

 
 
Other Articles by By Maryse A. Nelson: 

 

 

#1 Poor Planning

I walked into the small business office relieved to see that no one was waiting in line.  I had exactly forty- five minutes to spare.  I did worry during the short drive, that I might have a problem returning to work on time. However, I heard that the business was Haitian-owned and being a huge supporter of my people, I decided to go nowhere else to obtain a service that was being provided by my own folks. The transaction I was to conduct was a fairly simple one, so I breathed a sigh of relief contemplating the idea of actually getting done fairly quickly.

          I took a few hurried steps toward a glass window that separated customers from a pleasant woman I immediately connected with as a sister. Noticing a sign that read: “Please wait until called”, I stopped short and smiled at my lady who was engaged deeply in a telephone conversation with a customer. I waited patiently for my turn understanding too well the pressure she might have been under, attempting to play different roles at the same time. The customer on the phone needed attention and despite my pressing need to quickly conduct business and return to work, he/she was there first and I was more than willing to wait.

        After approximately ten minutes of waiting, I began to feel a little restless. I politely signaled to my watch, indicating to the woman that I was hard pressed for time. She smiled back and gestured that the conversation would soon come to an end. I waited another three minutes and probably would have put in another five but something very peculiar caught my attention. In the middle of her conversation, I could not help hearing the following phrase: “Mete poul la deyo pou moin et puis, bouyi poua rouj la pou du ri ya…”  Subsequent phrases revealed to me that this woman was on a personal call with a member of her family the entire time I was waiting to have my presence acknowledged. The customer was none other than maybe her husband. I was furious. The end of a long story is that I ended up going back to work angry, hungry, and twenty minutes late.

        One of the few hats I wear is that of a business consultant. Over the past few years, I have had the opportunity to consult with many business organizations and individuals interested in the subject. Over and over again, I have come face to face with scenarios similar to the one I just described. What is alarming is that it is almost a recurrent theme in most of the Haitian-owned businesses I have had contact with. As such, I have come to identify several factors that have plunged many of our businesses into inexistence.

Before continuing with the objective of this article, it is important to note that there are many successful, well-operated, Haitian-owned businesses. Many of us are taking the time to do things right and it is not my intention to shed a negative light on all of our entrepreneurs.  However, when the general public falsely holds the assumption that we are all ill-prepared and incompetent (and it does), a very unfortunate reality is created for all of us. Those who are attempting to do things right constantly find that they must go the extra mile to prove that they are different.  It is always an overwhelming task just attempting to win the initial trust of customers.

It is my intention to write a series of articles that deal directly with the issues we confront as Haitian business owners. A number of factors account for the problems we encounter in the business world. The scenario I described at the beginning is not the result of only one misplaced puzzle piece. In the articles, I will endeavor to identify pitfalls we come upon and offer some advice on how to avoid them. If you are a business owner it is my hope that the series will at the very least propel you to make an honest assessment of your operations. If you are planning to go into business, my hope is that you will seriously consider the issues involved and take the right steps toward what can become a very successful endeavor.

 

#1 Pitfall: Poor Planning

       One of the first demons to avoid in business is that of poorly planning the details of your operations from the start. Planning entails every aspect of your business from conception to full operation. You may have a wonderful idea for a business but if there is no concrete strategy in the way you will undertake your task, you are putting yourself at a great disadvantage. You risk the chance of not only failing, but of allowing others who are always in the periphery to take your idea and make a good run with it.

         From the onset, there must be a clear concepion of your intention and you must find ways to bring your thoughts and ideas into physical existence. This can be most successfully accomplished by answering certain basic questions before you do anything at all.  Some of these questions are very simple to answer while others require a little more thought. In BizPlan Builder (1994), Jill Kapron lists the following questions that an entrepreneur should be able to answer before even considering going into business:

 

1.      What type of business do I have? You need to be very specific in answering this question. For example, your answer might be: “My business is a sole proprietorship. I am a wholesale distributor of Haitian mangoes to local grocery stores in Brooklyn, New York”.

  1. What is the purpose of my business? In other words, why is your product anything anybody would want?  What hole, if any, is your business filling? Using the example in number one, your answer might be: “The purpose of my business is to profitably supply the Haitian Community in Brooklyn, New York, with a product it loves and is familiar with. It is also my purpose to introduce this product to other members of the community and gain their loyalty as return customers.

 

  1. Who are your target customers? These are the people who will find your product the most appealing; the ones who will most likely want your product. Are they only going to be Haitians or will you be able to create the same want in other individuals? Knowing exactly who your target customers are saves you from investing money, time and energy in people who would never be interested in your product.

 This question also applies to people in your business who are not typical customers but who play major roles in your success.  Indirectly, they also become customers. Going back to the mango business, if you live in New York and purchase your mangoes from a supplier in Miami, that individual is also your customer. He determines whether or not you have mangoes to sell and therefore your customer service extends to him as well as your employees, your partners, your creditors, etc…

 

  1. What is your primary product or service? Here, you want to identify the one thing you will be most focused on selling—The one product that will really define your business. For instance, mangoes may be your primary product, but you may also decide to throw in avocadoes in your product package.

It is very important to consider here the level of service you are going to provide to your customers. Many business owners fail to recognize the importance of the service end of business while attempting to push a product. In many instances, you may have an excellent product, but it is the service attached that really does your selling. For example, your competition might be selling the same Haitian mangoes, but customers may patronize your store more often because your employees might be much more pleasant, your lines may be a lot shorter and you might be more willing to replace a defective product than the competition would. Never underestimate the impact of excellent service regardless of the product you are selling. 

Finally, you also have to be able to identify what your product or service will do for your customers. What will be different about your offer that will attract customers to you as opposed to the guy next door selling the same exact item?

 

  1. What is the primary function of your service or product? For your business to prosper, it is imperative that you know your product inside out. Being able to adequately define its primary function is a must. For instance, if your product is a toothbrush, its primary function is that of cleaning teeth. You have to be aware of its maximum capability as well as all of its limitations.  This knowledge allows you to find ways to augment the product’s positives and lessen its negatives.

One product may have different functions. The more functions a product has, to a certain extent, the more beneficial it is for you—you can market it to different groups because of its versatility. For example, I buy ginger ale only to soothe my children’s belly aches and never as a regular beverage.

In considering the versatility of your product, you have to make sure that its primary function is not compromised in any way. For example, if the primary function of your business is to sell good quality mangoes and most of your customers are mango buyers, you would not want to compromise the availability and quality of mangoes because you also sell avocadoes.

 

  1. What are three unique benefits of your product or service? Can you come up with at least three things that your toothbrush can do for your customers that other toothbrushes on the market are not able to do? If a customer or lender were to ask you for three reasons he/she should buy your mangoes instead of Pierre’s, would you be able to respond effectively at the drop of a hat?

 

  1. What is your reason for being in this business? Have you always enjoyed your product and now want to share it with the world? Do you have special training in your area of business? If your only reason for being in business is to make money, you really need to think twice before embarking on your entrepreneurial journey.  

 

  1. What led you to develop your product or service? Maybe you received many requests from friends and associates or perhaps you realize that there is a great need for that service or product in your area. Answering this question honestly will shed some light on whether or not you’re jumping on something you may not be ready for.

 

  1. Who is your competition? This is one of the most important questions you have to ask yourself.  Your competition is everyone and anyone who sells the same product or provides the same service to your market. For example, if you sell perfume from a retail store, don’t underestimate the competitive power of mail order companies. In Florida, roadside produce stands are great competitors to supermarkets as they are able offer their products at a fraction of the cost.

 

  1. How is your product or service different from that of your competition? Sometimes this is a tough question because the answer may not be too obvious. This is a question, however, that enables you think about and develop a competitive advantage even before you go into business.

 

  1. Where are my customers in relation to my service or product? In marketing it is a known fact that a major determinant of business success is location, location, location.  Your business has to be in the right place and be conveniently accessible for your customers. Placing a day care center in an elderly community would be entrepreneurial suicide, but placing that same center in a community of young working parents would be a definite success. If your customers are far removed from your business location, does it still make sense for you to be in business? Can you use distributors to turn this negative aspect into a competitive advantage?

 

Planning your business effectively from the onset helps you to avoid a number of mistakes. It considers every single aspect of your intention before you even lift a finger. A business plan is a blueprint of the ideals you want to bring to life. What I have offered in this article is a very brief synopsis on the subject. In addition, planning enables you to clearly define the following crucial factors:

 

  • Vision

  • Mission

  • Business Overview (legal description, management team, staffing,  strategic alliances, etc…)

  • Product Strategy (production, delivery, development, etc…)

  • Market Analysis (customer profile, competition, risk, etc…)

  • Marketing Plan (marketing and sales strategy, distribution channels, advertising and promotion, public relations)

  • Financial Plan (analysis, projections)

 

Imagine having detailed answers to all of the above before even starting your business! That is competitive advantage because most people do not take the time and make the effort to plan before going into business. There are many tools available on the market to assist you with planning. If you are going to start a business, take advantage of them. If you are already in business, implement them in your operations. You will be glad you did.

          In the next article, we will consider marketing as another important missing factor in Haitian businesses.

 

Maryse A. Nelson, LPT, MBA
Business Consultant, Professional Speaker, Trainer
Tri-Care Rehabilitation, Inc
Kissimmee, Florida
(407)-847-0900  
mmms4ever@aol.com


 

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