Since the two very tragic murders of George Floyd and Breonna Taylor, the world has fully embraced the Juneteenth celebration, which is “an annual federal holiday commemorating the end of slavery in the United States,” the New York Times reported. At this time, it is important to celebrate the accomplishments of African Americans and their many contributions to our society, especially in business. However, it is also an important time to address the overarching problem that African American families have faced since emancipation – closing the wealth gap that has stagnated for more than 70 years.

According to MSNBC, “the average wealth of a black family in the United States is only one-tenth that of a white family.” The problem also has its roots in black entrepreneurship, which is a key vector for closing the wealth gap, as property is essential to the upward mobility of this community. For minority-owned business owners, especially those who are black, access to exit planning resources and advice is integral to building a successful business.

Take the first step – get your Minority Business Status (MBE)

As part of the fight to close the wealth gap, organizations such as the National Minority Supplier Development Council (NMSDC) offer a myriad of programs for their members to help drive revenue growth and strategic partnerships.

Becoming MBE certified has countless benefits, and here are some important ones to consider:

– Access and Networking – MBEs have exposure to 13,000 other MBEs to engage in business opportunities and the ability to form partnership relationships, strategic alliances or joint ventures to succeed.

– Business Opportunity Fairs – America’s largest conferences focused on minority business development, MBEs present to hundreds of potential buyers, government agencies and procurement professionals in a unique setting.

– Contract Opportunities – NMSDC facilitates business relationships between buying agencies and MBEs, which lays the foundation for future partnerships and business opportunities.

Start thinking about your exit early

It may seem counter-intuitive to consider exit planning when starting your business. However, it is highly recommended that when a business owner starts their business, they do so with the end in mind. Engaging Certified Exit Planning Advisors (CEPAs) can help you early in your business cycle establish a well-thought-out exit strategy – a plan to sell your business for maximum benefit – while taking advantage of potential opportunities in the pipeline. road.

For example, while achieving MBE status is great for growing the business, it adds complexity when it’s time to sell your business. Here’s what a CEPA will tell you: if the acquiring entity is not MBE certified, the current entity (with its new owners) will lose its MBE status. If you had contracts specifically for an MBE company, the new entity would lose those contracts. Therefore, the new owner may not include these contracts at their full value and recognize the real value of the business.

CEPAs are part of a highly specialized group of business advisors who are trained to help clients grow, preserve and transfer business wealth by helping owners and their families plan and successfully execute business transitions. property. They genuinely support business clients when they consider leaving their company and transferring their wealth to their personal balance sheet.

Exit planning is complex, but it is apparently more complex for minority-owned businesses. As many minority business owners face an additional set of complexities, it is essential that these important entrepreneurs remain open-minded, explore each of the exit strategies, and match their goals and objectives to the strategy that best resolves these problems. This helps eliminate any bias in favor of one exit strategy over another and facilitates informed decision-making that can impact not only the health of your business, but your legacy as well. .

By becoming a member of the minority business community and engaging with trusted advisors, Black entrepreneurs find the financial resources and foundation needed to build their businesses toward success. These steps will ultimately help close the wealth gap, creating greater ownership that puts the entire African American community on the path to greater financial freedom.

About the Author

Early in his career in wealth management, after winning the hearts of several successful business owners who experienced major liquidity events, Sheila Simmons knew very quickly that this was the client segment she wanted to advise. As she continued to deepen her knowledge and understanding of the needs and issues that business owners face, she decided to pursue her CEPA (Certified Exit Planning Advisor) designation.

As a CEPA, Sheila is part of an elite group of business advisors who are trained to help clients grow, preserve and transfer business wealth by helping owners and their families plan and execute. successful transition of ownership. Her passion continues to grow as she realizes that many of her business owner clients need real guidance as they begin to consider exiting their business and transferring their wealth to their personal balance sheet. As a result, she has dedicated her career to becoming the trusted advisor to business owners and their families. It also holds FINRA Series Seven and Series 66 registrations as well as life, health and annuity insurance licenses.

Today, as an accredited partner of the Executive Wealth Partners team, Sheila continues to work closely with business owners and their external professional advisors ie; CPA, attorney, et al. With nearly 20 years of experience in the financial industry, she and her team are skilled in assisting clients with business succession planning, estate and retirement planning, asset allocation, complex lending, insurance solutions and tax strategy.

Not only is Sheila a professional, but she is also a mother to a son, 16-year-old Tommy. Her personal interests include travel, fishing, swimming, home decorating and delicious food. She also sits on various boards, including the Cincinnati Parks Foundation and the Family Nurture Center. She received her BA from the University of Cincinnati and is currently an MBA candidate at Xavier University.

Sheila Simmons is Vice President and Financial Advisor to the Executive Wealth Management Partners at UBS. She is a Certified Exit Planner (CEPA) and advises business owners and their external professional advisors on when to consider exiting their business and financial decision making. She has dedicated her career to becoming the trusted advisor to business owners and their families. Simmons also holds FINRA Series 7 and Series 66 registrations as well as life, health and annuity insurance licenses. She can be reached at [email protected]