Marshalltown Hispanic Business Development Project

1
Marshalltown Hispanic Business Development
Project A United Business Community,
A Better Future
2
Marshalltowns 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 ?????

3
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. Marshalltowns 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 Marshalltowns
  Hispanic-owned businesses through adequate
  resources and technical assistance

4
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

5
Marshalltown Hispanic Small Businesses

• 42 Registered, Operating Hispanic Businesses and
  counting
• 55 Total and counting

• Business Types Number of Businesses
• Retail Services (clothing, others) 16 29
• Auto Repair, Tires, and Towing 10 18
• Restaurants 9 16
• Food Products (groceries) and Services 6 11
• Entertainment, dancehall 4 7
• Construction and Painting 3 5
• Food Products and Bakery 2 4
• Laundromat 1 2
• Auto Insurance Provider 1 2
• Hair Stylists and Barbers 0 0
• Hotel/Motel 0 0
• Other (bands, healers, auto dealerships, etc.)
  3 5
• Total 55 99
• e.g. money transfer, translation, tax
  preparation
• Total is more than 100 due to rounding.

6
Survey Results

• Business Start-up Characteristics
• Sales and Marketing
• Employees
• Community Relations (MACC)

7
Start-up Characteristics

• Where do business owners come from (n18)?
• Mexico, Jalisco 6
• Mexico, MIchoacan 3
• Mexico, Zacatecas 2
• Mexico, Guerrero 1
• Mexico, Puebla 1
• Mexico, Guanajato 1
• Cuba, Havana 1
• Total Accumulated Start Up Investments
  (n14) 1.1M
• Utilized personal savings and/or family loans 17
• Applied for bank loans for start-up/expansion 10
• Bank rejected loan application 6
• Returned to same bank (or other) and received
  loan 7
• Previous Experience owning a business 7
• Developed a Business Plan before starting 0

8
Sales and Marketing

• Total Avg. monthly sales (n11) 265K
• Total Avg. annual sales (n11) 3.1M
• Total Average of clients (n12)
• 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)

9
Employment

• Total employees (n18) 65
• Full time 46
• Part time 19
• Employing family members 13
• Owner and Operator 16
• Insures employees (n16) 0
• Total Annual payroll (n13) 716,600

10
Community Relations

• Know about MACC (n18) 10
• Approached by MACC 10
• Very important to support Latin Bus 18
• Very important to support Anglo Bus 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 (Yes12 /
  Maybe 4 )

11
Key Lessons Learned

• Intake interviews should solicit information
  about the educational and literacy level. Gauge
  written materials and verbal consultation
  accordingly
• Conduct several follow-up visits, personal
  contact is critical
• 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
• Learn about business practice in clients home
  country. There are key differences among
  Hispanics from different regions, especially
  within Mexico
• Businesses should implement visuals to make
  businesses more Anglo-friendly, 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
• 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
• Traditional means of advertising in writing and
  internet do not generally work

12
Phase II

• Timeline June November 2006
• Measurable Objectives
• Partnership with Iowa Valley Community College to
  provide Technical assistance and Training for
  start-up and existing businesses in both English
  and Spanish.
• Tailored Bilingual information Packages for
  Hispanic Start-ups
• Registering the Unregistered Outreach effort
  Target unregistered home occupation and provide
  registration information and assistance.
• Planning and implementation of Marketing and
  sales integration project between Hispanic
  Businesses and mainstream consumers. Focus of
  downtown shops and business in the Mall.
• Provide trainings for MACC member bank, legal,
  risk management, accounting and other small
  business service providers.

13
Key Partnerships

• 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.

14

• Max Cardenas
• Diverse Innovative Solutions, LLC.
• 107 E 5th Street, Suite 203
• Des Moines, IA 50311
• cardenas_at_divsolutions.com
• c 515-988-5624
• w 515-277-1693