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What Should New African Entrepreneurs Invest In? A Guide

May 12, 2022

As a new entrepreneur, you may have bootstrapped when growing your business. Many minority entrepreneurs start their companies with little funding.


Despite the challenges, you're now seeing some constant cash flow. And you would want to find the best way to grow your net worth.


Investing money the right way can help you increase your income and build more wealth. So, what are the best investments for new African entrepreneurs? Find out in this guide. 


Invest in a Solid Team


New entrepreneurs often think they can do everything themselves. Many new entrepreneurs are used to wearing many hats but end up getting burnt out.


As much as you're so passionate about your business, you can't scale up when you're alone. Playing too many roles impedes your growth. 


One benefit of having mentors or talented teams is access to different perspectives. You can avoid many mistakes along the way when you're drawing ideas from a talented pool.


If you're getting started, you'll need a compatible co-founder. This should be someone intelligent and capable of matching your entrepreneurship zeal. But if you think you can handle it alone, create a solid strategy and find good mentors. Getting mentorship is one of the ways Black professionals can become successful entrepreneurs


A solid hiring strategy will ensure you're hiring people who can buy and invest in your growth vision. The right talent can maintain quality and free you to focus on growth.


Quality talent is a wise investment because it can help unlock our entrepreneurial potential. Think about building a diverse team to gain from varied perspectives and cultural competence. 


Invest in Yourself


If you've just stepped into the entrepreneurship world, learn to be humble. Admit you have a lot to learn to become a better entrepreneur.


Many entrepreneurs, including serial entrepreneurs, lack core entrepreneurship skills. Many young African entrepreneurs don't perceive a lack of business skills as an impediment to their success. 


The truth is entrepreneurship is about learning and development. Only by being curious can you keep up with the fast-changing marketing dynamics.


So, as a new entrepreneur, or founder, maximize your opportunities to expand your mind. Invest money in books, courses, podcasts, conferences, and mentorship to sharpen your skills. 


Every challenging part of entrepreneurship is an opportunity to learn about the game. If you're a beginner investor, you must learn how to invest, or else you'll make bad investments. 


It's easier to invest money in a financial asset than in personal growth. This is a common mistake because the most important investment is you. Investing in personal development will help you deprogram and build a growth mindset. 


Invest in Building Your Personal Brand


Building a personal brand is one aspect you can easily overlook as an entrepreneur. More often, you're likely to focus on your business which may mean your personal brand suffers. 


A powerful personal brand is a powerful tool in the digital world. It's a component that can position you as an expert or industry leader. Every popular leader has it, which gives them the most influence.


A personal brand is like a brand image. It refers to how other people regard or perceive you as an entrepreneur. People will define you based on what you say, do and share in the media. 


Building your personal brand is the key to building a loyal following. People will pay attention if you're famous or offering something valuable. Celebrities and influencers are examples of successful personal brands. 


Building an ultimate personal brand is an investment. You need to figure out how you want your audience to perceive you. After that, identify the tools and platforms to reinforce your desired personal image. 


Ensure your social media profiles, bios, and messaging reflect your desired brand image. Please make sure they're clean, professional, and precise about what you do and your values. 


The next way to reinforce your personal brand is to build a personal website. Define your purpose and let your website reflect it. This way, people can quickly learn about you and what you stand for when they're online. 


Remember to identify your audience's favorite channels and focus on influence. With so many platforms, you must ensure you're targeting those related to your business. 


Invest Money in Other Businesses


Many experts recommend reinvesting profits back into the business. Black entrepreneurs often say they find it a challenge to access credit. So, reinvesting profits into your business is an easier way to grow your business. 


You may also want to help other African investors the same way you're probably helped. Many African-owned startups will do with a bit of backup. 


The good thing about helping other entrepreneurs is it can be very rewarding in the long run. You'll choose high-potential startups, which could be another way to grow your money. 


Supporting other businesses is another opportunity to broaden your network. You'll build relationships with new entrepreneurs and investors, which boosts your brand. Besides, you may learn about new strategies and techniques that will be useful in the future. 


Entrepreneurship is risky, and it's not for everyone. 80% of black-owned businesses fail before their second anniversary. Holding onto your money rather than investing kills other businesses.


The success rate of black-owned businesses is likely to increase if we support each other. More startups will thrive, and the appeal of our businesses will improve, leading to more investors. 


Invest in Real Estate


One of the many ways successful black millions started is by investing in real estate. 90% of millionaires attribute their success to real estate investments. 


Yet, the Black community lags when it comes to investing in real estate. According to the U.S. Census Bureau, fewer than 6 percent of all real estate professionals are Black. 


The good news is the Black community is coming together to encourage Black's homeownership rates. The Black Real Estate Agent program provides Black agents financial, educational, and career support. 


Investing in real estate is an excellent opportunity to create wealth. For an African entrepreneur, it's both an investment and a cause to address the income gap in the industry.


You need a financial cushion if things don't go as planned in your business. Real estate can give you more control of your investment. The best part is that it can be a passive investment that doesn't require your time to manage. 


Saving is one of the ways to get started in real estate. It's more affordable using your savings, especially if you're a new entrepreneur. Remember, your company is probably too young to help you manage debt effectively. 


You can also consider partnering with other like-minded Black entrepreneurs when getting started. Real estate investment groups allow you to own shares in investment rather than buy an entire property which can be expensive. 


Invest in Oil


Investing in oil is one of the most powerful investment opportunities. Oil runs the world. Countries stop functioning when there's an oil shortage.


Even if you're not ready to invest, this is one of the opportunities you should learn more about. Oil or gas investments can offer excellent financial benefits. 


There are many ways African entrepreneurs can get started in the oil business. The most straightforward one is to invest in the leading oil stocks. You can own a stake in BP, Shell, Sinopec, or ExxonMobil.


Another way is to invest in oil futures. Futures allow you to speculate on oil prices and buy or sell at a later date when you can make a profit. To get started with futures, you need to join an Oil futures trading platform.


Many traders prefer investing in oil EFTs (Exchange Traded Funds. EFTs are one of the simplest ways to trade or invest in oil. An EFT combines stocks, futures, and derivative contracts into one trackable investment. 


Invest in Stock


Stocks are a common topic in many investment and personal finance classes. Stocks are also one of the easiest and fastest ways to start investing.


Investing in stocks allows you to own shares in any listed business in your country or the U.S. This can make you a partial owner in your choice of trading companies. 


You hope to see a stock that you bought appreciating. Appreciation of your stock makes it valuable and sellable at a profit. 


Speculating stock prices is an experience game. It's usually tricky to tell whether a stock's price will go up or down. Experts recommend thinking in the long-term when investing.


Another good rule of thumb is to diversify your stock portfolio. This helps you to contain the ups and downs in any market. For example, The S&P 500 returned an average of 11.82% per year between 1928 and 2021.


Take Advantage of the Best Investments for New African Entrepreneurs


Many new African entrepreneurs start their journey by investing in stocks, real estate, or oil. But investing is not only about financial wealth.


To become a successful investor, you also need the right mindset and skills. Personal development is also an integral part of the process.


Your dream should be to become an all-around entrepreneur. Join our mailing list to receive the latest investment resources.


By site-4_kaFg 23 Jan, 2023
Do you want to know influential Black entrepreneurs? Read this article to discover the top 10 influential Black entrepreneurs! Black business is booming! More than 3.1 million businesses have Black owners in the United States. The majority of these businesses are small, and some have only one employee. Yet Black entrepreneurs are getting millions of dollars and running massive corporations. If you're looking to start a business, you should examine a few entrepreneurs and model yourselves after them. Who are the major Black entrepreneurs in the arts, technology, and business sectors? How did their careers start, and what companies have they created? How much money have they raised? Answer these questions, and you can join the legions of Black professionals throughout the United States. Here are 10 great Black entrepreneurs. 1. Young Paris Milandou Badila, better known as Young Paris, was born in Paris in 1988. From a young age, he became interested in music, and he began a music teaching career in New York when he was 17. Young Paris's career took off in 2016 when he signed with Jay-Z's ROC Nation. He released his debut album that year, combining Afrobeat with rap and hip-hop. His second album, Blood Diamond, became popular in Africa and has more than five million streams on Spotify. Young Paris went on to join the fashion scene. He is currently an ambassador for the Council of Fashion Designers of America, working with elites like Anna Wintour. In addition to fashion, Young Paris has produced artworks for NFTs and the Metaverse. He is outspoken about his hopes for Black designers and artists to join the Metaverse, as he thinks NFTs have high potential return. 2. Kimberly Bryant Kimberly Bryant was born in 1967 in Memphis. She excelled in mathematics and science at an early age, and she went to college with plans to be a civil engineer. However, Bryant grew interested in personal computers, and she became an electrical engineer instead. After working for electrical companies, she switched to a career in pharmaceuticals and business. She became an entrepreneur in 2011 when she founded Black Girls CODE. Black Girls CODE is an educational organization that provides classes to young Black women in afterschool and summer programs. Black Girls CODE became a fast success, opening 15 chapters across the United States. In 2014, it received a $50,000 grant from Microsoft. In 2018, the organization partnered with Lyft, allowing drivers and users to donate to the organization. 3. Jason Njoku Jason Njoku was born in London in 1980. He moved to Nigeria when he was 12 years old and went to the University of Manchester where he studied chemistry. After he graduated, he started a magazine for students called Brash Magazine. He then tried launching a series of businesses, but none of them succeeded. He moved back into his mother's home and developed the idea of a distribution business for movies in Nigeria. In 2010, he launched NollywoodLove, a YouTube channel that would post Nigerian movies online. He received $3 million for the project from the venture capital fund Tiger Global. In 2011, he launched a video-on-demand movie platform called iROKO. The platform became extremely popular, and Njoku has raised tens of millions of dollars for it. Njoku has also started Spark, an investment vehicle for internet start-ups in Nigeria. The company has invested in dozens of companies, helping Black professionals throughout the country. 4. Jessica O. Matthews While a student at Harvard, Jessica O. Matthews and a classmate launched a product called SOCCKET. SOCCKET was a soccer ball that stores kinetic energy as people kick it around. Users could then attach the ball to lights and power them for three hours. The product was successful, and Matthews founded a company called Uncharted Power to handle its production. Matthews served as CEO of Uncharted Power, guiding it to three consecutive years of doubled gross profit margins. In 2016, the company was valued at $57 million. She raised $7 million in funding for the project, making her one of the few Black female entrepreneurs to have raised $1 million in funding. Matthews has also worked on infrastructure projects. She serves as the executive director of KDDC, which develops hydropower dams in Nigeria. 5. Ryan A. Williams Ryan A. Williams was born in Baton Rouge in 1988. At 13, he founded his first company, a sports apparel organization. He went to Harvard where he founded the Veritas Financial Group, which helps students become more financially literate. While at Harvard, he became interested in real estate technology. After graduating, he worked at Goldman Sachs and Blackstone and then founded his own company, Cadre. Cadre is a financial technology company that users can use to invest in real estate. The company intends to make the real estate market similar to the stock market, as investors can select individual transactions to make. Cadre has received tens of millions of dollars in funding, including from Harvard University. In 2021, the company sold three buildings for more than $310 million, making it one of the largest ever online real estate transactions. He also works as a public speaker, educating people on financial literacy. 6. Paul Judge Dr. Paul Judge began his entrepreneurial career with CipherTrust, an email security company. The company was sold in 2006 for more than $270 million, and Dr. Judge transitioned to Purewire, a web security company. In 2011, Dr. Judge co-founded Pindrop Security. The organization helps companies stay safe during phone calls. Pindrop acquired more than $100 million in funding between 2012 and 2016. In 2014, Dr. Judge co-founded TechSquare Labs, a company-building studio. The organization has invested in dozens of technology companies, many of them run by Black entrepreneurs in 2022. Dr. Judge also serves as Managing Partner for Panoramic Ventures, an organization that funds technology companies in the Southeast. He focuses on funding projects run by overlooked founders, including students and entrepreneurs of color. 7. Binta Brown Binta Brown began her career as a legal clerk to Supreme Court Justice Antonin Scalia. She then served as a corporate advisor and public policy aide. In 2014, Brown founded her first company, Fermata Entertainment, an artist development firm. In 2016, Brown co-founded the Music Lab, an after-school program to teach high schoolers about music and open mic performances. The Music Lab became popular, and Brown has since dedicated her career to the music industry. She has worked with artists like Chance the Rapper and advises several music companies on diversity and legal matters. 8. Yetnebersh Nigussie Yetnebersh Nigussie was born in Ethiopia in 1982. She lost her eyesight when she was five, and her parents sent her to a school for the blind. Yetnebersh was an extremely successful student, chairing several clubs. In the mid-2000s, Yetnebersh became involved in AIDS activism. She received awards for her work and used her fame to start dozens of organizations. She co-founded the Ethiopian Center for Disability and Development, funding companies in Africa. In 2016, Yetnebersh joined Light for the World, an NGO that fights for disability rights. She continues to work for Light for the World and several human rights organizations. 9. DeMaurice Smith DeMaurice Smith began his career as a trial lawyer. He then worked in the U.S. Attorney's office and with the Department of Justice, arguing cases in the U.S. Court of Appeals. In 2009, Smith was elected to become the executive director of the National Football League Players Association. Smith has worked with NFL owners to raise money for players and improve player safety. Smith has since expanded his portfolio to cover many operations in football. He founded a venture capital company that lets players use their name, image, and likeness rights to make money. He also partnered with the NFL and MLB to create a trading card company currently valued at more than $1 billion. 10. Larry Lawson Larry Lawson worked as a producer at CBS News. His work included reporting on Princess Diana's death, which was viewed by millions of people. In 2008, Lawson became a senior news director at NESN. He produced digital tools and handled millions of dollars in operating budgets, helping expand network viewership by 40%. In 2021, Lawson joined the Black News Channel. He launched the organization's streaming platform and created production tools to streamline operations. Influential Black Entrepreneurs in America Black entrepreneurs affect every sector of the American economy. Major entrepreneurs in the arts include Young Paris, Jason Njoku, and Binta Brown. Black technological entrepreneurs include Kimberly Bryant, Jessica O. Williams, and Dr. Paul Judge. Many entrepreneurs like DeMaurice Smith and Larry Lawson started their careers outside of business and then successfully transitioned into it. Other entrepreneurs like Yetnebersh Nigussie and Ryan A. Williams combine their efforts with charity work. Whatever business you want to start, you can get help and inspiration for it. RISE Urban Nation helps support Black entrepreneurs and business leaders. Contact us today.
18 Sep, 2022
Do you want to know influential Black entrepreneurs? Read this article to discover the top 10 influential Black entrepreneurs! Black business is booming! More than 3.1 million businesses have Black owners in the United States. The majority of these businesses are small, and some have only one employee. Yet Black entrepreneurs are getting millions of dollars and running massive corporations. If you're looking to start a business, you should examine a few entrepreneurs and model yourselves after them. Who are the major Black entrepreneurs in the arts, technology, and business sectors? How did their careers start, and what companies have they created? How much money have they raised? Answer these questions, and you can join the legions of Black professionals throughout the United States. Here are 10 great Black entrepreneurs. 1. Young Paris Milandou Badila, better known as Young Paris, was born in Paris in 1988. From a young age, he became interested in music, and he began a music teaching career in New York when he was 17. Young Paris's career took off in 2016 when he signed with Jay-Z's ROC Nation. He released his debut album that year, combining Afrobeat with rap and hip-hop. His second album, Blood Diamond, became popular in Africa and has more than five million streams on Spotify. Young Paris went on to join the fashion scene. He is currently an ambassador for the Council of Fashion Designers of America, working with elites like Anna Wintour. In addition to fashion, Young Paris has produced artworks for NFTs and the Metaverse. He is outspoken about his hopes for Black designers and artists to join the Metaverse, as he thinks NFTs have high potential return. 2. Kimberly Bryant Kimberly Bryant was born in 1967 in Memphis. She excelled in mathematics and science at an early age, and she went to college with plans to be a civil engineer. However, Bryant grew interested in personal computers, and she became an electrical engineer instead. After working for electrical companies, she switched to a career in pharmaceuticals and business. She became an entrepreneur in 2011 when she founded Black Girls CODE. Black Girls CODE is an educational organization that provides classes to young Black women in afterschool and summer programs. Black Girls CODE became a fast success, opening 15 chapters across the United States. In 2014, it received a $50,000 grant from Microsoft. In 2018, the organization partnered with Lyft, allowing drivers and users to donate to the organization. 3. Jason Njoku Jason Njoku was born in London in 1980. He moved to Nigeria when he was 12 years old and went to the University of Manchester where he studied chemistry. After he graduated, he started a magazine for students called Brash Magazine. He then tried launching a series of businesses, but none of them succeeded. He moved back into his mother's home and developed the idea of a distribution business for movies in Nigeria. In 2010, he launched NollywoodLove, a YouTube channel that would post Nigerian movies online. He received $3 million for the project from the venture capital fund Tiger Global. In 2011, he launched a video-on-demand movie platform called iROKO. The platform became extremely popular, and Njoku has raised tens of millions of dollars for it. Njoku has also started Spark, an investment vehicle for internet start-ups in Nigeria. The company has invested in dozens of companies, helping Black professionals throughout the country. 4. Jessica O. Matthews While a student at Harvard, Jessica O. Matthews and a classmate launched a product called SOCCKET. SOCCKET was a soccer ball that stores kinetic energy as people kick it around. Users could then attach the ball to lights and power them for three hours. The product was successful, and Matthews founded a company called Uncharted Power to handle its production. Matthews served as CEO of Uncharted Power, guiding it to three consecutive years of doubled gross profit margins. In 2016, the company was valued at $57 million. She raised $7 million in funding for the project, making her one of the few Black female entrepreneurs to have raised $1 million in funding. Matthews has also worked on infrastructure projects. She serves as the executive director of KDDC, which develops hydropower dams in Nigeria. 5. Ryan A. Williams Ryan A. Williams was born in Baton Rouge in 1988. At 13, he founded his first company, a sports apparel organization. He went to Harvard where he founded the Veritas Financial Group, which helps students become more financially literate. While at Harvard, he became interested in real estate technology. After graduating, he worked at Goldman Sachs and Blackstone and then founded his own company, Cadre. Cadre is a financial technology company that users can use to invest in real estate. The company intends to make the real estate market similar to the stock market, as investors can select individual transactions to make. Cadre has received tens of millions of dollars in funding, including from Harvard University. In 2021, the company sold three buildings for more than $310 million, making it one of the largest ever online real estate transactions. He also works as a public speaker, educating people on financial literacy. 6. Paul Judge Dr. Paul Judge began his entrepreneurial career with CipherTrust, an email security company. The company was sold in 2006 for more than $270 million, and Dr. Judge transitioned to Purewire, a web security company. In 2011, Dr. Judge co-founded Pindrop Security. The organization helps companies stay safe during phone calls. Pindrop acquired more than $100 million in funding between 2012 and 2016. In 2014, Dr. Judge co-founded TechSquare Labs, a company-building studio. The organization has invested in dozens of technology companies, many of them run by Black entrepreneurs in 2022. Dr. Judge also serves as Managing Partner for Panoramic Ventures, an organization that funds technology companies in the Southeast. He focuses on funding projects run by overlooked founders, including students and entrepreneurs of color. 7. Binta Brown Binta Brown began her career as a legal clerk to Supreme Court Justice Antonin Scalia. She then served as a corporate advisor and public policy aide. In 2014, Brown founded her first company, Fermata Entertainment, an artist development firm. In 2016, Brown co-founded the Music Lab, an after-school program to teach high schoolers about music and open mic performances. The Music Lab became popular, and Brown has since dedicated her career to the music industry. She has worked with artists like Chance the Rapper and advises several music companies on diversity and legal matters. 8. Yetnebersh Nigussie Yetnebersh Nigussie was born in Ethiopia in 1982. She lost her eyesight when she was five, and her parents sent her to a school for the blind. Yetnebersh was an extremely successful student, chairing several clubs. In the mid-2000s, Yetnebersh became involved in AIDS activism. She received awards for her work and used her fame to start dozens of organizations. She co-founded the Ethiopian Center for Disability and Development, funding companies in Africa. In 2016, Yetnebersh joined Light for the World, an NGO that fights for disability rights. She continues to work for Light for the World and several human rights organizations. 9. DeMaurice Smith DeMaurice Smith began his career as a trial lawyer. He then worked in the U.S. Attorney's office and with the Department of Justice, arguing cases in the U.S. Court of Appeals. In 2009, Smith was elected to become the executive director of the National Football League Players Association. Smith has worked with NFL owners to raise money for players and improve player safety. Smith has since expanded his portfolio to cover many operations in football. He founded a venture capital company that lets players use their name, image, and likeness rights to make money. He also partnered with the NFL and MLB to create a trading card company currently valued at more than $1 billion. 10. Larry Lawson Larry Lawson worked as a producer at CBS News. His work included reporting on Princess Diana's death, which was viewed by millions of people. In 2008, Lawson became a senior news director at NESN. He produced digital tools and handled millions of dollars in operating budgets, helping expand network viewership by 40%. In 2021, Lawson joined the Black News Channel. He launched the organization's streaming platform and created production tools to streamline operations. Influential Black Entrepreneurs in America Black entrepreneurs affect every sector of the American economy. Major entrepreneurs in the arts include Young Paris, Jason Njoku, and Binta Brown. Black technological entrepreneurs include Kimberly Bryant, Jessica O. Williams, and Dr. Paul Judge. Many entrepreneurs like DeMaurice Smith and Larry Lawson started their careers outside of business and then successfully transitioned into it. Other entrepreneurs like Yetnebersh Nigussie and Ryan A. Williams combine their efforts with charity work. Whatever business you want to start, you can get help and inspiration for it. RISE Urban Nation helps support Black entrepreneurs and business leaders. Contact us today.
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