Alphonza Gibbs is the financial and business advisor at Access to Capital for Entrepreneurs (ACE). ACE offers capital, coaching, and connections to assist borrowers in creating and growing sustainable businesses that generate jobs. Gibbs participated in a panel discussion at the Russell Innovation Center for Entrepreneurs, focusing on access to capital and business resources for Black entrepreneurs.
Gibbs spoke with rolling out after the panel and shared tips for small businesses seeking capital, fostering relationships with their banks, and common mistakes made when building their businesses.
What are three things you think small businesses can do to gain capital?
Number one, readiness is key — ensuring that you’re prepared and connecting with the right individuals early in your business journey. As Jay Bailey mentioned, make your friends before you need them. Therefore, connect with those who can propel your business forward, such as a reliable accountant, a reputable lending source, and a knowledgeable adviser in your corner.
How can entrepreneurs and banks build better relationships?
Building strong relationships requires proactive efforts from business owners. It involves identifying key stakeholders, attending relevant events, and networking within the industry. While there’s no shortcut, organic relationships tend to be more fruitful. Simply put, introduce yourself, showcase your business, and leverage every opportunity for exposure.
What mistakes do small businesses go through when trying to gain capital or build their business?
From my perspective as a business adviser, one common mistake is attempting to navigate the journey alone. While entrepreneurs are often savvy in their fields, they may lack expertise in other critical areas like accounting, legal matters, or marketing. Take “Joe the Plumber,” for instance. While skilled in plumbing, he may not excel in other business aspects. Recognizing one’s limitations and seeking assistance is crucial for growth. Additionally, being undercapitalized can hinder progress, emphasizing the importance of reaching out to those who can facilitate business advancement.
