Wednesday, October 22, 2008

Black People Investing In The Black Community: Part 2

In his tome "The True Meaning Of Malcolm X," Don Steele lays out a blueprint of how Black people can invest in Black people. He uses the city of his residency, Lexington, Kentucky as an example.

"There are about 32,000 (or, 32 K) Blacks in Lexington. Real leadership would establish a capital fund goal of $20 million (or, $20 M) per year. That works out to about $12/head per week. Naturally, this 32 K includes kids and the elderly. But most Blacks are capable of investing $20/week or more. Leadership would direct Blacks' attention to the dollars spent on alcohol, tobacco, gambling, entertainment, high priced cars, etc.

This is an investment. Not a donation. Accounts are given. Corporations are established. I know (from my work as an "international financier"- a pretentious title) in the international banking market, without any risk to capital, how 100% APR can be had for that $20 M. After paying commissions, taxes, an 10% dividends to investors, that leaves 50%, or $10 M to work with. Understand, the $20 M is safe and undisturbed, and that 10% return to investors is more than the bank CDs' 4%.

During this process, Blacks are put to work reviewing and analyzing various businesses. Which are the businesses which are feasible for Blacks to start, based upon a dozen or so factors? This work includes getting all information and contacts on expertise, supplies, training, etc.

A good example would be auto repair shops. Blacks own cars and need servicing. The decision is reached to open 10 Black auto repair shops, under a trade name, like "Black Town Auto Repair." Perhaps it requires $250 K per shop. That's $2.5 M of your $10 M. That's one, but there are at least a 100 businesses here in Lexington that Blacks can get into.

Establishing financial institutions would be a priority. Black banks, insurance companies, venture capital groups. Favorable loans for college and job training would be guaranteed. Blacks who have good ideas for businesses will be encouraged to get Black funding. But Blacks should not, as the Bible says, 'put a stone before a blind man.' Blacks must adapt things to their own peculiarities and needs, and design things to genuinely help other Blacks, without being made fools of. These are not government programs, but private Black capital.

Example: Black management companies should be established. A would-be owner of a new business needing funding would effectively work first for the management company. This company would be assigned to work with this Black, knowing who she or he is, and what his or her level of skills are. Because a Black has a criminal past can't be a taboo for this Black development...

The management company will insure that monies are not either stolen or foolishly wasted. This is because the owner doesn't have control of the funds. An account is established for him or her, and all payments are reviewed and made by the management company.

A contract will have been signed giving the details, terms and understanding to the owner. It may take up to 5 years of such management/training before the company is completely in the hands of that Black. Owning the company requires buying it. During the chosen business apprenticeship period, if that person doesn't work out, then instead of the whole affair being a waste of money, some other Black can be put in place who wants to own the business.

A Black advertising council would be formed. Their business would be to see that Blacks, and the general public, are specifically aware of these businesses. They would advertise in the media. Weekly newsletters and sales advertisements would be distributed to Black churches, social outlets, the Community voice, and by direct mail.

Now, each year, you're adding another $20 M to your capital base, and another $10 M of its interest invested in Lexington. So after two years, you've got $40 M in untouched capital, and $20 M invested plus the first years' $10 M for a total of $30 M invested in Lexington. After one presidential term of 4 years, you've got a safe, untouched $80 M capital base, and $100 M invested in Black businesses, loans and employment- which will be returning high investment profits...

Land area in Lexington van be brought which will concentrate an array of Black businesses, supermarket, restaurants, cinemas, theaters. Just like many cities have Chinatowns, this mall can be known as Blacktown. Naturally, Black businesses will be located around the city, but Blacktown will be an inspiring center/magnet for Black shopping and entertainment.

Instead of you complaining about not having a radio station, you'd have several. You'd have TV programs also. The Community Voice would be a weekly newspaper, much thicker, with color photos. A big office, with a paid staff.

You'd inspire the young." -From, "The True Meaning Of Malcolm X" By: Don Steele

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