Monthly Archives: February 2017

The Vernon Johns Story: Money Is Power Scene


In the Vernon Johns story, this powerful scene shows Reverend Johns trying to explain to his congregation the economic power they can wield in building a strong and vibrant community if they build and own their own institutions. A sentiment that would later be echoed by Martin Luther King, Jr. as he directed African American to move its money into African American owned banks. He also points out the disdain that many communities had (and continue) to have for African Americans, but have no disdain in taking our money. Can we become a self-sufficient people? Just how many things can we not purchase from an African American (Diaspora) company? The scene is powerful and the message still rings as true today as it did then.

The HBCUpreneur Corner – Tuskegee University’s Kalauna Carter & Kolors By K


 

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Name: Kalauna Carter

Alma Mater: Tuskegee University

Business Name & Description: KolorsbyK is an environmentally friendly, FDA approved Nail Polish Company whose mission is empowering all women from the outside in, one Kolor at a time. A Kolor for each mood, occasion or simply just because, from Bright and Bold, Heavy Metals or Soft Pastels, we at KolorsbyK have the perfect Kolors for you. Each bottle of nail polish as well as the Kolor is handmade and 5 FREE of: Camphor, Toulene, Formaldehyde, Formaldehyde Resins, and Dibutyl Phthalate (DBP) all of which are non-environmentally friendly and cancer causing chemicals. ALL products are cruelty free and are NOT TESTED on animals.

What year did you found your company? 2016; I founded the company the summer shortly after graduating.

What has been the most exciting and/or fearful moment during your HBCUpreneur career? Overall, this has been such a rewarding experience. I have learned so much about the whole concept of how being a business woman works and I am still learning. This entire process thus far has shown me my strengths and weaknesses. I have received so much support. In the beginning, I remember feeling fearful that I would fail or none of my polish would sale, but I remember my parents and my cousin Teresa encouraging me every step of the way.

What made you want to start your own company? The passion behind starting my business was based on the strong connection I have to the environment and its connection to us. I wanted to do something that could be beneficial to all communities and further help us become healthier with the products we select to use on bodies, specifically as women on our nails.

How do you handle complex problems? In situations where complex problems could take place, I try to think with as much logic as I can. First, I think to myself can I fix this and/or if it is out my control. Then, I try to make the best of the complex problem and create a plan on how to avoid it in the future.

Who was the most influential person/people for you during your time in college? The most influential person for me while I was in college was my big sister Kaleah. Growing up she was the most beautiful and smartest girl I knew and I was lucky enough to call her my sister. She was involved in her church, achieved good grades, and still managed her personal life. I admired her for her ability to balance and maintain and I remember telling myself I would do the same when I got the opportunity to go to college as well.

What is something you wish you had known prior to starting your company? The one thing I wish I had been prepared for when starting my company was the bad days, the slow days. Everything is all good when you are doing big numbers, but when things slow down and then the days where you don’t have any sales. Those are days I wish I had been better prepared prior too.

How is vegan nail polish made, and what separates it in particular from traditionally made nail polish? Environmentally friendly nail polish leaves out several chemicals. In regards to KolorsbyK, it is handmade made without the use of animal byproducts making it vegan and without camphor, formaldehyde or formaldehyde resins, Dibutyl Phthalate and Toulene. All of which are prone to cause cancer. Vegan polish is made without the use of animal byproducts.

Technology seems to be disrupting every industry, but most nail services, social media aside, seems largely untouched by technology over the past few decades. Do you see technology disrupting the industry in the near future? If so, in what ways? In regards to technology, I don’t see it disrupting the nail industry in the near future.

In terms of distribution, is Kolors By K focused more on direct to consumer or direct to professionals or mixture of both? Why was that strategy chosen? Being a one woman business, I tend to focus on the direct to consumer sales, but I have had the opportunity to sale a few of my collections to Lavish Nails and Spa in Vancouver, WA and currently have some other opportunities in the works.

According to Nail Magazine, over 75 percent of the approximately 130,000 nail salons as of 2015 in the US were located in states with HBCUs and major African American population centers like California, New York, Illinois, and Massachusetts. The nail industry as a whole is an almost $9 billion a year industry, but African Americans have largely been resigned to consumers. Despite this, very few are owned by African Americans. Why do you believe so few of us have tried our hand at this ownership given its large economic presence in many of our communities? I honestly believe that many of us have not tried our hand at this ownership given its large economic presence in our communities primarily because we don’t have the access to the resources to do so. It will be just that, it will take us HBCUpreneurs to open those doors and create opportunities for those within our own community.

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What do you believe HBCUs can do to spur more innovation and entrepreneurship while their students are in school either as undergraduate or graduate students? I believe that HBCUs can hold workshops and small business classes to spark the flame in students and instill in them how important their degree (paper) is, but it is just an important to invest in yourself. It’s fine to work for someone else, but think how much more rewarding it would be to work for yourself when you have the opportunity to do so.

How do you deal with rejection? I deal with rejection from this standpoint “What God has for me, is for me and no man can or will get in the way of that. Whatever doesn’t come to me, was not meant for me.”

When you have down time how do you like to spend it? I like to spend my downtime brainstorming new ideas for KolorsbyK, reading and working out.

What was your most memorable HBCU memory? My most memorable HBCU memory was being able to speak alongside the Madam First Lady, Mrs. Obama at the 2015 Spring Commencement at Tuskegee University. I had to opportunity to speak with her and she gave me some amazing advice that motivated me to start KolorsbyK.

In leaving is there any advice you have for budding HBCUpreneurs? Pray and GO FOR IT. The only thing in YOUR way is YOU.

Website: kolorsbyk.bigcartel.com
Facebook: kolorsbyk
Instagram: @KolorsbyK

HBCU Money™ Business Book Feature – A Gentleman of Color: The Life of James Forten


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Winch has written the first full-length biography of James Forten, a hero of African American history and one of the most remarkable men in 19th-century America.

Born into a free black family in 1766, Forten served in the Revolutionary War as a teenager. By 1810 he had earned the distinction of being the leading sailmaker in Philadelphia. Soon after Forten emerged as a leader in Philadelphia’s black community and was active in a wide range of reform activities. Especially prominent in national and international antislavery movements, he served as vice-president of the American Anti-Slavery Society and became close friends with William Lloyd Garrison to whom he lent money to start up the Liberator. His family were all active abolitionists and a granddaughter, Charlotte Forten, published a famous diary of her experiences teaching ex-slaves in South Carolina’s Sea Islands during the Civil War.

This is the first serious biography of Forten, who stands beside Harriet Tubman, Frederick Douglass, Booker T. Washington, and Martin Luther King, Jr., in the pantheon of African Americans who fundamentally shaped American history.

The Finance & Tech Week In Review – 2/11/17


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Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

Explore the legacy of Freedman’s Bank, est. 1865 for former slaves & African-American soldiers / NY Fed nyfed.org/2kPT4pf

These major cities are starting to go car-free / WEF wef.ch/2kciqM2

The fiscal cost of #studentdebt relief programs varies widely by repayment plan, income, and debt / KC Fed ow.ly/Ffrm308SXzM

Is this the end of the West? / WEF wef.ch/2kQxZKQ

30% of adults live near their parents; parental proximity & earnings consequences / Cleveland Fed ow.ly/Vutz308QGvB

India May Have Revived Plans For 7.5 Gigawatts Of Solar Projects / Clean Technica ow.ly/5GU8308Tbo0

Learn how to conserve coral reef #ecosystems / NOAA Research go.usa.gov/x9e2H

Stinky armpits? Bacteria from a less smelly person can fix them / New Scientist ow.ly/kGKC308Sshq

Renewables missing from Trump’s energy plan / CIOonline ow.ly/Q2gi308TaqX

There’s a new player in the Hyperloop game / New Atlas newatl.as/2kXlMqQ

The 20 Year Review: 1996 & 2016 HBCU Endowments Then & Now


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The 2016 HBCU Money’s Top 10 HBCU Endowments list is out. NACUBO’s list this year included 815 reporting institutions from the U.S. and Canada. Here are a few fast facts of then and now in regards to HBCUs place in the whole of the endowment conversation.

  • Of the 815 reporting institutions in 2016, only 1.8 percent were HBCUs. HBCUs comprise 3 percent of American colleges and universities. In 1996, Of the 467 reporting institutions in 1994, only 0.8 percent were HBCUs.
  • 20 years ago, the 4 HBCUs who were present on the list had a combined endowment value of $468.2 million versus the top 4 HWCUs who had a combined endowment value of $23.8 billion.
  • The endowment wealth gap between the top HWCUs/HBCUs in 2016 was 101:1. In 1996, it was 51:1.
  • In 1996, 20 HWCUs reported endowments over $1 billion and 3 HBCUs reported endowments over $100 million. In 2016, there were 93 HWCUs with reported endowments over $1 billion or an increase of 365 percent. HBCUs increased their ranks of $100 million endowments from 2 to 5 or an increase of 150 percent – unchanged from the 1994 to 2014 review.
  • The 101:1 gap currently is actually a decrease from our 2014 review where the gap was 106:1. A significant 4.7 percent decrease.
  • Of the 805 within the United States, 74.3 percent of the $515 billion in endowment value is controlled by 11.3 percent or 91 institutions.
  • The favorite investment of endowments above $100 million is alternative strategies*, which for endowments above $1 billion make up 58 percent, between $501 million to $1 billion make up 45 percent, and endowments $101 million to $500 million constitute 35 percent of their portfolio.
  • While the majority of HBCUs fall well under the $100 million sphere, the favorite investment among those groups are domestic equities, constituting in the range of 33 to 44 percent of portfolios under $100 million.

*Alternative strategies are categorized in the NCSE as follows: Private equity (LBOs, mezzanine, M&A funds, and international private equity); Marketable alternative strategies (hedge funds, absolute return, market neutral, long/short, 130/30, and event-driven and derivatives); Venture capital; Private equity real-estate (non-campus); Energy and natural resources (oil, gas, timber, commodities and managed futures); and Distressed debt. On-campus real estate is included in the Short-term Securities/Cash/Other category.