How Hello Alice Helps Small Businesses
Originally a thread on X/Twitter:
1/17: We all know that Small Businesses are important to our communities. We also know that minority owned Small Businesses don’t have equal access to capital and tools. Is this solvable? Curious to hear about a company working on this challenge? Read on!
2/17: We’ve all heard the phrase that Small Businesses (SMEs) are considered the backbone of the U.S. economy. A quick look at the facts reveals that this statement is very much true. There are currently 31MM registered SMEs that employ about 135MM people in the country!
3/17: While it may seem like big companies hold all the power, it’s undeniable that SMEs play a critical role in their success. Smaller firms supply critical goods and services to big companies. They’re customers of big companies. And they’re catalysts for innovation and change.
4/17: Without SMEs, our daily lives wouldn’t be the same. Small Businesses are at the heart of Main Street and foundational to how we operate as a country. And it shouldn’t be overlooked that when you buy from a Small Business, an actual person does a happy dance.
5/17: The good news is that new business formation isn’t slowing down. It’s accelerating! While millions of new SMEs are launched every year, the impact of COVID in 2020/2021 can be seen in the data. MORE people want to be their own bosses. MORE people want to own a business.
6/17: The bad news is that SMEs fail at an alarmingly high rate. 70% fail in their first 10 years with 20% failing in year 1 and 50% failing by year 5. The combination of more young businesses and a high early failure rate is a problem in the making. But it’s also an opportunity.
7/17: @HelloAlice is tackling this problem head on. Their service helps SME owners access financial resources, source free business education, find new customers and interact with helpful fellow SME owners. Their goal is to improve the success rate of their members.
8/17: And the mission is a noble one, especially with regards to the role small business ownership has on closing the gap of wealth inequality. Entrepreneurship is a well proven method to provide women and minorities with higher salaries and lifetime net worth.
9/17: Of the three main pillars of building wealth (investments, real estate and business ownership), two require large amounts of initial capital to be put to work as a starting condition for the strategy to work. From there, compounding does its magic over decades.
10/17: In contrast, business ownership is a path to self-sufficiency and wealth fueled in large part by grit and determination. Starting a business isn’t free, but there are many “capital light” and “capital efficient” businesses that can be assembled and started easily.
11/17: This by no means suggests that starting a business has been universally solved or that the startup world is one of equality and fairness. The opposite is true. Sourcing and procuring startup and working capital for local and minority owned businesses is a major issue.
12/17: @HelloAlice is closing this gap by providing tools and administration services to financial institutions, government agencies, foundations and large enterprises. Using the platform, they can target grants, loans, supply chain contracts as well as other forms of support.
13/17: This financial aid and general business support will go toward supporting small business of all types. The platform embraces owners of color, women, men, immigrants, LGBTQ+, veterans and the disabled. All are welcome. @HelloAlice wants to help everyone succeed.
14/17: So to all existing and aspiring owners out there: No matter your destination, @HelloAlice’s nimble rabbit knows the way. It can help you leap through milestones and avoid dead ends. It can guide you in launching, funding, growing and managing your big idea.
15/17: Joining @HelloAlice means joining a community of people who have walked your path. The heroes at @HelloAlice are small business owners like you that have accomplished the extraordinary. @HelloAlice allows you to tap these role breakers for wisdom, support and validation.
16/17: If you’re interested in reading more about why I’m personally excited about @HelloAlice, I’ve written a Blog post wrapped in fairy-tale form. I couldn’t help myself….so take a look if you like “Once Upon a Time” stories.
https://fintechjunkie.com/2021/06/14/once-upon-a-time/
17/17: So if you know of a Small Business owner looking for resources or support, tell them about @HelloAlice. If you know of a company wanting to support the Small Business community, tell them about @HelloAlice. And if you just want good karma, retweet this thread!