Top 5 Black Owned Businesses Worth Starting Today
Planning on starting a black owned business? Let us help! We break down the top 5 black owned businesses worth starting today!
Starting a black owned business is now easier than ever in this age of technology. Thanks to social media, we can now see an upward trend in black ownership and this has motivated many start a business and work up to financial freedom.
The good news is that you too can start your very own black owned business today! Contrary to popular belief, starting a black owned business in today’s world requires little money, education and research. Even more good news is that you can start making profit right away if you are willing to put in the work!
Below, we list the top 5 in demand black owned businesses to start today!
1) Black Owned Athleisure Business
Demand: High Demand
Competition: Extremely Competitive
Marketability: Very marketable
Startup Cost: $100 - $5,000
Question - If you had a dollar for every time you saw a girl wearing tights only to find out, she is not going to the gym, how much money will you have right now? I can safely say that I'd be a millionaire! There are more people today wearing tights in a fashionable way than ever before and it is a growing trend. This fashionable trend is what we know today as Athleisure wear.
For those of you that don't know, Athleisure is a trending style of clothing typically worn during athletic activities and in other settings, such as at the workplace, at school, or at other casual or social occasions. Here is the data for Athleisure from Google Trends in the United States alone:
According to google trends, athleisure (athletic wear, fitness apparel – whatever you want to call it) has seen a huge growth since 2015 and it is here to stay for a long time!
This fashionable sporting apparel market was valued at 167.7 billion dollars in 2018 and it is expected to reach 248.1 billion dollars by 2026. This growth is a huge opportunity and a sign that athletic wear is worth investing in. Profitability in this industry can be lucrative if you are able to standout from the vast ocean of competitors.
Of course, with such high demand, you can expect high competition in this market. Top brands such as Gym Shark, Lululemon (the originators of Athleisure) and Fabletics have taken the industry by storm. So how does one compete?
You can wiggle your way into the market by competing against smaller brands who target smaller, but fairly profitable niches. For example, Athleisure is almost always advertised and targeted towards individuals who are already fit. What about the big girls who also want to look good in Athleisure? There presents an opportunity! No one wants to be left out and there is a huge market of big girls who would love to look and feel good in their Athleisure just like their fit counterparts. Competing in a smaller niche such as this will allow you to differentiate yourself from the vast majority of competitors and give you an edge in the market.
Athleisure wear is extremely marketable as it revolves around a topic that so many people wonder and have questions about – fitness!
A few ways to market Athleisure while providing valuable content in fitness include:
- Tips on how to lose weight
- Exercises you should or should not do to lose weight
- Comfortable clothes to work out
- Fitness diets for losing or gaining weight
The majority of growth from fitness wear comes from social media influencers who have created a brand with Athleisure by providing useful fitness tips that you and I probably use today. You too can do the same! With Instagram, Facebook, Google, and Youtube, you can create a unique brand, provide useful content and attract thousands of followers. You’ll be surprise how many are looking for unique ways to lose weight. You could be the answer to their prayers all the while creating a unique brand.
Starting an Athleisure wear brand could cost anywhere from $100 to $5,000 depending on your strategy.
Today, many use dropshipping to fulfill orders for a particular product. The awesome thing about dropshipping is that there is little risk, and your main costs include that of the product (only when it is sold), site maintenance, and customer service. Many utilize AliExpress as the main source for dropshipping Athleisure wear. Many purchase Athleisure from AliExpress for $5-$10 US, for example, and resell them between $20 to $50.
A more expensive approach to this business is buying or making Athleisure wear in bulk and selling it directly to customers. This approach has high risk as it involves buying and stocking inventory. If no product is sold, you will be at a loss from all the inventory bought. It will also take a lot more time and effort as you will have to ensure that you have enough stock, meet demands and have enough capital to continue buying inventory.
2) Black Owned Man Weaves or Lace Fronts Wigs / Hair Extension Business
Demand: High Demand
Competition: Moderate Competitive
Marketability: Easy to market
Startup Cost: $500 - $10,000
The demand for lace front wigs and hair extensions is now mainstream thanks to celebrities like Beyonce, Eryka Badu, Angela Simons, the Kardashians, Selena Gomez, Keisha Cole, and many more. Getting that picture-perfect look has intrigued a mass number of everyday individuals to acquire their own hair weaves and lace fronts in order to look and feel good! Google Trend now shows that lace front wigs are at their peak of popularity and are increasing in demand:
The best part about this industry is that it is not only catered to women! There is now a growing number of men who now require weaves. Yes, this is facts! When Rogaine does not come through to create that perfect hairline and hair transplant surgery is costly, many men have now turned to weaves in order to get their hairline back.
According to Google Trends, searches for man weave has seen a big spike in recent years as it has become more normalized:
There are many barbershops who are now specializing in men only weave treatment due to its increasing demand. The fact remains that no man wants to go bald if they had a choice and man weaves are the perfect and affordable solution for this problem.
It is a myth that weaves and lace fronts are only worn by African Americans. Nowadays, people of all races, love and wear weaves, hair extensions or lace fronts wigs because it adds fullness to one’s hair! Of course, this has greatly driven up the competition. With high competition, expect higher demand and higher profits in this industry. According to Reuters, Market research firm Euromonitor International estimates that the dry hair industry which includes weaves, extensions and wigs is estimated at $6 billion a year. Like all other competitive business, it is not enough to only sell man weaves or lace fronts – you have to stand out from your competitive. Consider what value you will bring to your customers that is different from your competitors.
If you are wondering how to market lace front wigs, you can do so through a Youtube channel, Instagram, Facebook or through blogs. To market lace front wigs or man weaves you can:
- Showcase the different style you can have with a lace front wig, extensions or man weave
- How to care for it
How to put it on, how to remove it, it’s safety and even answer frequently asked questions on lace front wigs
The possibilities are endless!
Start Up Costs
Lace front weaves and man weave units are expensive so expect high costs with this business. Don’t let this discourage you though. These items can be sold at prices high enough to recoup your investment.
Lace fronts can be purchased from online wholesale stores such as Aliexpress, DHgate and other premium wholesalers for $50 to $100 per piece and can be resold for over $300 to $3000 depending on the quality of the purchase. It can be very lucrative with the right marketing strategy.
Man weaves are just as lucrative due to their process. They require extreme barbering craftmanship to ensure it looks and feels natural. Man weave units cost approximately $50-$150 and can be sold and styled from $275 to $1000. The higher the price, the longer they last.
3) Black Owned Couple / Family Youtube Channel
Demand: Moderate - High Demand
Competition: Moderate - High Competition
Marketability: Hard to Market
Startup Cost: $0 - $500
Now owned by Google, Youtube is now worth a staggering $160 billion and it will continue to grow. Youtube did the impossible when it drove many cable providers out of business by providing something cable cannot deliver - the ability to pick what you want to watch when you want. Not only that, but it has made everyday individuals millionaires in the process. There are billions who now rely on Youtube as their sole means of entertainment and this trend is not going to stop anytime soon.
At this point you must be wondering, “Youtube is a big place where you can make any type of content so what is the appeal of Couple / Family vlogs ?” Well, the appeal is controversy, finding out about the unknown, escaping your own reality, and subconsciously becoming a part of a family. All these characteristics are things humans are drawn to which is why Family / Couple vlog channels have been so successful. The best part about family/couple channels is that they can be about anything (although it is recommended to pick a niche and stick to it). Seriously, you can vlog about what you ate with your family, life issues, perhaps having a new born, even what you did last summer. Trust me, if it is interesting enough, the right people will watch it. This is why competition is extremely high in this market. Which bring me to my next point, who should you market to?
Unless you have a solid niche to target, marketing family / couple vlogs can be a challenge. With the competition now gaining traction, you have to make sure that your videos are made with quality and unique enough to stand out from your competitors. There are a few things that perform well on Youtube. This includes:
- Girlfriend / boyfriend Pranks videos
- Mukbang videos
- ASMR (Autonomous sensory meridian response) videos
- Reaction videos to other videos
You can structure your Family/Couple vlog to focus on one or a few of these themes in order to gain views. Remember, controversy sells on Youtube, so the more over the top you are, the better your videos will do (just remember to know your limits :) ).
The best part about starting a Youtube channel is that it has very low costs. Your major expenses will be a tripod, a video editor, and a quality camera (or your phone camera) – that’s it! That alone will cost anywhere from $0 – $500 depending on the quality of your camera and if you already have these items. The rest of your expenses will come from the time, creativity and energy that you put into each and every video.
So how do you make money from your Couple/Family Youtube Channel? Money is made by monetizing your youtube videos for companies to adversities on. Once you reach 1000 subscribers and 4000 hours of watch time (in the past 12 hours), you can be approved for monetization.
To understand how much you can actually make, here are a few examples of the Top Couple/Family Youtube channel and how much they currently make per month based on views alone (this exclude any paid sponsorships):
The Rush Fam's youtube channel earns an estimated $4.6K to $73K per month!
De'erra & Ken 4 Life's youtube channels earns $1.1K to $17.6K per month!
The Royal Family's youtube channel earns $1K to $16.4K per month!
Depending on the category of your videos, different rates will apply for your monetized videos (this is why it is so important to have a niche). The more specific your videos are to a specific audience, the higher the rate for paid sponsorship on your videos. Depending on your views, subscribers and the amount of time spent watching your videos, you could make a full-time income on your Youtube channel. The key here is be consistent, patient and unique with your content!
4) Black Owned Apparel Business
Demand: Medium Demand
Competition: High Competition
Marketability: Hard to Market
Startup Cost: $0 - $100
Fashion is said to be known as an Evergreen business - a business that always has demand, and competition - a formula for success. In a world where it is illegal to go outside without wearing clothes, clothing is a necessity. As such, you can expect someone, somewhere in the world, to be buying a clothing item right now. The average consumer spends approximately $150 per month on clothes and throws away nearly 65lbs of clothes per year. Clothes have a shelf life and anything with a shelf life should scream demand and profit!
What is even more interesting is that with the vast growing use of social media, people are now turning to individuals like you and I to fill up their closet. Nowadays, smaller clothing brands are successfully competing with big brands because people are not just demanding clothes; they are demanding a clothing brand that take a stand on social issues. A perfect example of this is the need for clothing that celebrates black girls. According to Google trends, there has been a huge demand for "black girl shirt" since 2014 and this is still growing:
It is clear that the demand for t shirts and apparel in general is growing at an extremely fast pace as millennials seek ways to voice their opinion, spark a conversation, and take a stand without uttering a word.
Nowadays, it is every easy to start to an apparel brand so expect extremely high competition in this business. Print-on-demand platforms such as Printful, and others alike have given millions, the ability to start a t shirt brand at the comfort of their homes. This has made the t shirt industry very saturated! The only way to compete is within a niche. That being said, your niche also must have a large enough competitive base in order to be profitable. A few examples of big niches in which a black owned t shirt brand can thrive include:
- Black Girl Shirts
- Shirts for curly hair influencers
- African textile shirts
- Shirts that celebrate HBCUs
Whatever niche you choose for you black owned clothing brand, marketing may be your biggest hurdle as you are also competing with big clothing industries and platforms.
The best way to market a clothing brand is by building a community around a specific topic. Take for example, My Black Clothing. We have built a clothing brand primarily to celebrate and empower black women. It is not just about selling t-shirts for us, but rather providing self care tips and help for black women struggling with beauty, and the challenges of everyday life. We've been able to do this through our social media presence (@myblackclothing) and blogs such as this one.
Checkout out a few examples of our apparel that celebrate black women!
Starting a black owned apparel business could cost you anywhere from $0 - $100. All you need is a Print-on-demand platforms such as Printful or Printify, and a platform to sell your t shirts. The best part about print-on-demand platforms is that they only charge you the cost of printing the shirt after it is sold and you keep whatever profit is left after covering the printing cost.
You can use platforms such as Esty or Tee Spring to sell your t shirts or create your own website using Shopify or other e-commerce platforms to sell your apparel. These platforms generally charge a monthly fee from as low as $0 - $40 to use their services.
The majority of your expenses will come from marketing include influencers, Facebook / Instagram Ads, Google Ads, and Pinterest Ads. This is key to building a solid community around your brand. Note that not all marketing costs money. Blogs and social media are effective marketing tools which will cost you $0 to implement.
5) Black Owned Natural Hair Product Business
Demand: High Demand
Competition: High Competition
Marketability: Easy to Market
Startup Cost: $100 - $10,000
As long as black women exist, the will always be a need for natural hair products. Unfortunately, the vast majority of hair product businesses are run by White males and are tailored towards White women (even though they are marketed for all hair types). For this reason, black women are always seeking natural hair products that works for their hair texture.
By 2022, the natural hair product industry is expected to reach a staggering $13.06 billion dollars! It is also estimated that Black women spend nine times more than our non-Black counterparts on ethnic hair and beauty products - this is about $473 million in total hair care! The demand for natural hair products is extremely high and could be worth investing in.
Google Trends now shows a growing trend of searches for natural hair products since 2008.
With the power of social media, many have voiced their frustrations of their inability to find natural hair products in their area and have started a business to fill that gap. This has created multiple natural hair communities around the world and has attracted millions of black men and women who want to share their experiences with different natural hair products made specifically for black women.
The competition is very high for natural hair products due to it's increasing demand. So high that a search for the top natural hair products generates over 478 million search results!
Don't let this discourage you though as many natural hair products are made to fill a void in local communities. This strategy (as opposed to selling globally) greatly cuts down the competition while still satisfying a high demand for natural hair products within that community.
Another strategy to work around this high competition is to focus on a niche. Perhaps, you may want to focus on natural hair product shampoos. What about conditioners? How about natural hair products made only with natural ingredients? If you do your research, you will find that there are many seeking different types of natural hair products to work for them that your competition may not have thought off. Needless to say, a great opportunity for you!
The natural hair community is tight niche community and can be found on every social media platform. This has made it easier than ever to market your natural hair products to a mass group of people.
Youtube and Instragram has been a great platform for many natural hair influencers to market natural hair products. A few ways to market your natural hair product include:
- Making videos on hair style tutorials
- Comparing the best products to use for your hair
- How to videos on hair treatment
- Journey and results of using your natural hair products
There are many other ways to market your product. The key here is to be creatively different than the majority.
Starting a natural hair product line is something that requires a substantial amount of initial investment to start off. The majority of your costs will depend on whether you want a join an established franchise or start from scratch.
If starting from scratch, most of your cost will depend on extensive research on the ingredients to be used for the product, containers to be used to hold the product, the type of product you wish to make (spray, cream, etc), marketing, and legal documents associated with the product.
If you plan on joining an established hair product franchise, the majority of the costs will be handled the franchise. You will only have to worry about franchise frees, marketing fees, and royalty fees if applicable.
Overall, either path will be tough initially but there is still a light at the end of the tunnel. A perfect example of this is from Rochelle Graham-Campbell who built her $1 million dollar natural beauty products with just $100:
Hopefully these businesses have sparked some ideas and motivated you on starting your own. As a recap, here are a few things to consider when starting your black owned business:
Demand: Do people actually need your product to solve their problem? Is there a trend in the amount of people who are actively seeking this specific product? You will find that products which already have a growing demand are the best to invest in.
Competition: Does the market for the product or service you want to invest in, seem saturate? If this is the case, you have a highly competitive market which is actually a good thing. Competitive markets mean there is a high demand for that product or service. Remember, the more unique you are, the more easier it is to standout and thrive in a competitive market.
Marketability: Can you find a number of creative ways to reach an audience who are in need of your product / service? If the answer is yes, then you product / service is very marketable. Marketability makes is easier to reach a vast group of people purchase your brand. Consider multiple avenues of marketing tactics to reach as many people as possible.
Start-up Cost: Generally speaking, if you have to take out a loan in the early stages to start a business, it is probably not worth investing in. Considering low cost start ups and utilizing other established platforms to build your brand will cut most of your costs and set you up for high` profits in a short amount of time.
Have you thought about starting any of these black owned businesses mentioned above? Comment below if this was a helpful guide.