BE Next: The New Generation of Risk-Takers and Dealmakers

Though well-versed in the stories and strife of those innovators, entrepreneurs, and professionals before them, today’s young business leaders have new and different challenges to overcome and therefore flout the stale standard protocol and present a fresh set of strategies for forging their own way. These young entrepreneurs have already positioned themselves way above the curve. For them it’s never business as usual. Their unbridled passion is intent on creating opportunities that satisfy more than just a career choice; they want to touch and influence lives in unique ways. These four fearless BE Nexters managed to find success in the midst of economic uncertainty, and set respective courses to change the game. But let them tell it, there’s no time for congratulations or applause–it’s only the beginning.

Nakia Stith was just 22 years old when she went to work at Top of the Clock in 2002, “just to lend a hand,” while her father battled kidney disease.  But the more involved she became, the more she realized that the company had fallen into dire straits with her father away from the helm. “He was in the hospital sometimes for months at a time,” she recalls. “And you know, when the cat’s away, things start to happen.” It was more serious than she ever could have imagined. She encountered mountains of debt, employee theft, and a poorly functioning infrastructure, among other major concerns facing the struggling company. Bottom line: Top of the Clock (www.topoftheclock.com) needed a massive overhaul or it faced failure.

The work ahead was dizzying. “I asked, ‘How do you fix it?’” Like Alice in Wonderland, she heard: ‘”Begin at the beginning.”’ “Every day, every moment was something different. Those first couple of years were a blur,” Stith marvels. “There was no time for me to have any feelings of doubt or pressure. I treated it like an experiment.” Over the next several months, the Morgan State University graduate would undergo an arduous task of remaking the family business–almost from scratch. Stith quickly began terminating underperforming employees, rebuilding infrastructure, and rebranding the company. Stith’s new management team comprised her mother; an aunt handling human resources matters that had gone awry;  and a friend from high school, Sekia Bright, who took over the daunting position of financial services manager. “We owed more than $1 million in back taxes just because of negligence,” says Stith. Their efforts were tested in March 2004 when Stith donated a kidney to her father. Out of work for roughly eight weeks of recovery, the company ran smoothly in her absence. “That’s when I knew we were onto something. The infrastructure and the team were now solid.”

Stith’s father passed away in June 2008, but she is grateful that he was able to see her efforts for the company he built. “My dad and I shared the same vision and passion: We needed to provide for our family and provide a service to the community.

“I feel like my dad had been preparing me for this my whole life,” she continues. “Even if I didn’t understand it then, I certainly understand and appreciate it now.” In 2009 her company brought in revenues of $4.6 million and grew from six clients in 2003 to now more than 20. “He would be so excited and so proud of what we’ve been able to do around here.”

Selling flight training manuals and brokering aircraft deals at just 16, Jamail Larkins found his niche in the aviation industry. After earning a bachelor’s degree in aviation business administration from Embry-Riddle Aeronautical University in Daytona Beach, Florida, Larkins used $5,000 in personal savings and bank financing to launch Ascension Aircraft (www.ascensionaircraft.com) in July 2006. The startup money went toward incorporation fees and Website build-out and design. Offering aircraft brokering services initially, Larkins was strategic in adding new lines of business to Ascension gradually. Today, Ascension Aircraft has evolved into a firm specializing in aircraft leasing, management, acquisitions, sales, and brokering. “It’s always difficult when you’re adding a new segment to a company. But because of relationships, the team, and the network I was able to build up from the time I got in the industry, we had access to all those different opportunities and resources,” says Larkins. “So, as we became more efficient, we wanted to do more for the client.”

Larkins admits getting the company off the ground was a challenge. From obtaining commercial liability insurance to getting the company properly registered and meeting with banks for funding, he says because of his age there were added delays. “I was a 20-year-old kid in a lot of their eyes, coming in and saying, ‘I need a loan for $1 million, to go buy this airplane that I’m going to make money on.’ They ask, ‘What do you know about airplanes?’” recalls Larkins. “And then I’d say, ‘I’ve been in the industry for the past eight years and here are my past financials and here’s some of the previous transactions that we’ve done and here are some of our clients and here’s what we do.’ Then they start to take you a little [more] seriously.” And for good reason.

Current clients include universities, flight schools, individuals, corporations, and small- to mid-sized companies across the country. Projected revenues for last year were $8.4 million, with 90% attributed to the company’s sales and leasing arm. The four-employee firm found 2009 interesting, to say the least. “Last year we secured investors at one of the worst times from an economic standpoint. At the same time, we had a major client go bankrupt and we had to repossess 10 airplanes, more than $2 million worth of assets,” says Larkins, who learned the hard way the importance of diversifying their client portfolio. “But, because of the way we structured the deal and the way that we’ve evolved, we were more than OK. So being able to show our investors that our worst-case scenario actually did happen and we still made money, it gave us even more credibility and comfort  with them.” And the frequent flyer likens running a business to flight planning. “You’re going to get all the information before you even start any of the engines. That’s where expertise comes into play,” Larkins says. “To differentiate yourself from hundreds of different aircraft brokers and dealers out there, you have to do something that makes you stand out of the crowd. Because of the complexity of the work we do, the easiest thing we can do is provide a customer service, experience, and expertise level that they cannot find anywhere else.”

A self-professed celebrity gossip fanatic, Natasha Eubanks was unable to satisfy her need for the salacious life of black Hollywood. “I thought, ‘I read celebrity gossip all the time and they’re not talking about black people,’” recalls a fed up Eubanks. So in 2005 she decided to do it herself. With no prior experience, Eubanks put in a few sleepless nights, researching other blogs and designing a functional site (at no cost) to spread the juicy news via The Young Black & Fabulous blog (www.theybf.com), known simply as YBF.
Operating the blog in her spare time, first posting weekly, then daily, was totally out of sync with her next stint: law school at Loyola University in New Orleans later that fall. But a week into classes, Hurricane Katrina hit the Gulf Coast. Feeling angry and depressed, the New Orleans native admits she nearly gave up on

YBF and didn’t blog for at least two weeks. But e-mails and comments of concern and encouragement from her growing readership gave Eubanks a change of heart. “People want this, people need this, and people actually love it. And there’s still nothing really like it, so I have to keep doing it,” she says she realized.

Eubanks’ enthusiasm grew and with it, the site’s popularity–from 25 visitors to 25,000. Approaching her second year of school, the aspiring lobbyist made a hard decision to quit and run her blog full time. “My mom was like, ‘Oh, no, no, no. There is no money in that, what are you talking about?’” says Eubanks, who was still only earning a few hundred dollars from blogging. “My parents thought it was just a really bad move.” But Eubanks saw her gamble on gossip differently. She quickly went to work making YBF an official business, like custom designing the site, purchasing her own server, and posting four or five times a day. Traffic to YBF began to swell.

Today, The Young, Black & Fabulous blog averages 15 million page views a month, making it prime real estate for big advertisers such as MetLife, Macy’s, and Wal-Mart looking to reach a niche audience. Revenues for 2009 were $1 million–90% of that generated from advertisements. “People are willing to pay but you have to know the value of what your product is and the value of your brand.”

And Eubanks leverage’s the YBF brand well. A weekly segment on the syndicated radio program Big Boy’s Neighborhood lets her dish celebrity news and gossip across the airwaves. Plans extend into radio, books, and online magazines. “I’ve never been one to put all my eggs in one basket,” she asserts. “And that’s the most powerful thing about owning your own stuff: Why choose?” And all the right moves have gotten Eubanks this far. “I’m not following anyone’s footprint, so you have to learn as you go. You have to trust your instincts even more.”

One thing guiding Eubanks is knowing the value and responsibility in being your own boss. She stresses, “Maintaining ownership is the end-all, be-all of my goal because it’s important, especially for the black community.”

Using $54,000 in personal savings, Darnell Henderson pursued his passion for starting a business and opened a barbershop and spa in April 2004–a dream that was washed away six months later when Hurricane Gene hit the city of Miami and his shop. The setback,

however, inspired a new idea: Henderson decided to focus on producing and distributing his own men’s skincare line called H.I.M-istry (www.himistry.com)–an acronym for Healthy Image Men.

Before launching the skincare line, Henderson earned credentials as a “dermatician,” the equivalent of a skincare specialist. He then researched the right lab and chemist to take his idea to formula. Today, he offers a range of all-natural products from black tea cleanser (the line’s most popular product) to alpha hydroxyl cleansing pads and serum-based moisturizers.

“I started doing my research and development in 2002, but I’ll be honest, we still learn new things from consumers on a daily basis,” explains Henderson. “When we initially started, H.I.M-istry was based a lot on what we thought consumers wanted. But as we interacted with them, we were able to zone in exactly on their needs. It’s really difficult to sell someone a cleanser without educating them on the benefits and that’s what allows us to grow our business and nurture relationships with customers and business clients.”

The line, which is available at Macy’s department stores, was originally rejected by a major drugstore chain in 2004. “They liked the concept and the idea,” he says, “however they thought the product line was a little too sophisticated for their consumers.” They suggested that he follow up with them later, but Henderson believed there was a market for a high-caliber brand for men and decided to pursue other opportunities. But his courtship with Macy’s was not an easy sell either. “Did that discourage or disappoint me? No. Not at all,” he admits. “I looked at it as an opportunity to come up to par. Macy’s required more tweaking of our marketing info and packaging materials.” By September 2007, the first purchase order was secured. H.I.M-istry went from being carried in three stores to 16 and now to more than 100 stores across the country. In 2008 Henderson’s business saw revenues of $980,000. By the end of 2009, H.I.M.-istry brought in $1.6 million.

What Henderson is most proud of is a product that has been embraced by men across racial backgrounds. “One of the major things that separate us from our competitors is that we offer a reliable, affordable luxury line of skincare products for men of any ethnicity. I’m working to change the perception of men’s skincare and position our products as a way of life for all.”

This article originally appeared in the January 2010 issue of Black Enterprise magazine.