Blacks in Business: David Steward
David Steward of St. Louis, MO (1951- )
David Steward is founder and chairman of World Wide Technology, a St. Louis, MO based firm that specializes in supplying technology and supply chain solutions to customers around the world. It is considered the second African-American owned firm to reach the billion dollar revenue mark in the 1990s (the first was TLC Beatrice International, a global food and beverage distributor led by Reginald F. Lewis in 1987).
After rising in corporate America with companies like Missouri Pacific Railroad and Federal Express, David Steward scratched his entrepreneurial itch and founded (or actually bought) his first enterprise, Transportation Business Specialists in 1984. The function of this business utilized his background in the transportation industry and knowledge of accountancy. With the opening of his second company, Transport Administrative Services, he was able to capture a higher margin business within his same value chain in the transportation industry by pursuing larger corporate customers.
Through his work with these firms, he realized a niche of using technology to solve business problems. With this concept and 7 employees, he founded World Wide Technology in 1990. The company had a very tough time growing, but Steward made sure to make payroll even if it meant not paying himself. Times became so hard, Steward’s care was repossessed at one point. Ultimately, with the support of the Small Business Administration (SBA), he began to pursue and was able to secure contracts with the federal government. By 2003, company revenues grew passed $1 billion. They are now approaching $3 billion with an employee base greater than 1,000. Steward is still the chairman of the board and has written a book titled Doing Business by the Good Book.
Lessons to learn from Mr. Steward:
- Be true to yourself and what you want out of life. You only get to do it once so you might as well make it count!
- Remain connected and curious about your industry and its trends. Yet be open to venture into different industries to ensure you walk in your ultimate mission.
- Serve others and you will be blessed
- His words: “Good leadership is love.” My interpretation: When leading others, treat them with respect and help serve their needs so that they can best serve yours.
- His words: “Blessed to be a blessing.” My interpretation: use your time, talent and treasure to give to others.
For more information on David Steward, review the following links:
The Chain of Revenue
Over the last few weeks, I have been reviewing the services my company offers and where the greatest potential sources of revenue are. Determining my company’s value chain and its place in it will allow me to better explore where I can capture a higher profit margin or even determine a new service/product offering, to enhance the service I provide for my clients (and capture more revenue).
The value chain can best be defined as the link of activities involved in creating, distributing, and maintaining an end product or service. These activities range from the acquisition of raw materials to providing after-market service. This business framework was made popular by Harvard professor Michael E. Porter in his book Competitive Advantage.
Understanding your value chain helps you understand your competitive advantage and can enhance the way you do business. You may want to add to your offerings by adding a couple of services that you could easily do but your customers currently go elsewhere for. Maybe there is a firm that you usually refer business to but never receive a return from – could you service that business yourself and capture the entire transaction? Subcontract the other firm to still provide the service but include the service as a part of your package, adding a little on top to make sure it is profitable for your firm. Doing this would relieve your customer of having to deal with another company and portray you as more of a lifesaver than you were before – WIN!
Leave a comment to let us know the results of your value chain review and how it will affect your business.
What is the business equivalent of the Olympics?
Over the last week, I have really been into the 2010 Vancouver Olympics. I have never really watched the Winter Olympics before, but from the opening show to pair figure skating and so on, these games have really caught my attention. I have been impressed with how many of these athletes have competed and end up giving their personal best (according to the announcers). The camaraderie of the country teams and their pride to represent their country is outstanding. Outside of when I participated in sports in high school, I don’t think I have heard the US National Anthem so much, not since I was in elementary school in Illinois.
I have watched these games wondering where the business equivalent is. I know the Grammys and Oscars are for entertainers, but what about people in business. Is our success only measured by the amount of profit we bring in? There are competitions such as SBA National Small Business of the Year and top lists here and there that measure so many different factors (from Working Mother‘s and Black Enterprise‘s many lists to Inc. 5000 to Fortune 500 and so on) – would these be the equivalent?
On another (and even greater) note, these games really say a lot about being a part of a team. This evening, I watched the Super-G Alpine Skiing competition with Team USA’s Lindsey Vonn. After winning the Bronze medal (she won the Gold medal in Ladies’ Downhill skiing a few days ago), she was interviewed, discussing how supportive Team USA has been for each other. Paraphrasing, she explained how their individual wins encourage each other to keep competing at their best.
Realizing this motivation is one reason I am so excited to be a part of a newly formed “team.” Remember when I discussed creating your own community? Well, the group has been formed and we are in the midst of creating our individual goals so that our respective businesses will be the best we can have them be at every step. None of our businesses are competitive and that was really by happenstance… they are actually quite complementary but that isn’t what we are in it for. We know that we can perform better by motivating each other and holding each other accountable instead of working in silos.
Maybe THAT is the equivalent of the Olympics, business and otherwise – performing at our personal best!
Blacks in Business: Dr. Farrah Gray
Farrah Gray of Chicago, IL/ Las Vegas NV (1984 – )
Farrah Gray is a success story out of Chicago, IL. He began his entrepreneurial journey at the age of 6 years old! He made $1 million by age 14. Now, 25 years old, with experiences in real estate, consulting, writing, motivational speaking, philanthropy and much more, this serial entrepreneur has done in 19 years what many MBAs dream to do – and he hasn’t reached his peak yet. See below for a 20/20 piece on Dr. Gray:
Lessons we can learn from this young man:
- Create the change you want for your life. There is no greater motivator.
- Fear can also be a motivator. Use fear as motivation to get on the other side of it.
- Diversify your business/investment portfolio so that all of your eggs are not in one basket.
- Give, give, give and you will receive.
- Never underestimate what a determined young person can achieve.
Black history month: Annie Malone
Annie Malone of St. Louis, MO (1869-1957)
Annie Malone was a pioneering African-American who some say was actually the first African-American millionaire in the United States (Madam C.J. Walker worked for and was trained by Malone prior to her entrepreneurial journey).
Around the beginning of the 20th century, Malone developed the first chemical straightening product to not damage African-American hair. Since she could not use traditional channels methods of selling products given the racial climate of the time, she became innovative and adopted door-to-door sales, in-person demonstrations, and marketed through the Black press. When she was ready to grow nationally, she hired local agents in cities across the country (and even the world) to do the same thing – providing opportunities similar to what we would find in network marketing today.
In 1918, she founded and built Poro College, the first cosmetology school in America dedicated to black hair care, to train those who were interested in joining her network system. The building of this college was significant because it also demonstrated her commitment to giving to others. Not only was it used to train people in cosmetology, but it also became a center for major African-American activities giving access to people who had been denied it for so long. She was also a passionate philanthropist, giving much of her fortune to
At one point in the 1920s, Malone was reportedly worth more than $14 million.
Unfortunately, much of her fortune was lost between her outstanding generosity, lawsuits, and past due taxes. When she passed away in 1957, her estate was reported to be worth $100,000.
There are lessons we can learn from Malone’s experience:
- Hire others to help sell your goods and provide incentives that will motivate them to grow your product or service.
- Create barriers of entry to your market so that others (particularly former employees) will find it difficult to copy your business model.
- Make sure you understand your finances and hire someone to properly maintain them when they become too excessive for you to both work your business and maintain its finances.
- Draw a clear line between business and personal when these relationships are shared with family – put it all in writing.
- Give to your community, within reason, and your legacy will continue beyond your business product.
For more information about Annie Malone, watch this biographical video produced by St. Louis’ PBS channel KETC. Also view the following links:
- Annie Malone Bio at Answers.com
- The Ville – community affected by Annie Malone’s contributions
- Annie Malone Bio at St. Louis Historic Preservation
- Annie Malone Children and Family Service Center
During the month of February, a series of African-American entrepreneurs and their achievements will be highlighted in recognition of Black History Month.
