NMSDC Introduces Assessment Tools for Minority Business Owners

NEW YORK, July 11, 2011 /PRNewswire-USNewswire/ -- The National Minority Supplier Development Council (NMSDC) today announced a collaboration with NuLevel Strategic Solutions, LLC, a minority-owned management consulting firm based in Charlotte, North Carolina.  Nulevel has developed a set of online business tools that NMSDC will offer to its certified Asian, Black, Hispanic and Native American minority business enterprises (MBEs) to assist them in assessing financial operating capacity, business health and value relative to their respective industries.  These assessment tools will be part of an on-going series called the "Biz-Fit Challenge."

"This is a great way for NMSDC to help certified suppliers take the pulse of their company, and make continuous improvements that will strengthen their businesses," said NMSDC President Joset Wright. "Only the strongest, most agile businesses can compete in this recovering economy, and NMSDC is pleased to help position our MBEs for success."

"Undercapitalization and the inability to access market opportunities are two of the greatest challenges confronting minority-owned businesses," noted David Willis, principal at NuLevel. "However, these challenges are compounded by management teams that are not spending adequate time understanding the internal dynamics of their businesses.  We find that many business owners are focusing more on business development and less on overall business health.  Greater focus in this area will likely lead to more profitable and sustainable growth."

The Biz-Fit Challenge was designed to stimulate more critical thinking around the areas of the business that often lie dormant, but have serious long-term consequences on the firm's ability to raise capital and access market opportunities. The key underlying driver of failure in these two areas is the failure to prepare.  Each "Challenge" will help business owners better understand the financial condition and health of their businesses', while simultaneously outlining strategies for improvement.  The knowledge gained through these exercises will hopefully better prepare firms to attract the right capital and market opportunities.

The first phase of the "Biz-Fit Challenge" will consist of three challenges, the first of which will be the "Biz-Health Analyzer."  This challenge will allow MBEs to assess their business' health relative to profitability, liquidity, solvency, leverage and efficiency—the most common factors considered by capital providers. The tool will also help MBEs better assess how they are performing relative to their industry peers.  

The second challenge is the "Breakeven Analyzer." This tool is designed to help business owners determine the company's current breakeven revenues and its five-year projected breakeven revenues. MBEs can also use this tool to determine their minimum revenue requirements on an annual, monthly, weekly and per unit basis.  Understanding Breakeven is extremely critical to business development, pricing and managing operations.  As such, MBEs are encouraged to utilize the data obtained from this exercise as a baseline for improving in these three areas.  Many firms also use this data as a core component in implementing long-range or strategic plans.

The third challenge of the first series is the "Valuation Analyzer," which is designed to give businesses a rough fair market value estimate for their company, based on applied industry-based valuation multiples. Upon completion, a supplemental summary report will be generated that will offer a more robust discussion on business value. This discussion will include an overview for various valuation methodologies and approaches to building business value; translating value into wealth; interpreting business value; and understanding business value drivers.

With each of these challenges, MBEs will use data from their current 12-month ending financial statements to generate a comprehensive report that takes an in-depth look at the challenge topic. In addition, participants will be asked to complete a short survey at the conclusion of each challenge to determine their overall effectiveness and any improvements that need to be made.

The assessment tools are an integral part of a comprehensive NMSDC capacity building initiative for minority business owners, with funding through a major grant from Macy's, Inc.  Online courses will be added to NMSDC's Web site on business plan development, business strategy, finance, marketing and business development, for example.  Currently, NMSDC's capacity building activities include Centers of Excellence at several NMSDC-affiliated Councils as well as the Advanced Management Education Program at Northwestern University.

"We appreciate the generous support Macy's has provided for NMSDC's expanding minority supplier development programs," said Ms. Wright.  "Minority businesses are the fastest growing segment of the U.S. economy, and they can contribute to the nation's economic recovery and employment solutions."

About NMSDC
Providing a direct link between corporate America and minority-owned businesses is the primary objective of the National Minority Supplier Development Council, one of the country's leading business membership organizations.  It was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.

The NMSDC Network includes a national office in New York and 37 Regional Councils across the country.  There are 3,500 corporate members throughout the network, including America's top publicly-owned, privately-owned and foreign-owned companies as well as universities, hospitals and other buying institutions. The Regional Councils certify and match 16,000 minority-owned businesses with member corporations that want to purchase their goods and services.

For more information about NMSDC, call (212) 944-2430 or visit the Web site at www.nmsdc.org.

About NuLevel Strategic Solutions
NuLevel is a management consulting firm, whose reach spans multiple industries and business types.  Over the past 10 years, its focus has been on small to mid-sized organizations, with an average of 100 employees or less. NuLevel distinguishes itself through its innovative approach in making large corporate business solutions more accessible, affordable and relevant to its clients.  NuLevel currently serves as a statewide consultant to the North Carolina Minority Business Enterprise Center and the North Carolina Department of Transportation, through which it has consulted hundreds of minority-owned business in areas relative to those covered under the "Biz-Fit Challenge."

For more information about NuLevel Strategic Solutions, visit the Web site at www.nulevelsolutions.com.

SOURCE National Minority Supplier Development