The Latino business community has made great strides over the years in terms of growth, recognition, and overall success. In fact, a study from the Stanford Latino Entrepreneurship Initiative found that the number of Latino business owners has grown by 34%, compared with the 1% growth rate for all other business owners in the US.
However, we could still do better. Currently, the number of Latino CEOs at Fortune 500 companies is still much less than it should be.
But why is this the case? The answer may lie in how we market our businesses. Today, we’ll be discussing some marketing challenges Latina-owned businesses face, unknowingly or not, and how we can overcome them.
Balancing heritage with modern influences
When we talk about Latino roots, the main focus is always on our heritage. We’re proud of who we are and would like to spread the Latino brand across other communities. This means that most Latina-businesses are focused on Latino textiles, family-owned creations, and other Hispanic-inspired creations. But things move on. If you want to attract customers from this era, then you have to modernize your branding. A good example of a business that has successfully navigated this marketing challenge is Luna Magic Beauty, a Latina-owned beauty business, which sells make-up for Latina skin. They make clever use of hashtags and Instagram to get their name out to the wider world.
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Other modern influences you can take advantage of to beat this marketing challenge include but are not limited to: creating a minimalist logo, investing in professional photography to use for social media, and using apps when applicable. It’s a different approach for everyone, so find out how you can take your culture-inspired business into the future.
Naming the business
A business’ name is one of the foundations of their image. As such, you want yours to be influenced by your Latino roots, but not too much that it seems that you’re only catering to Latinos. Plus, some traditional Latino naming conventions could prove dangerous to your business, as it affects how it’s structured.
For instance, since family and tradition is a big part of our culture, plenty of Latino-owned businesses have their real names as their business name. The only way you can do this is if you’re a sole proprietor. However, this can be dangerous as The Balance states that sole proprietors cannot separate their personal and business assets. This means they will be liable to use their own money to pay for business damages. On the other hand, ZenBusiness notes that LLC owners have more restrictions. Some words like “savings” and “engineering” need proper licenses before they can be used. LLCs also separate personal and business taxes, so using your own name as the company name will only complicate your paperwork.
To keep the family imagery of a Latina-owned business alive, you can put your first or last name next to a Latino word to let the customer know what your business is about. “Tia Chucha’s Centro Cultural” and “Ella’s Eve Cosmetics” are good examples. You could name part of your business in a local language as well to highlight its Latino origins like “Herbal Hermanas Co.”
Marketing to a general audience
Just because you’re Latino, doesn’t mean that your business has to cater to just Latinos. If you want to grow it, then you have to expand your market. Have you ever wondered how brands like Apple and Nike grew to the size that they are today? Quality products may be a huge factor, but most of the success is attributed to branding. These companies have worked hard to create unique identities that appeal to a select but huge customer demographic.
Instead of marketing to the Latino community, broaden your scope and target a particular group with similar interests. Lenita by Grita is a Latina-owned business that sells Hispanic flowers and floral arrangements. Anybody looking to give flowers to a loved one can buy their products.
Another good example is Majestic Bliss Soaps. This Latina-owned business advocates for vegan and cruelty-free products. You don’t have to be part of the Latino community to be on board with that kind of branding.
Again, the type of approach that you can go with depends on the nature of your business. Find an idea that brings your market together and you’re well on your way to reaching out to a global audience.
Latino-owned businesses are thriving, but we could do so much more if we just expanded our business’ reach. Keep these marketing challenges in mind. Watch out for modern trends, name your business appropriately, and cater to a broader demographic so that the Latino influence can reach others around the globe.
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