B.E. 100s Neighborhood Improvement - African American business enterprises and executives

Black Enterprise, June, 2001 by Marjorie Whigham-Desir

Hot, new additions are transforming the B.E. 100s

FOR MOST OF US, WHEN WE HEAR THAT THE NEIGHBORHOOD is changing, it's time to pack up and go. For these four trailblazers, a changing landscape meant significant gains to their bottom lines.

One new tenant is a seasoned veteran of the BE 100S who sold his original enterprise only to start another. And while the other three may be new to the block, none are devoid of business experience and entrepreneurial savvy. Combined, they represent more than $700 million in sales in just one year! The sheer diversity of their businesses stands as a testament to the breadth of black-owned enterprises and the strength of the BE 100s.

ANOTHER HOME RUN

During his days as a member of the Atlanta Braves, Henry L. "Hank" Aaron made a stellar career hitting home runs out of the ballpark. His record--755 home runs--still stands today, almost 125 years after he hung up his cleats. Now it looks like Hammerin' Hank has hit another homer, this time as an auto dealer for Bavarian Motor Works (BMW).

Hank Aaron BMW set new records by posting a profit just 90 days after opening its doors in southwest Atlanta in late December 1999. A letter from the general manager for the BMW Southern Region attests to the dealership's performance for fiscal year 2000: 507 new cars and SUVs sold, 27% more than projected; and 152 certified pre-owned Beamers sold.

The new buzzword in the automotive industry is customer satisfaction, an area BMW takes seriously enough to pay its dealers cash bonuses when they surpass goal. For Hank Aaron BMW that translated into a cool $786,000 added to its bottom line. Last year--its first year in business--the dealership had $32.9 million in sales, making it one of the hot new companies to join the BE AUTO DEALER 100 list at No. 87 this year.

Being one of the first African Americans to acquire a BMW franchise was not without controversy. For years, the National Association of Minority Automobile Dealers (NAMAD) had been pressing luxury import auto manufacturers to add African American-owned dealerships to their groups. In February 1998, BMW announced its intention to appoint at least 10 black-owned dealerships by 2000. Hank Aaron BMW was among them. The significance is not lost on Aaron.

"Why was I chosen?" retorts Aaron when asked. "Just because I had been a baseball player didn't mean I didn't know how to run a business," he says. "I have 17 successful fast-food restaurants with Church's, Popeye's, and Arby's. They knew I had some experience running a franchise operation. I accepted the challenge that I could put minorities in charge and run a dealership."

To assist him, Aaron tapped Sidney Barron, an African American sales veteran with 12 years' BMW experience from another Atlanta franchise, to become his dealer-operator and general manager. Barron had been consistently ranked among the top three salesmen in Atlanta for a decade. "I knew I could do this job with some support," says Barron.

About a month before opening, Barron developed a marketing campaign announcing Aaron's new dealership. He spliced together old baseball clips of Hammerin' Hank with Aaron introducing his new lineup of all-star veteran sales and services staff; the ad ran on local cable TV.

As a new kid in the neighborhood, Hank Aaron BMW is taking advantage of its proximity to Atlanta's Hartsfield International Airport to help market its services. Its prime feature--a parking and ticket service whereby BMW owners can drop off their car in pre-designated parking spaces to have it serviced while they are gone. The $1,200 per month fee (that Aaron BMW pays) for six spaces more than pays for itself, says Barron. Customers--and potential customers--can log on to Aaron's Website, www.hankaaronbmw.com, to schedule service for their car or airport drop off, order parts, shop for a car, or get a loan preapproval.

As the fourth BMW dealership in Atlanta, Aaron has set his sights on being the largest dealership in the city. "I'm used to batting in the fourth spot and being No. 1. The growth is here and we've done much better starting out than anyone has expected. We'll be one of the most successful dealerships in Atlanta," proclaims the home run king.

ALERT TO NEW OPPORTUNITIES

When the temporary staffing industry was created more than 50 years ago, an African American woman would have been a rare find among employees sent out to fill a position. While it is now de rigueur to find African Americans among the temp pool, it is still rare to find them in the CEO's seat. But that's exactly where you'll find 39-year-old Victoria Lowe, founder, president, and CEO of Alert Staffing, a $204.2 million staffing services firm, the first such company owned by a woman to join the BE 100s. Alert is No. 13 on the BE INDUSTRIAL/ SERVICE 100 list.

Based in the Los Angeles area, Alert Staffing has grown from a fledgling start-up with four employees and $600,000 in sales in 1995 to 135 full-time employees and 5,400 associates on assignment in 35 states in just five years.