(Editor’s note: This is the 34th installment in a monthly series speaking with minority business owners and leaders. Each will be asked their views on minority-business conditions in the state and for ways to improve those businesses’ chances for success. See previous installments here.)
Muhammad Choudhry’s journey to becoming a business owner wasn’t a straight line to success. After arriving in the United States from Pakistan in 1999, he worked dozens of jobs in multiple states, including Minnesota, Virginia and New York before settling in Rhode Island.
He worked in retail and in gas stations. There was a stint at the Emerald Square Mall. He was even a cab driver in New York City, always saving to launch his own venture.
“The first 10 years were my struggling days,” he said.
Before purchasing a traditional convenience store in 2009 and turning it into BK House of Cigars Inc. on Broadway in Pawtucket, Choudhry lost all his savings on an unsuccessful purchase of a gas station in Virginia.
He had traveled from New York to complete the transaction and, in the end, learned a valuable business lesson: trust but verify.
“The previous owner deceived me,” he said. “There were no sales.”
He was back to square one.
“I lost all my money,” he said. “That wasn’t a good deal.”
Over the last 15 years, he’s found a home in Pawtucket, selling premium cigars, which go for between $10 and $20 apiece, and all of the other merchandise of the modern smoke shop: glass pipes, hookah, cannabis grinders.
He often peruses online wholesalers to find unique products found nowhere else in the neighborhood, such as retro candy bars.
Like many immigrants from the Middle East and South Asia regions, Choudhry experienced his share of discrimination, especially following the terrorist attack on Sept. 11, 2001, when many people were suspicious of others from different cultural backgrounds.
“In the beginning, there were a couple of hard years [following Sept. 11]. Before that, they never asked me where I was from,” he said. “That was hard.”
Flash forward to today, he has forged a bond with his loyal customer base, mostly a lower- to middle-class community. He is a believer in charity for charity’s sake, occasionally fronting regular customers a jug of milk or a pack of cigarettes and telling them to pay when they can.
“People know me, and I know them. My customers are mostly minorities. They don’t give me a hard time. And they pay me back – most of the time,” he said with a laugh.
One customer even took to an online review board to relate how Choudhry gave him a $100 gift card after his house burned down.
BK House of Cigars was also challenged by the effects of the COVID-19 pandemic on the business climate. The store was only closed for a couple of days, as it was deemed an essential business, but for a time, Choudhry had to run the shop by himself.
“Everybody left,” he said.
Choudhry says one thing that has improved is the supply chain issues of months past when products arrived late, if they arrived at all. Just last year he was forced to drive to wholesalers himself to keep his shelves stocked, filling his car with boxes of soda and other essentials from BJ’s Wholesale Club or Stop & Shop.
He still has trouble hiring a full staff. His brother, who was working in Virginia, was willing to relocate to Pawtucket to make it a family business.
“Now we are back on track,” Choudhry said.
1. Do you believe racism is keeping minorities from starting businesses in the Ocean State or succeeding when they do? Since the moment I started my business, Rhode Island has been welcoming to me and my diverse staff. For that, I am thankful. Throughout history, we have seen the relentless roadblocks minority business owners face – whether it’s seeking a loan, acquiring space or even getting clientele. So it is unsurprising that some folks might be deterred from opening a business. However, from my experience, opening a small business has been a good way to achieve the American dream and to serve my community.
2. How dependent is your business on the support of other minority groups? Is that a sustainable business model? The community we serve in Pawtucket is extremely diverse. From both a business and personal perspective, our customers are our most valuable asset, and we have a great appreciation for them. With a diverse clientele, we are able to recognize the needs of different audiences. And by doing that, we are able to be more inclusive. Investing in the needs of your customers is a good model, perhaps the best.
3. What one thing could Rhode Island do to boost the odds for minority-owned business success? I think one hurdle a lot of minority business owners face is securing funding. Grants are one way to help expand the number of minority-owned businesses across the state.
4. Have you had to turn somewhere other than a bank for a loan? Do you believe the state’s lending institutions generally treat minorities fairly? As of now, I have not applied for a loan from the state’s lending institutions, so I cannot speak to that.
5. If another minority entrepreneur asked you where they could turn for support for their business, where would you direct them? Mentorship in any industry is valuable. It can offer support, resources and even change the playing field for any business owner. I recommend that every minority entrepreneur, especially individuals opening their first business, find a mentor. It’s important to cultivate community to truly succeed. In 2004, my brother was working in a retail store in Minnesota near the Mall of America, and he was able to get me a job working with him. I remember watching the owner and seeing how incredibly hard he worked. But he had a good life and a nice house and car. He not only taught me the business but taught me how I could achieve my own American dream and how success is made. n
