Abstract
Starting up a new business that is competitive and is in demand by customers is hard to form. The planning stage of the new business is very important and it needs to address five topics. First is to pick out a location suitable for business, and in this case it can be identified as the Waikiki Marketplace which offers little competition for a book store specializing in used books. Secondly, the business idea needs to be solid and the startup costs should be covered. Lease financing and partner capital proves to be the solution in this case. The next thing on consideration is to look at the expected competition and demand. Due to low competition the demand is expected to be high in the case of the book store. With product improvement and positive usage of advertisement and promotions, the demand is expected to be high. Finally, the last part considers the environmental factors. The goal here is to work in a way to make social, economical and political factors favorable.
Innovative Business Set Up in Honolulu
Starting up a new business is a complex process. Even more difficult is to start up a business that is different from the existing competition, and meets the demands of the current core of educated and informed customers. To achieve the desired targets, it is important to look at the perspective location, business idea, expected competition, expected demand, and finally the environmental factors such as social, economical and political which will affect the business. These concepts have been applied to the planning stage of a retail shop carrying used books for sale, based in Honolulu.
Location
Honolulu is the largest city in Hawaii. Therefore, it is the ideal location for a new business to be set up. Location in this city can attract a mixture of both locals and tourists. The ideal location within Honolulu is the little shopping center known as Waikiki Marketplace. On visiting the site, it is observed that little shopping center has no book store. It is a good setting for a small business. Assistance financial programs are also offered for new businesses. The sizes of the shops are small to medium which also fits the ideology for an initial set up.
Business Idea / Startup Costs
The idea is plain and simple, and the focus is on maximizing start up costs. The combination of lease financing for the shop rent and capital of thirty thousand should cover for the start up costs. Along with a physical store opening in the local marketplace, a virtual online storefront is also planned. The web has fast become an essential part of business, and it helps in increasing the sales as it reaches buyers that are hard to reach, for example disabled people. “People with disabilities can have more effective and efficient access to information through accessible Web sites “(Henry 2005). This is just an example of using a website. Another idea incorporated is using a professional Accountant. This will reduce the costs significantly along with having other advantages. “When you use someone with the knowledge that an accountant has, it just makes sense to start off right and make sure you’re complying with state and federal laws” (Fischer n.d). Therefore, the initial idea is to have two mediums of accessibility using the web and the local marketplace.
Expected Competition
The competition in the area is expected to be low to midlevel. No book stores are located in the Waikiki Marketplace. According to the Gaebler Ventures (2008) who are expertise in research for entrepreneurs, there are only 20 book stores Honolulu. Most of these book stores are for new books, and some are big name franchises such Barnes and Noble. Therefore that further reduces the competition in the area for used books.
Expected Demand
After analyzing the competition, it is important to look at the expected demand that will be the guideline to judging success of the book store. The basic tools that will be used to increase demand are media, advertisement and promotion. Advertisement is a vital tool in increasing demand for a product. As identified by Jay Deragon (2008), power is obtained by controlling communications, media and capital. Therefore, communication with the locals is needed. Flyers and the local radio can be good tools to cover that. The promotion of the website will also boost demand. Service is also a part of product improvement, and that is how we target product improvement. The customers visiting the website in search of a book will be provided names of sales assistants that will be assisting them once they reach the store for a book. Books on Hawaii, and Honolulu covering history, famous landmarks and information will be on display in separate sections for the tourists. A grand opening day is planned, which will have promotional offers for the customers. Promotional offers such as free books on the purchase of one book and discount coupons of selected stores of the Marketplace will be offered to boost sales. Therefore, these active efforts to promote the shop will increase the demand and it will result in success for the business.
Environmental Factors
An analysis of factors such as Social, Economic and legal or political will play an important part in making the business successful. A strategy aimed at balancing these three factors will greatly benefit the business. These three factors combined play a great role in the short and long run survival of a business.
Social Factors
Social factors majorly contribute to the success of a business. Acceptance of the community is important to start off. The book store offers educational and intellectual tools at lower rates since it is an used book store. The locals will really appreciate this idea and will have little or no objection as it will be an asset to the community. The social factors are favorable compared to the social factors faced by liquor stores or tobacco shops.
Economical Factors
The recent economic factors of Honolulu are not really favorable. Major operations are shutting down and this is reducing jobs and buying power. In a year of eroding economic conditions across the United States–bank failures, government takeover of lending institutions and Congressional bailouts of high-powered firms like AIG, Moloka’i has become the punching bag for Hawaii’s nearly recessionary economy (Lanier 2008). This is what Lanier has to say about the recent shut down of operations of Moloka’I in Honolulu. This type of economy can work in a positive way for used books which is not a luxury item, and people might choose this cheaper option over more expensive new books.
Political Factors
The size of operations indicates that the political factors should not affect the business in a great way. It is still important for the business to consult experts to make sure that all policies are being met, because recent laws suggest that even organization websites have to follow policies. For example according to Shawn Lawton Henry (2005), not complying with accessibility requirements can result in significant legal costs and have negative impact on the organization’s reputation. Therefore it is important to set even the small details according to policies and laws to avoid political and legal difficulties.
References
- Henry, S.L. 2005. Social Factors in Developing a Web Accessibility Business Case for Your Organization. Web.
- Fischer, K. (n.d). How to deduct business start up costs.
- Gaebler Ventures Company. (n.d). Open a Business in Honolulu, Hawaii. Web.
- Deragon, J. 2008. What Are The 5 Social Business Factors?
- Lanier. A. 2008. The End of Times.