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What's it like for a small business owner in Hawaii?

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  • What's it like for a small business owner in Hawaii?

    I am thinking about moving to Oahu and starting a small self-storage business. I would love to know if there is anything anyone could tell me about starting a small business -- local culture, what to expect, etc -- and also whether self-storage is a good idea. I found this article that seems to say there is a market for self-storage. Is this true? Thanks for any insight.
    http://the.honoluluadvertiser.com/ar.../bz/bz03p.html

  • #2
    Re: What's it like for a small business owner in Hawaii?

    it's a big active industry kinda maxed out except maybe in kapolei where there may be potential.
    lotta competition among the respective companies. but look for a growing community like Kapolei.

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    • #3
      Re: What's it like for a small business owner in Hawaii?

      Thanks for response. I will check into it. I kind of figured with such limited space on island, there would be a need for storage. Any tips for doing business on oahu -- where to advertise, etc. Aside from phone book are there certain publications that people read?

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      • #4
        Re: What's it like for a small business owner in Hawaii?

        Do not pass go, but do go directly to the Small Business Association Hawaii website. It's got a lot of helpful information about starting a small business in Hawai'i. I would strongly recommend that you check out all the regulatory stuff and know before you start your business what your financial liability is likely to be. As we are reminded constantly, Hawai'i is an anti-business state with very high taxes.

        Miulang
        "Americans believe in three freedoms. Freedom of speech; freedom of religion; and the freedom to deny the other two to folks they don`t like.” --Mark Twain

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        • #5
          Re: What's it like for a small business owner in Hawaii?

          Step one: Get a GET license from the State Tax office
          Step two: Register your business with the Dept of Commerce and Consumer Affairs to get your DCCA number
          Step three: Get a Business checking account

          These first three steps in that strict order is essential for starting a business here in Hawaii because you cannot start a business checking account without a DCCA number and a GET license, and you cannot get your DCCA number without first having a GET license.

          Once you have all three in check, then you can proceed. Storage facilities are in hot demand now especially out in West Oahu where small homes are the norm and there's no place to put your stuff. Most of these new subdivisions are located within associations that prohibit on-street parking or parking your cars in your driveways. And because space is a premium most homes being built lack adequate storage solutions so new homeowners are forced to rent storage lockers. CHA-CHING!

          If you can afford a pick up/delivery/storage service so homeowners don't have to deal with the hassle of packing, delivering and storing it themselves, at an affordable price, then you got the edge. 24-hour access and security is important but also scalable pricing is also important as storage per sq ft is quite expensive.

          One thing I'd love to see in a storage locker facility is a coin operated self car wash as seen on the mainland. People who live in condos, rent storage lockers. People who live in condos don't have ready access to a water bib and a garden hose to wash their cars.

          People who live in condos have dirty cars and a lot of stuff to store. Put a coin operated self service car wash and you've created a niche market for your business, throw in a laundromat, a small video rental store and a sundries store and I think you'll be very happy with your monthly earnings.
          Life is what you make of it...so please read the instructions carefully.

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          • #6
            Re: What's it like for a small business owner in Hawaii?

            Originally posted by craigwatanabe
            People who live in condos, rent storage lockers. People who live in condos don't have ready access to a water bib and a garden hose to wash their cars.
            Nailed it again Craig... that's what this town lacks, a place for apartment/condo-dwellers to go and wash their cars. McKinley Car Wash is cool, but it starts to put a dent in your wallet after a while...

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            • #7
              Re: What's it like for a small business owner in Hawaii?

              Once again, thanks for so much great feedback. I will take all of your recommendations. I know I need to do a lot of research before I even begin this process, but you guys have given me a great start. Thanks.
              Last edited by JPN; July 28, 2005, 03:18 AM.

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              • #8
                Re: What's it like for a small business owner in Hawaii?

                Originally posted by JPN
                Thanks for response. I will check into it. I kind of figured with such limited space on island, there would be a need for storage. Any tips for doing business on oahu -- where to advertise, etc. Aside from phone book are there certain publications that people read?

                Make your business name as generic sounding as possible because when people are looking for a product or service they won't be looking for JPN but they will see JPN SELF STORAGE. That's why AAA Self Storage does such tremendous business...first in the yellow pages. Big bold ads with SELF STORAGE sells.

                Put ads in real estate magazines, the newspaper, even the Buy & Sell weekly tabloid magazine. Place ads in the rental section of the paper and print tons of business cards. Word of mouth sales does well here.


                Good luck!
                Last edited by craigwatanabe; July 28, 2005, 09:28 AM.
                Life is what you make of it...so please read the instructions carefully.

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                • #9
                  Re: What's it like for a small business owner in Hawaii?

                  Thanks for tips. That all makes a lot of sense. I do appreciate your feedback and will keep you posted.

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                  • #10
                    Re: What's it like for a small business owner in Hawaii?

                    I'd agree with Kimo that it's actually a well-represented market, with lots of competition and established companies.

                    A few years back when the commercial real estate market was depressed, nearly every empty building became a "Self Storage" location. I can think of five or six I pass in a given day, just off the top of my head. And of course, now there's a real estate land rush, so finding warehouse space (even just to store your own stuff) is much harder, and the lease expense will be greater. There've been a few stories about non-profits who, up until now, were able to store their stuff for free out of the goodwill of landowners - no more!

                    It's not an oversaturated, cut-throat business like, gee, inflatable rentals, but... you'll have your work cut out for you.

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                    • #11
                      Re: What's it like for a small business owner in Hawaii?

                      Price and convenience is what will get you business. When I was transisitioning from Honolulu to the Big Island, my family went up first while I stayed back to finish cleaning up the rental and ship up the immediate stuff. All the while earning a paycheck while my wife looked for a job in Hilo.

                      I called every self storage business and all of them didn't fit my needs for price and convenience. Only one did and that was the one on Kapiolani Blvd near the BMW dealership. I ended up finding a great deal from a friend of mine in Manoa. He needed someone to stay at his auntie's house while she stayed at a nursing home. He needed someone he could trust to not take any of her things and he couldn't stay himself as he has a family at his own home.

                      Basically he needed someone to live in a house that had priceless Ming Dynasty pottery and furnishings. So you can imagine his paranoia. I ended up staying there for about a year until I moved up to Keaau for a rental of $850 a month for this two bedroom bungalo including phone, electricity, water and cable. That's not bad for Manoa.

                      But getting back OT, price and convenience is important to beat out the competition. Make sure you check out what the competition is offering before establishing your criteria.

                      Short term low cost storage is just as important as long term. A lot of places require credit checks. This will deter those who have bad credit. You can counter this by requiring these customers with month to month leases with an upfront deposit.

                      Some people don't require air conditioned high security lockers. So offer lockers that are just plywood boxes with padlocks out of the elements as a low cost alternative to the steel roll up high security lockers.

                      In other words offer a variety of lockers for a wider range of storage solutions.
                      Life is what you make of it...so please read the instructions carefully.

                      Comment


                      • #12
                        Re: What's it like for a small business owner in Hawaii?

                        Thanks guys. I do know how expensive warehouse space is and I know it'll be tough if I decide to try it. As a kind of a related business I was thinking of providing moving services. Do people move around a lot on Oahu or do they pretty much stay in one place?

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                        • #13
                          Re: What's it like for a small business owner in Hawaii?

                          Originally posted by JPN
                          Thanks guys. I do know how expensive warehouse space is and I know it'll be tough if I decide to try it. As a kind of a related business I was thinking of providing moving services. Do people move around a lot on Oahu or do they pretty much stay in one place?
                          Not much space on Oahu to move around.I have managed hotels and owned motels and self-storage businesses are like motels for things and not people.
                          A lot less headaches than people partying and wrecking motel rooms.Another related business but requiring much less space would be private mailbox services like Mailboxes,Etc.I use my UPS Store (which is related to Mailboxes Etc) mailbox all the time for my Ebay business and for receiving packages.
                          When I move to Honolulu I will definitely be getting a box right after my bank account is set up.Check out franchisegator and franchisedirect for franchises available.

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                          • #14
                            Re: What's it like for a small business owner in Hawaii?

                            Actually people move around a lot having a high rental market on Oahu. At the end of every month you'll see pick up trucks loaded up with household goods as they go from rental to rental. That's why swap meets and garage sales are the best near the end of the month as people move.

                            This is why short term storage lockers are so important. It's hard for some renters to move all of their stuff on the 31st of the month and have to move it into their new digs on the 1st of the following month.

                            If they had a reasonably priced storage locker they could rent for only two months while they slowly move out of their rental then slowly move their stuff into their new rental the following month, it would make life so much easier for them.
                            Life is what you make of it...so please read the instructions carefully.

                            Comment


                            • #15
                              Re: What's it like for a small business owner in Hawaii?

                              Thanks once again for your input. Although I'm only at the beginning of my research, your insight is invaluable. I will keep researching and come back here if I have any questions. I am new to this site and I feel that this is a great place on the web. Having visited Hawaii a number of times, I'm not surprised how helpful and friendly everyone is on this site. Hawaii just seems to bring out the best in people. It's such a special place with incredible people.

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