LIHU‘E — Small businesses are Hawai‘i’s largest economic engine, accounting for more than three-quarters of the state’s economy. On Kaua‘i, more than 80 percent of small businesses have four or fewer employees. The self-employed are also considered small businesses. But
LIHU‘E — Small businesses are Hawai‘i’s largest economic engine, accounting for more than three-quarters of the state’s economy. On Kaua‘i, more than 80 percent of small businesses have four or fewer employees. The self-employed are also considered small businesses. But what does it take to start a small business on Kaua‘i?
“The most important part about starting a business is planning,” said John Latkiewicz, Kaua‘i Director of Hawai‘i Small Business Development Center, and the island’s authority in the field. “A plan gives you a sense of projection towards your goal. Without a plan, there is no future to build on.”
Consulting with a professional who will evaluate the strength and weaknesses of your small business project, he said, is acknowledged by all related organizations as the first step, and there is ample help to realize it.
The center is dedicated to helping small business entrepreneurs to achieve their goals by first evaluating the feasibility of their concepts. Not every concept makes sense, but all require emotional strength, Latkiewicz said.
“It takes a clear thinker with high tolerance for risk,” he said. “And it takes a problem-solver who knows when to ask for help.”
All too often, first-time entrepreneurs do not dare ask for help, according to Latkiewicz, who said pride or fear of failure usually account for that tendency.
“We’re here to help,” said Latkiewicz, adding that being responsible, accountable and willing to do all jobs are essential to succeed.
SBDC provides a broad-based system of assistance for new and existing small businesses by linking the resources of federal, state and local governments. Its services range from business plans, loan applications, strategic planning, financial projections, financing strategies, management strategies, procurement bids, grant applications and more.
“We’ll make sure you start off with a good plan,” said Latkiewicz. “Best of all, we do it at no charge.”
Knowing the market, one’s product and one’s target from the start is essential, but “knowing yourself” allows for a greater understanding of your vision, Latkiewicz said.
“The more you know yourself, the more you’ll stay consistent with the original plan, and the better you’ll adapt to problems along the way,” he said.
The inability to come up with a sound plan from the get-go accounts for the majority of failures, according to Latkiewicz. In this era of litigation, one must be fully informed about the state’s rules and regulations to avoid ending up in court for failing to implement a sound plan.
Much of Kaua‘i’s workforce is linked directly or indirectly to the visitor industry. Accommodations, eateries, retail services, transport and activities comprise a significant portion of Kaua‘i’s economy. The safe small business entrepreneur might look into this specific arena first.
Health care is the second economic driver on Kaua‘i, and the primary one on all other islands.
Omitting the altruistic few, what drives most entrepreneurs is money, Latkiewicz said.
“I don’t care if someone wants to sell $10,000 watches or start a green business, as long as it’s not illegal,” he said. “Money is what they’re after. On a personal level though, I like to see clients who benefit the community.”
Find your niche
Jennifer Roy started Green Clean Kaua‘i a year ago. She registered her sole-ownership business online for $100.
“The state makes it very easy for you,” she said. “I wanted to do something different from the other cleaning companies on the island.”
Roy said her clients expect consistency, which is not always the case with her competition.
“People like that,” she said. “There are a lot of people on the island who say one thing and do another, or they say they’ll show up and they don’t. They say they’ll do a good job and guess what? They don’t.”
Being self-employed entails taking care of every aspect of the business, according to Roy, who is “in charge of it all,” from bookings to accounting to cleaning.
“I sometimes hire someone for the day if the job is too big,” she said. “It’s hard, but at least I earn a decent living here. I don’t know how people make it with $10-an-hour jobs.”
By charging $30 per hour, she says she can make it comfortably.
The Hawai‘i Business Research Library offers information on anyone’s business competition. This gives one an idea of whether to pursue a given project before spending too much time, energy and money on it.
But the competition should not stop one from figuring out a niche. Roy said she found her niche after researching online.
“I couldn’t find any company that used green products,” she said. “There was my niche. Most people here are tired of the chemicals that are dumped everyday in nature.”
More help
The Kaua‘i Economic Development Board’s mission is to explore ways to diversify the island’s economy and create and strengthen industries that can flourish on Kaua‘i.
KEDB has more than a dozen government affiliates, including the Kaua‘i Chamber of Commerce, the county Office of Economic Development, Kaua‘i Community College, the Governor’s Office, High Technology Development Corporation and the Kaua‘i Visitors Bureau.
The United States Department of Commerce states that 70 percent of small businesses will make it through the first two years, while only 25 percent will still be around after 15 years.
Being at the right place at the right time with the right business is essential. By utilizing their strengths, new business owners are more likely to succeed. The more experience in one’s venture, the more likely one will find a lender.
Many lending institutions look forward to helping out the right small business entrepreneurs through grants, foundations, loans and other financial sources.
Without a good credit score, new business owners must invest their own money.
Having collateral is also an option for the eligible entrepreneur.
Do you have a business idea?
LIHU‘E — Are you thinking of being your own boss and starting your own business? Do you know what you need before investing time and money in your idea?
The Hawai‘i Small Business Development Center will present “How to Start a Business on Kaua‘i” workshop in a couple of weeks.
Participants will learn about entrepreneurship, forms of business organization, key ingredients for business success, steps involved in starting their own business, sources of capital and services offered by the Hawai‘i SBDC Network as well as other resources for the startup business.
The worskhop will be conducted June 26, from 5:30 p.m. to 8 p.m.
There is a registration fee of $20.00, and pre-registration is required at www.hisbdc.org.
Call 241-3148 for more information.
