Blog Archives - Pacific Rim Business Consultants - The Leader in Business Consulting Services in Hawaii

Hawaii has Hotels, a few Motels and Some Bed & Breakfasts

8/30/2014

Hawaii is know for it's hotels located on some of the most scenic beaches in our beautiful islands. But what Hawaii has few of is Motels like you see on the mainland. Why? Our driving distances can be covered in hours not days and the longest drive would be the circle island drive on the Big Island. Put another way, there is little need for road side motels because there is little need for the road traveler to stay over night on any one island. The exception is the Big Island of Hawaii (about the same size as the state of Connecticut) where you do find a few properties that serve day traveling guests.

Otherwise, our hotels large and small are positioned to serve the long stay tourist who has flown to their island of choice. One interesting note is that B&B's do exist on some of our islands. On Oahu there is an ordnance that makes operating a B&B illegal (but you do find illegal operations advertised on places like Craig's list). There are several on the Big Island, Maui and Kauai to choose from.

B&B's can be interesting small businesses to operate since your home is your business. If you like interacting with people and enjoy serving up great Aloha Hospitality then a B&B might be your answer.

If you would like to say in a Big Island B&B go to http://stayhawaii.com/index.html, you will find a number of excellent B&B's to choose from.

If you would like to buy or sell a B&B, Motel or Hotel in Hawaii, give Pacific Rim Business Consultants a call at (808)744-1826. We have extensive experience with these types of businesses.

Best Franchise Sales Per Store

8/29/2014

Did you ever wonder what is the best food business to be in? Food in its' many forms is part of our daily routine. We have many forms of food offered to us from sit down restaurants to fast food. But which ones are the winners based on average sales per store?

According to MSN Money Magazine, via Carol Tice, of Forbes Magazine, Chick-fil-A tops the list. The interesting thing about this company is that they operate only (6) days a week...never on Sunday. They average about $3.1 million dollars per year per store in top line sales, easily defeating McDonalds who holds the number two position at $2.6 million per store. Number three is one most of us would not be familiar with at $2.55 million per store...a company known as Jason's Deli out of Texas.

Now one could argue that the top line is not as important as the bottom line. So you should keep in mind that efficiency of operations and management will pay a key role in bottom line performance.

But having a "healthy top line" is always a nice thing to have. When seeking a franchise look at their history of success. The Franchise Circular Offering Document names each of the franchise owners and you are allowed to get in touch with them and ask questions.

Doing Business with the Military in Hawaii

8/27/2014

Doing business with the military in Hawaii can be good business. The combined military spending makes the military the second largest business in Hawaii. So it is very important the small business owner in Hawaii know how to do business with the military.

No matter what you make or sell ( with very few exceptions) the military is likely a buyer. They love to do business with small business but you have to approach it correctly. One of the ways to do this is to go to www.sba.gov and search for doing business with the military.

Here is a great website to help you through the process, http://www.defense.gov/landing/contract_resources.aspx. This is the site for the U.S. Department of Defense which deals with all branches of the military. The only exception here would be the U.S. Coast Guard. Go to http://www.uscg.mil/acquisition/business/business.asp because the Coast Guard is controlled by the U.S. Homeland Security Administration.

What is Scaling?

8/24/2014

Many of you watch the show a TV called the "Sharks." It is an interesting reality show about real investors and real small business people looking to find money to build their businesses. One of the comments that comes from the Sharks quite often is whether the product is "scalable."

Why do they ask this question and why is it so important to the possible investment they would like to make?

Here is a definition of Scalable: Investopia says, "A characteristic of a system, model or function that describes its capability to cope and perform under an increased or expanding workload. A system that scales well will be able to maintain or even increase its level of performance or efficiency when tested by larger operational demands."

Put another way the Sharks are saying the business can be expanded to fill the apparent need in the market. Expanded at a rate that is manageable and quite possibly delivered with less cost as production and marketing efficiencies increase.

This wets their appetite for investment dollars because they see lots of profits in the future. Therefore, they try to make a deal with the small business entrepreneur that offers up the idea.

A good idea turns into a great idea when it can reproduced in volume!

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Keep Track of What is Going on in Your Business!

8/23/2014

Here is a perfect example of why you have to know what is going on in your business.

According to Hawaii News Now, in 2012...

" A Honolulu realtor and businessman was sentenced to prison time today for stealing nearly $285,000 over a five year span. The FBI says it should serve as a warning to small businesses to keep track of their cash flow. 33 year old Scott Kamiya was sentenced to 33 months in prison, then five years supervised release and he has to pay back $243,000 he stole from clients. He already paid $40,000 to the victims.

Inside the courtroom he accepted responsibility and apologized to the victim's family and to his own family. He says he is not happy about what he did and will try to make good. After the sentencing he was far less talkative.

"I'm sorry for what I did and any other statements you can talk with Blake (Okimoto, his attorney)," said Kamiya.

Judge Leslie Kobayashi said his crime wasn't some moment of weakness. There were 107 documented times over five years where he forged checks or altered payees in order to pay for his own failing businesses using premeditated and sophisticated means. It was stated in court Kamiya lied to victims for over a year and it wasn't until the FBI got involved did he begin to fess up..."...

"It was a very difficult sentence. It was a very difficult sentence for the defendant as well as the victims. I think justice had to be done. I believe the judge considered every factor in dealing the sentence," said Blake Okimoto, Kamiya's Attorney.

"From the FBI's perspective we just hope that today's sentencing will provide some closure to the victim's family who not only suffered an economic loss but suffered a loss in the trust they placed in Mr. Kamiya," said Tom Simon, FBI Special Agent. "The FBI also hopes Mr. Kamiya's embezzlement also provides a lesson to small business owners that they need to keep track of their cash flows and if something doesn't seem right the tough questions need to be asked."

Your bookkeeper is an important member of your team. But you are just as responsible as the bookkeeper if you are not keep track of what is going on!

Hidden Costs of Doing Business in Hawaii

8/22/2014

In other blog comments we have made, we talked about the Jones Act and how it impacts the cost of goods here in Hawaii. But when doing your operating budget for all the islands, you should always remember that things cost more on the Outer Islands, as opposed to Oahu. Why? Because goods that are shipped to Hawaii generally come to Oahu first and then are shipped one more time to get to one of the Outer Islands.

Gasoline is a good example, there is always about a 10 cent difference in gasoline costs between the Outer Islands and Oahu. Considering your higher costs of doing business on one of the Outer Islands is important when you doing your budgets for all island operations.

Other factors play into your planning as well. The Island of Kauai has a population of approximately 50,000 people. They have a much smaller labor pool than Oahu which has about 1,000,000 people. Therefore, be very sure you can find the manpower you need when opening a new business on one of the Outer Islands. You might not find the talent and therefore have to import talent either from Oahu or the Mainland.

We at Pacific Rim Business Consultants offering Consulting Services for small business investors and owners. Please get in touch with us at (808)744-1826. We would be happy to help with any small business planning you might n

Whats Hot In The World of Small Business Sales

8/21/2014

Every month, Business Brokerage Press publishes it's list of the hottest businesses in terms of their sale and closing.

Here are the results for July 2014.

Restaurants
Convenience Stores
Bars
E-Commerce Businesses
Fast Food – Non Franchises
Motels
Liquor Stores/Off Licences/Wine Merchants
Sandwich Shops & Delivery
Fast Food Franchises
Pizza Delivery Businesses

If you are one of the above and would like to sell your b business, now is the time. Call us at 808-744-1826, Pacific Rim Business Consultants.

Five Reasons To Use a Business Broker

8/20/2014

Here are five good reasons to use a Business Broker when it comes to selling your business.

1. 100% of your time can be used to run your business. Let the Business Broker handle the inquiries and qualification of the buyer.

2.   Business Brokers know the pulse of the market, especially in the area of financing. Most buyers need some kind of financing and Business Brokers know where to get it.

3.   The people who actually come to and deal with a Business Broker are qualified as to their ability to buy before they ever get close to your business.

4.    A Business Broker uses a "bounce off "effect when someone inquiries about one of their listings other than yours. Many times buyers don't really know what they want and will inquire about something because they are curious.   The Broker will move their interest to your listing when he knows the fit is right.

5. Appropriate legal documents are signed on your behalf by the business broker to protect the confidentiality of your information.

Let Pacific Rim Business Consultants be your Business Broker. Call us at (808)744-1826, www.pacificrimbusinessbroker.com.

How Does the Jones Act Effect Hawaii's Economy?

8/18/2014

There is much discussion here in Hawaii about something called the Jones Act. This law was signed into law in 1920 and is also known as The Merchant Marine Act of 1920. In a nut shell it says U.S. Marine Ships must carry goods between US Ports. This act impacts, Puerto Rico, Hawaii and Alaska and other US possessions.

Here is the problem. When the ships come from the Mainland, they are full...when they return to the Mainland ...they are mostly empty. This translates to higher shipping costs for Hawaii goods. About 95% of all Hawaii's food comes from the Mainland and it is easy to see how this would impact the cost of food.

According to the Heritage Foundation, "The Merchant Marine Act of 1920, more commonly referred to as the Jones Act, is a protectionist measure that regulates domestic U.S. shipping practices. The Jones Act mandates that any goods shipped by water between two points in the United States must be transported on a U.S.-built, U.S.-flagged, and at least 75 percent U.S.-crewed vessel. Originally conceived to sustain the Merchant Marine fleet after the First World War, the Jones Act has become the support system for domestic commercial shipbuilding. "

It is time to update or change this law. Hawaii Small Business and all Hawaiians are being effected by an old law that may have had a good intentions many years ago, but today, it makes no sense. If you have a different view, we would love to hear your side of the story.

Hawaii's New Governor: Positions on Small Business

8/17/2014

We have just made political history in Hawaii. The standing governor Neil Abercrombie has been defeated in the 2014 Democrat Primary. This has never happened before and is not likely to happen again for some time. Voters now have a chance to look at three men who will be running for Governor.

State Senator David Ige (Democrat) Lieutenant Governor James Aiona (Republican) and former Mayor of Honolulu Mufi Hannemann (Independent) are your choices. As business owners we encourage you to look at their positions on small business in Hawaii. Other than tourism and the military, small business makes up the bulk of Hawaii's economy. It is important you support the candidate that is going to work for small business.

Get involved, ask questions, read their platforms. See who the real deal for small business is all about.

Please call, e-mail, fax or write us - 24 / 7 - 365 days a year.

Pacific Rim Business Consultants
License # RB-19229
Hawaii Real Estate Broker
Russell W. Rodgers
Licensed Hawaii Real Estate Broker
842 Kealahou St.
Honolulu, HI 96825
Phone: (808) 744-1826 *24 Hrs*
Fax: (810) 213-0244 *24 Hrs.*
Skype: Marine19765431
info@pacificrimbusinessconsultants.com

Russell W. Rodgers
Licensed Michigan Real Estate Broker
6429 E. Atherton Rd.
Burton, MI 48519
Phone# (810) 213-0244
Fax # (810) 213-0244
Skype: Marine19765431
rrodgers@verizon.net

VIPBusinessBroker.com, LLC
Russell W. Rodgers
Licensed Florida Real Estate Broker
VIP Business Broker, LLC
2274 State Rd. #580, Suite B
Clearwater, Florida 33760
Phone # (727)639-4398
Fax # (810) 213-0244
Skype: Marine19765431
info@vipbusinessbroker.com

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