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