08-28-2015, 08:32 AM
The overall business climate is against you.
Why don't you tell us about your business and some of the obstacles you see in HI
And since my comments were more-specifically directed to the prospect of opening a "light manufacturing" business, tell us if yours is of that type.
There are volumes written on the subject of business, and business in Hawaii. So we can only touch on a few points here.
First, I'm not in the light manufacturing sector, I'm a wholesaler and as such do work with both suppliers and customers as a manufacturer would. In the 20+ years I've been in business I've seen a fair number of suppliers, customers, as well as competitors go out of business. A few due to retirement or personal preference, but most of them due to some form of poor business practice.
You need reliable suppliers, or you won't have a product to sell.
You need customers who pay regularly, because if they don't, and they go out of business with 120 or 180 days past due, the loss could be so great you can't pay your own bills. Most businesses cannot just include large losses as "a cost of doing business" because you have competitors with similar products to yours and you have to match their prices.
Hawaii specifically? I suppose taxes are higher, but everybody else has to pay higher taxes too, so that is worked into your pricing structure. Good employees are difficult to find, but I don't know statistically if it's worse, or a little worse, or a lot worse than anywhere else. If you find a good one, it's worth any price to keep them happy.
Also, pay attention to what your vendors and customers say to you. Are they consistent? Do they have a lot of excuses for failing to deliver, failing to pay, or just a general confusion in what they ask you or tell you? This may reflect in the way that they make decisions, and in how they run their own business, to your detriment.
What about your own Marine based business?
Why don't you tell us about your business and some of the obstacles you see in HI
And since my comments were more-specifically directed to the prospect of opening a "light manufacturing" business, tell us if yours is of that type.
There are volumes written on the subject of business, and business in Hawaii. So we can only touch on a few points here.
First, I'm not in the light manufacturing sector, I'm a wholesaler and as such do work with both suppliers and customers as a manufacturer would. In the 20+ years I've been in business I've seen a fair number of suppliers, customers, as well as competitors go out of business. A few due to retirement or personal preference, but most of them due to some form of poor business practice.
You need reliable suppliers, or you won't have a product to sell.
You need customers who pay regularly, because if they don't, and they go out of business with 120 or 180 days past due, the loss could be so great you can't pay your own bills. Most businesses cannot just include large losses as "a cost of doing business" because you have competitors with similar products to yours and you have to match their prices.
Hawaii specifically? I suppose taxes are higher, but everybody else has to pay higher taxes too, so that is worked into your pricing structure. Good employees are difficult to find, but I don't know statistically if it's worse, or a little worse, or a lot worse than anywhere else. If you find a good one, it's worth any price to keep them happy.
Also, pay attention to what your vendors and customers say to you. Are they consistent? Do they have a lot of excuses for failing to deliver, failing to pay, or just a general confusion in what they ask you or tell you? This may reflect in the way that they make decisions, and in how they run their own business, to your detriment.
What about your own Marine based business?
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves