Mini Monopoly Business in Hamilton

Thorough research is important before starting a mini-monopoly business in Hamilton

To learn about all relevant areas of the business environment, such as governmental regulations and the business climate. Few vendors and numerous buyers of a specific product define a mini-monopoly as a market structure. Mini monopolies face extremely little competition either because there aren’t many companies offering comparable goods or because the company’s business practices have allowed it to dominate all others. If a business establishes itself strategically, it may be able to launch as a market leader (Gruber et al 1653). Information about the market operations and dynamics is necessary before starting a successful company. Therefore, here are some of the information that an entrepreneur needs to know before he starts a gas store, convenient store, laundry mart and a liquor store in Hamilton state.

Gas Store

Investing in gas stores is capital intensive. It requires high investment on equipment and land. Starting a gas store can cost between $1.8m to $2.8 million in Ohio. The entrepreneur can expect the profits at the end of the year, which ranges from $300000 to $500000. The estimated operating costs is $250000 per year, which includes buying products for sale that can range from 150 000 to 160 000 annually. In Hamilton OH 45012, the businesses dealing with gas store products are BP Hamilton, Campus Shell, Conoco, and Hydrogen Fuel Gas Stations. There are about 25 of this type of business. Therefore, setting up a leading business in this area will be met with high level of competition. When starting a gas station, the entrepreneur will acquire three permits, that is, a Gas Station business License, Doing Business as (DBA) License, a Federal Tax ID (EIN), and a Sellers Permit.

Gas stations are also known to have convenient stores with them. If the company will sell any other items such as food and other merchandise in the convenient store, then the government will give other additional permits and licenses for the same. Each type of businesses has different legal requirements. The government ensures that the company fulfills and adheres to the expected standards of quality, safety, and environment protection program.

Liquor store

The liquor business is a good investment due to entry barriers by the Hamilton authorities. There are a few number of Liquor stores in Hamilton, compared to the large demand for liquor. This means that if the entrepreneur is able to acquire a business, this could have the best value for money. The liquor business cost is about $150, 000 in Hamilton especially if the land is a rental. Crates of liquor could cost about $700 meaning that the cost of the stock depends on the size of the store. This is because the stock is accessible in smaller units. The entrepreneur will also have to deal with about 30 major liquor stores in Hamilton. The leaders are Minnick’s-Thru, Noonan’s, Spirits $More, and Kwik N Kold. Acquiring a liquor store in Hamilton Ohio could be a challenging task because the state limits the number of liquor stores in Ohio. The entrepreneur must acquire a liquor permit, which is one of the hardest licenses to acquire. The state of Ohio owns the liquor stores but private individuals run them under an agreement with the authorities. Ohio Department of commerce advertises for three days in the local dailies or once in the local weekly newspapers and calls for applicants to apply for a store permit (Klotz et al 230). The growth of population in an area directs the state when there is a need for a new liquor store (Ohio). Only successful and qualified applicants are issued with the licenses and permits of starting a liquor store in Hamilton Ohio. The liquor stores must remit part of the profits to the Ohio Department of Commerce. Due to the many legal restrictions and paper works, it is advisable to have a lawyer to help in paper work.

Convenient Store

Constructing a convenient store in Hamilton like a 1-storey building, with a floor area of 400 square meters was estimated to be approximate $600000. Initial stock costs around $300000. The entrepreneur will have to contend with competition from about 15 Convenient Stores spread over the Hamilton area. Some of the major stores in Hamilton Ohio are Circle K, Walgreens, Maggard, and Macs convenient stores. Just like other businesses, the entrepreneur will have to acquire a DBA license and a tax certificate. In addition to this, the store will have to acquire other special licenses for any unique product that requires a special license such as alcohol, and gasoline permits (Klotz et al 230).

The authorities such as fire and health department will conduct an inspection to ensure shoppers are protected against contingencies of health and fire. If the business meets the criteria, then it is issued with a license. If any of the business is new and there is construction to take place, the entrepreneur will take a construction permit. Convenient stores are profitable due to the wide range of products they sell. The convenient stores offer a one-stop shopping experience, meaning that a single customer adds a lot of value to the business. There is a possibility of getting loyal customers in this business. Entry in the market is difficult due to the large capital involved.

Laundromats

Benefits of Investing in this type of business are that has a have about 20-35 % return on investment. This could be a safer investment option bearing in mind that people will always want laundry services. It is, therefore, a good investment to consider. The initial investment cost involves acquiring a laundry equipment which ranges from$150000 to $ 450 000 depending on size, sophistication, and quality.

The most convenient space for this type of business costs approximately $200000 to $50000 in Hamilton. The cost of buying an established business depends on the success of the business and the goodwill. The business must get the necessary permit for business. In addition, the business requires other permits such as Water Pollution Control Permit, and health permit. The permits prices vary according to the size of the meter in Hamilton. In Hamilton, there are about 20 other similar businesses. They are Laundry bag, Westside Cleaners, Brookwood Highlander Centre, and Millville Wash N Dry. The entrepreneur should expect high competition even though customers are many. Different local authority departments inspect and verify that the organization is up to standard. If the companies comply, then the local authorities issue the necessary permits and licenses.

Conclusion

Understanding, the industry involves a research about the industries and the companies that offer similar products with the new market entrant. This includes companies that offer close substitutes. Analysis involving determining the number of businesses, cost, legal requirements, and the market of the targeted area is important. This will help the entrepreneur to position the business strategically. By adopting the get-keep-grow strategy, a mini monopoly business can be achieved in any of the four industries.

Works Cited

Gruber, Marc, Ian C. MacMillan, and James D. Thompson. “Look before you leap: Market opportunity identification in emerging technology firms.” Management Science 54.9 (2008): 1652-1665.

Klotz, Anthony C., et al. “New venture teams a review of the literature and roadmap for future research.” Journal of Management 40.1 (2014): 226-255.