People’s News will be a new, small chain of newsagent kiosks located in Chinatown, New York City. Prepared to launch in 2010, the business will open subway station newsstands selling a combination of English language and Chinese language periodicals as well as drinks and snacks appropriate for both markets. Customers are expected to be residents of Chinatown, commuters, visitors, and tourists, as Chinatown is both a shopping and tourism destination for out-of-towners and NYC residents from other neighborhoods. People’s News is so-named for the People’s Republic of China, and will seek to offer a taste of mainland China periodicals and products to customers. It will also provide introductions to American publications to increase the exposure of Chinese immigrants to American culture and language and to better serve English-speaking customers.
People’s News will be owned and managed by Hui Kao, previously a shop owner in China. It will be incorporated as a limited liability partnership with Hui Kao owning 80% of the business and his 22-year-old son, Zhi Kao, owning 20% of the business. Hui Kao plans to give his ownership stake to his son, daughter and/or wife upon his retirement or death. The business is designed to be operated primarily by its owners so that wages and dividends can provide steady income.
Start-up costs for People’s News are limited. The first location for the store will ideally be an existing kiosk which has been abandoned by a previous tenant. People’s News will work with the New York Metropolitan Transit Authority to find a suitable location in the Chinatown area. The ideal location will be at least 75 square feet and located within a subway station. Legal advice will be purchased for low cost through subsidized help from a local Chinese-American nonprofit. Insurance will be paid in monthly installments for liability and business owner’s insurance to protect against liability to employees, customers and the property of the business. $500 in renovations will be budgeted to make basic repairs, refinish, and repaint to improve the stand’s appearance.
Based on a survey of other newsagent businesses, the kiosk will have an estimated rent of $500 per month, and one month must be rented before launch to allow for set-up and renovation. Permits and licenses include incorporation, a Department of Consumer Affairs license, Community Board permit, and Department of Transportation license.
Start-up assets include the cash required to cover operating losses in the early months of operations, basic start-up inventory of $1,000 ($350 for monthly periodicals, $350 for weekly periodicals, $100 for snacks, $100 for drinks, and $100 for candy), current assets ($500 security deposit on space), long-term assets ($500 for refrigerator, $200 for food/snack displays, $200 for periodical racks, $300 for cash register, and $200 for other sundry items).
|Permits and Licenses||$2,000|
|Total Start-up Expenses||$3,700|
|Other Current Assets||$500|