Are you thinking of moving to an island paradise to start a small business? Have you imagined what it feels like to live in a tropical paradise amidst the sun and beaches while earning money? Do you want to get away from the dull hustle and bustle of your regular life? If your answers to these questions are yes, then you are in the right place. This article will tell you the most important things that you need to know about moving to a paradise and starting a small business there.
If you don’t have enough money to start a business, small business loans can fund your business move to an island for that dream business of yours. So, what are the basic steps to take to do this? Read further to find out more.
Create your island business plan
The first thing you need is a business plan. Write a solid business plan with estimated costs, estimated revenue, profit-making plans, future expansion plans, fundraising plans, the estimated number of employees, proposed office rent costs, project timeline, etc. A business plan forces you to think thoroughly about your business.
Passport and residence permits
The next thing you need to do is make inquiries about the island you want to move to and find out about the visa application and residence permit processes. Some paradise islands have special visas and permits for investors. Apply for them and get them.
Permits and licenses for starting a business in Hawaii and other Islands
The next thing to do before starting a business in Hawaii and other islands is to get a business license. A business license application in Hawaii costs $20. You might also be required to get other permits apart from the license, especially if your business has something to do with food and drinks.
The United States Small Business Administration (SBA) has an office in Honolulu, Hawaii, and some other affiliated islands. So, you are still eligible for small business loans from the SBA and other American companies and organizations if you are opening a business in those places. The SBA corporate office and other government offices and websites on the island will point you towards the right licenses to get.
Paradise islands to move to
Some suitable island paradises to move to and start small businesses include Hawaii, Zanzibar, Bahamas, Guam, The British Virgin Islands, St Kitts, and Nevis, Maui, Dominica, Grenada, Antigua and Barbuda, Saint Lucia, etc. These locations are quite business-friendly with reasonable tax rates. They are quite western-like in their business dealings and traditions, so you will find it easier to adapt to these locations.
Profitable Island businesses
Most profitable island businesses are tourism-oriented, but you can also start a business targeting locals. Tourism-based businesses include hotels, motels, Airbnb, gift and antique shops, spas, beauty salons, restaurants, bars, canteens, small food trucks, boating companies, tour companies, jet ski rental companies, gaming cafés, etc. You can also start a digital business that doesn’t necessarily require a physical presence for patronage.
Pros of starting a business on holiday islands
- Possibility of making a lot of money
- Beautiful sceneries that facilitate creative business thinking
- Lower cost of living than some US states
- Good, relaxing break away from regular life
- Hands-on entrepreneurship experience that can lead to international expansion and growth
Cons of starting a business on holiday islands
The cons of starting a business on a vacation island include the following:
- Lack of plentiful human capital
- Limited variety of businesses that will work as you are mostly limited to tourism-related businesses or remote businesses that you can run via the internet
- Office space is limited and typically small.
- Some islands have a high cost of living, especially for foreigners residing there
- You might start to miss urban cities later
Starting a business on an island is a worthwhile, enjoyable experience that will bring out the international entrepreneur in you. Take your time before starting and follow the tips in this guide thoroughly.