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-   -   Low Income Neighborhood, High Revenue Potential (http://www.smallbusinessbrief.com/forum/showthread.php?t=9170)

taxpro24 11th December 2006 09:34 PM

Low Income Neighborhood, High Revenue Potential
 
Hello Everyone,
I am from Milwaukee, WI and I am looking for some input about a property I own. Allow me to describe the area. It is a low income area, yet we have been in this neighborhood for over 3o years. We own all the buildings on our block and currently operate a laundry mat, and restaurant in one building, a grocery store in another building, and the building I am referring to is in between these businesses. We have lots of foot traffic, and we are on a high traffic street. We had a cell phone store that we were leasing in there, but the tenant got evicted and we haven't found a replacement. Behind the building is alot of space for maybe an install area or something dealing with cars.

I was thinking maybe a low end electronics store, since there isn't one in the area. Also, mix a basic car stereo install bay. Mainly radio and speaker installs.

If anyone has any input on this, or better ideas I'm completely for it.

Thank You,
Sam

Logan 12th December 2006 08:41 AM

I think there may be many potential businesses that could work, but probably where I would start seeking ideas is by talking to people in the area. What type of new business would those customers of the restaurant, grocery store, etc like to see. While I wouldn't go solely based on that, it may help you identify the potential demand for different types of businesses.

WebBizIdeas.com 12th December 2006 04:27 PM

Milwaukee Business
 
Hey Sam,

Where is it in Milwaukee? I am from Mequon WI, granted it is not the same neighborhood but I am would be interested to know.

Jeff Foster

taxpro24 13th December 2006 12:15 AM

It is on the North Side of Milwaukee very close to State St. I guess a small sample survey could be used, but it would have to generate some good questions. I'm still thinking some sort of electronics store because there arent any in the area, but Im still hoping that I can generate some more ideas. That is a good idea Logan, whatever the idea it has to fit with the laundrymat and grocery store. I have lots of time so there is no rush to jump into anything. Also, because there aren't any electronics stores I worry that the potential customers are buying from Wal-Mart and I would need to sort of get a niche market of low-end quality products with an emphasis on customer service. I've been looking for an electronics wholesaler who is reputable, but haven't found one that sells good products for a good price.

Sam

Cratima 12th January 2007 08:23 AM

Since your business is specific to the fact that you have a lot of passenger traffic and actual space, it wouldn't hurt to have a look on magazines that deal with start-up businesses. You can find valuable information in there.

WebBizIdeas.com 12th January 2007 10:43 PM

Which business you should start
 
Hi Sam,

I know where you are talking about, and I would like to offer a suggestion on how to make the most revenue in a low income market.

First, being from Milwaukee we can both agree that the city is trying to clean up and improve the entire city. Miller Park & Potawatomi Bingo Casino, and the painful Marquette Interchange project are large examples of the city trying to 'revive' the city/business in my mind.

So one I feel you are in a good situation down because down the road your low income business district may not be so 'low end' in the future. But I dis-agree with offering products & services to low income family's that are not 'needs.' I feel you have a responsibility as a business owner to shape the future of Milwaukee.

I have down plenty of research on market trends and companies in the rise. One of the largest contributing factors I have found are companies that provide a greater good to their community, city, are having great success. I suggest you find a market that provides a greater good for Milwaukee, especially the low income families around the area.

People do not need electronics, they do need a grocery store & laundry mate. I think if you focus on providing a greater good to Milwaukee and your local community. I have a feeling if you can find a market that helps the local community you will find a profitable market since their is a strong push to improve Milwaukee's economy, plus it is the right thing to do :)

I think you should read Muhammad Yunus, Banker to the Poor book. He won the Nobel Peace Prize and it all started out by his quest to help the poor get out of poverty & from inevitable death. His whole philosophy was lending money to the poor, his Bank now does over 5 billion in revenue

You should also pick up the current issue of Fast Company (Dec 2006 | Jan 2007) - Social Capitalist Awards. It explains how social organization are finding 'doing the right thing for the world' & 'finding new markets' are the same & very profitable. Proctor & Gamble's PuR water purification product is a very good example of how targeting the developing world and providing a product / service that is needed and helps out countries are extremely profitable markets to be in.

I hope this helps.

Jeff

lovelyd 25th January 2007 07:07 PM

Sounds Exciting . .
 
I don't have any specifics about the area you speak of but the first two businesses which came to my mind were.
1. Day care center
2. Income tax business

Why . .?
Low income areas usually have children, working class families. Since they are low income they must likely qualify for benefits such as child care. That covers you with the daycare expenses.
Also income tax business because again the children and the fact that the majority of the income tax returns you prepare will be simple returns.
They have no property, no business thus no shedule c or a etc.
So, basically at tax time you will be preparing a bunch of tax returns under 40,000.00 and most likely the earned income on the majority of the returns will be even lower than that.
Thus, qualifying them for Earned Income Credit/child and dependant care credit and additional child tax credit. Which ensures that they can afford your tax preparation fees.

After all service is the best business.
Hope I helped


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