People’s News, a small chain of kiosks selling newsagents, will open in Chinatown, New York City. In 2010, the company will launch subway newsstands that sell both English-language and Chinese language periodicals. They also offer drinks and snacks suitable 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 was named for the People’, Republic of China. It will aim to give customers a taste of China-made periodicals and products. It will also offer introductions to American publications to enhance the exposure of Chinese immigrants and improve their ability to serve English-speaking clients. Hui Kao and Zhi Kao will manage People’s News. They were previously shop owners in China.
People’s News will sell the following products at its kiosk locations: Chinese magazines and newspapers, Chinese-American magazines and newspapers, American magazines and newspapers, refrigerated beverages, snacks, and candy. There will be daily and weekly newspapers, as well weekly and monthly magazines.
The business will suffer a modest loss in its first year. However, it will use its positive cashflows in the second- and third years to grow to three stores within three to five years. It will also provide steady income to Hui and Zhi Koo and two other family members or employees. With three stores in operation, the revenue is expected exceed $700,000.
Objectives
People’s News aims to achieve the following goals in its first three-years of operation:
- Establish three store locations
- >Offer full-time employment for four persons (ideally the owners’ family)
- Get revenues of $700,000.
Mission
People’s News has one mission: to build a loyal customer base through the sale of Chinese and American newspapers, magazines, snacks, and candy to New York City residents and visitors. The company will remain family-owned and operated, create steady incomes for family members, and provide employment for as many Kao family members as possible. This business will increase cultural awareness in two different ways. It will offer Chinese-American residents more exposure to American products, periodicals, and services. It also offers non-Chinese customers suggestions on Chinese and Chinese products, periodicals, and services.
Keys to Success
Here are some keys to success for newsstands or the newsagent industry:
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Consider high-trafficked places for the stands
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Offering desirable snacks and beverages as well as reading material for customers who are traveling or about to travel by subway or bus
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Increasing your volume to get better prices from suppliers (expanding to new locations and centralizing purchases)
People’s News believes that its particular success will also hinge on ensuring that all employees are bi- or trilingual (English and Mandarin at least and English, Mandarin, and Cantonese at best).