STARTING a small business in an untapped market can pose as many challenges as it does opportunities.
STARTING a small business in an untapped market can pose as many challenges as it does opportunities.
While a business concept may make sense to the entrepreneur launching the company, potential business partners, financiers and even customers may struggle to understand the innovative business model and concept.
Before embarking on such a venture, business owners should research whether the idea is feasible, who the competition is, and whether the market can sustain the business, according to the federal government's business.gov.au website.
Husband-and-wife team Ann and Joel Chong have become familiar with these issues, with their small business, DiveDeli, thought to be the first in Perth to offer a dive and culinary package tour.
"Joel had the dream of owning a dive shop but I had the dream of travelling and eating," Mrs Chong told WA Business News.
"We combined the two and created DiveDeli. The name is to remind us of our dream that, eventually, we will retire to an exotic tropical island where Joel will take people diving and I'll be serving margaritas with my homemade cookies."
Mr Chong, who is the company's chief executive, and Mrs Chong, the company's manager looking after registration, marketing, human resources and finances, hope to grow their business in the next year by attracting more visitors to the state's dive sites.
"We hope to bridge the gap and bring them to different dive sites to satisfy their diving curiosity," Mrs Chong said.
But the couple discovered early on that their business venture was fraught with challenges.
"Our major problem is explaining our business concept to our business partners and the relevant authorities, and this problem comes across in so many dimensions," Mrs Chong said.
"Because people do not understand our business concept, it is hard for them to envision any opportunities for cooperation. Thus, we mostly encounter quite a lot of pessimism about our venture."
DiveDeli has struggled to gain representation from international travel agents, which seem unsure as to how to promote the company's packages.
It has also been challenging for DiveDeli to get the proper insurance cover, because it's not a traditional dive centre and does not have a shop-front presence.
"We have overcome these obstacles by persistently and continually communicating our business concept clearly," Mrs Chong said.
"Going overseas to actually train those agents who intend to represent us. It is important for them to understand the safety and risks of diving, to clearly relate the benefits of diving to their clients.
"I think we are the only dive tour operator that is approaching travel agents to do this.
"In our line of work, insurance cover is so important so we had to clearly illustrate our case to our underwriter.
"It was a case of clearly defining our business operations. They were very helpful and found a right and affordable cover for us.
"It was the best day yet for our business. Like what happened to our insurance cover, we had to meet many business operators and talk to them personally.
"It was another case of explaining our business and helping them see the opportunities in our work.
''When we meet business partners who are open and enthusiastic, it is very easy to work together and make things happen.
"We are still trying to meet more partners who can come onboard with us."
