Starting a Business in Las Vegas: Pick the Right Location
When Herlovich started her firm, she knew she had to get out of the house. 'I need an office to go to, people to inspire me,' she says. For $100 a month, a local agency rented her a desk in the warehouse that was used to store Elvis's clothing. Ultimately, having people around the boxes of the King's attire made the agency too nervous, so she set out to find a new location.
The city is so varied that in order to find an ideal place, it's key to look closely at every community to find the right fit. Howard Hughes planned the 22,500-acre Summerlin community 20 years ago and now the area is full of upper middle class residents. It ranks as one of the best places to live in the country.
'Obviously you want an amazing location,' Jenkins says. 'There are certainly places in Vegas where you'd put one of our shops and it wouldn't work.' To identify which areas would, she did her research and selected locations with higher income demographics and strong retail anchors that could bring in customers willing to pay several dollars for cupcakes. The Cupcakery has a shop to the east in Henderson and one in Summerlin.
Herlovich settled on office space two blocks from one of her clients, the Hard Rock Hotel and Casino. When John Entwistle, the bass guitarist for The Who, died at the hotel of a cocaine-induced heart attack in 2002, Herlovich could get there quickly. 'Time was of the essence in keeping that story under control.'
Choosing the right spot in Vegas can also translate into valuable exposure. The Nevada Development Authority has a permanent booth at local trade shows. 'This year we'll have a million and a half people walk by that booth,' Hollingsworth says.
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Starting a Business in Las Vegas: Identify and Retain Qualified Employees
This summer the unemployment rate in the metro Las Vegas area soared to 14.5 percent, outpacing the national rate. Such a devastating statistic means the area has a large talent pool, including graduates from local colleges and universities.
'That's cost advantageous for employers,' Drury says. 'They've got a workforce of people who are ready, willing, and able to work for them.' The lack of a state income tax makes that pay go further, meaning new businesses can find high quality people for less than what it would cost in another state. Most of the population is extremely computer literate, too. Even the maid carts in hotels are computerized.
Still, Vegas is a transient town. When recruiting, employers need to take the city's culture into account. Vegas tends to draw opportunists who come to make money and get out quickly. 'There are a lot of people doing bizarre, crazy things,' Jenkins says. 'You have to have surveillance cameras, do background checks, and be careful about the people you let into your lives.'
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Starting a Business in Las Vegas: Protect the Office with Strong Amenities
Vegas is in the desert, so anyone relocating there absolutely has to have air conditioning that works -; inside and, depending on the business plan, outside as well.
Jenkins says her car just registered 112 degrees on the interior. 'You don't leave cupcakes in an unattended car for two minutes,' she says. 'Those puppies are liquefied. You could eat them with a straw.' To keep her business from melting away, she installed blackout shades and uses refrigerated vans.
The heat can affect workers, too. Herlovich remembers a former office location that had air conditioning go on the fritz. 'It was excruciating. It gets so hot you literally can't have people working in the office. We had to let people go home for the day.' Because Vegas is such a comparatively new city, however, even the 'old' buildings usually have reliable amenities. No need to worry about Internet access. The city has dark fiber in spades.
Sin City draws all kinds of characters. Keeping offices safe has been a priority for Herlovich ever since thieves broke into her old office three years ago, stealing valuable memorabilia. The alarm on the door was supposed to automatically make an emergency call, but it failed.
'It could have been the safest place and you move in, and some crazy crack addict breaks through your door,' Herlovich says. To find a safe location she recommends looking at the crime stats for that area, as well as the demographics. Selecting a reputable alarm company to protect the office is also crucial.
Fifteen years ago, a major road called Rainbow still had unpaved sections that were basically dirt, Drury points out. Since then, those stretches have been brought into the 21st Century at a rapid pace. 'Vegas has really been a boon,' she says.
The city places in the top 10 fastest growing metropolitan areas in the country. New residents moving in on a daily basis are looking for everything from cleaning supplies and clothes to healthcare services and haircuts. And just think: your business could be there to welcome them.
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Starting a Business in Las Vegas: Additional Resources
Nevada Development Authority
Nevada Small Business Development Center
Las Vegas Chamber of Commerce
Small Business Administration, Nevada
