The pandemic has affected businesses around the world, and Las Vegas local businesses have been affected too. Small businesses are often harder hit than larger ones since they have far less backup if things go wrong.
Why Was Las Vegas Small Business Hit So Hard?
Vegas is best known for its casinos and the Vegas Strip, hotels, conventions, and lots and lots of gambling, but even off the main drag, small businesses are a large contributor of catering to the influx of tourists that flood the city. It’s also the center of massive conventions in a wide range of industries, so when the pandemic hit and travel skidded to a halt, business died out abruptly.
It’s estimated that one-third of people in Las Vegas lost their jobs at one point in the pandemic. The economy in this city is based so heavily on leisure spending that it all but disappears when that area of spending vanishes.
Helping Las Vegas Local Businesses Survive
In such dire straits, it’s not surprising that many businesses in Las Vegas need a helping hand. In addition to the more traditional offers from the government, like the CARES Act, many are turning to business grants. Nevada also offers incentives to help qualified companies make it through difficult times. Over 70% of Nevada businesses applied for a Paycheck Protection Program loan, and most of them were granted the loan so they could keep employees on.
Small Business Nevada provides tips and information to companies that are struggling to make it through the pandemic. A whopping 30% of business owners intend to hire more people during 2021.
NMA is also offering credit card processing to these businesses. With more and more companies switching to eCommerce, it’s essential to have a merchant account that works for you. Our payments experts are chosen for their interest and passion in a specific industry, so each small business has payments experts available in their own industry. It makes all the difference to have someone who knows your business supporting you with your merchant services.
Returning Economy Is More Diverse
While the economy was already working toward being more diverse with the introduction of tax breaks to lure other types of businesses, Las Vegas had a long way to go. After the pandemic hit, 28% of working-age people employed in the leisure and hospitality industry suddenly found themselves adrift. It was a wake-up call for the city.
More and more companies are opting to move their headquarters, as well. One of the few benefits of Covid is the increased flexibility in business. Working from home models are more common now, which allows companies to take advantage of tax breaks. It also allows them to move for better access to qualified workers. Moving your company to Nevada to receive better business advantages is becoming more common.
What are Las Vegas local businesses doing to get back on top of things? While 60% of business closures due to the pandemic are permanent, many are simply pivoting to get back on track. That is, they change their business model to fit what is currently available to them in terms of clients.
For example, a catering company may offer smaller family spaces with a fraction of the guests they had previously. They can also rent out their kitchen or even offer pre-made meals to those who are unwilling or unable to cook for themselves. Performers are providing online shows that people can pay to attend, though it’s not the same as attending a live show in person. Casinos are offering their games online in some cases. It’s all about changing the narrative and working within the restrictions of the pandemic.
Some businesses are doing better than others. For example, restaurants or cafes that already offered takeout, as well as coffee shops, and delis, are doing much better than other restaurants. However, home-based professionals tend not to have much of a drop. Other types of services such as contractors, lawyers, towing services, and garages are more likely to stay open, as well.
While there are definitely some major changes happening in Vegas, no one expects tourism to completely dry up forever. Even now, some groups are starting to travel again. Businesses pivot, switch to working from home, or adjust what they offer to an online service.
New Business Opportunities in Las Vegas
With some industries fading, it’s only right that a whole other level of business rise to the surface. In Las Vegas, the following types of business are thriving:
Container restaurants: Offering container foods makes it very simple to bypass grouping rules. You can simply sell food in containers and move the line along quickly.
E-commerce: Many businesses lend themselves to e-commerce. While more difficult to get merchant services from banks, these types of businesses have less overhead and allow existing companies to simply sell online.
Cannabis consulting: Medical and legal cannabis is becoming more popular, which means this type of business is ideal. Consultants need to be very familiar with the rules and regulations surrounding cannabis in order to consult.
Cleaning: Janitors will never go out of style, so if you clean homes or businesses, particularly if you offer the type of deep disinfecting that COVID requires, you can make it.
Overall, businesses in Nevada expect pre-COVID levels of business to be back within two years. With the right tools and focus, this could certainly happen, even if the US economy isn’t expected to rebound completely for at least three years. With Las Vegas small businesses changing daily, it’s important to have something you can believe in. Contact our payments experts today to find out how we can help your business accept credit cards. Remember, We Work for You™!