Starting an Entertainment business in Nevada
Entertainment, Tourism, and Gaming are the three top tier and core revenue generating industries in Nevada. These industries are also considered to be dominant employers as well as anchor industries for several other sectors. The entertainment environment in the state is diverse and rich and helps in making the overall economy robust. You can start an entertainment business in Nevada as it has a promising future and several opportunities in the various segments within the industry.
Introduction to Entertainment business
The media and entertainment (M&E) industry in the U.S. is considered to be the largest in the world. It encompasses a third of the global media and entertainment industry valued at $717 billion. Your entertainment business ideas can become a reality if you have in-depth understanding of how to start a business in Nevada. Where will you derive the information from? We have created this guide to ensure your queries pertaining to the entertainment industry and business formation in Nevada are answered.
Entertainment industry in Nevada
The entertainment industry in the silver state is vast and vibrant and presents several opportunities for first time business owners to start an entertainment business in Nevada. This industry comprises several segments like gaming and casinos, motion pictures, streaming content, radio, television programs and commercials, broadcast, fine arts, music and audio recordings, video games, recreation, and several ancillary services and products. Your entertainment business ideas can become completely operational based on the fact that the market is rapidly evolving with new innovative entertainment options are being made available and accessible to visitors and local customers.
Entertainment industry in Nevada & its growth potential
Why do entrepreneurs prefer to start an entertainment business in Nevada? It is because the state has a strong infrastructure and extremely business friendly climate. The state is also home to Las Vegas, also known as the gaming capital of the world! A report by Las Vegas Convention & Visitors Authority (LVCVA) revealed that 42 million tourists visited Southern Nevada in 2019 and the direct visitor spending was estimated at $34.5 billion. The existing entertainment business ideas revolve around mostly the gaming sector and visitors driving this sector.
Entertainment is considered as one of the massive base industries in Nevada that have been attracting visitors from across the country and the world. This is the right platform for implementing your entertainment business ideas as the industry is constantly evolving by making new as well as diversified offerings like Area 15, which is the world’s first immersive playground and entertainment complex. The Area 15 project is a big step in the entertainment industry especially in the city of Las Vegas, where gaming has been the primary source for the entertainment industry for decades. This is the age of the innovation economy and if you start a business in Nevada then you will be able to leverage the existing and new entertainment infrastructure.
The U.S. media and entertainment (M&E) industry is considered by experts to be highly growth oriented and is forecasted to grow to approximately $825 billion by 2023. The Nevada entertainment industry including the gaming sector and the art and cultural shows is expected to undergo innovation that will spiral its growth even further skywards. You can start a business in Nevada in the entertainment industry as experts believe that the future of the entertainment industry will lie in innovation and immersive leisure.
Top trends in the media and entertainment industry
You may start a business in Nevada in any sector of the entertainment industry but it is important to understand the current trends as the knowledge will help in shaping the future of your business growth and expansion plans. One of the new frontiers in this industry is the Immersive Entertainment Segment, which was valued at an excess of $4.5 billion while the theme park entertainment segment was valued at $45.2 billion. So, let us take a look at the top trends in the media and entertainment industry in the US and Nevada.
- Immersive entertainment is the new buzzword! – Immersive entertainment has risen from the convergence of various art forms, education, and experiential entertainment. Entrepreneurs are creating their entertainment business ideas around this segment. Whether it is Disney experimenting with Star Wars stories through theme park expansions or Meow Wolf’s immersive art experiences, this is definitely the newest trend that you can consider when starting a business in Nevada.
- The Event Promotion segment is becoming more technology driven – You can start a business in Nevada in this segment as the industry has a proven success record and there is always a continued demand for different types of live entertainment. The estimated revenue generated from this segment since 2015 is $35.1 billion. The event promotion segment of the entertainment industry is responsible for producing, managing, and advertising a wide variety of live events as well as performances, like sporting events, concerts, and public appearances. If your entertainment business start up costs is within budget then you can invest in some of the following trends:
- Breakout sessions during conferences to create personalization for attendees
- Event apps that provide data-driven activity suggestions based on profiles and networks of attendees
- Use of venue management technology that provides live availability status, instant request for proposal(RFP), 3D virtual tours, and customizable packages among others
- Casino gaming segment is undergoing several changes – This is another profitable sector where you can start an entertainment business in Nevada. There are two types of casino gaming businesses existing in Nevada and they are non-hotel casinos and casino hotels. The casino gaming sector of the entertainment industry generated revenues of $8.76 billion in 2019. The gaming industry over the last decade has undergone numerous transformations due to innovation and new entertainment business ideas. Some of the new trends in this industry include:
- Acceptance of Cryptocurrencies on online platforms
- The use of bitcoin and other digital currencies are becoming popular as they help maintain security and anonymity
- VR based gaming is on the rise
- Upgrading of existing slot machines to give players a new and fresh experience
- Experimentation with new table games
Steps to start an entertainment business in Nevada
If you are planning to start an entertainment business in Nevada then it is important to understand that there will be several aspects that you will need to consider depending on the business activity. It can be quite a tricky business to operate especially with different legalities involved. Hence, business planning is extremely crucial prior to starting operations and this includes taking into account entertainment business start up costs. Let’s take a look at all the steps you will be required to follow in order to set up your new business smoothly.
Prepare a business plan for your entertainment business
A business plan is the most crucial part as it will provide you with an insight into how you can start a business in Nevada and answer queries related to entertainment business start up costs especially on equipment, licenses, permits, staff, and others. The entertainment industry business plan will vary according to the type of activity. For example, a strategic plan for a non-hotel casino will be different from that of an event management company. At the same time, there are certain aspects that will remain the same for all types of business plans. A robust business plan should incorporate the following:
- Objective: This is one of the most important sections and it will provide your investors or customers with an insight into the primary and secondary objectives of the business.
- Executive Summary: This section of your business plan will include entertainment business ideas and a concise description of the business activity along with market analysis proving the sustainability of your idea.
- Target Market/Audience: If you are planning to start an entertainment business in Nevada then you need to identify your target audience based on business activity and geographic location.
- Industry Analysis: This is not a mandatory section for all types of entertainment businesses but some businesses like a casino or live concert may require it. This section helps in identifying the relative market or a niche within the entertainment industry that your business will target.
- Competition: This is an important aspect of any robust business plan as it will identify the existing and expected competition in the market and ways to deal with it. When you start a business in Nevada, competition will play a key role in helping your determine your brand and marketing strategy and USP (Unique Selling Proposition)
- Marketing Plan: If you start an entertainment business in Nevada, you will need a marketing plan. A strong marketing plan should take into consideration the four P’s, which are Price, Product, Place, and Promotion.
- Operations Plan: Depending on the type of entertainment business ideas or activity, you will need to prepare a detailed operation plan. This plan will outline short-term and long-term business goals and how you are planning to meet those goals.
- Financial Plan: This is one of the most critical areas of any business plan and will help you in determining the entertainment business start up costs. This section will also help you to identify possible avenues from where you can derive funds including state government grants, source funding options and bank loans.
Choose a business entity
You can start an entertainment business in Nevada as a partnership firm or as an LLC. There are several different types of business entities to choose from. When you are choosing an entity there are certain aspects that can provide more clarity like understanding the tax structure for each entity, the possible tax benefits, liability protection, and asset protection among others. The structure of a business entity will also determine entertainment business start-up costs as a proprietorship firm will have lower startup costs as compared to a business corporation.
Setup your business legally
One of the first steps towards setting up a new business in Nevada is identifying a business name and reserving it. You will have to create a checklist of entertainment business name ideas and then ensure the chosen name is available by searching the Nevada SOS database. If your chosen name is available then you can start a business in Nevada by completing a formation or incorporation form. The form along with the prescribed fee has to be submitted with the office of Nevada Secretary of State. You may find the process perplexing as there is a lot of information that is required in the new business registration application. Alternatively, you can submit your application through IncParadise. We can help you to register your business in Nevada with ease. We are expert incorporation specialists and one of the top registered agents in the state with experience in helping more than 10,000 businesses to register.
Incorporate your entertainment business in Nevada!
Get necessary business licenses and permits
One of the primary requirements that you will need to fulfill before you can start a business in Nevada is obtaining a state business license. It is mandatory for all types of businesses to apply for and obtain this license although you may also be required to apply for local or city business licenses and permits.
Let’s look at an example: if you were to start a casino gaming company then apart from the state business license, you may also have to apply for a non-restricted gaming license in Nevada. Similarly, if you are running an arcade with 25 or more gaming machines then you will have to get approvals from the planning and fire department and then apply for an Arcade license. This license will be renewed annually and some businesses may even require multiple licenses or permits depending on the type of business activity. The fee for a business license or permit will be a part of your entertainment business start up costs.
As you can see from the above example, license and permits are determined solely by the business activity. If you start a business in Nevada, you may require multiple licenses or permits. It may be difficult at times to identify what licenses your business really requires and hence we have created the business license research service, which will address all your licensing requirements.
Register for taxes
One of the important requirements of starting a new business is obtaining a tax ID. Although Nevada doesn’t have corporate or personal taxes you will still be required to apply for an Employer Identification Number (EIN), which is issued by the IRS. If you start a business in Nevada there may be other returns that your business may have to file like the commerce tax, modified business tax (MBT), and payroll tax. It is also important to know that not all types of business tax will be applicable to your entity. You can find more information on your tax requirements with the Department of Taxation for the state of Nevada.
Market your business
It is important to build your brand revolving around entertainment business ideas and this can be effectively done by using multiple methods of marketing. It is important to have a strong marketing strategy that will not only focus on highlighting your brand but also target long-term customer retention. There are several different ways to market your brand or business and they can be categorized under online marketing and offline channels like print media. When you start an entertainment business in Nevada, you will find the following ways of marketing your brand as the most effective.
- Create a website
- Have a strong presence on social media websites
- Create a blog and link it with your website and social media platforms
- Encourage social media contests
- Starting your own business or entertainment industry podcast
- Consider organic social marketing to attract targeted audience
- Issue press releases whenever or wherever necessary
How does IncParadise help you?
It may seem like a difficult process to start a business in Nevada but with the help of IncParadise, you will be able to register your entertainment business and begin operations quickly. We have a team of professionals who have knowledge and experience in new business incorporation and can answer any query that you may have pertaining to business formation. We are one of the top registered agents in the country and due to the varied nature of different entities we have created a wide range of business specific services. You can use any of our additional services based on your immediate requirements.