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Starting a Hospitality business in Nevada

Hospitality and tourism are two of the most consumption-oriented industries in Nevada. They are considered to be major economic engines with the hospitality industry being the largest business sector in the state. The hospitality industry is actually a collection of several businesses that cater to providing a large variety of services to customers. Since there are several niche areas within the hospitality industry you can start a hospitality business in Nevada of your choice.

Introduction to Hospitality business

Hospitality business is not a single stand-alone business area but an umbrella that covers several other businesses and multi-specialties. A tourism business in Nevada is an integral part of the industry and so is lodging and accommodation. At the heart of this industry are tourists that visit the state of Nevada for leisure, gaming, to attend conferences, or simply sight-seeing. The tourism industry is hence the largest sector within the hospitality industry. If you have hospitality business ideas then this new business guide will provide you with information pertaining to starting a hospitality business in Nevada.

Hospitality and Tourism Industry in Nevada

The hospitality industry, which includes the tourism industry, is one of the most successful sectors of the Nevada economy. The industry is home to several types and sizes of businesses and you can also be a part of this industry too. You can start a hospitality business in Nevada in the tourism industry, which has been responsible for delivering a state economic impact of $67.6 billion. You can also explore hospitality business ideas in other equally growth oriented and profitable sectors like restaurants, lodging, recreation, sports, events, and health.

A report by the Nevada Commission on Tourism industry reveals the following facts:

  • The average expenditure in non-gaming & gaming trips per overnight visitor was $666 in Las Vegas and $522 in Reno-Tahoe territory.
  • The average daily expenditure in non-gaming & gaming trips per overnight visitor was $198 in Las Vegas and $158 in Reno-Tahoe territory.
  • In Las Vegas, 27.9% of the tourists were on a vacation, 16.4% for gaming, and 11.8% for entertainment.

If you have any hospitality business ideas then this is the place to start your new business in Nevada.

Four major sectors of hospitality industry

If you are planning to start a hospitality business in Nevada then you need to possess knowledge regarding the major sectors of this industry. In reality, the industry consists of several minor and major sectors but there are four sectors that are the most important part of this multi-billion Dollar industry. Let us take a look at what those sectors are.

Food and Beverages

The first and foremost of the sectors is the food and beverages sector because food is something that everyone needs. Hospitality business ideas in the food and beverage sector don’t necessarily translate into starting a restaurant but it could be a takeaway or an ice cream shop. In order to start a hospitality business in Nevada, you need to consider the following target categories in the food and beverage (F&B) industry:

  • Fine dining restaurant
  • Organic and natural foods
  • Specialty and gourmet stores
  • Functional foods
  • Processed foods
  • Dairy Products
  • Beverages
  • Food services
  • Micro-Brewery
  • International Food Retail
  • Bakery
  • Restaurant Supply

The food and beverage sector of the hospitality industry is an essential sector of the US and Nevada economy. The revenue generated from the Food & Beverages sector is projected to surpass US$15,000 million by 2020 with projected sales for restaurants at $899 billion.

Travel and tourism

The travel and tourism industry is one of the largest industries that has a billion dollar impact on the US and Nevada economy. The state of Nevada attracts millions of visitors each year with Las Vegas receiving 42.52 million tourists in 2019. As a result, the Nevada travel and tourism industry generated a state economic impact of $67.6 billion. The rapid growth of this industry is one of the many reasons why entrepreneurs opt to start tourism business in Nevada. The travel and tourism industry offers several important services, which are:

  • Outdoor recreation activities
  • Airline travel or tickets
  • Car rentals
  • Cruise lines
  • Hotel accommodation
  • Travel insurance
  • Bureau de change or currency exchange
  • Different forms of tourism like adventure tourism, medical tourism, eco-tourism, leisure tourism, and health tourism among others.

Lodging

Lodging refers to any accommodation that can be utilized for a specific period to leisure, sleep or rest. Lodging can vary from hotels to camp grounds, youth hostels, motels and casino hotels. You can start a hospitality business in Nevada in the lodging industry as gaming and conferences bring a lot of visitors to Las Vegas and other cities. It is not surprising that casino owners and operators in Nevada maintained in excess of $63 billion in fixed assets in 2018. The visitor volume in the Silver State was 56 million with hotel occupancy rates being 83.4%. Las Vegas itself provides 147,000 guestrooms to visitors and there is always space and opportunity for hospitality business ideas in the lodging industry.

Recreation

Recreation is considered as an activity of leisure; where-in people relax or rest. The objective of recreational activities is to provide enjoyment, adventure, pleasure, or amusement. If you start a tourism business in Nevada then you can offer several types of recreational activities to your customers. The Silver State has plenty of opportunities for recreation other than casinos and these include:

  • Exploring North and South Lake Tahoe
  • Hiking to Red Rock National Conservation Area,
  • Trekking in the Mt. Charleston Wilderness Area
  • Cycle through Valley of Fire Scenic Byway
  • Snowshoeing the Spring Mountains National Recreation Area
  • Skiing over the Nevada-California state line
  • Backcountry fly fishing
  • Off-roading in the Jarbidge Wilderness Area

Steps to start a hospitality business in Nevada

The importance of the hospitality industry lies in the fact that it is the driving force behind the promising Southern Nevada economy. The Nevada tourism sector within the industry generates $10.3 billion in tax revenues while visitor spending has increased since 2013 by almost 18%. If you have been planning to start a hospitality business in Nevada then you can benefit from the many opportunities but first you need to form a business and be compliant with state requirements. Here is a step-by-step guide to starting your new business in the state.

Prepare a business plan for your hospitality business

One of the key hospitality business requirements is to create a strong and sustainable business plan. Traditionally, a business plan may serve a variety of purposes but the primary importance lies in helping business owners make informed decisions. Whether you are starting a tourism business in Nevada or focusing on lodging or F&B, creating a robust business plan will allow you to identify the major components that will drive your business. It is important to understand that a hospitality industry business plan will vary according to the type of business you plan to undertake. For example, a travel agency plan will be different from a hotel plan. There will be some similar components of any hospitality industry business plan and they are:

  • Executive Summary
  • Business Description
  • Services Offered
  • Market Analysis & Competition
  • Employees
  • Infrastructure planning & Design
  • Location
  • Market and Target Audience
  • Marketing
  • Financial Analysis

Source Funding

You may have several hospitality business ideas but starting a new business can be quite an expensive affair depending on the type of business. Let us look at an example to understand the initial expenses. If you are planning to start a tourism business in Nevada or a travel agency then the startup costs may vary depending on the selection of a franchise agency or a non-franchise agency. You will need to factor in certain fixed costs like staff, equipment including laptops or computers, internet connections, certifications and membership like members of ASTA etc. This is where considering source funding can be quite crucial towards mitigating startup costs.

There are basically two types of source funding options available to help start a tourism business in Nevada and they are equity financing and debt financing. Equity financing is applicable to large businesses as it is a way by which you can raise fresh capital. This is possible through selling of shares of your company to the public, financial institutions, or institutional investors. Debt funding or debt financing is different and is a type of source fund that benefits small startups and medium sized enterprises. This type of funding is more like a loan where-in, the lender, an investor, or a venture capital firm will lend you money at a specific rate of interest, for a certain period and will keep company assets as security.

Choose the right business structure

You can start a hospitality business in Nevada right from your home depending on the sector you specialize in. The importance of hospitality industry business to choose the right business entity structure lies in the fact that each structure is associated with different advantages and disadvantages.

For example: If you form a limited-liability company in Nevada then you can benefit from limited personal liability and your personal assets like bank accounts and home will be protected. Similarly, other forms of businesses like S Corporation have their own set of advantages especially when it comes to taxation.

Register your business

Once you have determined the business structure, it is time to apply for the formation of the company. This is an important step as you will be required to submit formation documents with the office of the Nevada Secretary of State to start a hospitality business in Nevada. One of the important things to remember is that the formation documents and information enclosed with the documents will vary according to the business structure. The hospitality business requirements can be overwhelming especially if you are unaware of the extensive information required regarding the business. This is where IncParadise can help you with this process of registration in Nevada. We are an expert incorporation specialist as we have helped form new businesses in the state. We have knowledge of Nevada business laws, state regulations, various processes and documentation required to form a new business.

Form your new Nevada business in the Hospitality Industry

Get necessary licenses and permits

One of the foremost hospitality business requirements is that of a state business license issued by the office of the Nevada Secretary of State. This license is required for all types of businesses although the local city or county license types may vary according to the business activity. You may also require single or multiple licenses and permits and not knowing which licenses are required specifically can make the application process difficult. This is why we have created a business license research service that will help you to identify and apply for licenses as required by your business.

For example: if you plan to start a tourism business in Nevada then you will be required to apply for local zoning permits with the Department of Planning and if you are starting a home-based business then you may require a Home Occupation Permit. You may even require single or multiple licenses depending on where your business is located and the business activity.

Hire staff

The hospitality industry is completely dependent on human capital. If you start a hospitality business in Nevada; you will be required to hire a skilled workforce depending on the type of business activity. For instance, employees for a travel agency will have different skill sets as compared to employees for a hotel. There are different ways by which you can hire your staff and these include:

  • Using social media platforms like LinkedIn
  • The word of mouth concept still works very well
  • Through references of friends, family, and acquaintances
  • Through job portals and consultants
  • By placing classified newspaper advertisements

Brand and market your business

Branding is very important to the hospitality and tourism industry. Marketing and branding co-exist and their primary objective is to attract customers and retain them. Of course, the marketing and branding strategy will be different for different sectors like the branding of a hotel will be different from that of a fine dining restaurant. Some of the important ways to market your hospitality business or tourism business in Nevada include:

  • Create a website that offers relevant information regarding your business
  • Take advantage of social media platforms to drive traffic to your website
  • You can even create an independent blog to write about your business or share hospitality business ideas. Ensure it is linked with your website or social media pages
  • Create local awareness through business events to help establish a strong network
  • Offer a discounted service or discounted coupons for products
  • Participate in local conventions and trade shows

How can IncParadise help you?

There are unique opportunities to start a hospitality business in Nevada due to its increasing visitor statistics driven by a robust hospitality and tourism network. In order to start a hospitality business and make it operational, you will have to undergo an exhaustive submission process. You will also be required to ensure the business is compliant with all state and local regulations as well as hospitality business requirements. This is where IncParadise can help you by ensuring you are able to submit the right documents pertaining to Nevada new business registration or incorporation.

We at IncParadise have a team of experienced professionals who can not only help you start a hospitality business in Nevada but also answer any queries you may have. We are here to ensure your hospitality business ideas become a reality using our wide range of additional business services.

Incorporate your hospitality business in Nevada Today!