Bringing Business Information and Opportunity Together
BY JOSEPH AMATO
It is a privilege to be asked to write a business column for Chic Compass magazine. As the former chief executive for the Small Business Administration in Nevada for the last five years, I witnessed business obstacles and opportunities throughout the State of Nevada.
I have also seen the devastating effects of Covid-19 during the last two and a half years on our business population, including the shutdowns, restrictive government policies, immediate price increases, and supply chain intrusions that made it very difficult to survive as a business owner.
When 2022 arrived, it appeared that life and business might be returning to normal, and I was excited to see the events taking place in Las Vegas and the surrounding business communities that support the opportunity for survival, growth, and prosperity.
Yet, although I see the light at the end of the tunnel, it’s going to be very important for our local business community leaders, statewide business owners, and various state and federal government agencies to continue to work together to overcome the many obstacles that remain a clear and present danger and those alarming issues that sit on the horizon yet to come.
To accomplish the task of survival and prosperity in 2022 and beyond, each business owner needs to get back to basic economics and accounting. The fact that we continue to face supply chain disruption, employment shortfalls, price inflation, increasing fuel costs, cessation of most state and federal stimulus programs, and insufficient access to capital will only impede a business owner’s ability to move forward from Covid malaise.
Those who truly understand the roots of our capitalistic society and the basic elements of our free market system will find solace in our current circumstances.
There is always a silver lining or opportunity to act with every economic disaster, downturn, or recession. Business owners that survive these economic predicaments are usually positioned to make moves that increase revenue opportunities, market share or provide the impetus for instituting innovative methods or procedures that did not exist before.
I have always believed that most businesses that operate on a shoestring or barely survive these negative economic times have only themselves to blame when forced to close. Their demise is mostly due to financial mismanagement or poor planning, the inability to be flexible when times become difficult, somewhat illiquid, or clueless regarding operational matters and efficiencies. In every case, any of these issues will leave a business owner gasping for economic air, resulting in their untimely corporate death.
In a free-market society, there are always opportunities to innovate and change the trajectory of our businesses and economic communities. Innovation comes in many forms and can be easily transferrable when used properly. Each business operator should determine where capitalism and innovation become intertwined and seek to improve their product or service no matter the industry.
Today we are seeking constant cutting-edge improvements in technology, renewable energy, manufacturing, automation, delivery systems, and healthcare, to name a few.
There is not one business in any Nevada-based ecosystem that is not affected directly or indirectly by these innovative activities.
I’m seeing a consistent shift from a workforce-based economy to a conglomeration of industries that desire to replace the workforce with future technology that provides a consistent product or service without the human element involved.
Covid 19 changed entire industries where employers sought to replace their skilled or unskilled workforce with machinery, equipment, process automation, and technology wherever possible. That does not bode well for the common worker as they are replaced by technology, but if handled correctly, it could open multiple opportunities to retrain, educate and reclassify these workers into contributing members of a new economic workforce for centuries to come.
The federal and state government agencies should adopt policies and programs that focus their efforts on preparing business owners and workers alike for the new wave of innovative practices that are now unavoidable. Workforce training and economic incentives should be expanded to provide every company with the resources they need to be poised to make the changes necessary to remain competitive in the marketplace.
The future of business growth lies within the ability to accommodate the needs of each business as they seek to innovate, expand, and prosper. Government can do its part by providing policies and incentives for the business community, including protecting intellectual property both in the United States and abroad; supporting research and development from the incubator to big business; negotiating non-intrusive trade policies; providing government guarantees for funding future business expansion, and promoting cooperative relationships between academia and the private sector.
But the private sector must always be the catalyst for innovation and change, whether the government supports their effort or not. The primary incentive for every business owner has never changed. In a capitalist, free-market economy, whether it be Henderson, Reno, Summerlin, Elko, Fallen, North Las Vegas, or the City of Las Vegas, the primary drivers for a business owner are always the same. They are understanding and dominating your competition and profit.
As an entrepreneurial country, we all possess an intrinsic opportunity to advance in life through business ownership, an immeasurable gift that many realize, but few truly succeed. The State of Nevada provides fertile ground for those who dare to venture into the business marketplace. For those who succeed, the path is never easy. But they usually survive by having the best information regarding their industry at their disposal. They set up a strong corporate identity that allows them to work within the legal guidelines of business ownership; they understand the tax benefits of residing in Nevada and the tax rules that guide their business entity; and they provide a product or service in an expeditious, affordable manner.
Business ownership is a privilege that must not be taken lightly. Whether you are a sole practitioner or proprietor, multiple-employee limited liability company or corporation, you have an obligation to yourself, your employees, your customer base, and every member of your supply chain to work responsibly, effectively, legally, and profitably.
There are various resources available for you to accomplish this task—both government and private sector consultants and advisors—so please take advantage of the Nevada Small Business Administration, the SBDC program offices, SCORE, your attorney, your CPA, your chamber of commerce and local and regional economic development programs and agencies when possible. You will never possess too much information or professional support to ensure your success. I can guarantee you will be more likely to fail without them.