Starting a business is inherently risky. 20% fail in the first year and nearly half fail in the first five years.

When you’re considering becoming an entrepreneur, you should be prepared for the possibility of failure. Planning can drastically increase the odds, plus the more money you start with, the easier it is to make it through the initial challenges until business starts to come in.

We’ll discuss nine things that an entrepreneur should assume when starting a business in Las Vegas.

• 1. Prepare For Risk And Uncertainty
• 2. You Are Responsible For Everything.
• 3. You’ll Need To Make Initial Sacrifices.
• 4. Never Quit Learning.
• 5. Test The Market.
• 6. Failure Is Part Of The Process.
• 7. Competition Will Be Fierce.
• 8. It Will Take Longer And Cost More Than You Expect.
• 9. Networking And Relationships Matter.
• Final Thoughts

1. Prepare For Risk And Uncertainty

Nothing is guaranteed. When you start a new business in Las Vegas, there is the possibility of financial loss, market rejection, or complete failure. 

You need to be prepared for it. That doesn’t mean you should give up because there is a possibility of failing, but practice risk management. Ways to prepare for risk include:

• Do market research.
• Write a business plan.
• Start with a single product or service.
• Don’t quit your job until the business can cover all your costs.
• Start with excess funds.
• Don’t ignore the importance of marketing.

2. You Are Responsible For Everything.

Every decision regarding the business will be handled by you. You’ll need to make decisions about marketing, finances, operations, hiring, suppliers, complying with regulations, and providing appropriate customer service.

You can hire people, but they will never care about the success of the business as much as you do, unless they have partial ownership and see returns from it. You can offer perks like bonuses for five-star reviews to help your employees earn extra money and be good stewards of your business.

3. You’ll Need To Make Initial Sacrifices.

Starting a business isn’t easy. It takes long hours, saving money, and changing your lifestyle. This impacts not only you, but your family. Make sure to talk to them before you decide to start a new business.

4. Never Quit Learning.

As a business owner, you’ll need to focus on continually learning new skills. You’ll need to learn accounting, marketing, sales, inventory management, people management, customer service, and more.

On top of that, industries and technology change constantly. You’ll need to adapt to new competitors, pricing models, and laws to stay competitive. I recommend every business owner spend at least two hours per week learning a new skill.

5. Test The Market.

Your idea is just a hypothesis until you identify a market and start selling it to customers. While you might think something is a great idea, the number of people who are willing to pay for your product or service determine the value of your business.

You can test your market by doing crowdfunding or creating a prototype to get input from potential customers.

6. Failure Is Part Of The Process.

Setbacks and mistakes are inevitable. Every time you mess up, you have more information about what doesn’t work. Keep pushing forward with this new information.

7. Competition Will Be Fierce.

Others may already be doing what you want to do, and some are better resourced. You need a unique value proposition and relentless execution.

The value proposition can be a unique twist on a product, better customer service, or contributing a percentage of your revenues to charity.

8. It Will Take Longer And Cost More Than You Expect.

Most businesses take longer to become profitable than initially expected. Most business owners use budget and timeline assumptions that are too optimistic. Larger goals make it harder to stay on budget and keep your timeline.

I like to make assumptions using 10% more costs than you think it will take, and 10% less revenue than you expect to provide cautious budgets. Some of the things you can do to prevent costs and timelines from slipping include:

• Manage by the numbers.
• Start with a small number of offerings.
• Set daily, weekly, and monthly goals and adjust your projections as you go.

9. Networking And Relationships Matter.

Your relationships are what help your business grow. Going out and interacting with other business owners is crucial to building your network. When you go out and meet people they can become partners, mentors, customers, or employees. 

You can also use online forums to build a reputation. You won’t build meaningful connections quickly when you are online, but over time the relationships can be built.

Final Thoughts

Starting a business means embracing risk, taking responsibility, staying adaptable, and being prepared for both challenges and personal growth. It’s a high-stakes, high-reward path that requires grit, humility, and vision.

Now that you know some of the things to expect when you start a business in Las Vegas, go read about the process for starting a business.