[modhatter]

I was doing a lot of reading today about the possible reasons why large corporations don't set up in LV, and of course there were many opinions.

I have had in the past owned a chain of hair salons in Arizona and Ca. Arizona was more business friendly than Ca. However, the supply of licensed hair stylists was much more grim in Az., and the majority of schools were graduating student who were illegal, which made hiring even more difficult.

These were low cost shops charging about $9.99 for a cut. Similar to Supercuts for those of you familiar with them. My last store in Ca. is closing this year, and though I thought I'd call it a day, I can't help but wondering how a store in LV would fair if I opened one. I know it is the most comparative business there is. My only store open is in Bakersfield, Ca., right now, and $9.99 is cheap there for a haircut. I would assume LV to perhaps have cheaper. So that is part of my question.

But the other is the labor market. My business has high turnover, and not the most reliable employees. An example, I offer a bonus to any employee who hasn't missed a day during two pay periods (4 weeks), which averages around $100. Few get it. Workman's comp there is extremely high. A lot of phony claims and crooked doctors, etc. Whereas, Phoenix was a fraction of the cost in workman's comp. Also health insurance costs tend to be lower in Arizona. These two reasons may attribute to why large companies don't move to Nv., by the way. Just a thought.

Any small business owner reading this that can share their experiences with me? Mostly I guess in terms of work ethic and reliability. I know unless you are in the same business you will not know the availability of available licensed stylists.

[nevadaned]

Not in the salon business but yes there are quite a few hurdles to having and hiring for a business here. First to mention is the payroll tax. Few know this but we are taxed a percentage of what we pay our employees. Yes this makes us hire fewer people and pay them less, another great liberal idea. Also, some of the people we have hired either don't want to work or are totally incompetent. Very few educated people around here and we have actually had to import workers from other states. I have found this more prevalent than in other areas where I have business's such as PNW, Houston, ATL, etc.

[tortoise]

Have you looked into providing services at assisted care facilities?

[modhatter]

Originally Posted by nevadaned

Not in the salon business but yes there are quite a few hurdles to having and hiring for a business here. First to mention is the payroll tax. Few know this but we are taxed a percentage of what we pay our employees. Yes this makes us hire fewer people and pay them less, another great liberal idea. Also, some of the people we have hired either don't want to work or are totally incompetent. Very few educated people around here and we have actually had to import workers from other states. I have found this more prevalent than in other areas where I have business's such as PNW, Houston, ATL, etc.

Glad I asked the question. How is the tax calculated? That might just be another reason more companies don't locate there. I know in other high real estate tax areas like Florida with no income tax, they lure business by negotiating those RE taxes. Not that we are awash with large corporations.
Just a means of getting them here.

So I guess a good deal of Nevada's needed revenue comes from business. That's not a good formula for expansion. Yes, I guess the employee who wants a paycheck, but really don't want to work for it may be a sign of the times. Does not apply to all of course.