May is Small Business Month and we here at Legacy Wealth Planning thought it would be proper to review the incredible benefits and opportunities Small Businesses provide our northern Nevada economy; community.
Let’s digress about 30 years when the Partners of LWP were individual Financial Advisors; small businesses if you will. As each partner’s business grew individually, in 2006 they came together to form another “Small Business”, LWP. Today? LWP is supported by an incredible clientele allowing them to now focus on helping other local small businesses grow and become new providers of benefit and opportunity within the northern Nevada area; giving back to ensure the health and wellbeing of our economy. With this simplistic application in mind, let’s ask, “Why should we support small businesses in our community when it might not be the most cost-efficient use of our dollar”?
Primarily, supporting small businesses has a positive impact on your community. They create a more vibrant and thriving local economy that supports a quality of life unparalleled here in the Reno, Sparks, and Carson City areas.
How?
Let’s look at an economy that was tremendously stimulated by what was once a small business, Microsoft. Microsoft was founded in 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico. At the time, Gates and Allen were both young computer enthusiasts with a passion for software development. In 1986 Microsoft relocated to Redmond, Washington, part of the Seattle metro area of northwestern Washington state. By a 1999 article in The Seattle Times, Microsoft had created more than 10,000 millionaires through its stock options program. Other small businesses that created vast economic stimulus located in the same area as Microsoft are Amazon and Starbucks; both companies we are all familiar with. Innovation?
Let’s focus on a sector that is very fresh in our minds and was the topic of our last blog; Artificial Intelligence (AI). Further, let’s look at a company, OpenAI that was and is still a small business. The release of its product in November of 2022 has put the technology industry on a trajectory that is quite insane. The takeaway though is that OpenAI and other AI names are incredibly small in corporate structure and can innovate much more rapidly than say Google which was caught behind the release of the technology in 2022 and is now trying to catch up. Small businesses are often nimbler and more flexible, which can allow them to experiment with new ideas and products. Supporting and encouraging small businesses like we here at Legacy Wealth Planning are doing monthly, betters our quality of life here in northern Nevada by encouraging such innovation and creativity. Have you recently tried to get “human” support at your local power company? Big business. They do not like to chat. Compare that to a small local company where you can call and talk with the owner or manager without going through the phone touchpad, leave a message, wait times are longer than normal, and chaos!
Small business simply provides better customer service and a more personalized experience. Support that even if it costs a bit more; pay it forward so to speak. Experience service that is tailored to your needs. Seek out specialized and unique products that may suit your needs better and possibly improve your quality of life in an unexpected manner.
Diversity is probably one of the most important aspects of reaching out to small businesses. Here in our area, prior to say the early 1980’s our primary local revenue source was gaming with major casinos and resorts providing the majority of jobs and economic activity; Nevada prior to 1978, was the only state where gambling was legal. That changed quickly. Northern Nevada began to diversify away from gaming in the 1980s and 1990s. Local leaders began to work to diversify the economy by attracting new industries to the area. Campaigns began to attract high-tech companies to the area and by the 1990s, the region had become a major hub for technology companies, particularly in the fields of data storage and computer manufacturing. Companies such as International Game Technology, Patagonia, and Tesla are all examples of once-small businesses that helped diversify the northern Nevada economy. Without this diversification, the northern Nevada quality of life would be dramatically different for those who remained.
Communities are known for their individual character, which one could contend is brought about by its economic diversity, as evaluated possibly by a strong small business genre. A genre that is supported by its citizens. Small business creates a very unique and attractive character that allows all to enjoy where they live, often serving as gathering places and meeting spots. Creating a sense of place, identity, and pride in where they live.
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