LV isn’t No. 1 for all small businesses

Wednesday, Dec. 1, 1999 | 9:48 a.m.

Not all Las Vegas entrepreneurs think the city's No. 1 for small businesses. Bob Hutchings believes it might be one of the worst.

Ten years ago, Hutchings invented an adapter for a power saw widely used in the construction industry. The adapter allows the saw to take a larger blade, making cutting large boards quicker and safer.

Hutchings now leases the patent to Big Foot Saw Adapters, founded two and a half years ago. Run by Emma Allen, the company has grown to five employees since then, and should reach $1 million in sales this year.

But Hutchings believes that's in spite of Las Vegas, not because of it.

"If I had to do it all over again, I wouldn't have done it in Las Vegas," Hutchings said. "You could have 100 companies start on the same day, and only 1 percent will be left in five years. Ninety-eight will file for bankruptcy. So we had 99 strikes against us. That's one reason we're having a hard time getting a bank loan."

One bank, he said, wanted $1 million collateral on a $250,000 loan.

Demand for the product is high, Hutchings said, and interest has come from some of the largest chains in America, including Home Depot. But there's few places to manufacture the product in Las Vegas -- and that's meant the company has to invest in its own manufacturing equipment.

"Our growth is so phenomenal that our cash flow can't keep up with our orders," Hutchings said. "We've got almost 40,000 in orders we can't ship, and it's so hard to get a loan at the bank. They say it's easy (to start a business), but it's only easy if you've got a whole lot of money and don't need a bank.

"It's been real tough on us, but (Allen) has been doing really well."

Another challenge has been finding good employees.

"If there's any good help, the casinos take it," Hutchings said. "And many employees and owners seem to have gambling problems.

"I'm not knocking Vegas, but I wouldn't do it again."