1. Is it ever too late for an entrepreneur to launch a new business venture?
I am sure that it is never too late for an entrepreneur to start a new business venture if he/she is ready to spare nothing for making the enterprise effective and shoulder all the responsibilities. There is a great amount of famous successful businessmen over 50-55, who continue opening more and more companies and expanding their business. Besides, I think that if a person feels ready to open a new venture, it is not necessary to go for something huge. One can open a small company or go in for home business.
Such decisions about launching a new business enterprise depend exceptionally on personal qualities, talents and abilities of an entrepreneur. I believe that older businessmen have greater experience and knowledge, as well as more connections and opportunities in business world, than many young entrepreneurs. Therefore, I do not think that age can be a serious obstacle for opening a new business.
2. Given the sluggish economy and the highly competitive casino industry, should Wynn establish a new venture in a saturated market? Why? Why not?
I suppose that it is quite risky to launch a new venture in terms of sluggish economy in a saturated market, especially in casino industry. Casino business is rather specific and has a specific demand, that’s why it can be possible to advance in such environment only for those businessmen, who have already managed to earn a good name and reputation, as well as have a lot of business connections and potential customers. Otherwise it is really difficult to reach positive economic benefits in terms of saturated market.
As we can learn from the case, it proved to be very hard to re-enter highly competitive market even for such a respectful and successful businessman as Steve Wynn. His rivals started seriously improving their facilities, changing their marketing strategies and attracting more and more clients. That is why Wynn had to give up some incomes, invest more money into his hotel and sell some of his property in order to upgrade his facilities.
3. Does it matter that Le Reve is located in a less than desirable area of Las Vegas?
I do not think that it can be the most principal disadvantage for an ordinary hotel, because the customers usually take into consideration other important factors, including the price for hotel rooms and the quality of services. Nevertheless, it is known that the majority of the clients of Las Vegas luxury hotels are very wealthy Americans, who are ready to pay more money and stay in those hotels, which are located closer to the centers of gambling and entertainment. Therefore, in such situation hotel location really matters a lot.
In addition, the main problem of not favorable location is that fact that it can not be changed easily and shortly. If it is possible to improve the quality of hotel services by hiring more qualified personnel or lower the prices to attract more customers, there’s hardly something that can be done about the place where the hotel is built. That is why such factor as location has to be undoubtedly considered by those who want to make their hotel business really successful.
4. Are there other reasons besides money for new business ventures?
We all know that from economic point of view, the main goal of an enterprise or business company is making profits. But, certainly, there are many other reasons for launching a new business enterprise but just earning more and more money. For example, opening a new casino or any other gambling facility can be taken as socially important campaign, because it offers new prestigious workplaces to people, as well as brings a lot of income to national budgets due to high taxes, etc.
Also, for many businessmen starting a new business or a new company is a great personal challenge. They can be looking for success and public recognition, trying to win a good reputation, or considering entrepreneurship to be a way to apply their talents and skills. Finally, when opening new business ventures, some businessmen are thinking about their future generations and making their life easier.