Companies looking to expand or relocate are faced with a range of options. Numerous factors must be analyzed and balanced when deciding on the best option. Access to raw materials and customers, transportation, labor, real estate and telecommunications are the critical variables and drivers. Greater Richmond offers many of these assets to businesses that have selected and thrived in our region. The following two models represent typical operating scenarios for different business activities for international and domestic firms.
International Cost Comparison Model
The International Cost Comparison Model is based on two scenarios that usually have a high probability of success. The first case provides estimates for a 10-person sales office start-up in the United States where one individual is a foreign national and the other is a U.S. citizen experienced in U.S. business practices. The second case provides estimates for a company that employs up to 10 workers and occupies 9,700 square feet of office and warehouse space. Again, it is assumed that an employee from the parent company is assigned to work with a U.S. citizen. The remaining workers are either from the company’s parent or hired in the United States.
Domestic Cost Comparison Model
The Domestic Cost Comparison Model represents typical operating scenarios for three different business activities for U.S. firms. The first case provides estimates for a typical office with 50 employees occupying 10,000 square feet of office space. The second case is tailored to a distribution facility that employs 25 workers and occupies 80,000 square feet of office and warehouse space. The third scenario represents a manufacturing facility with 50 employees occupying 35,000 square feet of space.