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And by locating near sources of that talent, you avoid relocation costs, allowing your startup to more easily grow its workforce.
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The funds, contingent on the company reaching certain job milestones, will be used to purchase equipment, making facility upgrades, train employees and offset relocation costs.
WSJ: New York insurance firm to move HQ to Stamford
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No relocation costs, no stress, no adjustment time.
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Although relocation costs for crews and equipment are expected to eat into the margin in North America in Q1 2012, the shift will help companies boost revenues in the long term by riding on the oil boom in the Bakken shale.
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As I wrote recently, the skyrocketing relocation compensation costs within central Beijing make any new constructive extremely expensive.
FORBES: Is Jim Chanos Right About A China Real Estate Bubble?
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Consolidations cost money up front, because there are usually some relocation and other office related costs.
FORBES: More Presidential Misdirection
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Paul Noe, writing in in 2011 in the Administrative Law Review, points to jobs lost when regulation finally pushes manufacturing offshore, such as lost wages, dampened earning potential, relocation and new-job training costs.
FORBES: Regulation Vs. Jobs: Assessing The Employment Impact Of Rules and Regulations