The Greater Richmond Partnership

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					      U.S. Start-Up Model For International Firms
                             Greater Richmond, Virginia
                             Companies looking to enter the U.S. market are
                             faced with a range of options. Common entry
                             strategies include joint ventures, strategic part-
                             nerships, distributors, a national salesperson,
                             and direct investment supporting distribution,
                             assembly and/or manufacturing of the product.
                             The following model is based on two scenarios that
                             usually have a high probability of success.The first case
                             provides estimates for a two-person sales office start-up
                             in the United States where both individuals are employ-
                             ees of the foreign-based parent company. One individ-
                             ual 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 900 square me-
                             ters 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.

                             Comparative cost information is shown for Richmond,
                             Virginia; Atlanta, Georgia; Boston, Massachusetts;
                             Charlotte, North Carolina; Chicago, Illinois; Jackson-
                             ville, Florida; Los Angeles, California; Newark, New
                             Jersey and Philadelphia, Pennsylvania. This informa-
                             tion is also available on the Partnership’s website at
                             www.grpva.com.

                             In many cases cost ranges are shown from low to high.
                             Data are taken from national and local sources and
October 2011                 identified in the section on Assumptions and Sources.
International Subsidiary Scenario 1: Two-Person Sales Office
                                                      Richmond, VA                Atlanta, GA             Boston, MA               Charlotte, NC            Chicago, IL

Start-Up Costs (One Time)                                Low           High        Low         High         Low          High         Low        High        Low         High
State registrations:
   State entrance fee                                    $75           $75        $225         $225        $375          $400        $250        $250       $150       $150
   Visa cost (1 person)                                 $400        $2,000        $400       $2,000        $400        $2,000        $400      $2,000       $400      $2,000
Legal fees:
   Visa costs (1 person)                              $3,500        $7,500      $3,500       $7,500      $3,500        $7,500      $3,500      $7,500      $3,500     $7,500
   Incorporation                                       $750         $5,000       $750        $5,000        $750        $5,000        $750      $5,000       $750      $5,000
   Trademark                                           $700         $1,500       $700        $1,500        $700        $1,500        $700      $1,500       $700      $1,500
   Patent search                                      $1,500        $4,000      $1,500       $4,000      $1,500        $4,000      $1,500      $4,000      $1,500     $4,000
Equipment (purchased):
   PC                                                  $850         $2,300       $850        $2,300        $850        $2,300        $850      $2,300       $850      $2,300
   Laptop                                              $399         $1,600       $399        $1,600        $399        $1,600        $399      $1,600       $399      $1,600
   Cell phones (2 Blackberry)                          $100           $600        $100         $600        $100          $600        $100        $600       $100       $600
   Printer/copier/scanner/fax                            $90        $5,000         $90       $5,000         $90        $5,000         $90      $5,000         $90     $5,000
Total Start-Up Costs                                  $8,364       $29,575      $8,514      $29,725      $8,664       $29,900      $8,539     $29,750      $8,439    $29,650

Operating Costs (Annual)
Annual state registration                               $100          $100         $50          $50        $125          $150         $25         $25         $75        $75
Salaries and benefits:
   Managing director                                 $55,286      $142,896     $55,453     $135,803     $67,704      $157,456     $67,974    $165,152     $60,029 $150,966
   Sales manager/Engineer                            $58,406      $101,088     $56,264      $97,926     $68,328      $120,182     $57,262     $99,632     $57,970 $105,914
   Commission/incentives/bonuses                       varies        varies      varies       varies      varies        varies      varies      varies      varies   varies
   Benefits                                          $31,834       $68,316     $31,281      $65,444     $41,490       $84,680     $35,066     $74,140     $35,636 $77,578
Office suite:
   Rent                                               $8,100       $17,400       $9,600    $21,600        $9,600     $48,000       $8,400    $30,000       $8,400    $13,800
   Furniture                                        included       included    included    included     included     included    included    included    included    included
   Receptionist                                     incldued       incldued    included    included     included     included    included    included    included    included
Telecommunications:
   Telephones (local service)                       included       included    included    included     included     included    included    included    included    included
   Internet access                                  included       included    included    included     included     included    included    included    included    included
   Long distance                                       varies         varies      varies      varies       varies       varies      varies      varies      varies      varies
   Cell phone plan                                    $1,188         $1,600      $1,188      $1,600       $1,188       $1,600      $1,188      $1,600      $1,188      $1,600
Other:
   Office supplies, misc.                             $1,000         $2,500     $1,000       $2,500      $1,000        $2,500      $1,000      $2,500      $1,000     $2,500
   Business auto                                      $7,733       $11,982      $7,217      $11,343      $7,058       $11,192      $7,463     $11,923      $7,731    $12,301
   Parking                                          included       included      varies       varies      varies        varies      varies      varies      varies     varies
   Insurance: property, liability                      varies         varies     varies       varies      varies        varies      varies      varies      varies     varies
   (premises & products), workers comp & umbrella
   Marketing/advertising/postage                       varies        varies   varies          varies      varies        varies      varies      varies      varies   varies
   Financial/accounting/legal services                 varies        varies   varies          varies      varies        varies      varies      varies      varies   varies
   Travel                                              varies        varies   varies          varies      varies        varies      varies      varies      varies   varies
   Taxes                                               varies        varies   varies          varies      varies        varies      varies      varies      varies   varies
Total Operating Costs                               $163,647      $345,882 $162,053        $336,266    $196,493      $425,760    $178,378    $384,972    $172,029 $364,734




     Greater Richmond’s Advantages for International Firms
     Greater Richmond’s growing population is nearly            Fifty-five percent of the nation’s consumers and            UPS and FedEx district hubs are located in the
     1.3 million and the labor force totals more than           manufacturers are within 1,200 kilometers (750             area.
     650,000.                                                   miles).
                                                                                                                           Rail service is provided by CSX, Norfolk Southern
     The diverse economy includes 11 Fortune 1000               Washington, D.C., the nation’s capital and the             and AMTRAK.
     headquarters; 21st century manufacturers; the              location of embassies, consulates, and interna-
     state capital; financial and information technol-           tional organizations, is only 160 kilometers (100          More than 3.3 million passengers and about 85
     ogy services; and higher education.                        miles) away.                                               million pounds of cargo are handled at Rich-
                                                                                                                           mond International Airport (RIC) each year. RIC
     Nearly 150 internationally owned companies have            Interstates I-95, I-64, I-85 and I-295 converge in         is served by eight passenger airlines and four
     facilities in the area.                                    the metro area.                                            dedicated air cargo lines.

     Greater Richmond is strategically located at the           There are more than 100 motor freight compa-               Foreign Trade Zone #207 at Richmond Interna-
     mid-point of the East Coast.                               nies and brokers.                                          tional Airport allows companies to defer paying
  Jacksonville, FL         Los Angeles, CA             Newark, NJ            Philadelphia, PA

      Low         High         Low         High          Low        High         Low         High          Start-Up Costs (One Time)
                                                                                                           State registrations:
     $125         $125        $100         $100         $125        $125        $250         $250             State entrance fee
     $400       $2,000        $400       $2,000         $400      $2,000        $400       $2,000             Visa cost (1 person)
                                                                                                           Legal fees:
   $3,500       $7,500      $3,500       $7,500       $3,500      $7,500      $3,500       $7,500             Visa costs (1 person)
     $750       $5,000       $750        $5,000        $750       $5,000       $750        $5,000             Incorporation
     $700       $1,500       $700        $1,500        $700       $1,500       $700        $1,500             Trademark
   $1,500       $4,000      $1,500       $4,000       $1,500      $4,000      $1,500       $4,000             Patent search
                                                                                                           Equipment (purchased):
     $850       $2,300       $850        $2,300         $850      $2,300        $850       $2,300             PC
     $399       $1,600       $399        $1,600         $399      $1,600        $399       $1,600             Laptop
     $100         $600       $100         $600         $100         $600        $100         $600             Cell phones (2 Blackberry)
      $90       $5,000         $90       $5,000          $90      $5,000         $90       $5,000             Printer/copier/scanner/fax
   $8,414      $29,625      $8,389      $29,600       $8,414     $29,625      $8,539      $29,750          Total Start-Up Costs

                                                                                                           Operating Costs (Annual)
     $138         $138         $30          $30          $50         $50        $250         $380          Annual state registration
                                                                                                           Salaries and benefits:
  $52,125     $121,888     $63,690     $164,299      $87,526    $206,128     $61,360     $155,106             Managing director
  $89,981     $132,059     $59,634     $113,464      $65,686    $116,667     $57,408     $101,317             Sales manager/Engineer
    varies       varies      varies       varies       varies      varies      varies       varies            Commission/incentives/bonuses
  $39,790      $71,105     $35,764      $80,551      $46,730     $98,452     $36,224      $78,209             Benefits
                                                                                                           Office suite:
    $5,940    $18,000        $6,000    $24,000      $21,372     $72,410        $8,400    $27,600              Rent
  included    included     included    included     included    included     included    included             Furniture
  included    included     included    included     included    included     included    included             Receptionist
                                                                                                           Telecommunications:
  included    included     included    included     included    included     included    included             Telephones (local service)
  included    included     included    included     included    included     included    included             Internet access
     varies      varies       varies      varies       varies      varies       varies      varies            Long distance
    $1,188      $1,600       $1,188      $1,600       $1,188      $1,600       $1,188      $1,600             Cell phone plan
                                                                                                           Other:
   $1,000       $2,500      $1,000       $2,500       $1,000      $2,500      $1,000       $2,500             Office supplies, misc.
   $7,905      $11,892      $8,886      $13,072       $7,958     $12,472      $7,878      $12,572             Business auto
    varies       varies      varies       varies       varies      varies      varies       varies            Parking
    varies       varies      varies       varies       varies      varies      varies       varies            Insurance: property, liability
                                                                                                              (premises & products), workers comp & umbrella
    varies       varies      varies       varies       varies      varies      varies       varies            Marketing/advertising/postage
    varies       varies      varies       varies       varies      varies      varies       varies            Financial/accounting/legal services
    varies       varies      varies       varies       varies      varies      varies       varies            Travel
    varies       varies      varies       varies       varies      varies      varies       varies            Taxes
 $198,067     $359,182    $176,192     $399,516     $231,510    $510,279    $173,708     $379,284          Total Operating Costs




customs duties on goods until they leave the          weekly barge service between Richmond and               Legal, financial and other business service pro-
zone for domestic consumption.                        the Port of Virginia.                                   viders have multilingual staff and international
                                                                                                              experience.
Washington Dulles International Airport provides      The Port of Virginia at Hampton Roads is within
direct service to more than 40 foreign cities and     160 kilometers (100 miles), with more than 75           Cultural and business support groups include the
nonstop service daily to nearly 90 U.S. cities.       international shipping lines and more than 3,000        Virginia Asian Chamber of Commerce, German
Dulles is 50 minutes by air or two hours by car       sailings annually to 100 countries.                     American Business Stammtisch, International
from Greater Richmond.                                                                                        Club,Virginia International Business Council and
                                                      Operating and living costs are lower than in other      World Affairs Council of Greater Richmond.
The Port of Richmond is Central Virginia’s domes-     larger metro areas.
tic and international multi-modal freight and                                                                 Greater Richmond offers the cultural and recre-
distribution center on the James River, serving       Virginia is a Right-to-Work state with low union        ational opportunities of a large city with minimal
waterborne, rail, and truck shippers throughout       activity.                                               traffic congestion and an average 24-minute
the mid-Atlantic states. The 64 Express provides                                                              commute.
International Subsidiary Scenario 2: Ten-Person Assembly and Distribution Operation
                                                   Richmond, VA               Atlanta, GA            Boston, MA             Charlotte, NC             Chicago, IL

Start-Up Costs (One Time)                              Low        High         Low        High         Low        High         Low        High         Low        High
State registrations:
   State entrance fee                                  $75         $75        $225       $225         $375        $400        $250        $250        $150        $150
   Visa cost (1 person)                               $400      $2,000        $400      $2,000        $400      $2,000        $400      $2,000        $400      $2,000
Legal fees:
   Visa costs (1 person)                            $3,500      $7,500      $3,500      $7,500      $3,500      $7,500      $3,500      $7,500      $3,500      $7,500
   Incorporation                                     $750       $5,000        $750      $5,000        $750      $5,000       $750       $5,000        $750      $5,000
   Trademark                                         $700       $1,500        $700      $1,500        $700      $1,500       $700       $1,500        $700      $1,500
   Patent search                                    $1,500      $4,000      $1,500      $4,000      $1,500      $4,000      $1,500      $4,000      $1,500      $4,000
Equipment (purchased):
   PC (1)                                             $850      $2,300        $850      $2,300        $850      $2,300        $850      $2,300        $850      $2,300
   Laptop (3)                                       $1,200      $4,800      $1,200      $4,800      $1,200      $4,800      $1,200      $4,800      $1,200      $4,800
   Cell phones (5 Blackberry)                        $250       $1,500       $250       $1,500        $250      $1,500        $250      $1,500        $250      $1,500
   Printer/copier/scanner/fax                          $90      $5,000         $90      $5,000         $90      $5,000         $90      $5,000         $90      $5,000
Total Start-Up Costs                                $9,315     $33,675      $9,465     $33,825      $9,615     $34,000      $9,490     $33,850      $9,390     $33,750

Operating Costs (Annual)
Annual state registration                             $100        $100         $50         $50        $125        $150         $25         $25         $75         $75
Salaries and benefits:
  Managing director                                $55,286    $142,896     $55,453    $135,803     $67,704    $157,456     $67,974    $165,152     $60,029    $150,966
  Sales manager/Engineer                           $58,406    $101,088     $56,264     $97,926     $68,328    $120,182     $57,262     $99,632     $57,970    $105,914
  Commission/incentives/bonuses                      varies      varies      varies      varies      varies      varies      varies      varies      varies      varies
  Executive secretary                              $32,656     $48,901     $31,699     $51,210     $39,062     $60,694     $31,678     $47,736     $32,198     $54,621
  Electronic technician                            $39,790     $64,834     $41,038     $66,248     $44,741     $66,685     $39,000     $62,150     $36,962     $63,378
  Inspector                                        $21,715     $42,661     $23,109     $38,376     $29,598     $50,398     $22,734     $39,042     $23,338     $43,181
  Fork lift operator                               $23,192     $36,650     $21,507     $32,718     $24,835     $43,222     $22,589     $33,322     $21,653     $35,152
  Electronic assembler                             $22,797     $34,403     $24,107     $40,414     $26,666     $40,664     $25,126     $63,624     $20,800     $35,526
  Engine assembler                                 $27,414     $34,528     $25,730     $36,754     $26,686     $43,576     $30,826     $63,523     $22,506     $32,718
  CNC operator                                     $28,621     $38,397     $38,891     $40,539     $32,323     $50,149     $25,064     $40,248     $25,126     $42,515
  Lathe operator                                   $28,330     $37,211     $23,213     $32,843     $35,318     $50,398     $25,646     $44,491     $23,982     $41,350
  Benefits                                         $94,698    $162,839     $95,483    $160,393    $120,555    $208,444     $97,412    $184,498     $98,018    $182,807

Leased space: 900 sq. meters                       $29,900     $75,600     $33,700     $66,400     $55,700    $100,400     $45,200     $90,700     $39,100     $79,500
Real estate tax                                      varies      varies      varies      varies      varies      varies      varies      varies      varies      varies
Building insurance                                   varies      varies      varies      varies      varies      varies      varies      varies      varies      varies
Common area maintenance                              varies      varies      varies      varies      varies      varies      varies      varies      varies      varies

Telecommunications:
   Telephones (local & long distance service)       $1,380      $1,380      $1,380      $1,380      $1,380      $1,380      $1,380      $1,380      $1,380      $1,380
   Internet access                                    $840      $2,400        $840      $2,400        $840      $2,400        $840      $2,400        $840      $2,400
   Toll-free line                                   $1,270      $1,270      $1,270      $1,270      $1,270      $1,270      $1,270      $1,270      $1,270      $1,270
   International long distance                       varies      varies      varies      varies      varies      varies      varies      varies      varies      varies
   Cell phone plan                                  $3,000      $6,000      $3,000      $6,000      $3,000      $6,000      $3,000      $6,000      $3,000      $6,000
Utilities:
   Electric                                        $13,632     $13,632     $17,208     $17,208     $24,084     $24,084     $11,688     $11,688     $17,052     $17,052
   Water                                              $407        $433        $437        $511       $317         $387       $212         $238       $126         $144
   Sewer                                              $664       $710       $1,375      $1,637       $438         $500       $236         $263       $109         $124
   Solid waste                                        $864      $1,440        $864      $1,440       $864       $1,440       $864       $1,440       $864       $1,440
Other:
   Office supplies, misc.                           $3,000      $5,000      $3,000      $5,000      $3,000      $5,000      $3,000      $5,000      $3,000      $5,000
   Business auto                                    $7,733     $11,982      $7,217     $11,343      $7,058     $11,192      $7,463     $11,923      $7,731     $12,301
   Insurance: property, liability                    varies      varies      varies      varies      varies      varies      varies      varies      varies      varies
   (premises & products), workers comp & umbrella
   Marketing/advertising/postage                     varies      varies      varies      varies      varies     varies       varies      varies      varies      varies
   Financial/accounting/legal services               varies      varies      varies      varies      varies     varies       varies      varies      varies      varies
   Travel                                            varies      varies      varies      varies      varies     varies       varies      varies      varies      varies
   Production equipment                              varies      varies      varies      varies      varies     varies       varies      varies      varies      varies
   Taxes                                             varies      varies      varies      varies      varies     varies       varies      varies      varies      varies
Total Operating Costs                             $495,695    $864,355    $506,835    $847,863    $613,891 $1,046,071     $520,489    $975,745    $497,129    $914,814
Jacksonville, FL        Los Angeles, CA            Newark, NJ           Philadelphia, PA

     Low        High        Low         High         Low        High         Low        High    Start-Up Costs (One Time)
                                                                                                State registrations:
    $125        $125        $100       $100         $125        $125        $250        $250       State entrance fee
    $400      $2,000        $400      $2,000        $400      $2,000        $400      $2,000       Visa cost (1 person)
                                                                                                Legal fees:
  $3,500      $7,500      $3,500      $7,500      $3,500      $7,500      $3,500      $7,500       Visa costs (1 person)
   $750       $5,000       $750       $5,000       $750       $5,000       $750       $5,000       Incorporation
   $700       $1,500       $700       $1,500       $700       $1,500       $700       $1,500       Trademark
  $1,500      $4,000      $1,500      $4,000      $1,500      $4,000      $1,500      $4,000       Patent search
                                                                                                Equipment (purchased):
   $850       $2,300       $850       $2,300       $850       $2,300       $850       $2,300       PC (1)
  $1,200      $4,800      $1,200      $4,800      $1,200      $4,800      $1,200      $4,800       Laptop (3)
   $250       $1,500       $250       $1,500       $250       $1,500        $250      $1,500       Cell phones (5 Blackberry)
     $90      $5,000         $90      $5,000         $90      $5,000         $90      $5,000       Printer/copier/scanner/fax
  $9,365     $33,725      $9,340     $33,700      $9,365     $33,725      $9,490     $33,850    Total Start-Up Costs

                                                                                                Operating Costs (Annual)
    $138        $138         $30         $30         $50         $50        $250        $380    Annual state registration
                                                                                                Salaries and benefits:
 $52,125    $121,888     $63,690    $164,299     $87,526    $206,128     $61,360    $155,106      Managing director
 $89,981    $132,059     $59,634    $113,464     $65,686    $116,667     $57,408    $101,317      Sales manager/Engineer
   varies      varies      varies      varies      varies      varies      varies      varies     Commission/incentives/bonuses
 $29,640     $45,178     $33,155     $57,574     $43,992     $63,627     $36,234     $56,784      Executive secretary
 $41,600     $64,355     $42,016     $76,003     $36,130     $62,982     $39,104     $69,701      Electronic technician
 $25,438     $40,539     $22,214     $44,179     $22,547     $43,701     $26,915     $47,403      Inspector
 $23,088     $33,301     $23,754     $45,885     $23,317     $40,019     $26,146     $40,872       Fork lift operator
 $22,381     $37,211     $20,259     $99,779     $22,256     $35,755     $24,315     $39,728       Electronic assembler
 $31,970     $41,267     $24,690     $53,914     $26,146     $38,459     $34,029     $43,243       Engine assembler
 $28,309     $45,448     $22,485     $40,914     $30,222     $49,774     $30,909     $49,442       CNC operator
 $33,446     $41,704     $25,584     $40,851     $22,464     $38,958     $32,386     $50,960       Lathe operator
$105,834    $168,826     $97,869    $194,550    $115,987    $212,301    $112,486    $199,640       Benefits

 $39,800     $83,400     $56,400     $94,800     $54,500     $92,500     $36,800     $76,100    Leased space: 900 sq. meters
   varies      varies      varies      varies      varies      varies      varies      varies   Real estate tax
   varies      varies      varies      varies      varies      varies      varies      varies   Building insurance
   varies      varies      varies      varies      varies      varies      varies      varies   Common area maintenance

                                                                                                Telecommunications:
  $1,380      $1,380      $1,380      $1,380      $1,380      $1,380      $1,380      $1,380       Telephones (local & long distance service)
    $840      $2,400        $840      $2,400        $840      $2,400        $840      $2,400       Internet access
  $1,270      $1,270      $1,270      $1,270      $1,270      $1,270      $1,270      $1,270       Toll-free line
   varies      varies      varies      varies      varies      varies      varies      varies      International long distance
  $3,000      $6,000      $3,000      $6,000      $3,000      $6,000      $3,000      $6,000       Cell phone plan
                                                                                                Utilities:
 $17,880     $17,880     $19,920     $19,920     $24,036     $24,036     $18,828     $18,828       Electric
   $199        $207        $297        $340        $187        $214        $352         $392       Water
   $406        $450        $297        $340        $643        $694        $239         $265       Sewer
    $864      $1,440        $864      $1,440       $864       $1,440        $864      $1,440       Solid waste
                                                                                                Other:
  $3,000      $5,000      $3,000      $5,000      $3,000      $5,000      $3,000      $5,000       Office supplies, misc.
  $7,905     $11,892      $8,886     $13,072      $7,958     $12,472      $7,878     $12,572       Business auto
   varies      varies      varies      varies      varies      varies      varies      varies      Insurance: property, liability
                                                                                                   (premises & products), workers comp & umbrella
   varies      varies      varies     varies       varies     varies       varies      varies      Marketing/advertising/postage
   varies      varies      varies     varies       varies     varies       varies      varies      Financial/accounting/legal services
   varies      varies      varies     varies       varies     varies       varies      varies      Travel
   varies      varies      varies     varies       varies     varies       varies      varies      Production equipment
   varies      varies      varies     varies       varies     varies       varies      varies      Taxes
$560,493    $903,233    $531,534 $1,077,404     $594,002 $1,055,827     $555,993    $980,223    Total Operating Costs
Greater Richmond: Real Estate, Education & Taxes
Real Estate Options                                                          Later-stage companies can continue to receive sup-
                                                                             port at the Biotech Park’s Virginia Biosciences Com-
                                                                                                                                                       versities in Virginia. VCU enrolls more than 32,000
                                                                                                                                                       students in more than 200 certificate, undergradu-
                                                                             mercialization Center (VBCC) as they grow toward                          ate, graduate, professional and doctoral programs in
Greater Richmond offers a variety of business incu-
                                                                             commercialization and financial independence.                              the arts, sciences and humanities. University of Rich-
bators and executive office options for start-up busi-
                                                                             For the 10-person case:                                                   mond is ranked one of the best liberal arts universi-
nesses. Described below and shown on the map are                                                                                                       ties in the nation by U.S. News and World Report. It is
those of special interest to international companies                         BizWorks Enterprise Center is a non-profit small                           the area’s largest private university and includes the
for the two- and 10-person scenarios described here.                         business incubator with 4,500 square meters (50,000                       Jepson School of Leadership Studies, the nation’s
For the two-person case:                                                     sq.ft.) of office, manufacturing, warehouse and stor-                      first undergraduate school of leadership studies.
                                                                             age space. Tenants share administrative services,                         Greater Richmond’s four-year institutions also in-
Regus operates two business centers in Greater Rich-                         business machines and common areas, including a
mond with fully furnished, equipped and staffed of-                                                                                                    clude Virginia State University, one of Virginia’s two
                                                                             conference room and resource center. BizWorks can                         land-grant institutions, Randolph-Macon College and
fices, shared conference rooms and support servic-                            also provide business counseling, training courses
es. The company operates more than 1,100 business                                                                                                      Virginia Union University, which are coeducational,
                                                                             and general business advisory services.                                   liberal arts institutions.
centers in 500 cities and 85 countries worldwide.
                                                                             River’s Bend East Office and Technology Center is                          J. Sargeant Reynolds and John Tyler Community
AdvanTech – Maggie L. Walker Business and Tech-                              a 42-acre complex featuring 5,526 square meters
nology Center is a non-profit small business incu-                                                                                                      Colleges offer AS and AAS degrees, certificate pro-
                                                                             (61,400 sq.ft.) of laboratory space containing 47 lab-                    grams, and credit and non-credit classes in occupa-
bator owned by the City of Richmond Economic                                 oratories – half wet and half dry. In addition, there are
Development Authority. It is designed to foster                                                                                                        tional and technical areas. The community colleges
                                                                             4,563 square meters (50,700 sq. ft.) of conditioned                       also provide customized training programs for indi-
companies that are in the second stage of business                           process pilot/scale up space. The 12,510-square-me-                       vidual companies, WorkKeys job profiling and skills
development. AdvanTech members get a furnished                               ter (139,000 sq.ft.) office building includes a cafete-                    assessment, and adult continuing education classes.
office, multiple phone lines with voicemail, high-                            ria, lecture hall and training and fitness centers.                        Non-credit classes are offered jointly by the colleges
speed Internet access, multi-purpose conference
                                                                             As companies expand they will outgrow an incu-                            through the Community College Workforce Alliance.
rooms, training rooms and other services. Rents
                                                                             bator setting and need additional space. There are                        Each locality in Greater Richmond has its own pub-
are below market rate and space is available on a
                                                                             more than 100 industrial and office parks in Greater                       lic elementary and secondary school system and
monthly basis for one to three years.
                                                                             Richmond offering a full array of real estate options                     provides a full range of career prep, college prep,
Business Center International is a full service office                        to accommodate office, distribution and manufac-                           and honors/advanced placement classes. More than
business center with over 20 years of experience                             turing operations.                                                        153,200 students are enrolled in the four systems. Six
servicing the local business community. BCI offers
                                                                                                                                                       vocational/technical centers offer trade and indus-
furnished offices, meeting rooms, administrative
support and telecommunication services includ-                               Education Resources                                                       try classes and apprenticeship training.
ing high-speed Internet, telephone connections and                                                                                                     All public school systems teach foreign languages
                                                                             Outstanding higher education institutions are lo-                         and English as a second language.The International
video conferencing facilities.
                                                                             cated throughout Greater Richmond and are shown                           Baccalaureate program is available in public and
3D LLC provides office space and advisory services,                           on the map to the right. Fifteen four-year and 11 two-                    private schools and a regional Governor’s School for
including Chinese language support, for start-up of-                         year area colleges and universities have over 77,500                      Government and International Studies is available
fice operations.                                                              students and grant more than 12,000 degrees each                          for gifted students. The regional MathScience Inno-
The Virginia Biosciences Development Center                                  year in all fields, including business, engineering,                       vation Center provides special facilities and classes
(VBDC) at the Virginia BioTechnology Research                                law, and medicine. A wide choice of international                         in science, math, and technology that would not
Park is a technology incubator with more than 2,430                          and language studies are offered, as well as student                      be feasible for individual school systems. Henrico
square meters (27,000 sq.ft.) of laboratory, office,                          and faculty exchange programs with universities in                        County has a special bilingual German-English In-
meeting, and support space. Options range from an                            many other countries.                                                     ternational program. Weekend and evening schools
individual work station with a personal computer to                          Virginia Commonwealth University (VCU) is ranked                          offering classes in language and culture have been
laboratory space. The center provides business strat-                        by the Carnegie Foundation as a Doctoral Research-                        created by the local German, Chinese, Japanese, and
egy and assistance to early-stage incubator tenants.                         University Extensive and is one of the largest uni-                       Korean communities.

     Tax Rate Comparison
                              Corporate Income Tax                              Sales Tax                      Personal Income Tax

     Richmond, VA                            6.0%                                    5.0%                              2.0% to 5.75%

     Atlanta, GA                             6.0%                              7.0% or 8.0%                             1.0% to 6.0%

     Boston, MA                             8.25%                                   6.25%                                    5.3%

     Charlotte, NC                           6.9%                                   8.25%                              6.0% to 7.75%

     Chicago, IL                             9.5%                                   9.75%                                    5.0%

     Jacksonville, FL                        5.5%                                    7.0%                                      0%

     Los Angeles, CA                         8.84%                                  9.25%                               1.0% to 9.3%

     Newark, NJ                              9.0%                                    7.0%                              1.4% to 8.97%

     Philadelphia, PA                        9.99%                                   7.0%                                   3.07%

     Notes: City of Atlanta has an 8% sales tax, 7% in the surrounding counties. In 2012, the Massachusetts tax rate on business and manu-
     facturing corporations is scheduled to fall to 8.0% and the rate on financial institutions will rise to 9.0%. The Illinois rate of 9.5% is the
     sum of a corporate income tax rate of 7.0% plus a replacement tax of 2.5%. Tax rate increased from 7.3% on 1/1/11. In New Jersey small
     businesses with annual entire net income under $100,000 pay a tax rate of 7.5%; businesses with income under $50,000 pay 6.5%.                   Bizworks Enterprise Center
                                                                                                                        Greater Richmond: Colleges, Universities & Incubators
                                                                                                                                                                               Colleges & Univesities
                                                                                                                                                                               1.    Baptist Theological Seminary
                                                                                                                                                                               2.    Community College Workforce Alliance
                                                                                                                                                                                     Featherstone
                                                                                                                                                                               3.    Community College Workforce Alliance
                                                                                                                                                                                     North Run
                                                                                                                                                                               4.    J. Sargeant Reynolds Community College
                                                                                                                                                                                     Downtown Campus
                                                                                                                                                                               5.    J. Sargeant Reynolds Community College
                                                                                                    1                                                                                Parham Road Campus
                                                                Hanover                                                                                                        6.    J. Sargeant Reynolds Community College
                                                                County                                  95                                                                           Western Campus
                                                                                                                                                      N                        7.    John Tyler Community College
                                                                                               10       R R                                                                          Chester Campus
                                                                                       Ashland
                                                                                                                             301                                               8.    John Tyler Community College
                                                                                                        D
                                                                                                                                                                                     Midlothian Campus
                                                                                                                   Hanover
                                                                                                                   Airport                                                     9.    John Tyler Community College
     6                                           64                                                                                                                                  Nursing Program - Johnston Willis
         Ja
            m
                                                                           295                                                                                                 10.   Randolph-Macon College
             es                                                                                                                                                                11.   Richard Bland College
                  Ri
                    ve                                                      C                       3
                       r                                                        A                  75                                                                          12.   Union Theological Seminary
                                                                                                                                                                               13.   University of Richmond
                                                                                        R R
                                                                                              F                          295                                                   14.   Virginia Commonwealth University
                                                                                                     1                                                                               MCV Campus
                                                                                  13                 12                                                                        15.   Virginia Commonwealth University
                                                                                                    17 4                                                                             Monroe Park Campus
                                                      288                                             B 15
                                                                                                                                                                               16.   Virginia State University
                                                                  2                                  I H 14
                                                                                       ERichmond                                      Richmond
                                                                                                                                      International           64               17.   Virginia Union University
                                                            8         9                                                               Airport


                                                                   76                        150                      895          Henrico                                     Incubators
                                                                                                                                                                               A.    3D LLC
                                                                                                                               295 County
                                                Swift Creek
                                                Reservoir               Chesterfield                                                                                           B.    AdvanTech - Maggie L. Walker
                                                                            Airport
                                                                                                              95                                                                     Business and Technology Center
                                        Chesterfield                                          288                                                                              C.    Business Center International
                                                                                                                                                                               D.    Dominion Resources GreenTech Incubator
                                        County                                                                                                                                 E.    Regus - Boulders Business Park
                                                                                                              7              G                                                 F.    Regus - Two Paragon Place
                                                                                                                                                                               G     River’s Bend East Office and
                         Ap                                                                                                                               James River
                            pom                                 Lake Chesdin                                   1                                                                     Technology Center
                                att                                                                           301                  Hopewell
                                   ox                                                                                                                                          H.    Virginia BioTechnology Research Park,
                                        Ri
                                          ver                                                                          Colonial                                                I.    Virginia Biosciences Development Center
                                                                                                                       Heights
                                                                                                            16                     295
                                                                                                   85       Petersburg
                                                                                         1
                                                                                                                      11


Assistance Available from the Partnership
The Greater Richmond Partnership, Inc. is a                                             area, the Partnership will structure an itinerary                           Relocation services for company employees
publicly and privately funded regional economic                                         including a community orientation; review of                                are available in cooperation with the Greater
development organization representing the coun-                                         appropriate sites and buildings; and meetings                               Richmond Chamber and local businesses. The
ties of Chesterfield, Hanover, and Henrico and                                           with government leaders and providers of legal,                             Partnership can also coordinate public rela-
the City of Richmond,Virginia. The Partnership                                          financial, and other support services.                                       tions services, including press releases, ground
provides site location assistance to domestic and                                                                                                                   breaking ceremonies, ribbon cuttings and facility
foreign companies planning new or expanded                                              Information and research support are provided                               dedication ceremonies.
facilities. Services are provided with no cost to                                       throughout the site selection process. Partnership
the company and with complete confidentiality.                                           staff can assist with basic market research and                             Ongoing support for local companies includes the
                                                                                        with referrals to university and private research                           Business First program as well as the Richmond-
Site location assistance includes real estate infor-                                    providers for more advanced research. The Part-                             JobNet website and other workforce programs.
mation and customized community and business                                            nership can also assist with hiring key personnel.
information. When company officials visit the
Assumptions and Sources                                 building (high estimate). Prices in each metro
                                                        area are from MarketBeat United States Indus-
                                                                                                              to 10,000 for ten lines. Blackberry Curve and
                                                                                                              Blackberry Bold phones are used for the cell
State registration costs are from individual state      trial Report 2Q 2011 by Cushman & Wakefield.           phone estimate. Costs are based on prices for
departments as of September 2011.                       Warehouse and distribution buildings are very         the Richmond region and may vary by locality
                                                        large, single-story structures. These buildings       as well as by other competitive offerings.
Visa costs represent the actual expense of the          may have a small amount of office space as well
visa paid per person to the U.S. government. The                                                              Electricity costs for the 10-person case are
                                                        as numerous loading docks, truck doors and
low and the high costs represent the cost of an                                                               based on an average monthly demand of 40
                                                        large surface parking lots for semi-trailers. Flex
E visa and L visa respectively.                                                                               kW and consumption of 14,000 kWh. Average
                                                        buildings often combine one or more uses in
                                                                                                              monthly bills for the power company serving
Legal fees are estimates from Eliot Norman of           a single facility, including office space, research
                                                                                                              each city were obtained from Typical Bills and
Williams Mullen and Michael H. Gladstone of             and development, showroom retail sales, light
                                                                                                              Average Rates Report, Summer 2010 by Edison
McCandlish Holton. Fees represent a range for           manufacturing, and some small warehouse and
                                                                                                              Electric Institute. Average bills for the City of
the business start-up costs incurred for legal          distribution uses. These are asking rental rates
                                                                                                              Jacksonville were not included in the Edison
services. Legal costs are based on the estimates        for industrial space (triple net basis) excluding
                                                                                                              guide,and were obtained from the municipal
for Richmond,VA. Generally, legal fees are higher       real estate tax, building insurance, and common
                                                                                                              service provider’s website, www.jea.com.
in cities that are larger than Richmond.                area maintenance. These costs vary by locality
                                                        and by individual property. Estimates for the         Water and sewer costs are based on a typical
Trademark fees include the cost of the federal          Richmond area are $0.49 per sq. ft. for real estate   consumption of 700 and 800 cubic feet of water
filing fee (covers all 50 states) as well as legal       taxes and $0.46 per sq. ft. for operating expenses    per month. Figures reflect use of 25 gallons/
fees.                                                   for industrial spaces. Estimates are based on         day/employee and 29 gallons/day/employee
Salary data for both cases are from the U.S. De-        property records from CoStar.                         respectively and no process water. Bills include
partment of Labor, Foreign Labor Certification                                                                 applicable service charges and taxes. Water and
                                                        Telecommunications costs are based on
Data Center, on-line Wage Library at                                                                          sewer bills are estimated by unit costs provided
                                                        estimates from the Verizon website and can
www.flcdatacenter.com for July 2011 to June                                                                    by each city’s municipal service. Solid waste
                                                        vary by state. Local phone service and Internet
2012. Low estimates are for Level I or entry level;                                                           costs are estimates for Richmond,VA from Allied
                                                        connection for the two-person scenario are
high estimates are for Level 4 or fully competent.                                                            Waste and Waste Management.
                                                        included in the office costs. Long distance
Benefits are calculated as a percentage of total         prices vary greatly by provider and location.         Business auto costs are based on
wages for the Northeastern, Midwestern, South-          Telephone costs for the 10-person scenario are        Edmunds.com’s True Cost to Own (TCO) calcu-
ern, and Western regions of the United States.          based on the Verizon Freedom for Business All         lations for a 2011 Ford Fusion sedan. Five-year
Source: U.S. Bureau of Labor Statistics, March          plan that includes unlimited local and direct         costs to own a vehicle include seven cost cat-
2011 Release, Table 7, http://stats.bls.gov/news.       dialed long distance usage, voicemail and caller      egories: depreciation, insurance, financing, taxes
release/pdf/ecec.pdf.                                   ID (for the main line only). Costs are for three      and fees, fuel, maintenance and repairs. The low
                                                        lines. Price does not include a one-time set-up       and high costs for vehicle operation in metro
Office costs for the two-person case for                 charge of $119. Toll-free number charges are $15      areas are for Year 1 and Year 5 respectively.
Richmond were provided by Betty Beam with               per month plus 7 cents per minute. Estimates
Business Center International. Costs for all other      were based on 1,300 minutes per month for a           Computers, office supplies, and other costs are
locations were based on estimates from                  toll-free line.                                       estimates from the Greater Richmond Partner-
Officelist.com. All locations include an office                                                                 ship. Pricing structures for the laptop and PC
with furniture, receptionist, local phone line,         Cell phone and plan costs are based on esti-          are based on figures from Dell.com, August
and an Internet connection. Prices are based on         mates from the T-Mobile website and require a         2011. Prices for the multifunction printer are
availability of space in September 2011.                two-year contract. Their National Small Business      based on figures from HP   .com, August 2011.
                                                        Plan (includes two lines) with 2,500 minutes for      Office supply costs are based on the Partner-
Leased space prices for the 10-person scenario          low and 5,000 minutes for high was used for the       ship’s experience. Costs for the other categories
are based on a 900 sq. meter/10,000 sq. ft. indus-      two-person scenario. The 10-person scenario in-       shown will vary based on a company’s specific
trial space in either a general warehouse and           cludes prices based on the Enterprise Business        needs and practices.
distribution building (low estimate) or a flex           Plan and minutes range from 5,000 for five lines




 Dominion Resources GreenTech Incubator                  Northlake Business Park                               Virginia BioTechnology Research Park




                                                    | Contact Us
United States                                         United Kingdom; Scandinavia;The Netherlands                  Germany; Switzerland; Austria
Gregory H. Wingfield, President & CEO                  Andrew Harfoot                                               Mrs. Edith Pflug
901 East Byrd Street                                  Springboard Marketing Limited                                Director, European Operations
Suite 801                                             1 Tonbridge Chambers                                         Poststrasse 15-23
Richmond,VA 23219-4070                                Pembury Road                                                 D-50676 Cologne, Germany
Toll-free: 1-800-229-6332                             Tonbridge, Kent TN9 2HZ                                      Phone: 49-221-232602
Phone: 804-643-3227                                   Phone: 44-1732-363399                                        Fax: 49-221-2407357
Fax: 804-343-7167                                     Fax: 44-1732-352304                                          E-mail: pflug@grpeurope.de
Website: www.grpva.com                                E-mail: Andrew.harfoot@springboard-marketing.co.uk

				
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