Relocating only part of a company can free up an entrepreneur to pursue new opportunities more easily. Take Tom Hursman of Spectrum MedSystems Corp. He wasn't even thinking about moving any of his medical- and safety-products business out of Irvine, Calif., where he had been based for five years. He just wanted funding to launch a new line of business: producing a new plastic insert for work boots. Then he found out that by relocating part of Spectrum's manufacturing operations to an economic-development zone in Syracuse, N.Y., the company could really save money. It would be able to qualify for low-interest loans from the state of New York, buy discounted electricity from Niagara Mohawk Power Corp., and even get free land for the factory from the city of Syracuse.
The move made sense from a logistics standpoint, too, since Syracuse was closer to Hursman's insert customers, mostly boot makers based on the East Coast. The rest of Spectrum, however, stayed in California, although Hursman has moved his remaining manufacturing operations to a smaller space in Pomona.