Space Power in California

[classicman]

I'm all for it - What a cool concept. Just please don't do it in California.

It's now stupid to start an innovative business in California.

Here's why one business I direct should leave. It's got a sweet electro-optical product that delivers superior images. But sales stayed flat until production left California for China in 2004. Three things happened:

First, costs dropped--but only by 15%, since many of the components were already produced in Asia. Second, quality improved--there's something few people get. Third, turnaround times got quicker. Yikes.

So in 2005 sales ticked up, they doubled in 2006, we showed first profits in 2007 as sales doubled again and ditto for 2008. This meant management could hire more engineers. It did. And the products got better and better.

Then: Oops! Toward the end of 2008, our Sacramento geniuses decided to "temporarily" suspend all net operating loss carry-forwards. They did this retroactively, to the beginning of the year, and 2009 sales growth slowed to 10%, putting the brakes on new hires. Burial services were held for a few interesting new products.

More examples Here