Are you looking to grow your business? You May Be Missing This Essential, Often Underestimated Asset – Corporate Law and Company Law

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Most business people know that state and local jurisdictions across the United States must compete for businesses, their capital investments, jobs, and payrolls. And almost everyone understands that often in a competitive process, governments use financial incentives to make themselves more attractive to win contracts. States are ranked each year and rewarded with awards for things like most deals announced, most capital investments, etc. Ohio was one of the top states in 2020, for the second year in a row, in total number of incentive projects per capita, according to Site Pick. And Ohio consistently ranks in the top 10 states for business, with Georgia taking the top spot in 2021 for the ninth straight year. It is indeed a big business with various federal, state and local incentives offered to businesses with the aim of creating jobs and attracting capital investment each year totaling more than $45 billion.

For businesses expanding into this region or considering moving there, there are a few important things to keep in mind. First, JobsOhio – along with regional partner REDI Cincinnati – easily ranks among the top four state economic development organizations in the United States, based on KMK Consulting’s personal experience negotiating numerous nationwide incentive agreements. . His leadership, people, financial resources, and creative attitude to win, along with his customer focus, make JobsOhio a fabulous asset to the state. In the Cincinnati area, the benefits are even stronger because of the working partnership between REDI Cincinnati and Northern Kentucky Tri-Ed. Whether it’s the new mega-deal with Intel or a 50-person expansion at Mason, never underestimate JobsOhio’s impact on the economic vitality of this region and the state.

Second, and more importantly, companies owe it to their ownership to pay more attention to incentive opportunities from the state as well as local jurisdictions. Too much is missed, ignored, or left undealt with when corporations accept whatever governments offer. Worse still, many do not fully utilize these incentives after they are awarded. Surprisingly, less than half of the incentives offered are perceived by the companies that have obtained them. In a recent Brookings Institute study that looked at incentives given versus incentives taken by companies, research found that over the past 10 years, the maximum amount of incentives taken was only 40%.

Takeaway for businesses looking to grow

So here are five important takeaways for companies strategizing for growth opportunities now or in the future.

1) Appreciate the tremendous importance and work of JobsOhio, REDI Cincinnati and Northern Kentucky Tri-ED to growing businesses and improving the quality of life. One way to do this is for more companies to invest financially in the local public-private partnership models of REDI and Tri-ED. These are not just government entities. These are teams that we are all part of, or should be part of, as business leaders.

2) The inducement process is a professional affair. The people who live in this space daily know what they are doing. Don’t ignore the inducement process because it’s complicated, and never do it on your own. If you do, you will always leave money on the table, which will make your project more successful and profitable.

3) Make sure your incentive consultant is part of your strategy team and include them early in your internal process. Errors are common and sometimes impossible to correct. And understand that your incentive advisor is a profit center, not a cost center.

4) Negotiating incentives is a multi-step process. Strategy, expertise, timing of every move, creativity and honesty are the foundations of success. The strength of this negotiation lies in your incentive consultant. Avoid the misperception that the business executive can do this negotiation themselves because government groups such as JobsOhio are so helpful. These people have customers, and it’s not the companies that are looking for the incentives.

5) Respect the importance of compliance and annual reporting to meet your new employment, payroll and capital investment commitments. Always realize the financial benefits you have obtained. Missing out on these benefits can be a huge detriment, which can often be avoided.

When planning a business venture to move into newly leased space or build a new headquarters, to expand jobs, or even to consolidate the existing workforce, consider government incentives. They can have a significant positive impact on your project budget.

Originally posted in Cincinnati Business Courier

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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