(Archived) COMMENT: The 100 year company

[jbenson2 2,147]

Evernote wants to be a 100 year company, and it looks like they are doing some things correctly.

Evernote office opens in Texas - hiring developers, designers, QA engineers, Product Managers

http://blog.evernote...udio-in-austin/

Evernote plans agressive hiring in Texas

http://www.statesman...ng-1802819.html

Compared to:

California as the absolute worst state in the country for doing business for the eighth year in a row

http://www.latimes.c...,0,461178.story

Last year, 254 California companies moved some or all of their work and jobs elsewhere — that is a 26% increase over 2010. Most chief executives in Silicon Valley said they won’t expand in the state, according to the survey.

A third of U.S. welfare recipients live in California. High state taxes and bundles of red tape make operating a business in the state unaffordable to many companies.

More than 1.5 million residents left California (11.0% unemployment) between 2001 and 2009, and moved to more business-friendly locales like the survey’s number-one state, Texas (7.0% unemployment).

For long-term survivability, the writing is on the wall for California-based Evernote.

.

[peterfmartin 221]

Jbenson, you didn't mention the offices in Zurich, Beijing, or Tokyo. (I don't know whether, by your predictions, they're a good or bad sign.)

In the short term, it appears Evernote is putting down roots in California, with the move next month to Redwood City, where I assume they'll have a bigger office.

Can you explain the relationship between welfare recipients and difficulty of doing business? (Also, I'm curious to know where that report got its one-third number. This site cites HHS statistics to show very different numbers, as well as Texas at number three on the list.)

[jbenson2 2,147]

Jbenson, you didn't mention the offices in Zurich, Beijing, or Tokyo. (I don't know whether, by your predictions, they're a good or bad sign.)

In the short term, it appears Evernote is putting down roots in California, with the move next month to Redwood City, where I assume they'll have a bigger office.

Can you explain the relationship between welfare recipients and difficulty of doing business? (Also, I'm curious to know where that report got its one-third number. This site cites HHS statistics to show very different numbers, as well as Texas at number three on the list.)

Setting up international offices is also a great decision for Evernote. They will be able to get faster and more accurate feedback on local opportunities.

The move to Redwood City - all I can say is they might regret it; unless Sacramento wakes up and starts running the state properly. Texas is in a much stronger fiscal position.

The welfare number comes from the same article - paragraph #8. The site you mentioned confirms California has more than 3 times as many welfare recipients as Texas. Regarding the relationship, well, you can't get blood out of a stone. California is already burdened with $70+ billion in general obligation debt and a mind-boggling $550 billion (that's half a trillion dollars!) unfunded state-run union pension liability.

[peterfmartin 221]

The welfare number comes from the same article - paragraph #8. The site you mentioned confirms California has more than 3 times as many welfare recipients as Texas.

I know it comes from the article. And the article cites the report that it's discussing. I was saying I'd like to know where the report got its numbers, since I don't see any citations on it. (And while we're mentioning proportions, California's population is also 62 percent larger than Texas's.)

Regarding the relationship, well, you can't get blood out of a stone. California is already burdened with $70 billion in general obligation debt and a mind-boggling $550 billion dollars (that's half a trillion!) unfunded state-run union pension liability.

I understand the metaphor, but I wonder if this is as large a burden on businesses as you're suggesting it is. First, if I'm not mistaken, the federal government funds at least 50 percent of Temporary Assistance for Needy Families, which is what I believe you/we are referring to. $70 billion and $550 billion are a lot of money. Do you know what California's annual expenses on welfare are? Or how they compare to the revenue that would be raised if Proposition 13 were repealed? Do you think California would be more or less business-friendly if it fixed a chunk of its budget problems that way?

[jbenson2 2,147]

Do you think California would be more or less business-friendly if it fixed a chunk of its budget problems that way?

My guess is California doesn't have any choice.

The California dream (Go west young man) is becoming the California nightmare.

The state has to figure it out or they will go bankrupt. Think that's crazy?

http://www.lincolnla...fornia-bankrupt

Compare the Google results of "California Bankrupt" vs "Texas Bankrupt".

Looks like a night vs day difference.

[peterfmartin 221]

Oh, we totally agree about that. I was just trying to understand how California's welfare recipients play into this.

[JMichaelTX 4,117]

Here is another article from the Wall Street Journal that is reporting much the same about CA:

Joel Kotkin: The Great California Exodus

A leading U.S. demographer and 'Truman Democrat' talks about what is driving the middle class out of the Golden State.

THE WEEKEND INTERVIEW

April 20, 2012, 7:19 p.m. ET

By ALLYSIA FINLEY

[gbarry 2,658]

The only thing I'm going to chime in with here is that Evernote Austin was conceived as a studio space, in the same vein that game development companies start or purchase various studios to work on different projects outside the core office. The idea of the studio model is to create functional, creative spaces that operate somewhat independently from the core HQ. They'll have their their own priorities, and because of their separation, a somewhat separate design and functional ethos. This will inevitably (hopefully) generate different ideas and foster creativity in the long run. Austin, for many reasons (least of all the BBQ), was an ideal location for our new space.

This is not to say Evernote Austin's entirely independent, obviously many of the shared services required to run any company will be located and centralized at HQ--and there's obviously a great deal of communication between the two to prevent siloing. There's even a large flatscreen in Mountain View linked up to an always on webcam, which serves as a "window" between Austin and Mountain View.

With that said, all of these moves, including our international ones, are being taken squarely with the company in mind, and while various governmental situations may be a factor worthy of consideration, they're certainly not going to trump any decision we feel is, in the end, the right one to make for the continued success of Evernote (and your memories!).

And, as an aside, if we get too into the relative differences between the governance of California vs Texas (and there are many nuances, trust me, I'm poli-sci by education) we'll need to move this over to Off-Topic. Just sayin