Business Climate

Hot Spot for Headquarters
Tennessee offers pro-business assets to corporations

Safa Homayoon, chief operating officer for Zoi Interactive Technologies

Tennessee is a natural for corporate headquarters, thanks to the state’s central location and pro-business mindset. Fortune 500 companies such as ServiceMaster and Akzo Nobel chose Tennessee in 2006, and several other large corporations have recently decided to mind their business in the Volunteer State.

For example, the capital city of Nashville has attracted a number of high-profile projects.

“Nashville is a growing city – a thriving metropolis that is a cool place to be,” says Kingsley Brock, administrator of business development for the state Department of Economic and Community Development. “The city is a hub for great banking centers and health-care corporations, and there is an excellent labor force with folks who have moved here from all across the country. Plus, there is good weather and good entertainment options.”

Zoi Interactive Technologies decided in 2006 to move its operations from Las Vegas to Nashville. Company officials say they were attracted to the lower cost of living in Nashville compared to many other major cities.

“When we decided to leave Las Vegas for Nashville, multiple people told us we couldn’t attract top people to Nashville – oh, how wrong they were,” says Safa Homayoon, Zoi chief operating officer. “For example, in February 2007 we recruited a guy from Silicon Valley who had multiple national job offers. In fact, we’ve had a 90 percent close ratio on the people we have recruited to Zoi from other parts of the country.”

Zoi develops interactive computer software and advertising-based content for the Internet.

“We set up our headquarters in Cummins Station in downtown Nashville, which is a hip area of the city,” Homayoon says. “Everything about our experience in Nashville has been positive.”

But Nashville isn’t the only hot spot for companies looking to set up operations in Tennessee. Knoxville’s location along interstates 40 and 75 make it logistically popular, as is the case with Chattanooga and its positioning along interstates 24 and 75. Memphis is also becoming increasingly attractive to businesses, as demonstrated by ServiceMaster moving its headquarters there.

“We see Memphis as a city that is on the move, has strong momentum, and we plan to be a larger part of that,” says Scott Cromie, group president of ServiceMaster. The company provides household cleaning products and services, with brands such as Terminix, TruGreen Chemlawn and Merry Maids cleaning services.

Brock also points out that a tip of the hat should go to Gov. Phil Bredesen for playing a key part in helping to attract major corporations to Tennessee in recent years.

“Gov. Bredesen is our No. 1 strength because he is pro-business, proven by the fact that he started his own HealthAmerica Corp. years ago and eventually sold that business in 1986 for $700 million,” Brock says. “The governor is a businessman who is not a career politician, and he has luckily had the support of both [political] parties when it comes to attracting companies to Tennessee.”

Along with Bredesen, Brock says several other state department officials work together to attract corporate clients. For example, Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development, leads the governor’s Jobs Cabinet.

“The Jobs Cabinet includes state officials from workforce development, revenue, transportation, tourism and other departments who all work as a team to attract companies,” Brock says. “Whether a company is looking at Memphis, Chattanooga, Nashville, Knoxville or any other Tennessee city, the state provides whatever information it can to help lure these companies here.”

Story by Kevin Litwin
Photo by Brian McCord

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