[quote name='LorenzoGatti' timestamp='1357293454' post='5017407']
To me, a "single settlement" supporting a "squad" suggests a very specific setting and premise: skirmishes between little city-states (presumably isolated, self-sufficient colonies) which can field a militia of a handful of people with limited-budget equipment.
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I remember playing some other City Building games, where you could send troops (no actual battle control, more just time delay and reports) and was really annoyed, when I had spent a week building up my little city, with an army of 300, when someone who had paid a few bucks and been part of a Guild, attacked and decimated my forces with his of 7000 strong. Needless to say, I stopped playing that game, because the powerful dominate, and there are no balance checks. I wanted to leave the cities them selves safe, while only risking the armed forces. I.e. You can only lose those things you send out to battle, and it will be more rare if at all, that you lose things in your city.
However, I'm not completely apposed to this either. But I need to figure out how to do it well. Perhaps your first city is safely protected on your home world. Perhaps once you get past a certain point in your development, you are offered the ability to start a colony on a planet not fully owned yet (Still having battle plague it.) There is a risk that your city could be attacked.
I do however like the idea of insurance, where the cities value is insured by the government, and if you lose it, the government sets you up somewhere else with a lot of money and immediate availability of the same technology level. This would account for natural disasters such as Asteroids, Battle damage or 'oops' a server crashed, I.e. a planet blew up/got sucked into a black hole.