[sdiy] Pitfalls of the synth 'small business'

[limor]

"Rule #3: Cash flow is *KING*.

Cash flow is what kills off most "hobby-to-business" ventures. Your suppliers
want to be paid *before you can ship*. If you then try to get money up front
(like "pay me 1/2 now"), expect many hostile emails because human nature is that
once you have *some* money, you are under more pressure (and all of it negative)
to ship. Even though you've been in business 8 years (cough), people act
*COMPLETELY DIFFERENTLY* if you have more than $10 of their $$$ versus just a
order in hand. The attitude is: You have MY money, I want MY STUFF!!! Ask Brice
about PSIM and Cynthia at Cyndustries about this. Personally, I'll never do this
again."

I'll amend this by saying "Never take money unless you're going to
ship it within a week & you have the stock"
And never take a promise for payment." Virtually nobody who 'promises
to pay you in a month or two so just hold onto it' will do so. If
they're pulling it on you, they're pulling it on their landlord.

Rule #6: Deduct your life
Read a Nolo book for more details on how you can make your life not
suck by deducting just about everything you buy.

Rule #7: If you're planning a business you're probably screwed
Start out in your spare time, and let the business grow as your
customer base increases

   limor