> I've done both of those. There is an alternate reality where the friend has been looking for people to make this thing fast and cheap, and is now sitting on a pile of these things that he can't sell at a price point that will break even, much less make a profit, with an order of magnitude more money than he is comfortable losing sunk into them.
Been there, done that.
"Customers" that love the product, at the price point of the raw materials.
Charges that come at you from nowhere because you didn't hire an import agent that knows widget X has anti-dumping duties attached to it for the next six months.
Warehouses that look good until it rains and then your whole stock is ruined. This one was actually the best thing that could happen, because between the insurance and accounting the business finally broke even and I walked away from it.
Hardware is different to software. It's all downside all the way. The only thing I learned is that you should do the most pessimistic accounting you possibly can for sales and manufacture and then divide the first by 10 and multiple the second by 10 and you will be right for what will happen in the first year.
Been there, done that.
"Customers" that love the product, at the price point of the raw materials.
Charges that come at you from nowhere because you didn't hire an import agent that knows widget X has anti-dumping duties attached to it for the next six months.
Warehouses that look good until it rains and then your whole stock is ruined. This one was actually the best thing that could happen, because between the insurance and accounting the business finally broke even and I walked away from it.
Hardware is different to software. It's all downside all the way. The only thing I learned is that you should do the most pessimistic accounting you possibly can for sales and manufacture and then divide the first by 10 and multiple the second by 10 and you will be right for what will happen in the first year.