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Chapter 8: Global Sourcing and Startup Funding

When You Come to a Fork in the Road, Take It
From: Fire Up Your Startup and Keep It Up
By: Daren Otten

Daren has worked extensively, both domestically and abroad, in manufacturing, engineering and project management. Topics include project management; global sourcing; startups and raising money (government, angel and VC); startup success and startup failure; personal liability and bankruptcy.

Chapter 8 Excerpt:

“For most companies with 30 day terms, payment for these goods would be due about the time the products are received, once again forcing an outlay of cash without the requisite inflow. Many foreign manufacturers are willing to negotiate on these terms, providing 60-90 day terms, which can hopefully help balance cash flow a bit better for the startup. It does not hurt to ask all potential contract manufacturers, both domestic and abroad, about extended terms when selecting and qualifying a vendor. Daren found many Asian suppliers more flexible regarding finance terms.