Chuck Mead wrote:
[snip]
> When a company buys a car they pay for it before they drive it off the lot. That
> may not be an apt comparison but it's just about as good as I can make it. We
> have a market for a product... they will buy it or they won't get it (and the
> cool part is they want it so they'll pay!).
>
> > The real problem, as we're
> > seeing now in the test development arena, is generating cash flow.
>
Ok, not to detract from the idea what-so-ever, but I wanted to clarify
my position on the cash flow associated with branching into this area.
I agree that we require vendors to pay up front for our seal of
approval, but even then there is a delay associated with clearing things
out of their accounts payable, and then clearing it through our accounts
receivable. Unless we tell our vendors "no work until your check
clears," then we're going to have to essentially float a loan until
their payment makes it through the system. In any case, we're still
going to have to marshall our resources as soon as we hear that a vendor
is contracting for this service, and that means cash outflow on our
part. That cash has got to come from somewhere; that's the point I was
trying to make.
As a side note, I like this idea but someone needs to play DA. (devil's
advocate) The issues I'm raising are _REAL_ but not insurmountable; we
just need to spend some time thinking about them.
Jared
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