Product Based Companies – Complicating the Already Complicated
Upon starting your first business, as an entrepreneur, you should shy away from the prospect of starting any product-based company regardless of how lucrative you may perceive it to be.
There are a few reasons behind this logic and they include, but are not limited to:
- Product-based companies are risky. The business owner is not in as flexible of a position as if he or she owns a service-based company. Any slight change in the marketplace for the product-based owner can leave them with a vast amount of useless inventory and negligible or even no receivables to fund the warehousing and repayment on that inventory.
- Opening up an item based company requires continuous management of myriad parties: the manufacturer, the logistics vendors controlling shipping and transportation, or freight forwarding, at the same time because of the distributor. For the very first time entrepreneur, this could prove quite daunting, as young