dutky's Journal: Hacker's Handheld, Part VII

I've gotten a lot of really good advice from friends, both about the project and about the prospective business concerns surrounding it. Here is an ad-hoc redux:

• Never borrow money if you can help it. Borrowing money on a business venture like this is a great way to lose not only your business, but your house, car and life's savings. If the business doesn't work out, or doesn't work out as rapidly as you planned, you are much better off not having to pay off thousands of dollars in short-term loans.
• Get good legal advice: there are all sorts of things you will need to know of a legal and financial nature. A good tax attorney will be worth every penny of their fee. (I haven't consulted an attorney, yet, but I mean to in the near future).
• Incorporate, but not till you are close to bringing is money. It costs a fair amount of money just to maintain the corporation, but you are better off if the corporation can take the heat for liability, rather than lose your house and personall savings. I was told to incorporate about 3 months before you expect money to start coming in. I also plan on incorporating before signing any long-term contracts.
• Put together a business plan: know your marginal costs, overhead costs, and minimal sales levels to support operations. (I haven't really done this, either, but I have a few back-of-the-envelope approximations that are encouraging)
• Research: the Small Business Administration (assuming you are in the U.S.A) is a great source for all kinds of information and services. Your home state probably has similar resources. Go to your local library, search the web, ask friends, relatives and aquaintances. Get as much information as you can.

Anyhow, that's what I can think of at the moment. I'm probably forgetting a number of things, but this sort of advice has prevented me from doing a number of stupid things or getting permanently distracted by trivialities (or, at least, important issues that don't need to be considered at this time).

Also, I have to say that I have a bunch of really great friends. Not all of them have been supportive of my ideas, but they have all given me good advice. I try to take all the advice to heart, whether I like it or not, whether I agree with it or not.