Comment Re:Money first (Score 2) 144
When the customer starts changing the contract, the proper answer is always "No". It's tempting to think that they can only change their minds once. They can change their minds over and over until you get driven out of business, especially if they think they can buy your product directly from the manufacturer, which is now a local company. If your only contribution is capital and an idea, you've made yourself irrelevant once the product hits the production stage. Especially if the buyer and the manufacturer are in the same place, while you are on the other side of the world. This is something anyone could have told them, if they'd bothered to ask around. It's not like this sort of thing never happens, in China it's considered fairly common.
They would have been much better off doing the production and development locally, where they can have constant dialogue with a manufacturer that they trust. Preferably because someone on their team had worked with them before. It would then be much easier for them to say "No" to a changed contract, and sell their product directly to their targets, either to private schools in India or to other places worldwide.