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Gov't Funded Electric Car Company Goes Out of Business
thecarchik writes "Consider yesterday's collapse of electric car company Green Vehicles an object lesson in why it's a bad idea for cities to invest in the risky business of start-up car companies — perhaps especially start-up electric car companies. Even such companies with a viable product have seen their fair share of financial troubles, but Green Vehicles did not even have a product to sell off at a fire sale. The city of Salinas, California learned that lesson as Green Vehicles shut its doors, costing the city more than $500,000."
So many people don't understand the amount of work that's involved. Any class in entrepreneurship will push that starting a business takes many long hours, with almost no days off, and you should expect to lose money the first few years.
After seeing a promise of $700,000 in tax revenue a year, I sincerely hope the business plan didn't state that was in the first year. You ALWAYS plan for losses in the first couple of years (at least that's what I was taught.) That should be a sign to anyone investing in a start up that things won't end well.
The company website said they have been making cars. So that says they likely operated on a job order basis (website does mention targeting companies and government.)
*note*
Their flash based website has some very annoying sounds on mouse over (designer should be drawn and quartered for such.)
http://www.greenvehicles.com/
Paid back TARP $$ and then took Federal loans at 0% interest with largely no strings on how to spend it
No sig for you!!