DEVELOPMENT AND PRODUCTION TOOLS
The tools needed to support hardware manufacturing or software development are part of the information management system and can present a major cost risk for an investor if the expense hasn’t been included as a cost of production (this is an ideal place to watch the BS Quotient!). “Oh sure, we built the prototypes, but we need high-speed machines to support those production volumes.”
It’s important to understand what type of tool automation will be required to achieve the projected revenue. These costs could be a significant budget item, and they could mean the difference between profitability and failure for some businesses. Tooling costs for plastic parts such as cases can easily run into the hundreds of thousands ...
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