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guest2457533 | 7 years ago

Ok, so bad for everyone involved. So what the takeaway here? How do you protect yourself as a small business owner from this type of risk?

discuss

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sorokod|7 years ago

Start by naming and shaming. Its not much but there you go:

* CEO James Beriker

* investors Sherpa Capital and Menlo Ventures

mikepurvis|7 years ago

It's probably tricky for a business like a bakery because your orders would vary so much in size, so you'd have to have different tiers depending on the risk being borne by the business.

Like, $50 birthday cake? Pay with a credit card when you pick it up. $15,000 in pies next week? Here's a contract that stipulates the due date and what the penalties are, and names the collections agency which will come after you for the outstanding amount and any applicable penalties.

nanyt0618|7 years ago

Probably get a lot more aggressive on your accounts receivables demands. Also, is this type of behavior typical of VC's? I have to assume a lot of people would just have written a check to pay vendors so this sort of bad PR wouldn't be coming up as it isn't that much money for a VC. Unfortunately it seems like a few bad apples here are really spoiling it for everyone.